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HomeMy WebLinkAboutReso 82-114 - Approving Agreement for Assignment of improvement Bond Proceeds - North Point Assessment District No. 1982-3 T. , • • RESOLUTION NO. g..7 -j j y RESOLUTION APPROVING AGREEMENT FOR ASSIGNMENT OF IMPROVEMENT BOND PROCEEDS NORTH POINT ASSESSMENT DISTRICT NO. 1982-3 The City Council of the City of Redding resolves : As a part of the proceedings for improvements in North Point Assessment District No. 1982-3 , City of Redding , Shasta County , California , this Council approves that certain agreement between the City of Redding , Robert Loring , Brent Owen and C .C .M. Corporation effective July 19 , 1982 , and attached to this resolution . The Mayor is authorized to sign the agreement and the City Clerk is authorized to attest its execution . I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of Redding , Shasta County, California , at a regular meeting thereof , held on the 19th day of July, 1982 . AYES:. Councilmembers Fulton, Kirkpatrick, and Gard NOES: Councilmembers None ABSENT: Councilmembers Demsher ABSTAIN: Councilmembers Pugh ETHEL A . NICHOLS , City Clerk , City of Redding , Shasta County, California By fit. a_ 7a-ere& FJ 111^^111�.�W^1','\l111 I1I!'1^1'^11`(l�_l)Y1I1 IR\VInI� IInII OV D1 IIG L AGREEMENT FOR ASSIGNMENT OF IMPROVEMENT BOND SALE PROCEEDS (NORTH POINT ASSESSMENT DISTRICT NO. 1982-3) A. The parties to this agreement are the City of Redding , a California general law city (hereafter referred to as the City) ; Robert Loring and Brent Owen (hereafter referred to as the Developers) ; and C . C. M. Corporation , a California cor- poration (hereafter referred to as C .C .M. ) . B . The agreement shall become effective upon approval by resolution of the City Council of the City , on the express under- standing . that the agreement will not be submitted to the City Council until it has been executed by the other two parties . C . The City has initiated special assessment proceed- ings under the Municipal Improvement Act of 1913 (Sections 10000 and following , California Streets and Highways Code , and hereafter referred to as the 1913 Act) , and the purpose of said proceedings is to provide funding for acquisition of the authorized public improvements being installed within North Point Assessment District No. 1982-3 (hereafter referred to as the Assessment District) . It is expressly understood by the parties that the City has no legal obligation to go forward with the issuance and sale of improvement bonds , but has only expressed its intention to do so. It is further expressly acknowledged that no party to this agree- ment, nor any other person , may take any action in reliance upon any expectation of issuance and sale of improvement bonds by the City which would in any sense ripen into a legal obligation of the City to do so. 1 D . C .C .M. is the beneficiary of a deed of trust , recorded June 14 , 1979 , Book 1633 of Shasta County Official Re- cords , page 182 , respecting the property which is the subject of the assessment district, and the assessments which are pro- posed to be levied upon said property by the City in the course of the assessment district proceedings will be secured by a lien which will be superior to C . C .M. ' s lien . C .C .M. is willing- to consent to the assessment lien (and to the related subordination of its lien) , only on the condition provided by this agreement that the obligation to C .C .M. which is secured by said deed of trust will be discharged with bond sale proceeds as provided herein . E . In mutual consideration of the obligations stated , the parties hereto agree as follows : AGREEMENT 1 . The foregoing recitals are true and correct and the parties involved expressly so acknowledge . 2 . Following completion of the subject improvements to the satisfaction of the City , it is expected that the City Coun- cil will receive a written Engineer ' s Report, as prescribed by the 1913 Act, and that the City Council will conduct a public hear- ing with respect to said report . 3 . In the event that the City takes appropriate legal action following the close of the public hearing to levy assess- ments and to award sale of bonds , and upon receipt of bond sale proceeds following delivery of the bonds to the purchaser or purchasers thereof , the City agrees to disburse to C.C .M. that portion of bond sale proceeds which is necessary to discharge the obligation to C . C .M. which is secured by said deed of trust; provided that said disbursement shall be made to Superior California Title & Escrow Co. , Escrow No . 24984 , for disburse- ment to C . C .M . upon recordation of an appropriate reconveyance of said deed of trust; and provided further that said disburse- ment by the City shall be made only upon receipt from the title company of a statement of the amount recuired . 4 . The Developers hereby expressly authorize the City to disburse such proceeds to the title company without any further action on the part of the Developers . 5 . C .C .M. agrees that, as a condition precedent to disbursement of bond proceeds by the City , it will cause the title company to furnish the City with a statement of the amount required. 6 . The parties expressly acknowledge that no commit- ment for purchase of the bonds has been sought or received by the City and that the City gives no assurance that a satisfactory commitment will be received . CITY OF REDDING, a California general law City /s/ By Barbara Allen Gard ATTEST: Mayor Barbara Allen Gard /s/ Ethel A. Nichols City Clerk Ethel A. Nichols _ • IoxN P. DIM , Atto . y in fact for OBERT L INC Brent Owen C . C .M. CORPORATION, a California corporat "-, By '(Name a: Tit�i1" By �FGte7/7 (Name and Title) 3