Reso 23-142 HCEB Lease & Agreement for 555 Lewelling

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WHEREAS, the amount of the Operating Subsidy Agreement for the first year will not exceed $2.2 million, with a total amount not to exceed $9.6 million over the 5-year term of the agreement, subject to the annual appropriation by the City Council; and WHEREAS, the City Council desires to approve the Ground Lease and Operating Subsidy Agreement and authorize the City Manager to negotiate the final detailed terms of such agreements. NOW THEREFORE, the City Council of the City of San Leandro does RESOLVE that: 1. The above Recitals are true, correct, and made a part of this Resolution; and 2. The City Council approves the Ground Lease with HCEB for the lease of 555 Lewelling for a term of 5 years, with the possibility of up to 5 one-year extensions, with an annual rent of $1 per year, and a rehabilitation grant in an amount not to exceed $5.2 million; and 3. The City Council approves the Operating Subsidy Agreement with HCEB for a total amount not to exceed $9.6 million over the 5-year term of the agreement, subject to the annual appropriation by the City Council; and 4. The City Manager is authorized to execute the Ground Lease with Rehabilitation Grant and Operating Subsidy Agreement in substantially the form on file with the City Clerk, and to negotiate edits and changes to both agreements, subject to approval as to form by the City Attorney; and 5. The City Manager is authorized and directed to take all other actions necessary to carry out the purpose and intent of this resolution. Introduced by Councilmember Reynes and passed and adopted this 16th day of October 2023, by the following vote: AYES: Councilmembers Aguilar, Azevedo, Ballew, Bowen, Reynes, Simon, and Mayor González (7) NOES: None (0) ABSENT: None (0) ATTEST: Kelly B. Clancy, CMC City Clerk