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RESOLUTION of the City of San Leandro City Council to Approve a General Fund Loan of $455,107.36 and the Loan Agreement, Promissory Note, and a Deed of Trust on 2539 Grant Avenue, San Leandro to Secure the Loan, between the City and MTLG, LLC
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WHEREAS, MTLG, LLC, the "Borrower," owns real property located at 2539 Grant Avenue, San Leandro, CA 94579, APN 80G-910-15 (the "Property"). The Property is 204,732 square feet, flag shaped, and is zoned IG. It is improved with a +(-) 13,382 square foot building. A broker's opinion obtained by the City May 2018 provided a value of between $7,800,000 to $8,100,000; and
WHEREAS, on April 1, 2013, the City approved Halus' proposed wind energy conversion project and height variance ("Project") to be located on the Property. On May 8, 2013, interested persons ("Petitioners") filed a writ of mandate pursuant to the California Environmental Quality Act ("CEQA") in Alameda County Superior Court, Case No. RG13677840, alleging that the City, in its regulatory capacity, failed to comply with CEQA and CEQA Guidelines in approving the Project (the "Litigation"). On April 14, 2014, the Alameda County Superior Court entered judgment in favor of the Petitioners, and the court issued a writ of mandate to the City. Thereafter, the court awarded Petitioners' counsel attorneys' fees. The City and Halus appealed the award of attorneys' fees, but on January 12, 2018, the Court of Appeal upheld the trial court's award of attorneys' fees and awarded Petitioner attorneys' fees for the appeal action; and
WHEREAS, Halus agreed to pay all costs incurred by the City in defending approval of the Project and related litigation. The City paid $186,382.25 for appeal fees and $232,425.65 in trial court fees, and Borrower owes the City an additional $36,299.46 in other outstanding fees (collectively, "Litigation Costs"); and
WHEREAS, the City paid the Litigation Costs, and Borrower has a...
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