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RESOLUTION Authorizing the Execution of a Loan Agreement for Eight Hundred Thousand Dollars ($800,000) Between the City of San Leandro and BRIDGE Economic Development Corporation and Authorizing the Execution of a Promissory Note (To Fund The Construction Of Tenant Improvements For A City Mandated Child Care Center In Phase 1 Of The Marea Alta Affordable Housing Development)
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WHEREAS, Alameda Housing Associates, L.P., a California limited partnership (“Partnership”) has a leasehold interest in that certain real property located in the City of San Leandro, County of Alameda, on which it is constructing 115 affordable residential units, together with approximately 7,200 square feet of commercial space (“Apartment Project”); and
WHEREAS, the Partnership and BRIDGE Economic Development Corporation (“Borrower”) have entered into that certain Master Lease Agreement dated December 4, 2014 (“Master Lease”) for the approximately 7,200 square feet of commercial space (including 2,400 square feet for outdoor play area space) located at the Apartment Project (“Premises”); and
WHEREAS, Borrower has been working with Davis Street Community Center, Inc. or its affiliate (“Davis Street”) to operate the Premises as a child care center serving low and moderate income children and families (“Project”) pursuant to a sublease agreement to be entered into by Borrower and Davis Street (“Sublease”); and
WHEREAS, the City desires to provide a loan to Borrower in the amount of Eight Hundred Thousand Dollars ($800,000) (“Loan”) for construction costs related to the installation of the tenant improvements and the use of the Premises for a childcare center; and
WHEREAS, the Borrower will execute a promissory note (“Note”) to evidence the amount of the Loan; and
WHEREAS, the City Council can find that the Borrower has the necessary expertise, skill and ability to successfully construct the Project and the child care center improvements, and that the Project is in the City’s best interest and will materially contribute to the public health and welfare.
NOW THEREFORE, the City Council of the City of San Leandro does RESOLVE as follows:
1. That the above recitals are true and correct and a part of this Resolution.
2. The City Manager is authorized to execute the Loan Agreement, substantially in the form attached hereto as Exhibit A, as approved to form by the City Attorney, and such other documents and to take such other actions as necessary to carry out the intent of this Resolution.