HomeMy WebLinkAbout17485 - RESOLUTIONS - 4/17/1991 RESOLUTION NO. 17485
' OF THE CITY OF PALM SPRINGS APPROVING AND
AUTHORIZING AND DIRECTING EXECUTION OF DEED OF
TRUST WITH ACCOMMODATION ENCUMBRANCE
PROVISIONS RIDER, CONSENT AND AGREEMENT OF
SUBLESSOR AND ASSIGNMENT OF LESSEE' S INTEREST
IN GROUND LEASE
WHEREAS, The City of Palm Springs ("City") received
assignment of that certain Business Lease No. PSL-315 dated May 1,
1984 ("Master Lease") from SENCA Palm Springs, Inc. ("SENCA")
pursuant to that certain Agreement of Assignment by and between the
City and SENCA dated September 28 , 1989 ("Assignment") ;
WHEREAS, Pursuant to the Assignment, The City became the
sublessor under that certain Sublease by and between SENCA, as
sublessor, and Voss Investment Properties, Inc. ("Voss") , as
sublessee, dated August 17 , 1988 ;
WHEREAS, Pursuant to that certain Accommodation Encumbrance
Provisions Rider ("Rider") executed by SENCA, SENCA subordinated
its leasehold interest under the Master Lease to a construction
loan made by Union Bank ("Union") so that Voss could obtain
financing from Union to construct a commercial center on the
subleased property;
WHEREAS, Voss desires to pay off the loan made by Union with
a loan from Sumitomo Bank of California ("Sumitomo") ; and
WHEREAS, in order for Voss to obtain the loan from Sumitomo,
the City desires to execute certain documents subordinating its
interest under the Master Lease to Sumitomo;
NOW, THEREFORE, BE IT RESOLVED by the City of Palm Springs as
follows:
Section 1 . Deed of Trust with Accommodation Encumbrance
Provisions Rider. The City hereby approves the execution of a Deed
of Trust with Accommodation Encumbrance Provisions Rider in
substantially the form of the Deed of Trust with Accommodation
Encumbrance Provisions Rider on file with the City Clerk together
with any additions thereto or changes therein deemed necessary or
_ advisable by the City Attorney. The City Manager is hereby
authorized to execute and deliver the Deed of Trust with
Accommodation Encumbrance Provisions Rider in the name and on
behalf of the City. The City hereby authorizes the delivery and
performance of the Deed of Trust with Accommodation Encumbrance
Provisions Rider; provided that the conditions contained in Section
5 are satisfied.
Section 2 . Consent and Agreement of Sub-Lessor. The City
hereby approves the execution of a Consent and Agreement of Sub-
Lessor in substantially the form of the Consent and Agreement of
Sub-Lessor on file with the City Clerk together with any additions
thereto or changes therein deemed necessary or advisable by the
City Attorney. The City Manager is hereby authorized to execute
and deliver the Consent and Agreement of Sub-Lessor in the name and
on behalf of the City. The City hereby authorizes the delivery and
performance of the Consent and Agreement of Sub-Lessor; provided
that the conditions contained in Section 5 are satisfied.
Section 3 . Assignment of Lessee' s Interest in Ground Lease.
The City hereby approves the execution of a Assignment of Lessee' s
Interest in Ground Lease in substantially the form of the
Assignment of Lessee' s Interest in Ground Lease on file with the
City Clerk together with any additions thereto or changes therein
deemed necessary or advisable by the City Attorney. The City
Manager is hereby authorized to execute and deliver the Assignment
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of Lessee ' s Interest in Ground Lease in the name and on behalf of
the City. The City hereby authorizes the delivery .and performance
of the Assignment of Lessee 's Interest in Ground Lease; provided
that the conditions contained in Section 5 are satisfied.
Section 4 . Prior Resolutions. Any resolutions of the City
adopted prior to this Resolution are, to the extent they are
inconsistent or conflict with this Resolution, hereby repealed and
rescinded.
Section 5. Attorneys ' Fees; Lease P2ctvments. The
effectiveness of the Deed of Trust, Consent and Agreement of Sub-
Lessor and Assignment of Lessee 's Interest in Ground Lease shall be
conditioned upon payment by Voss of the Cit.y ' s reasonable
attorneys' fees with respect to this transaction and payment by
Voss of all past due monetary obl-igations, including rent, under
the Sublease.
Section 6 . Official Action. All actions heretofore taken by
the officers and agents of the City with respect to the Sumitomo `
loan are hereby approved, confirmed and ratified. The City
Manager, City Attorney and any and all other officers of the City
are hereby authorized and directed, for and in the name and on
behalf of the City, to do any and all things and take any and all
actions, including execution and delivery of any and all
assignments, certificates, requisition, agreements, notices,
consents, instruments of conveyance and other documents, which
they, or any of them, may deem necessary or advisable in order to
consummate the Sumitomo loan.
.ADOPTED this 17thday of April 1991.
AYES: Councilmembers Broich, Hodges, Murawski , Neel and Mayor Bono
NOES: None
ABSENT: None
ATTEST: CI`.P PAT S N j5',CALIFORNIA
By
City-'Clerk City mar
a ger
REVIEWED AND APPROVED
Rutan & Tucker
David J' Aleshire,
City Attorney
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