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II.Background The Affordable Housing Ordinance imposes an impact fee on all new office and R&D projects in the amount of $23.62/sq. ft. of development (as of February 1, 2022). Alternatively, non-residential developers may propose to mitigate the affordable housing impacts of their development through an alternative mitigation program, which may include the donation of land for the construction of affordable units pursuant to Sections 29.8 A and 29.8H of the Affordable Housing Ordinance. While not required by the Affordable Housing Ordinance, City officials and staff have expressed a strong preference for non-residential developers to pursue alternatives to paying the impact fee that result in the delivery of affordable housing units in concert with the commercial development. The City has determined that 10 affordable units per 100,000 sq. ft. of office space will mitigate the affordable housing impacts of commercial development in cases where the Impact Fee is not paid. In the case of the approved Lane Project, this equates to 25 units calculated as follows: 244,430 sf net new office divided by 100,000 sf = 2.44 units x 10 = 24.44 units rounded up to 25 units. On October 28, 2024 by Resolution No. 16257, the City Council approved Lane and Eden’s original Affordable Housing Plan (“Original Affordable Housing Plan”) proposing that the $5,773,437 affordable housing impact fee that otherwise would have been imposed on the Lane Project and payable to the City (“Impact Fee”) be satisfied by a donation of land which will allow the creation of 71 units of affordable housing (plus one on-site manager’s unit) at 847 Woodside Road, Redwood City (“Original Site”) which would be donated to, entitled, developed and operated by Eden and deed restricted for rental to qualifying low-income households for a period of 55 years. As explained in Section 2.2A of the Development Agreement, the appraised value of the Original Site was $9,360,000 which is $3,586,563 more than the Impact Fee that otherwise would have been imposed on the Lane Project and would result in “at least forty-six (46) more units than required under the Affordable Housing Ordinance.” III.Proposed Substitute Site Lane is proposing substitution of the Original Site with 705 Veterans Boulevard (“Substitute Site”) for several reasons, but primarily because without it, the Lane Project would not be economically feasible. Lane entered into contract to purchase the Original Site back in December 2022 when property values in Redwood City were at their peak. Soon after obtaining the project entitlements in October, 2024, it became apparent that the project would require significant cost cuts to attract the capital required to finance and build the project given the instability in the financing and investments markets. Specifically, it became clear that the total cost of acquiring the Original Site, ceasing its operations as a church/food distribution center, demolishing the existing building and redeveloping it for ATTY/RESO.0052/ CC RESO APPROVING SUBSTITUTE SITE AS AFFORDABLE HOUSING SITE (705 VETERANS)(1900 BROADWAY DA) - EXHIBIT 1 REV: 07-21-26 MI Page 2 of 53