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HomeMy WebLinkAboutReso 1991-16000 RESOLUTION NO. 16000 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ESTOPPEL CERTIFICATE FOR TERRA NOVA ASSOCIATES FOR THE WOODCREST TERRA NOVA PROJECT LOCATED AT HIDDEN VISTA DRIVE AND RIDGEBACK ROAD The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, on September 5, 1989, the City of Chula Vista entered into a development agreement for the Woodcrest Tetra Nova development located at Hidden Vista Drive and Ridgeback Road; and WHEREAS, in exchange for the City vesting of land use and density (86 single family houses), the developer agreed to make $850,000 worth of improvements to an adjoining park, agreed to a time schedule for park construction and completion and agreed to make certain temporary tot lot improvements earlier; and WHEREAS, the park improvements are to be made by September 5, 1992 (3 years from the date of execution of the development agreement) and prior to occupancy of the first residential unit; and WHEREAS, Woodcrest is now securing construction loans and model loan financing from Continental Bank who has requested a clarification of certain portions of the agreement as follows: 1. A statement confirming the validity and enforceability of the Development Agreement. 2. An acknowledgemerit by the City that the Borrower is not in default under the Development Agreement. 3. An acknowledgement that prior to any amendment or modification to the agreement, the City will use its best efforts to notify the lender. 4. Consent by the City to the assignability of the developer's rights to the Lender under the Development Agreement should the borrower ever default under his collateral assignment. 5. A clarification that City approval of an assignment of the Development Agreement shall not be required as a result of a transfer due to a foreclosure sale. 6. An acknowledgement to date that the Borrower has performed in a satisfactory manner to comply with his obligations under the Development Agreement. Resolution No. 16000 Page 2 7. A clarification regarding the Lender Park Obligations as follows: a. If the City notifies the Borrower of a default in construction or completion of the Park, it shall also notify the Lender. b. Lender shall have 90 days to cure the default. c. If the default can only be obtained by taking possession of the property, the Lender shall have 90 days to do so. 8. Following possession and transfer of the site to the Lender, the Lender shall have 60 days to actually undertake continuation of their construction obligations. WHEREAS, Woodcrest Development has requested the City's approval of the above terms and certificate so that it can proceed to obtain construction financing from its Lender. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the Estoppel Certificate for Tetra Nova Associates for the Woodcrest Tetra Nova Project located at Hidden Vista Drive and Ridgeback Road, known as document number C091-006, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Estoppel Certificate on behalf of the City of Chula Vista. Presented by Approved a~oi~ · George ~re~pr ' / Bruce M. Boogaard Deputy City Manager City Attorney Resolution No. 16000 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 22nd day of January, 1991 by the following vote: AYES: Councilmembers: Moore, Nader, Rindone NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: Malcolm L eonard M. Moore Mayor, Pro-Tempore ATTEST: Beverly A. 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. 160DO was duly passed, ~gg~ve., and adopted by the City Council held on the 22n. day of January, Executed this 22nd day of January, lggl. Beverly AZAu~helet, City Clerk