Loading...
HomeMy WebLinkAboutReso 2005-284 RESOLUTION NO. 2005-284 (AGENCY RESOLUTION NO. 1924) JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING SUBORDINATION AGREEMENTS FOR THE LOW AND MODERATE INCOME HOUSING SET-ASIDE FUND LOAN IN THE AMOUNT OF $1,000,000 AND HOME INVESTMENT PARTNERSHIP PROGRAM LOAN IN THE AMOUNT OF $500,000 SUBORDINATING THE CITY AND AGENCY LOANS TO BOTH THE 2003 AND 2005 FINANCINGS RELATED TO RANCHO BUENA VISTA APARTMENTS AT EASTLAKE; AND AUTHORIZING THE EXECUTION OF SAID AGREEMENTS WHEREAS, CIC Eastlake, L.P., a California limited partnership (the "Borrower"), on behalf of itself has acquired and constructed a 150-unit project located at 2155 Corte Vista in the City of Chula Vista (the "Project"); and WHEREAS, in 2003, the Housing Authority of the City of Chula Vista (the "Issuer") issued its Housing Authority of the City of Chula Vista Multifamily Housing Revenue Bonds (Rancho Vista Apartments), Series 2003A in the aggregate principal amount of$II,485,000 (the "2003 Series A Bonds") and the proceeds of the 2003A Bonds were loaned to the Borrower (the "First Mortgage Loan") to finance the acquisition, construction and equipping of the Project; and WHEREAS, the Housing Authority has authorized the issuance of additional multifamily housing revenue bonds not to exceed $1,715,000 and the execution and delivery of any and all documents necessary to issue the bonds and loan the proceeds of the bonds to the Borrower (the "Second Mortgage Loan") to provide additional financing for the acquisition, construction and equipping ofthe Project; and WHEREAS, Fannie Mae will, subject to the satisfaction of certain conditions, facilitate the financing of the Project by causing the issuance of a credit facility (the "Credit Facility") guaranteeing payments of principal and interest on the First and Second Mortgage loans made with respect to the Series 2003A and 2005A Bonds; and WHEREAS, on October 7, 2003, by Agency Resolution No. 1845 and Council Resolution No. 2003-432, the City Council (the "City") and the Redevelopment Agency (the "Agency") approved a Loan Agreement and Related Restricted Covenants (the "Loan Agreement") with Borrower, pursuant to which the City would loan Five Hundred Thousand Dollars ($500,000) fj-om its available HOME funds to Borrower (the "City Loan") and the Agency would loan One Million Dollars ($1,000,000) fj-om its Low and Moderate Income Housing Fund to Borrower (the "Agency Loan"), for the Project in accordance with the requirements of the Loan Agreement; and Resolution No. 2005-284 Page 2 WHEREAS, the City Loan and Agency Loan are secured by a mortgage lien against the Property; and WHEREAS, Fannie Mae has agreed to issue the Credit Facility provided that the City and Agency agree to subordinate their loans to the First and Second Mortgage Loans and the Reimbursement Obligations, and that the City and Agency enter into Subordination Agreement; and WHEREAS, the Subordination Agreements assist the Agency and City in leveraging their investment by allowing Borrower to obtain a private construction loan and other outside financing; and WHEREAS, the Subordination Agreements as presented in substantially final form provides for certain protections to the Agency in return for its subordination, consistent with California Health and Safety Code Section 33334.l4(a). NOW, THEREFORE, the City Council of the City of Chula Vista and the Board of Directors of the Redevelopment Agency of the City ofChula Vista do jointly resolve as follows: 1. The form of the Subordination Agreements related to the First and Second Mortgage Loans, among Wells Fargo National Association, as Trustee, Fannie Mae, Agency and the Borrower, is hereby approved in substantially the form presented to the Agency, a copy of which when executed by the Agency shall be placed on file in the office of the City Clerk. Any Authorized Officer is authorized to execute, and the Secretary of the Agency is authorized to attest, the Subordination Agreements, in substantially said form, with such additions thereto and changes therein as such Authorized Officer may approve or recommend in accordance with Section 3 hereof. 2. The form of the Subordination Agreement related to the First and Second Mortgage Loans, among Wells Fargo National Association, as Trustee, Fannie Mae, City and the Borrower, is hereby approved in substantially the form presented to the City, a copy of which when executed by the City shall be placed on file in the office of the City Clerk. Any Authorized Officer is authorized to execute, and the City Clerk is authorized to attest, the Subordination Agreements, in substantially said form, with such additions thereto and changes therein as such Authorized Officer may approve or recommend in accordance with Section 3 hereof. 3. Any Authorized Officer executing the Subordination Agreements approved herein, subject to the review and approval of the City, Agency, and Issuer Counsel, is authorized to approve and make such modifications, changes or additions to such documents which do not materially or substantially increase the obligations or risks of the City or Agency there under or materially or substantially change the uses of the Project or other documents as may be necessary or advisable, and the approval of any modification, change or addition to any of the aforementioned agreements shall be evidenced conclusively by the execution and delivery thereof by such Authorized Officer. Resolution No. 2005-284 Page 3 4. All prior resolutions or parts thereof in conflict wjth this resolution are, to the extent of such conflict, repealed. 5. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any remaining sections, paragraphs or provisions of this resolution. 6. This resolution shall take effect immediately upon its adoption. Presented by Approved as to form by <' Ann oore ( CitY Attorney and A ency Counsel Resolution No. 2005-284 Page 4 PASSED, APPROVED, and ADOPTED by the City Council and the Redevelopment Agency of the City of Chula Vista, California, this 23rd day of August, 2005, by the following vote: AYES: Agency/Councilmembers: McCann, Rindone, and ChairlMayor Padilla NAYS: Agency/Councilmembers: None ABSENT: Agency/Councilmembers: Davis k,)(!2iIL Stephen C. Padilla, Mayor/Chair ATTEST: --;;:.- ~~ ........~~~ Susan Bigelow, MMC, City C rk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA ) ) ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing City Council Resolution No. 2005-284/Redevelopment Agency Resolution No. 1924 was dilly passed, approved, and adopted by the City Council and Redevelopment Agency at a regular meeting held on the 23rd day of August, 2005. Executed this 23rd day of August, 2005. :::.- ~ ~' '~~ #:) Susan Bigelow, MMC, City rk )