HomeMy WebLinkAboutRDA Reso 1996-1503 RESOLUTION 1503
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING A WAVIER OF OUTSTANDING CONDITIONS TO CLOSE ESCROW UNDER
SECTION 2.4a OF THE DISPOSITION AND DEVELOPMENT AGREEMENT BETVVEEN THE
REDEVELOPMENT AGENCY AND BROADWAY VILLAGE BUSINESS HOMES, L.P.,
CONCERNING THE PROVISION OF EVIDENCE OF ACCEPTABLE CONSTRUCTION
FINANCING
WHEREAS, the Agency entered into that certain Disposition and Development Agreement
(DDA) dated August 1, 1995 with Broadway Village Business Homes, L.P. (the "Developer") dated
which includes, under Section 2.4, Conditions to Developer's Right to Acquire Site, subsection (a),
conditions of Approved Financing; and,
WHEREAS, Under Section 2.4a of the DDA, the Developer is to present the Agency staff
evidence of acceptable financing for construction of improvements from a reputable lender whose
loan documentation will permit the acquisition, without discount or recourse, of the loan by the
Agency in the event that the DDA is terminated due to Developer Default and the Agency takes
back the Property (subsection iv), and who agrees to enter into an agreement with the Agency
concerning the Agency's right to reenter the property on terms and conditions set forth in Section
6.7 of the DDA (subsection vi); and,
WHEREAS, the San Diego National Bank (the "Bank") has issued a loan commitment letter
to the Developer which is conditioned on the Bank's review and approval of the DDA at its sole
discretion and which is currently in process; and
WHEREAS, the Developer has requested that the Agency waive those certain conditions
under Section 2.4a, iv and vi so as to not delay the close of escrow due to financial and practical
hardships caused by further delay; and,
WHEREAS, the Developer has represented he has received an acquisition loan which will
be secured by lots 7 through 18 or paid off before or at the time of the construction loan closing;
and
WHEREAS, the Agency has determined that it is in the best interests of the success of the
project to expedite the close of escrow and that the granting of the requested waivers will not
present undue risk or harm to the Agency.
NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does
hereby find, order, determine and resolve to waive Sections 2.4a, iv and vi of the Disposition and
Development Agreement by and between the Redevelopment Agency and Broadway Village
Business Homes, L.P. dated August 1,1995, concerning conditions of Approved Financing for the
Broadway Village Business Homes project.
PRESENTED BY: APPROVED AS TO FORM BY:
Resolution No. 1503
PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA, CALIFORNIA this 28th day of May 1996 by the following vote:
AYES: Members Padilla, Moot, Rindone, Alevy
NOES: None
ABSENT: Member Horton
ABSTENTIONS: None
Chris Salomone
Executive Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss:
CITY OF CHULA VISTA )
I, Chris Salomone, Executive Secretary to the Redevelopment Agency of the City of Chula
Vista, California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy
of Resolution No. 1503 and that the same has not been amended or repealed.
Dated: MaL_29, 1996 ___ ~ ~
Chris Salomone
Executive Secretary