Title
Adopt a Resolution Approving a Ground Lease with Rehabilitation Grant and Operating Subsidy Agreement with Housing Consortium of the East Bay, Inc., to Develop and Operate 555 Lewelling as an Interim Homeless Shelter and Navigation Center
Staffreport
COUNCIL PRIORITY
* Housing and Homelessness
* Race and Equity Initiatives
SUMMARY
The City is partnering with Housing Consortium of the East Bay, Inc., (HCEB), which will serve as developer and property manager of the proposed interim homeless shelter/navigation center, while the City will remain the property owner. The City jointly applied with HCEB for State Project HomeKey Round 3 in early June 2023 to acquire, develop and operate the proposed Lewelling Interim Housing at 555 Lewelling Boulevard as an interim homeless shelter and navigation center (the Nimitz Motel is currently located on the property).
RECOMMENDATIONS
Staff recommends City Council adopt the Resolution approving a ground lease with rehabilitation grant and operating subsidy agreement with HCEB to develop and operate 555 Lewelling as an interim shelter and navigation center.
BACKGROUND/ANALYSIS
The City is entering into both a ground lease and operating subsidy agreement with HCEB. The ground lease memorializes the property ownership role of the City and the role of HCEB as the developer and property manager. The operating subsidy agreement establishes the City's grant funding to HCEB for the proposed renovations and annual operating/services for the shelter/navigation center. As property manager, HCEB will contract directly with the local homeless and domestic violence services nonprofit, Cornerstone Community Development Corporation/ Building Futures to be the on-site supportive services provider, along with any other as needed nonprofit service providers.
Ground Lease
The ground lease establishes the rental period, maintenance conditions, and rehabilitation grant funding from the City to HCEB. Key terms of the ground lease...
Click here for full text