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Councilmember Benavides indicated that Request for Qualifications process discussed at Development and Transportation Council Committee with proposal review at the staff level; divided between social and business needs of the City and the two proposal submitted that would provide different services; asked about services to be provided by Taller San Jose. Councilmember Amezcua supports staff's recommendation. Councilmember Sarmiento thanked applicants for proposal, concerned with retrofit cost and investment needed to bring project forward; sees as public asset and return on investment. Representatives from St. Joseph and Taller San Jose responded that partnership with St. Joseph Health will allow them to leverage funds needed; fundraising has begun with $10 million pledge after tonight's approval; committed to project. Project would bring jobs to the City, wellness and fitness facility will directly impact the community; Wellness Center would be open to the public; restored to original purpose; and will request parking variance by the City as well as promote public transportation; would be willing to make exterior improvements within 120 days of approval. Councilmember Reyna, noted that YMCA develops skills and work by Taller San Jose has also provided services; supports project and serve our community. Representatives responded that Taller San Jose currently services 350 individuals, expect double or triple within short timeframe Mayor Pro Tern Tinajero asked about the process to consider non - profit organization. City Manager Cavazos noted that historic condition with be restored, parking accessible, and job creations were elements considered in recommending proposal. Mayor Pulido asked Mr. Harrah to describe the exterior renovations of his proposal. Would include broke glass, paint building, add lighting feature; expect $13 million in improvements; except exterior improvements to be completed within 180 days; his proposal also includes gym facility and open to the public. Offered $1 million to purchase building. St. Joseph Health representative indicated that exterior improvements will depend on historic restoration plans submitted; may City Attorney - point of clarification that reimbursement agreement will allow for hard money; exclusive agreement will come back to the city Council for approval; authority to negotiate is sought today; Taller San Jose could lease current facility out if they relocate to YMCA. City Manager clarified that both representatives were contacts and treated the same. CITY COUNCIL MINUTES 1 o -1 2 MARCH 18, 2014