HomeMy WebLinkAbout1994-07-19; Housing & Redevelopment Commission; Resolution 251-.
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HOUSING & REDEVELOPMENT COMMISSION RESOLUTION NO. 251
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT
COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA TO
APPROVE AGREEMENTS FOR A CONSTRUCTION LOAN IN THE
AMOUNT OF $1,712,000 AND A PERMANENT LOAN OF
$500,000 WITH RELATED LOAN DOCUMENTS, A PROJECT
OPERATING DEFICIT GUARANTEE AGREEMENT AND THE
AGENCY REGULATORY AGREEMENT FOR THE AFFORDABLE
HOUSING PROJECT KNOWN AS THE VILLAS AT EL CAMINO
REAL.
WHEREAS, the Redevelopment Agency of the City of Carlsbad, I
9 referred to as "Agency", is a Community Redevelopment Agency organized and exi!
10 the Community Redevelopment Law, Health and Safetv Code Section 3300
11 hereinafter referred to as the "Act"; and
12 WHEREAS, the Agency is authorized to implement the Redevelopml
l3 11 the Carlsbad Village Redevelopment Project Area; and
l4 I1 WHEREAS, the Agency is authorized to make and execute contract
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WHEREAS, the Housing and Redevelopment Commission API 17
construction loan in the amount of $ 1,712,000, a permanent loan of $500,0C 18
19 Carisbad Redevelopment Agency's Low and Moderate Income Housing Set-aside F
20 operating deficit guarantee of up to $500,00Ofrom project-generated income fort
instruments necessary or convenient to the exercise of its powers; and
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Bank in the approximate amount of $26,500,000 (the "Wells Fargo Loan") and 25
project developer has received commitments for construction loan financing from 24
WHEREAS, El Camino Villas Associates, A California Limited Part1 23
Redevelopment Project Area and approved all appropriate findings to expend SUC 22
El Camino Real Affordable Housing Project which is to be constructed I
Western Savings in the approximate amount of $9,500,000(the "Great Western 1
27 /I of which loans require subordination of the Agency's Regulatory Agreement to t
28 trust securing the loans; and
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WHEREAS, Section 33334.14of the Health and Safety Code require t
findings be made by the Agency prior to the subordination of the Regulatory Agree
WHEREAS, the Agency has determined that there is no economica
alternative method of financing the development of the Villas at El Camino Real
housing project on terms substantially comparable to the Wells Fargo Loan and
Western Loan, but without subordination of the Agency's Regulatory Agreement.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the HOI
Redevelopment Commission of the City of Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. That the Housing and Redevelopment Commission approves the Fil
Loan Agreement, First Agency Note, and First Agency Loan Deed 0'
Security Agreement between the Carlsbad Redevelopment Agency
Camino Villas Associates for construction of the Villas at El Cz
Affordable Housing Project.
3. That the Housing and Redevelopment Commission approves the Secc
Loan Agreement, Second Agency Note, and Second Agency Loan De
and Security Agreement between the Carlsbad Redevelopment Ager
El Camino Villas Associates for construction of the Villas at El C,
Affordable Housing Project.
4. The Housing and Redevelopment Commission approves the Agency
Agreement between the Carlsbad Redevelopment Agency and El Ca
Associates as related to the First Loan Agreement and the Se
Agreement for construction of the Villas at El Camino Real Affordal
Project.
5. That the Housing and Redevelopment Commission agrees to subc
Agency First Loan and Second Loan Deed of Trust as well as t
Regulatory Agreement to the liens of the deeds of trust SE
Construction and Permanent Financing provided by a private lende
6. The Housing and Redevelopment Commission hereby finds that \
Bank and Great Western Savings will not consent to subordinate th,
trust to the Agency's Regulatory Agreement, and that there is no ec
feasible alternative method of financing the development of the
Camino Real affordable housing project on terms substantially si1
terms of the Wells Fargo Loan and the Great Western Loan, t
subordination of the Agency's Regulatory Agreement.
7. The Agency's Executive Director is instructed to obtain written cc
to the Agency from Wells Fargo Bank and Great Western Savings
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designed to protect the Agency's investment in the event of defaull
Wells Fargo Loan and the Great Western Loan, including notice of c
an opportunity to cure. Provided that such written commitments arf
in accordance with Health and Safety Code Section 33334.14(a), tl
may cause its Regulatory Agreement to be subordinated to the del
securing the Wells Fargo Loan and the deed of trust securing the Gre;
Loan, and hereby authorizes the Agency's Executive Director t
subordination agreements as necessaryh to implement such subord
8. That the Housing and Redevelopment Commission approves the
Deficit Guarantee Agreement between the Carlsbad Redevelopmer
Bridge Housing Corporation and the partnership of Patrick Developme
Associates for operation of the Villas at El Camino Real Affordab'
Project.
9. That the Executive Director of the Carlsbad Redevelopment ,
authorized to execute said agreements in substantially the form pres€
Attorney deems necessary and appropriate.
I Housing and Redevelopment Commission and with such modificatil
~ PASSED, APPROVED, AND ADOPTED at a regular meeting of the H
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15 AYES: Commissioners Lewis, Stanton, Kulchin, Nygaard,
16 NOES: None
Redevelopment Commission of the City of Carlsbad, California, held on the 19th
JULY , 1994, by the following vote, to wit:
17 ABSENT: None
18 ABSTAl N: None
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