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HomeMy WebLinkAboutReso 1994-17665 RESOLUTION NO. 17665 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AMENDED AND RESTATED GROUND LEASE AND LEASE RIDER AND ESTOPPEL AGREEMENT IN CONNECTION WITH AGENCY LOAN MODIFICATION WITH PARK VILLAGE APARTMENTS AND AUTHORIZING CITY MANAGER TO EXECUTE SAME WHEREAS, Civic Center Barrio Housing Corporation ("CCBHC"), a non-profit community-based organization with a successful track record in building and rehabilitating and operating housing for low-income families and developing tenant management associations; and, WHEREAS, on or about June 1, 1991, the Agency approved a $350,000 loan ("Agency Loan") to CCBHC to purchase property at 1250 Third Avenue, on which CCBHC was to develop a 28 unit apartment complex for low-income families (the "Project"); and, WHEREAS, on or about March 30, 1992, Park Village Limited Partnership ("Park Village"), an affiliate of CCBHC, assumed all CCBHC's obligations under the Agency Loan; and, WHEREAS, on or about February 4, 1993, Park Village completed the affordable housing element of the Project; and on or about April 12, 1994, Park Village completed the child care facility element of the Project; and, WHEREAS, commitments for the permanent financing of the Project have been obtained from California Community Reinvestment Corporation ("CCRC") and from the State of California (the "State"); and, WHEREAS, a modification of the Agency Loan, and subordination of the Agency affordability covenants with respect to the project are needed to facilitate the permanent financing and permit the continued successful operation of the Project; and, WHEREAS, Agency staff has negotiated a Loan Modification Agreement, known as document number C094-211, Subordination Agreement, known as document number C094- 212, copies of which are on file in the office of the City Clerk, with the State and CCRC, respectively, and associated documents in connection with the proposed permanent financing; and, WHEREAS, in connection with the permanent financing, the State and CCRC are requiring certain amendments to the existing grund lease between the City and Park Village with respect to 600 sq. ft. of property adjacent to Lauderbach Park used as the Project childcare facility playground. WHEREAS, the required lease amendments are designed to (1) clarify the legal description of the leased property, (2) extend the term of the lease from 30 to 55 years to I!'T I' Resolution No. 17665 Page 2 accommodate the State's regulatory agreement and (3) protect the State's and CCRC's rights to take over the lease from Park Village in the event that Park Village defaults under its loans. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby, find, order, determine and resolve that: 1. The recitals and findings set forth above are true and correct and incorporated herein by this reference. 2. The amended ground lease, known as document number C094-213, and Lease Rider, known as document number C094-214, and Estoppel Agreement, known as document number C094-215, in the form approved by the City Council and copies of which are on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute teh above-referenced documents in final forms approved by the City Attorney. Resolution No. 17665 Page 3 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 20th day of September, 1994, by the following vote: YES: Councilmembers: Fox, Horton, Moore, Rindone, Nader NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: Be~v~erl'~y~. Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17665 was duly passed, approved, and adopted by the City Council at a joint City Council/Redevelopment Agency meeting held on the 20th day of September, 1994. Executed this 20th day of September, 1994. Beverly ~. Authelet, City Clerk !! I I'