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<br />IN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN LEANDRO <br /> <br />RESOLUTION NO. 2006-002 RDA <br /> <br />(1485/3059) <br /> <br />RESOLUTION OF THE REDEVELOPMENT AGENCY <br />OF THE CITY OF SAN LEANDRO AUTHORIZING A PREDEVELOPMENT <br />LOAN WITH MERCY HOUSING CALIFORNIA XXXIII, AND AUTHORIZING <br />EXECUTION OF DOCUMENTS IN CONNECTION WITH SUCH FINANCING <br /> <br />WHEREAS, pursuant to an Exclusive Negotiating Rights Agreement authorized <br />by Resolution adopted in September 2005, Agency staff are negotiating the terms of a <br />disposition and development agreement, a ground lease, and loan documents pursuant to <br />which (A) Mercy Housing California XXXIII, a California Limited Partnership <br />("Developer") (an affiliate of Mercy Housing California, a California nonprofit public <br />benefit corporation) would (i) lease the property located at 2398 East 14th Street (the <br />"Property"), and (ii) rehabilitate the motel currently located on the Property as a 68-unit <br />multi-family housing development affordable to very low- and extremely low-income <br />households (the "Project"), and (B) the Agency would provide a construction and <br />permanent loan and an operating subsidy for the Project; <br /> <br />WHEREAS, Developer intends to apply for an allocation of low-income housing <br />tax credits and other sources of financing to complete construction of the Project; <br /> <br />WHEREAS, Developer has requested that the Agency provide a predevelopment <br />loan in an amount up to Seven Hundred Twenty-Seven Thousand Dollars ($727,000) <br />("Predevelopment Loan") so that Developer may fund the completion of architectural <br />plans, engineering studies, site inspections, and other predevelopment activities, as more <br />fully described in the Predevelopment Loan Agreement, prior to commencement of the <br />ground lease and the closing of Developer's construction financing; <br /> <br />WHEREAS, Developer and Agency staffhave negotiated the terms and <br />conditions of a Pre development Loan Agreement addressing use and disbursement of the <br />Predevelopment Loan proceeds (the "Predevelopment Loan Agreement"), a <br />Predevelopment Promissory Note (the "Predevelopment Note") which provides for <br />repayment of the Predevelopment Loan upon commencement ofthe ground lease and the <br />funding of Developer's construction financing, and an Assignment of Agreements, Plans <br />and Specifications (the "Assignment Agreement") pursuant to which the Agency will be <br />provided a security interest in the plans, specifications, studies and other work product <br />prepared for the Project and financed by the Predevelopment Loan. <br /> <br />829594.2 <br />