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City of San Leandro <br />City Council <br />Meeting Date: October 16, 2023 <br />Agenda Number: 5.g. <br />Agenda Section: CONSENT CALENDAR <br />File Number: 23-394 <br />File Type: Staff Report <br />Adopt a Resolution Approving a Ground Lease with Rehabilitation Grant and Operating Subsidy <br />Agreement with Housing Consortium of the East Bay, Inc., to Develop and Operate 555 Lewelling as <br />an Interim Homeless Shelter and Navigation Center <br />COUNCIL PRIORITY <br />·Housing and Homelessness <br />·Race and Equity Initiatives <br />SUMMARY <br />The City is partnering with Housing Consortium of the East Bay, Inc., (HCEB), which will serve <br />as developer and property manager of the proposed interim homeless shelter/navigation <br />center, while the City will remain the property owner. The City jointly applied with HCEB for <br />State Project HomeKey Round 3 in early June 2023 to acquire, develop and operate the <br />proposed Lewelling Interim Housing at 555 Lewelling Boulevard as an interim homeless <br />shelter and navigation center (the Nimitz Motel is currently located on the property). <br />RECOMMENDATIONS <br />Staff recommends City Council adopt the Resolution approving a ground lease with <br />rehabilitation grant and operating subsidy agreement with HCEB to develop and operate 555 <br />Lewelling as an interim shelter and navigation center. <br />BACKGROUND/ANALYSIS <br />The City is entering into both a ground lease and operating subsidy agreement with HCEB. <br />The ground lease memorializes the property ownership role of the City and the role of HCEB <br />as the developer and property manager. The operating subsidy agreement establishes the <br />City’s grant funding to HCEB for the proposed renovations and annual operating/services for <br />the shelter/navigation center. As property manager, HCEB will contract directly with the local <br />homeless and domestic violence services nonprofit, Cornerstone Community Development <br />Corporation/ Building Futures to be the on-site supportive services provider, along with any <br />other as needed nonprofit service providers. <br />Ground Lease <br />The ground lease establishes the rental period, maintenance conditions, and rehabilitation <br />grant funding from the City to HCEB. Key terms of the ground lease include: <br />Page 1 City of San Leandro Printed on 12/21/2023