DATE: August 18, 2026
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
Title
Adopt Resolutions Authorizing the City Manager to Negotiate and Execute 1) An Amendment to the Loan to the Hayward Economic Development Corporation and 2) An Agreement for Staffing Services Between the Two Agencies
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RECOMMENDATION
Recommendation
That the City Council adopts two resolutions (Attachment II and III):
1. Authorizing the City Manager to negotiate and execute an amendment to the repayment terms of the loan from the City to the Hayward Economic Development Corporation (HEDC), and
2. Authorizing the City Manager to negotiate and execute an agreement with the HEDC for staffing services provided by the City to the HEDC.
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SUMMARY
The HEDC finished two years of operating actuals at the end of July, 2026. Based on these actuals, the Corporation determined that it is unable to make required loan payments to the City in accordance with the existing loan agreement. Because of this, staff recommends that the City Council adopt the attached resolution (Attachment II) authorizing the City Manager to amend the loan repayment to terms that are more aligned with the operational reality of the HEDC. In addition, staff recommends that the City Council adopt the attached resolution (Attachment III) authorizing the City Manager to negotiate and execute a staffing agreement with the HEDC to reimburse the City for staff services provided in FY 2025, FY 2026, and for each fiscal year moving forward.
At the same time, staff are actively implementing steps to increase operating revenue from the property and preparing for possible disposition, including declaring the property as surplus.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution Loan Amendment
Attachment III Resolution Staffing Agreement
Attachment IV Loan Amendment Terms