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purchase, the 62, whether they are all allocated for single-house units, are going to be well
<br /> beyond the price point for everyday working families. So that's my comment; that's what it
<br /> sounds like. And then my question is, what assurances do you have in place to finance, properly
<br /> and adequately finance the project in its totality?
<br /> M. MANSL Yeah, I don't have, I can't stand before you and say we have assurances for
<br /> financing, but we do have a lot of interested lenders that we've been talking to that will have
<br /> issued us term sheets and would fund upon this extension being granted. So take that for what
<br /> it's worth.
<br /> PAISHON-DUARTE: Thank you.
<br /> VITOUSEK: Commissioner Knowles.
<br /> KNOWLES: Yeah, this is a little bit outside of the realm of the affordable housing discussion,
<br /> but I did have a question with regard to the, one of the conditions at issue here, which is the
<br /> drainage and wanting to amend the condition to allow for a bond or a surety, and I just wanted to
<br /> know, kind of following up on Commissioner Paishon-Duarte's question, what is the likelihood
<br /> of you getting a successful bond or surety on the drainage piece? I mean, because to me it seems
<br /> like that's kind of just kicking the can; you'll see if you can get a loan to do it instead of pay for
<br /> it, pay for the work, the infrastructure work, yourself. So I'm just curious about your confidence
<br /> with respect to that.
<br /> ARAI: Well, maybe I'll try to answer. Right now that is a difficult question to answer because
<br /> there is no confidence, because as it stands right now, the time period to complete the
<br /> subdivision has lapsed, so any ability to go and talk to find financing companies to get the
<br /> necessary bonds and sureties to support the construction of the subdivision, is clearly dependent
<br /> on getting the necessary approvals on the entitlements like the Change of Zone and the SMA
<br /> permits. The lenders need assurance that this project will go forward before they are willing to
<br /> even finance it. So it's sort of like a chicken-egg kind of thing, but it's definitely, the time
<br /> extensions are essential for them to even be able to approach these financing companies and
<br /> explore the opportunities to get the bonds. And I should note that the drainage improvements are
<br /> all integral with all the other subdivision related improvements, the roadway systems in
<br /> particular, because the roadways are a hard surface, they capture the water, they put it into dry
<br /> wells, and it all gets taken care of in one complete system, and that is why the amendment
<br /> request; it's difficult to build the drainage system first up front when the other improvements are
<br /> not being constructed concurrently. I hope that makes some sense.
<br /> FUKE: Yeah, I'd like to kind of like add to that, Commissioner Knowles, you know, this
<br /> specifically ties into how property gets subdivided, and the subdivision process requires that
<br /> before you can sell the land and the property becomes, you know, you can have separate TMK
<br /> numbers assigned to it, you have to get final subdivision approval, which is issued by the
<br /> Planning Director. Now, before final approval can be granted, all of the required infrastructure,
<br /> your roadway, your drainage, your waterline, so on and so forth, they all have to be in place,
<br /> inspected by the County and said okay fine, and then they'll grant you final approval, and off
<br /> you go, you know, selling the lot. The code, however, provides that if you provide a bond plus,
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<br /> EXHIBIT D
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