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. . ~ . . - In response to Council Member Leipzig's questions, Director Ponty said this newly - formed non-profit group is a subsidiary of the Age Institute of Pennsylvania, and although the Age Institute has a track record, the new non-profit does not have any current operations. Director Ponty answered further that the 20% goal of units set aside for low income will be reached by not renting out units as they become vacant, and people have not been asked to move out. He said after the renovation is completed "there will be 180 independent living units, 36 of which or 20% will be set aside for residents of very low income." Council Member Leipzig referred to a February 4, 1998, Wall Street Journal article on the State probing bond sales in twelve cities and noted similarities between those bond sales and the proposed bond sale before the Council. He suggested that the Council delay action until City staff and Mr. Euphrat's staff respond to the article. Council Member Leipzig said this type of bond sale had not been done before in Redwood City and the Council had not been provided with examples ITom other cities. MEMO 2/10/98 Director Ponty advised that Mr. Euphrat would address that issue, but other agencies had issued this type of bond issue and staff would provide those examples to Council. He said it was not a unique transaction. At 11:30 p.m., MIS: CLAIREIHARTNETT TO EXTEND THE MEETING TO 11:45 P.M. - CARRIED BY THE FOLLOWING VOICE VOTE: AYES: COUNCIL MEMBERS CLAIRE, HARTNETT, IRA, RUSKIN AND MAYOR HOWARD NOES: COUNCIL MEMBER LEIPZIG MINUTE ORDER NO. 98-051 Council Member Claire said the City had issued revenue bonds for the Port in 1986, and a "for-profit" apartment house in Redwood Shores as well. MEMO 2/10/98 Drew Bradley, Hillsdale Group, 1199 Howard, Burlingame, said the current occupancy in Woodside Terrace was 259 units of 274, and as residents move out their units have not been rented out, so they will be able to meet the 20% set aside. He said no one will be forced to move from the complex and no one will be made to move ITom their specific unit. He said rents are increased on the anniversary of the move-in date, and there is a substantial difference between the rents of someone moving in today than those who have lived there a longer period of time. Mr. Bradley said the residents had not been notified because the Council had not yet decided if the City would issue the bonds to allow this transaction to go forward. He said that if the Council declined to participate, then his group would have to exercise different options. Mr. Bradley said once the Council makes - that determination the residents will be notified. He said the below market rate units will REGULAR COUNCIL MEETING MINUTE BOOK NO. 56 FEBRUARY 9,1998 MINUTES Page No. 269 PAGE 27