HomeMy WebLinkAboutReso 1990-183 - Approving the a subordination agreement between sandpointe investores RESOLUTION NO. 90-/g,3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE
A SUBORDINATION AGREEMENT BETWEEN SANDPOINTE INVESTORS AND THE CITY OF
REDDING, AND AUTHORIZING THE MAYOR TO SIGN SAME.
WHEREAS, the City Council of the City of Redding approved an Agreement
between the City of Redding and Sandpointe Investors for a density increase
pursuant to the provisions of Government Code Section 65915, et seq on June
17, 1985; and
WHEREAS, Sandpointe Investors have requested that the City of Redding
approve and execute a Subordination Agreement in favor of PW Funding, Inc. to
enable them to refinance the project; and
WHEREAS, the City Council has determined that it would be in the best
interest of all concerned to approve this Subordination Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding
as follows:
1. The City Council hereby approves the Subordination Agreement.
2. The Mayor of the City of Redding is hereby authorized and directed
to sign all necessary documents 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 on the aforesaid documents, when appropriate.
3. A true copy of the Subordination Agreement referred to herein is
attached hereto and made a part hereof.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at
a regular meeting the City Council of the City of Redding on the 23rd day
of April , 1990, and was duly adopted at said meeting by the following
vote:
AYES: COUNCIL MEMBERS: Arness, Dahl , Fulton, Moss, & Buffum
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
CY M, Mayo
City .- Redding
ATTEST:
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ETHEL A. NICHOLS, City Clerk `
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FORM APPROVED: aa
'A BALL A. HAYS, C ty << torney r-`
1-1/43-CA 4110•CORDING REQUESTED BY
And When Recorded Mail To
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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 INSTRUMENT.
THIS AGREEMENT, made this day of , 1990
by Sandpoint Associates, a California Limited Partnership, owner of the land hereinafter describe
and hereinafter referred to as "Owner", and City of Redding, a Municipal Corporation, present
owner and holder of the "Density Increase Agreement", hereinafter described;
WITNESSETH
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, 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 $ , dated , 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 above menetioned 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 above mentioned; 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 proprerty prior and superior to the lien or charge
of the Density Increase Agreeement above menetioned and provided that the City of Redding will
specifically and unconditionally subordinate the lien or charge of the Density Increase Agree-
ment to the lien or charge of the deed of trust in favor of Lender; and
WHEREAS, it is to 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 lien or charge upon said land which is unconditionally prior and
superior to the lien or charge of the Density Increase Agreement above mentioned.
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 order to induce Lender to make the loan above referred to, 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 above mentioned.
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(2) That Lender would not make its loan above described without this subordination
agreement.
(3) That this agreement shall be the whole and only agreement with regard to the subordina-
tion of the lien or charge of the Density Increase Agreement above mentioned to the lien
or charge of the deed of trust in favor of Lender above referred to 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 above mentioned, which provide for the subordination of
the lien or charge thereof to a deed of trust or mortgage.
THE CITY OF REDDING 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 above referred to, and (ii) all agreements, including but not limited to any
loan or escrow ac_eements, 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 above mentioned in favor of the lien or charge
upon said land of the deed of trust in favor of Lender above referred to and understands
that in reliance upon, and in consideration of, this waiver, relinquishment and subordina-
tion 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 AGREENETf 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.
CITY OF REDDING
SANDPOINTE ASSOCIATES, a California
Limited Partnership
By:
, Mayor
Attest: see signature page attached
,City Clerk
Form Approved
, City Attorney
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