Attachment 1ATTACHMENT 1
RESOLUTION 2017-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
FORGIVING DEBT PURSUANT TO AN AGREEMENT TO CANCEL DEBT IN EXCHANGE
FOR SOLE NON-PROFIT OWNERSHIP
‘
WHEREAS, on December 31, 1990, the Town entered into an Agreement with Mid-
Peninsula Housing Coalition (MPHC) and West Valley Open Doors (WVOD) to provide a 64-unit
low income housing development.
WHEREAS, on November 11, 1991, the Town executed a First Amendment to the
Original Agreement with MPHC and WVOD to substitute the original parcel for development on
Knowles Drive with a parcel on West Parr Avenue.
WHEREAS, on March 2, 1992, the Town executed a Second Amendment to the Original
Agreement with MPHC and WVOD to allow MPHC to assign its rights and obligations under the
Original Agreement, as amended by the First Amendment, to Open Doors Associates (ODA).
WHEREAS, the Second Amendment included terms and conditions requiring the Town
to loan $339,250.00 to ODA to pay development fees rather than waiving the development fees
for the project.
WHEREAS, on April 21, 1992, the Town executed an Agreement to Cancel Debt in
Exchange for Sole Non-Profit Ownership with Mid-Peninsula Open Doors Corporation (MPODC).
WHEREAS, in 1993, pursuant to these agreements, 64 units of low income housing were
completed on the property located at 630 W. Parr Avenue.
Draft Resolution to be
modified by Town
Council deliberations
and direction.
ATTACHMENT 10
WHEREAS, the fees incurred as a result of the development totaled $269,612.00. CDBG
funds in the amount of $26,191.20 were used to pay some of the fees and the resulting fees
paid by Town, pursuant to the agreements, was $243,420.80.
WHEREAS, the Law Offices of Gubb & Barshay LLP on behalf of MPODC and MPHC is
requesting that the Town forgive the debt pursuant to the Agreement to Cancel Debt in
Exchange for Sole Non-profit Ownership.
WHEREAS, in 2011, a buyout of the for-profit tax credit investor was completed and the
tax credit investor transferred all of its interest in the development to an affiliate of MHPC.
WHEREAS, this action complies with the requirements of the Agreement to Cancel Debt
in Exchange for Sole Non-Profit Ownership for forgiveness of the debt.
WHEREAS, Council finds that the 2011 buyout of the for-profit tax credit investor meets
the required terms of the Agreement to Cancel Debt in Exchange for Sole Non-Profit Ownership
for forgiveness of the debt.
NOW, THEREFORE, BE IT RESOLVED:
1. The debt is forgiven pursuant to the terms of the Agreement to Cancel Debt in
Exchange for Sole Non-Profit Ownership.
2. The decision constitutes a final administrative decision pursuant to Code of Civil
Procedure section 1094.6 as adopted by section 1.10.085 of the Town Code of the Town of Los
Gatos. Any application for judicial relief from this decision must be sought within the time
limits and pursuant to the procedures established by Code of Civil Procedure section 1094.6, or
such shorter time as required by state and federal Law.
ATTACHMENT 10
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 21st day of February, 2017, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
N:\SHARE\COUNCIL REPORTS\2017\02-21-17\Mid-Peninsula Loan\Attachment 1 -Draft Resolution V2.docx
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