HomeMy WebLinkAboutCC Resolution 8381 (Centertown Associates)RESOLUTION NO. 8381
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING THE GROUND LEASE OF PROPERTY PURSUANT TO
SECOND AMENDMENT TO FIRST AMENDED AND RESTATED GROUND LEASE
BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY
OF THE CITY OF SAN RAFAEL AND CENTERTOWN ASSOCIATES LTD.;
APPROVING SUBORDINATION AGREEMENTS;
APPROVING TERMINATION OF AGREEMENT REGARDING USE OF PROPERTY;
AND APPROVING MODIFICATION OF NOTE AND DEED OF TRUST FROM
CENTERTOWN ASSOCIATES LTD.
The City of San Rafael, Marin County, California, hereinafter
referred to as "City," does hereby declare, find and determine
that:
1. WHEREAS, the San Rafael Redevelopment Agency of the City of
San Rafael (the "Agency") is party to a ground lease (the "Ground
Lease") with Centertown Associates Ltd. ("Lessee") providing for
the 75 -year lease to Lessee of two parcels (referred to herein as
the "Centertown parcel" and the "Koret parcel") of real property
owned by the Agency, as described in Exhibit A, attached hereto for
a 60 -unit low and moderate income housing project ("Project"), in
order to effectuate the purposes of the Central San Rafael
Redevelopment Plan (the "Redevelopment Plan"); and
2. WHEREAS, the Community Redevelopment Law (Health and Safety
Code Section 33000 et sea.) provides in Section 33431 that any sale
or lease of Agency property may be made only after a public hearing
of the Agency after publication of notice as provided by Law; and
3. WHEREAS, the Community Redevelopment Law further provides in
Section 33433 that before any property acquired in whole or in part
with tax increment monies is sold or leased for development
pursuant to a redevelopment plan, such sale or lease shall first
be approved by the legislative body after public hearing; that
notice of the time and place of the hearing shall be published in
a newspaper of general circulation in the community for at least
two successive weeks prior to the hearing; and that the Agency
shall make available for public inspection a copy of the proposed
sale or lease and a summary of the financial aspects of the
proposal; and
4. WHEREAS, Agency and Lessee are desirous of making certain
amendments to the Ground Lease in the form of the "Second Amendment
to First Amended and Restated Ground Lease" attached hereto as
Exhibit B, to effectuate the receipt by Lessee of financing for the
Project; and
5. WHEREAS, the City previously authorized a loan to Lessee in
the amount of $126,000 to be secured by a note and deed of trust;
to effectuate the receipt by Lessee of financing for the Project,
City and Lessee desire to change the terms of the note and deed of
trust and subordinate the loan to the construction and permanent
financing for the Project; and
6. WHEREAS, the City is party to an agreement with the Marin
Housing Authority and U.F. Service Corporation, the prior owner of
the "Centertown parcel," which provided, among other things, for
construction of a condominium project on the property; because a
condominium project is no longer contemplated by the ground lease,
City, Lessee and Agency desire to terminate the agreement; and
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ORIGINAL
7. WHEREAS, notice of a joint public hearing by the City Council
of the City of San Rafael (the "City Council") and Agency was
published in the Marin Independent Journal on April 22, 1991 and
April 29, 1991; and
8. WHEREAS, the Agency has prepared a summary ("Section 33433
Summary") pursuant to Section 33433 of the Health and Safety Code
describing the cost of the Second Amendment to First Amended and
Restated Ground Lease to the Agency, the value of the property
interests to be leased, the sum of the lease payments and other
information required by said Section 33433, and said summary was
made available to the public for inspection as provided by law; and
9. WHEREAS, the City Council and the Agency held a joint public
hearing on Monday, May 6, 1991, in the City Council Chambers to
consider and act upon the Ground Lease;
NOW, THEREFORE, the City Council of the City of San Rafael
takes the following ACTION:
Section 1. RESOLVED that the City Council finds and
determines that the sum of the lease payments for the real property
described in Exhibit A, owned by the Agency which would be leased
to Centertown Associates Ltd. pursuant to the Second Amendment to
First Amended and Restated Ground Lease, constitutes fair and
equitable lease payments for the real property according to its
value and is not less than the fair market rental value of the real
property for uses in accordance with the Redevelopment Plan and the
First Amended and Restated Ground Lease, as amended. This finding
is based upon the "Section 33433 Summary" prepared pursuant to
Section 33433, which is incorporated herein by this reference.
Section 2. RESOLVED that the City Council hereby approves
and authorizes the execution of the Second Amendment to First
Amended and Restated Ground Lease between the Agency and Centertown
Associates Ltd.
Section 3. RESOLVED that the City Council approves and
authorizes the City Manager to execute the following subordination
agreements between the City of San Rafael and Centertown
Associates, Ltd., substantially in the form attached hereto
respectively as Exhibits C. D. E, F and G: (a) agreement
subordinating $126,000 note to note in sum not to exceed $3,638,719
and deed of trust in favor of Bank of America National Trust and
Savings Association; (b) agreement subordinating $126,000 note to
note and deed of trust in an amount not to exceed $2,697,711 in
favor of California Department of Housing and Community
Development; (c) agreement subordinating $126,000 note to Rental
Housing Construction Program Regulatory Agreement in favor of
Department of Housing and Community Development; (d) agreement
subordinating $126,000 note to $1,326,513 note and deed of trust
in favor of First Nationwide Bank, A Federal Savings Bank; and (e)
agreement subordinating $126,000 note to $390,000 note and deed of
trust in favor of First Nationwide Bank, A Federal Savings Bank.
Section 4. RESOLVED that the City Council approves and
authorizes the City Manager to execute the "Termination Agreement,"
substantially in the form attached as Exhibit H, terminating the
Agreement dated December 20, 1983, between the City of San Rafael,
the Housing Authority of the County of Marin, and U.F. Service
Corporation, the prior owner of the "Centertown parcel" described
in Exhibit A to this Resolution.
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Section 5. RESOLVED that the City Council approves and
authorizes the City Manager to execute the "Amended and Restated
Promissory Note" and "Amendment to Deed of Trust" for the $126,000
loan, substantially in the forms attached respectively as Exhibits
I and J.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby
certify that the foregoing resolution was duly and regularly
introduced and adopted at a special joint meeting of said City
Council held on the 6th day of May 1991, by the
following vote, to wit:
AYES: COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Mayor Mulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
JEANN LEONCINI, City Clerk
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