REPORT TO COUNCIL
SUBJECT
Title
Approve Loan and Regulatory Agreements with MP Edwina Benner Associates, LP for a Loan of $7.43 Million in Housing Mitigation Funds and a Loan of $600,000 in HOME Funds for Edwina Benner Plaza Affordable Housing Development at 460 Persian Drive and Approve Budget Modification No. 31
Report
BACKGROUND
The Benner Plaza project was initiated in early 2015. The project consists of a new 66-unit affordable rental housing development at 460 Persian Drive in Sunnyvale. MidPen Housing Corp., a non-profit affordable housing developer, initially requested City assistance for this project in response to a Request for Proposals (RFP) for Housing Mitigation Funds (HMF) issued by the Housing Division in early 2015. MP Edwina Benner Associations, LP (the "Borrower") is an affiliate of MidPen and the owner of the project. MP 460 Persian LLC, a wholly controlled affiliate of MidPen Housing, is the non-profit managing general partner of the limited partnership. The project, named Edwina Benner Plaza in honor of Sunnyvale's first female mayor, will cost nearly $44,300,000 to develop, including approximately $7 million land cost.
Prior City Actions
On March 17, 2015, Council approved a conditional award of $5 million to MidPen to provide partial funding for the cost of acquiring the project site, located at 460 Persian Drive (RTC No. 15-0091).
On January 25, 2016, the Planning Commission approved a special development permit and adopted a mitigated negative declaration for the project (see Report to Planning Commission No. 15-0987 for detailed project description), which was the final approval of the planning permit and environmental review documents for the project.
On February 23, 2016 (RTC No. 15-0091), Council approved the terms for a $5 million bridge loan to the Borrower, to be converted to a 55-year permanent loan at the time of closing on the construction loan. This action provided the final loan commitment and approved the loan ter...
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