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,.' . . , . . . Council Member Claire said the Redwood City Tribune's editorial "took a big shot at us... because they felt (the bond issuance) was some sort of weird deal, and the citizens of Redwood City were getting short changed. It escaped their attention that this is a done - deal. This property has sold. It is a question of how to save our taxpayers some money. We would lose the property tax from that property if they found their financing somewhere else. If they went to the public sector and financed these bonds as stated this evening, the financing rate would be around 9%. Most of us who are in business know that that kind of financing rate is going to be passed on to the residents of that facility. So not only have we saved the citizens of our community the property tax about $50,000 per year, in my opinion, we probably have helped the residents of Woodside Terrace in their rentals in the future, because the company that is taking this over, will be paying less interest. So contrary to the two editorials that I read, I think this is a very good situation for the City and the citizens of our community, and for the residents of Woodside Terrace." Council Member Claire said that one proprietor of a senior center told him he was concerned that Woodside's rates would be lower than his. Council Member Hartnett said, "It's important to note that the additional revenue to the City beyond that which we are taking in lieu of real property taxes.... will (allow the City) to preserve our real property tax position... The additional revenues beyond that, that have been recommended as being designated to low income housing opportunities for seniors is an extremely valuable part of this deal for our entire community. I greatly welcome the participation of the Housing and Human Concerns Committee in being aggressive at the outset and calling to our attention our failure to fully consider this as such an opportunity, and I know there are reasons why the Committee wasn't brought into the loop earlier, but I - think we have already benefited by their current involvement. I know that down the line they will give us some very good recommendations on how to not only spend that money, but how to leverage that money for some good opportunities." Council Member Leipzig said, "I didn't like the deal when it first came to us, and I don't like the deal tonight. We have no control, contrary to wishes or beliefs from some Members that spoke, in this deal over the rents that can be charged, the addition of an Alzheimer's wing or not, the future sale of the building, the business. We don't have control. I was very upset as some of my colleagues, at least they were quoted in the paper, being upset when it was disclosed of the sale, just several days after our initial vote. If I did that in my business and went to the bank and said, you know, we've kind of changed the buyer and the seller a little bit, it wouldn't fly. I don't think this is a good deal for the taxpayers of Redwood City. The bond counsel, the consultants, they are making a lot of money on this deal. The people involved selling it are making a lot of money. We have no business in the finance business, whether it is senior buildings or not.... I didn't like it before and I like it even less now." ITERATION OF MOTION MIS: CLAIREIHARTNETT. TITLE READ. - REGULAR COUNCIL MEETING MINUTE BOOK NO. 56 APRIL 27, 1998 MINUTES Page No. 429 PAGE 26