HomeMy WebLinkAboutRDA Reso 2009-2010RDA RESOLUTION NO. 2009-2010
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA AUTHORIZING THE EXECUTIVE
DIRECTOR TO EXECUTE AMENDMENTS TO A LOAN
AGREEMENT AND AN AGREEMENT CONTAINING
COVENANTS BY AND BETWEEN THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA, AND PARK
VILLAGE APARTMENTS, L.P. FOR PARK VILLAGE
AFFORDABLE APARTMENTS
WHEREAS, on or about June 4, 1991, the Redevelopment Agency ofthe City of Chula Vista
(the Agency) agreed to lend Park Village Apartments, L.P. (Borrower) THREE HUNDRED FIFTY
THOUSAND DOLLARS ($350,000.00) (Loan) from its Low and Moderate Income Housing Set-
Aside fund for the purpose of financing the acquisition of Park Village Apartments in the City of
Chula Vista (Project); and
WHEREAS, on June 19, 1991, the Agency and Borrower entered into an Agreement
Containing Covenants Affecting Real Property, recorded as Doc. No. 1991-0300901 on June 21,
1991 in the official records of the San Diego County Recorder's Office (Covenants) wherein,
Developer agreed to restrict Property's use to provide and maintain twenty-eight (28) affordable
units (Affordable Units) far very low income and low income households for a period of thirty (30)
years; and
WHEREAS, on October 14, 1994, Borrower and the Agency executed the Loan Modification
Agreement, including a Second Amendment to the Agency Note and Agency Deed of Trust,
recorded as Doc. No. 1994-0603786 on October 14, 1994 in the official records of the San Diego
County Recorder's office (Loan First Amendment); and
WHEREAS, in accordance with Section 2.3 of the Loan First Amendment, the entire unpaid
principal balance and all accrued interest of approximately $222,352 ($221,4291oan principal and
$923 in interest) was due and payable on December 31, 2008; and
WHEREAS, Borrower has made timely monthly payments on the loan but is unable to make
full payment of the principal balance and accrued interest at this time and has requested an
amendment to the loatp to extend the payment schedule; and
WHEREAS, Park Village Apartments provides affordable units and a child Gaze center to the
benefit of the community within the southwest azea of the City of Chula Vista; and
WHEREAS, the Agency is willing to modify the loan agreement to lower the interest rate to
three percent (3%) simple interest per annum, extend the maturity date to December 31, 2033, and
extend the affordable covenants of the Project to September 30, 2033 or until the entire principal and
all accrued but unpaid interest of the Loan is fully paid, whichever date occurs last; and
RDA Resolution No. 2009-2010
Page 2
WHEREAS, such an amendment to the Loan and the Covenants provide more consistent loan
terms with the Project's permanent financing from the California Department of Housing and
Community Development and the loan terms provided to other affordable housing projects assisted
by the Agency.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of
Chula Vista as follows:
1. The Redevelopment Agency hereby approves the Second Amendment to the Loan
Assignment and Assumption Agreement (Loan Second Amendment) and the First Amendment
to Agreement Containing Covenants Affecting Real Property (Covenants First Amendment) in
substantially the forms presented. The Executive Director and his designee are hereby
authorized to sign all documents, to make all approvals and take all actions necessary or
appropriate to carry out and implement the Amendments and to administer the obligations,
responsibilities and duties of the Agency to be performed under the Loan Agreement,
Covenants, related documents and any subsequent amendments thereto.
2. The Agency Attorney, on behalf of the Agency, is hereby authorized to make revisions to the
Loan Second Amendment and Covenants First Amendment which do not materially or
substantially increase the obligations of the Agency thereunder or materially or substantially
change the Project.
Presented by
Gary albe , P.E., AICP
Deputy City Manager/Development Services
Director
Approved as to form by
RDA Resolution No. 2009-2010
Page 3
PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of
Chula Vista, California, this 4th day of August 2009, by the following vote:
AYES: Agency Members: Bensoussan, Castaneda, Ramirez, and Cox
NAYS: Agency Members: None
ABSENT: Agency Members: McCann
i
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Cheryl Cox, C airp rson
ATTEST:
ric Crockett, Secret y
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Eric Crockett, Secretary of the Chula Vista Redevelopment Agency, do hereby certify that the
foregoing RDA Resolution No. 2009-2010 was duly passed, approved, and adopted by the
Redevelopment Agency at a regulaz meeting held on the 4th day of August 2009.
Executed this 4th day of August 2009.
Enc Crockett, Secretary