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Home My WebLink About7/17/2002 - STAFF REPORTS (3) l� � I DATE: JULY 17, 2002 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT FULL RECONVEYANCE OFAN AGENCY DEED OF TRUSTON PARCEL513-154-008-3 RELATED TO THE ACQUISITION OF A PARCEL FOR THE DOWNTOWN PARKING STRUCTURE,AND TERMINATION OF CERTAIN RELATED AGREEMENTS;AND,SAME ACTIONS RELATED TO ADJACENT PROPERTY RECOMMENDATION: It is recommended that the Agency approve the Full Reconveyance of an Agency Deed of Trust and termination of a Regulatory Agreement and Declaration of Covenants and Restrictions, and termination of a Subordination, Attornment and Nondisturbance Agreement on a parcel now owned by the City of Palm Springs, acquired as part of the Downtown Parking Structure project, as well as the adjacent Chop House property. SUMMARY: In 1992, the Agency agreed to provide a loan guarantee in the amount of $250,000 to Zachary Franks, the owner of the building at 262 South Palm Canyon Drive, for the purpose of improving the property and getting a quality restaurant tenant in the downtown, which was struggling at the time with vacancies. As part of the loan guarantee, a deed of trust to secure the original indebtedness with interest, was set forth in an Indemnity Agreement and recorded on April 3, 1992 as Instrument No. 120097 of Official Records, as follows: Dated: March 30,1992 Trustor: Zachary Franks and Marly Stone, husband and wife Trustee: First American Title Insurance Company, a California corporation Beneficiary: The Community Redevelopment Agency of the City of Palm Springs, California, a public body, corporate and politic With respect to the deeds of trust detailed above, the title company will require all of the following prior to the recordation of any documents or the issuance of any title policy of title insurance: 1. Original note and deed of trust. 2. Payoff demand statement signed by all present beneficiaries. 3. Request for reconveyance signed by all present beneficiaries. In addition to the Deed of Trust, the following other agreements were also recorded against the property: a Regulatory Agreement and Declaration of Covenants and Restrictions and a Subordination, Attornment and Nondisturbance Agreement. These agreements set forth the provisions of the deal between the Franks' and the Agency. The other party to the agreement— Dirk, Bill, and Gary's Five, Inc., were the owners and operators of Chillers. The loan was repaid to Bank of America and the lease between the parties was terminated in May, 1997, whereby the tenants surrendered the premises. The City acquired title to the parking lot property by Grant Deed recorded on June 12, 1I1W _ aa . 2002, subject to the Agency Deed of Trust and the related agreements. This action reconveys the Deed of Trust, clearing it from the title, and terminates the Regulatory Agreement and Subordination provisions recorded against the parking lot and the current Chop House property. illOHN . RAY D Di or of Community and Economic Development APPROVED: �.!,/ Executive Direc or ATTACHMENTS: 1. Resolution 2. Reconveyance C �- RECORDING REQUESTED BY ORDER# AM WHEN RECORDED NAIL TO r � w,�le Scat AJR[st City Sete Zip L � SPACE ABOVE THIS LINE FOR RECORDER'S USE FULL RECONVEYANCE ,as duly appointed Trustee under Deed of Trust hereinafter referred to, having received from holder of the obligations thereunder a written request to recottvey, reciting that all slues secured by said Deed of Trust have been fully paid, and said Deed of Trust and the note or(rotes secured thereby having been surrendered to said Trustee for cancellation, does hereby RECONVEY,without warranty, to the person or persons legally entitled thereto, the estate now held by it hereunder. Said Deed of Trust was executed by as original Truster, and recorded on , in Book/Reel ,at Page/Image Series Number of Official Records of County, California. Dated TRUSTEE STATE OF CALIFORNIA COUNTY OF On before me,the undersigned, a Notary Public in and for said State, persorudly appeared personally known to me or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged la me that he/shehhey exerted the same in his/her/their auth"izd capacity(im),and that by his/her/their signature(s) on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument. WITNESS my hard and official seal. Signawre Name (typed or printed) (This area for official notarial seal) C ra - .�3 RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS APPROVING FULL RECONVEYANCE OF A DEED OF TRUST IN THE ORIGINAL AMOUNT OF$250,000 AND TERMINATION OF A REGULATORY AGREEMENT AND DECLARATION OF COVENANTS AND RESTRICTIONS AND A SUBORDINATION,ATTORNMENTAND NONDISTURBANCE AGREEMENT FOR PARCELS 513-154-008-3, OWNED BY THE CITY OF PALM SPRINGS, AND 513-154-017, OWNED BY ZACHARY FRANKS AND MARLY STONE, HUSBAND AND WIFE, AND THE JEFF S. WHITE LIVING TRUST A0294C WHEREAS the Community Redevelopment Agency of the City of Palm Springs did approve an Owner Participation Agreement with Zachary Franks, et al., the owner of a commercial property at 262 South Palm Canyon Drive on March 30, 1992, for the purpose of providing a loan guarantee for tenant improvements; and WHEREAS the lease with the intended tenant was terminated by the owner in 1997, and subsequently a new lease has been entered into with a higher quality tenant; and WHEREAS the Owner has satisfied the provisions of the Owner Participation Agreement and all ancillary documents by repaying the loan; and WHEREAS, the City of Palm Springs acquired the parking lot portion of the property in June, 2002 for the purpose of constructing the downtown parking structure, and has a need for the liens to be removed from the title. NOW,THEREFORE, BE IT RESOLVED BYTHE COMMUNITY REDEVELOPMENTAGENCYof the City of Palm Springs, as follows: Section 1. That the Full Reconveyance of the Deed of Trust set forth in that certain Indemnity Agreement by the Agency and Owner, recorded by the Community Redevelopment Agency of the City of Palm Springs in the original amount of$250,000, recorded on April 3, 1992 as Instrument No. 120097 of Official Records, is hereby approved; and Section 2. That a Regulatory Agreement and Declaration of Covenants and Restrictions recorded April 3, 1992 as instrument no. 120098 of Official Records, by and between Zachary Franks and Marly Stone, husband and wife, the Community Redevelopment Agency of the City of Palm Springs, a public body, corporate and politic, and the City of Palm Springs, a municipal corporation, is hereby terminated; and Section 3. That a Subordination,Attomment and Nondisturbance Agreement recorded April 3, 1992 as instrument no. 120099 of Official Records, by and between Zachary Franks, Dirk, Bill, and Gary's Five, Inc., a Georgia Corporation, the the Community Redevelopment Agency of the City of Palm Springs, a public body, corporate c ram_ 4,_ 6 and politic, and the City of Palm Springs, a municipal corporation, is hereby terminated; and Section 4. That the Executive Director is hereby authorized to execute all documents necessary to effectuate the purpose of this resolution, in a form acceptable to Agency Counsel. ADOPTED this day of , 2002. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By: Assistant Secretary Mayor REVIEWED AND APPROVED AS TO FORM: