Loading...
HomeMy WebLinkAbout23696 RESOLUTION NO. 23696 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ACTING SOLELY IN ITS CAPACITY AS HOUSING SUCCESSOR AGENCY, APPROVING, AUTHORIZING, AND DIRECTING EXECUTION OF A SUBORDINATION OF DEED OF TRUST WITH BANK OF HEMET, A CALIFORNIA CORPORATION, WITH RESPECT TO A LOAN PREVIOUSLY MADE BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS TO ASSIST IN FINANCING THE REHABILITATION OF THE SUNRISE VILLAGE MOBILE HOME PARK; AND AMENDING THE SUPPLEMENTAL REGULATORY AGREEMENT AND DECLARATION OF COVENANTS AND RESTRICTIONS TO SUBSTITUTE THE CITY AS HOUSING SUCCESSOR AGENCY TO ASSIST IN REFINANCING THE SUNRISE VILLAGE MOBILE HOME PARK LOCATED AT 1500 EAST SAN RAFAEL ROAD WHEREAS, the Community Redevelopment Agency of the City of Palm Springs (the "Agency') has established an affordable housing set-aside fund in accordance with Section 33000 et. seq. of the California Health and Safety Code; and WHEREAS, AB X1 26 was signed by the Governor of California on June 29, 2011, making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the California Health and Safety Code, suspending most redevelopment agency activities and, among other things, prohibiting redevelopment agencies from incurring indebtedness or entering into or modifying contracts; and WHEREAS, effective February 1, 2012, all existing redevelopment agencies and redevelopment agency components of community development agencies were dissolved; however, except for those provisions of the Redevelopment Law that are repealed, restricted, or revised pursuant to AB X1 26, all authority, rights, powers, duties and obligations previously vested with the former redevelopment agencies under the Redevelopment Law, are vested in the successor agencies; and WHEREAS, at a meeting of January 4, 2012, the City of Palm Springs took action to designate itself as the Successor Agency and the Housing Successor Agency to the Community Redevelopment Agency, as provided in California Health and Safety Code §§ 34173 and 34176; and WHEREAS, pursuant to Cal. Health & Safety Code §34176, the City expressed its intention to retain the housing assets and functions previously performed by the Palm Springs Community Redevelopment Agency and assume all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Palm Springs Community Redevelopment Agency; and Resolution No, 23696 Page 2 WHEREAS, the City of Palm Springs (the "City") previously issued its Mobile Home Park Revenue Bonds In 2004, in order to finance the acquisition and renovation of the mobile home park known as Sunrise Village Mobile Home Park located at 1500 East San Rafael Road, Palm Springs, CA (the "Project"), more particularly described in Exhibit "A" to this Resolution ("Legal Description") by Santiago Sunrise Village Mobile Home Park Corporation, a California nonprofit corporation ("Owner"); and WHEREAS, at the time of issuance in 2004, the Community Redevelopment Agency of the City of Palm Springs (the "Agency") entered into an Disposition and Development Agreement dated November 1, 2004, pursuant to which the Agency provided a loan in the amount of $392,040 (the "Agency Loan") for additional financing with respect to the rehabilitation of the Project, and which was used to secure the Regulatory Agreement. A Promissory Note in the original principal amount of$392,040 is dated November 1, 2004; and WHEREAS, the Agency Loan is secured by a Deed of Trust with Assignment of Rents attached thereto containing terms, recorded November 5, 2004 as Instrument Number 2004- 882779 in the Official Records of Riverside County (the "Agency Deed of Trust"); and WHEREAS, Santiago Sunrise Village Mobile Home Park Corporation, a California nonprofit corporation ("Owner") has arranged for a refinancing of the Project's bonds through a convention mortgage with Bank of Hemet, a California Corporation; and WHEREAS, in order to facilitate the issuance and sale of the Bonds, the Owner has requested that the City, as the Housing Successor to the Agency, agree to subordinate the Agency Loan and Deed of Trust as set forth in a Subordination of Deed of Trust (the "Subordination Agreement") to be entered into with Bank of Hemet as Lender and Orange Coast Title Company as Trustee; and WHEREAS, there is now before this City Council, acting solely in its capacity as the Housing Successor Agency, (the "City Council") a form of the Subordination Agreement; and WHEREAS, the City has determined that the refinancing of the Project at long- term competitive interest rates to refinance the Prior Bonds and to finance additional renovations to the Project will benefit the tenants residing therein and will benefit the City by improving the affordable housing available within the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council, acting solely in its capacity as the Housing Successor Agency, hereby approves the Subordination Agreement, in substantially the form on file with the City Clerk, with such changes as are not inconsistent with the purposes of this Resolution. Resolution No. 23696 Page 3 SECTION 2. The City Council, acting solely in its capacity as the Housing Successor Agency, hereby approves the Amendment to the Supplemental Regulatory Agreement and Declaration of Covenants and Restrictions to substitute the City as Housing Successor Agency for the former Community Redevelopment Agency, in substantially the form on file with the City Clerk, with such changes as are not inconsistent with the purposes of this Resolution. The City Manager, City Clerk, and any other proper officers and officials of the City are hereby authorized to execute the same on behalf of the City. The City Manager, City Clerk, and any other proper officers and officials of the City are hereby authorized and directed to take all steps on behalf of the City to perform and discharge the obligations of the City under said instrument. SECTION 3. The City Manager, City Clerk, and any other proper officers and officials of the City are hereby authorized to execute the documents authorized and directed to take all steps on behalf of the City to perform and discharge the obligations of the City under said instrument. SECTION 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any additional financing with respect to the Project or (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the operation of the Project. SECTION 5. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 5T" DAY OF NOVEMBER, 2014. DAVID H. READY, C AGER ATTEST: MES THOMPSON, CITY CLERK Resolution No. 23696 Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 23696 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 5ch day of November, 2014, by the following vote: AYES: Councilmember Foat, Councilmember Lewin, Councilmember Mills, Mayor Pro Tern Hutcheson, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. ES THOMPSON, CITY CLERK ity of Palm Springs, CaliforniafZGjqz1r4 Resolution No. 23696 Page 5 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY The Subordinated Deed of Trust covers the following described real property (the "Real Property") located in City of Palm Springs, County of Riverside, State of California: Lot 1 of Tract No. 17642-1 in the City of Palm Springs, County of Riverside, State of California, as per Map on file in Book 122 Pages 88, 89 and 90 of Maps, in the Office of the recorder of said County, together with Parcel 2 as shown described in document recorded April 25, 1996 as Instrument No. 148930, records of said County. Except the Northerly 731.00 feet of said Lot 1 an except the Northerly 731 feet of said Parcel 2 of instrument No. 148930 The Real Property or its address is commonly known as 1500 E. San Rafael Drive, Palm Springs, CA 92262. The Assessor's Parcel Number for the Real Property is 669-500-028-8.