REPORT TO THE CITY COUNCIL
December 17, 2015
FROM: BRUCE RUDD, City Manager
BY: R. RENENA SMITH, Assistant City Manager
SUBJECT
Title
Approve Amended and Restated Agreement for Purchase Option and Right of Access between Cesar Chavez Foundation and the City of Fresno
Body
RECOMMENDATION
Staff recommends that City Council approve the Amended and Restated Agreement for Purchase Option and Right of Access ("Amended Agreement") between Cesar Chavez Foundation ("Developer") and the City of Fresno ("City") for certain real property in the City of Fresno, California commonly known as the 5100 block of E. Kings Canyon Road, Fresno, CA 93727 ("Property"). Additionally, Staff recommends the City Council authorize the City Manager or his designee to complete negotiations and execute the contract subject to approval as to form by the City Attorney.
EXECUTIVE SUMMARY
The City desires an Amended Agreement between Developer and the City. The Developer proposes to acquire the Property from the City in an "as is" condition and develop it privately to serve as a residential development for low-income residents consisting of 89 multi-family units and 46 units for senior households (the "Project"). The value of the Property ($904,000) shall constitute the City's financial assistance to the Developer for the Project to improve its competitive advantage for Low Income Housing Credit (LIHTC) equity investors, Greenhouse Gas Reduction ("Cap and Trade") Fund or other available public and private mortgage/debt financing (collectively "Tax Credit Financing"). The City's contribution of the Property is contingent upon Developer's award of Cap and Trade funding or a nine percent (9%) LIHTC award. Upon Developer's exercise of its option to acquire the Property and close escrow, Developer proposes to simultaneously convey a portion of the Property consisting of .89 acres, back to the City. Developer will develop and maintain the reconveyed property in...
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