Title
Staff Report for a Resolution Authorizing the City Manager to Negotiate and Execute an Amendment to the Loan Agreement (Amended Loan) with DSFRC in an Amount not to Exceed $1.5 million
Body
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate and execute an amendment to the loan agreement (Amended Loan) with DSFRC to extend the repayment of all remaining principal and interest from an initial loan maturity date of July 31, 2016 to a date not to exceed October 31, 2016, subject to approval as to form by the City Attorney. The loan is currently $1.5 million, with an interest rate that is not to exceed 4.5% per annum.
BACKGROUND
On June 16, 2014, the City Council approved a loan to DSFRC to fund the startup of a Federally Qualified Health Center (FQHC). $1.5 million was transferred from the City to DSFRC on August 1, 2014. The loan requires DSFRC to repay the City all remaining principal and interest no later than July 31, 2016. DSFRC has made only monthly interest payments since the loan was funded. DSFRC initially requested that the loan repayment term be extended to December 31, 2017; the City Manager and DSFRC ultimately agreed upon October 31, 2016, which the City Manager recommends that the City Council consider and approve as the amended loan maturity date.
Throughout its 26 year history, DSFRC has responded to the needs of San Leandro's most vulnerable families. By providing services that allow families to survive and flourish, DSFRC has become a key leader in guiding its client-families out of poverty and into productive lives. In 2014, DSFRC added a full service primary health care clinic to its service matrix that already includes child care, free acute medical care, mental health supportive services, family and domestic abuse counseling, and emergency food, clothing, utilities and housing assistance.
The Davis Street Primary Care Clinic (the PCC) provides medic...
Click here for full text