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Home My WebLink AboutReso 93-422 - Approve & Authorize the Mayor to execute a new Subordination Agreement between Sandpointe Associates and the COR1 i� RESOLUTION NO. 93-E22 it A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A NEW SUBORDINATION AGREEMENT BETWEEN SANDPOINTE ASSOCIATES AND THE CITY OF REDDING. I� I I WHEREAS, on June 17, 1985, by Resolution No. 85-113 , the City Council approved a Density Increase Agreement between the City of Redding and SANDPOINTE INVESTORS; and WHEREAS, on April 23 , 1990, by Resolution No. 90-183 , the City Council approved the execution of a Subordination Agreement in favor of PW FUNDING INC. to enable SANDPOINTE ASSOCIATES to refinance the project; and WHEREAS, SANDPOINTE ASSOCIATES, a California limited partnership, has executed, or is about to execute, a new deed of trust and note in favor of PW FUNDING INC. , and has requested that the City of Redding approve and execute a new Subordination Agreement in favor of PW FUNDING INC. to enable SANDPOINTE ASSOCIATES to refinance the project; and WHEREAS, the new Subordination Agreement contains the following provision: 3 . That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the Density Increase Agreement mentioned above to the lien or charge of the deed of trust in favor of Lender referred to above and shall supersede and cancel, but only insofar as would affect the priority between the deed of trust and the Density Increase Agreement hereinbefore specifically described, any prior agreements as to such �\ subordination including, but not limited to, those y� provisions, if any, contained in the Density Increase Agreement mentioned above, which provide for the subordination of the lien or charge thereof to a deed of W trust or mortgage; and WHEREAS, the City Council has determined that it is in the best C ' interests of all concerned to approve a new Subordination Agreement, �V i 1 a copy of which is attached hereto and incorporated herein by reference; NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council of the City of Redding hereby approves entering into the new Subordination Agreement, as attached hereto. BE IT FURTHER RESOLVED that the Mayor of the City of Redding is hereby authorized and directed to sign said Subordination Agreement i! and all necessary documentation in connection therewith on behalf of the City of Redding; and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding thereto. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 21st day of December, 1993 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Anderson, Kehoe, Ploss and Arness NOES: COUNCIL MEMBERS: None ,I ABSENT: COUNCIL MEMBERS: Dahl ABSTAIN: COUNCIL MEMBERS: None I i i CARL ARNESS, Mayor City of Redding A ST: 7 0, CONNIE STROHMA4ER, City Clerk FORM PROVED: 'I RANDALL A. HAYS, City Attorney ' 2 'I 1 I � i • • ! RECORDING REQUESTED BY i i And When Recorded Mail To CHICAGO TITLE COMPANY 388 MARKET STREET, SUITE 1300 SAN FRANCISCO, CA 94111 ATTENTION: MICHELLE VIGUIE I i SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRU-MENT. MEn THIS AGREEMENT, made this G 4 day of I�Lrnlw, 1993 by Sandpointe Associates, a California limited partnership, owner of the land hereinafter described and hereinafter referred to as it "Owner," and City of Redding,a municipal corporation, present owner and holder of the "Density Increase Agreement," hereinafter described; WITNESSETH 'i li THAT WHEREAS, Owner has executed a Density Increase Agreement dated June 17, 1985 and recorded July 3, 1985, in Book 2160, page 302 of Official Records of Shasta County,California, covering: PARCEL 4, as shown on Parcel Map No. LS51-84 for John D. Drake, filed on April 25, 1985, in the Office of the Shasta County, Recorder, in Book 24, of Parcel Maps at Page 172; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of Four Million Two Hundred Eleven Thousand Seven Hundred Dollars and 00/100 ($4,211,700.00), dated December 1, 1993, 1993 in favor of PW FUNDING INC., hereinafter referred to as "Lender," payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan from Lender that said deed of trust mentioned above shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the Density Increase Agreement mentioned above; and WHEREAS,Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the Density Increase Agreement mentioned above and provided that the City of Redding will specifically and 'i unconditionally subordinate the lien or charge of the Density Increase Agreement to the lien or charge of the deed of trust in favor of Lender; and WHEREAS, it is the mutual benefit of the parties hereto that lender make such loan to Owner; and the City of Redding is willing that the deed of trust securing the same shall, when recorded, constitute a j lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the Density Increase Agreement mentioned above. i NOW THEREFORE,in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration the receipt and sufficiency of which consideration is hereby acknowledged, and in ,i order to induce Lender to make the loan referred to above, it is hereby declared, understood and agreed as follows: 1. That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the Density Increase Agreement mentioned above. 2. That Lender would not make its loan described above without this subordination agreement. 3. That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the Density Increase Agreement mentioned above to the lien or charge of the i deed of trust in favor of Lender referred to above and shall supersede and cancel, but only insofar as would affect the priority between the deed of trust and the Density Increase Agreement hereinbefore specifically described, any prior agreements as to such subordination including, but not limited to, those provisions, if any, contained in the Density Increase Agreement mentioned above, 'I which provide for the subordination of the lien or charge thereof to a deed of trust or mortgage. THE CITY OF BEDDING DECLARES,AGREES AND ACKNOWLEDGES THAT A. It consents to and approves (i) all provisions of the note and deed of trust in favor of Lender referred to above, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursements of the proceeds of Lender's loan; B. Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; C. It intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the Density Increase Agreement mentioned above in favor of the lien or charge upon said land of the deed of trust in favor of Lender referred to above and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination of specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. i •i CITY OF REDDING SANDPOINTE ASSOCIATES, a California limited partnership BY: BY: THE ORWITZ REVOCABLE CARL ARNESS, Mayor TRUST, GENERAL PARTNER I BY: BY: L CONNIE STROHMAYER, City Clerk Allen Orwitz, Co-Trustee �I BY: BY: Randall A. Hays, City Attorney Lea Orwitz, Co-Trustee .j i 'i STATE OF CALIF RNIA COUNTY OF N 17k- 14 p } S.S. W On �� i yy� before me, 'I 3 A�'1G,j t�RJrIC'iQ k• SQn�d aa N to ry Public in and for said Count and State,personally appeared w KLEi� o gwi rZ and i=A CKt- iT FOR NOTARY SEAL OR STAMP 0 w r li personally known to me euiclaaco)to be the person(s)whose name(s)A/asubscribed to the •, CfFlCNL SEAL 0 within instrument and acknowledged to me that hele4e he executedAM PARM R.SMTOS the same in f;istueF heir uthorized capacity(ies),and that by thei � Notary Pubic-California signature(s)on the instrument the person(s),or the entity upon behalf SHV FRANCISCO COUNN of which the person(s) acted, executed the instrument. My JulyCoT15,, 1 EXpIreS ••'' Jay 11994 WITNESS my and and official seal a ' Signature ✓Wt� I'�' F 2492(s-s,) I 1