RES 2026001 - Laserfiche WebLink

RESOLUTION NO. 2026-001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON APPROVING A GROUND LEASE AMENDMENT FOR PROMENADE APARTMENTS WHEREAS, the City is the owner of a fee interest in a certain real property located at 5300 Case Avenue in Pleasanton, Alameda County, California which has been subdivided into two condominium parcels (collectively, the "Property"), as more particularly described and attached hereto as Exhibit A; and WHEREAS, City and Case Avenue Associates (Case) and Promenade Housing Associates (Promenade)entered into a Ground Lease dated as of April 1, 1996, pursuant to which City, as lessor leased the Property to Case and Promenade collectively as the Original Lessee; and WHEREAS, pursuant to the Ground Lease, the Property was developed with a 68-unit affordable multifamily rental residential project (the Affordable Project), and a 78-unit market-rate multifamily rental residential project (the Market Rate Project), collectively referred to as the "Project". During the initial term of the Ground Lease, Case is the owner of the Affordable Project, and Promenade is the owner of the Market Rate Project; and WHEREAS, the Original Lessee conveyed the Project and assigned all of its rights, title, and interests in the Ground Lease to OAHS Promenades LP, which transaction was consented to by the City in that certain Assignment and Assumption of Ground Lease, Consent to Transfer of Project and Grant of Option to Extend the Ground Lease Term approved by the City Council and subsequently effective August 27, 2024; and WHEREAS, OAHS Promenades LP has obtained a mortgage loan insured by the U.S. Department of Housing and Urban Development ("HUD") and made by Berkadia Commercial Mortgage LLC, a Delaware limited liability company ("Lender"), the proceeds of which would be used in part to invest in renovation and rehabilitation in the Affordable Project in advance of OAHS Promenades LP applying for and receiving tax credits in the future; and WHEREAS, as a condition of issuing the loan, HUD and Lender require the Ground Lease to include a fixed rent, extend the term, and attach HUD's Ground Lease Addendum; and WHEREAS, OAHS Promenades LP has requested amendments to the Ground Lease to satisfy HUD's and Lender's requirements to close the loan and facilitate Project rehabilitation. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING: SECTION 1. The approval of the Ground Lease Amendment is exempt from environmental review under the California Environmental Quality Act per Regulation §15061(b)(3) (common sense exemption). Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 2. Approves the Ground Lease Amendment, in the form attached hereto and incorporated herein as Exhibit B.