Deed - 15693-15739 East 14th St - File D-1383, Pending

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City of San Leandro Civic Center, 835 E. 14th Street San Leandro, California 94577 Office of the City Manager 510-577-3351 FAX 510-577-3340 January 25, 2005 Mr. Eric Hohmann Vice President, Acquisitions & Development Madison Marquette 660 Davis Street San Francisco, CA 94111 0OP/G SUBJ: Amendment No. 1-A to that Agreement for Reimbursement of Certain Costs Related to Appraisal of King Property dated August 4, 2004 Dear Eric: On August 4, 2004, we executed the "Agreement for Reimbursement of Certain Costs Related to Appraisal of King Property" (the "Agreement") relating to reimbursement of expenses incurred by the Redevelopment Agency to investigate the feasibility of acquiring certain property otherwise known as the "King Property" near Bayfair Center off of East 14th Street in San Leandro. As you are aware, the appraisal and legal investigation proved to be more complex than originally anticipated and the Agreement's original term was insufficient to allow for the completion of the appraisal phase. On October 15, 2004 we proposed Amendment No. 1 to the Agreement to extend the term to December 31, 2004 for a total reimbursable cost not to exceed $75,000 with the verbal commitment that we would not prepare a second invoice until such time as the appraisal is completed. Amendment No. 1 was not executed by Madison Marquette. However, we continued our investigation of acquiring the King property and completed the appraisal. At our meeting of January 4, 2005, we provided an overview of the appraisal and we agreed that the investigation should continue with the presentation of an offer based on the appraisal. Given that our original Agreement has expired, and that additional work is necessary to complete the offer and evaluate any response we may receive from the Kings, we now propose that the Agreement be extended to June 30, 2005. We further propose that the total reimbursable cost be increased to $100,000.