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HomeMy WebLinkAbout1990-09-18; City Council; 10831; Subordination Agreement Jefferson HouseCIT-OF CARLSBAD - AGENDP-BILL 9(y @ 0 b B ;A% T?&1770N, APPROWU AND TRANSFER OF THE SUBORDlfWlON AGREEMENT FROM JEFFERSON DEPT.~L HOUSE TO PGP CXRLSBAD SENIORS. LTD RECOMMENDED ACTION: Adopt Resolution No. %f*ifu(f authorizing the Mayor to execute a subordination agreement between the City of Car/&ad and PGP Car/&ad Seniors, LTD., a California Limited Partnership. I ITEM EXP#WWON In D8C8mb8r of 1983, approval for construction of a 48 unit senior housing project at Jefferson Street and Oak AV8nU8 was approved. Pursuant to the provisions of the Senior Housing Ordinance, Section 21.18.045, the applicant was permitted to increase density for the project to 75 dwelling units/acre, and r8duC8 parking requirements to a ratio of one space per two units. Conditions tied to approval of the density bonus included the applicant’s submittal of (1) a conversion plan for the project in the event the project was converted to a use other than senior housing, and (2) the applicant was r8qUir8d to furnish a second trust deed on the property to the City in the amount of $765,440.00. The current owner of the proj8ct, Jefferson House, a General Partnership is selling the property to PGP Car/&ad Seniors, LTD., a California Limited Parlnership pending approval of the new subordination agreement between the PGP Carlsbad Seniors and the City of Carlsbad. Pursuant to the provisions of the Senior Housing Ordinance, “The security required by this subsection shall be transferable upon sale so long as the buyer agrees to abide by the terms of this section and the conditional use permit”. I FISCAL IMPACT Since the project was approved in 7982, the $765,440 trust deed has compounded at 70% giving it a value of approximately $1.5 million. That, together with the new first deed loan, eXC88dS the total value of the property. The subordination wiif, therefore, have the effect of reducing the value of the second. However, the remaining security which encompasses the entire equity in the building is more than adequate to ensure the continued operation of the building as a senior project or to fund any necessary conversion r8qUir8d to bring it into compliance with the ordinance. The City’s S8CUr8d position after the subordination approximates $1 million, which is adequate to protect the City’s interest. EXHIBITS 7. Resolution No. %-‘.y$f 2. Subordination Agreement 3. PGP Carisbad Seniors aCknOWledg8m8nt of terms and conditions. - c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. go-348 A RESOLUTION OF THE C/N COUNCIL OF THE C/N OF CARLSBAD, CALIFORNIA AUTHOR/ZING THE MAYOR TO EXECUTE A SUBORDINATION AGREEMENT BETWEEN THE CITY OF CARLSBAD AND PGP CARLSBAD SENIORS. LTD. WHEREAS, in 7983 a Senior Housing Project was approved and constructed which allowed for a density bonus and reduced parking; and WHEREAS, the applicant as conditioned, submitted a conversion plan and a subordination agreement naming the City of Carlsbad as the holder of the second trust deed; and WHEREAS, Jefferson House, A Genera/ Partnership is selling the property to PGP Carl&ad Seniors, LTD; and WHEREAS, pursuant to the Senior Housing Ordinance, Section 2 1.18.0045, security required by the ordinance is transferrable upon sale so long as the buyer agrees to abide by the terms of this ordinance and the conditional use permit. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carl&ad as follows: 4 That the foregoing recitations are true and correct. B) That the City Council authorizes the Mayor to execute the S@ordination Agreement between the City of Carlsbad and PGP Carl&ad Seniors, LTD. . . . . w... . 1 PASSED, APPROVED AND ADOPTED at a regular meeting of the 2 Carlsbad City Council held on the 18th day of Sept. , 7990 by the following 311 vote, to wit: 4 5 6 7 8 AYES: Council Members Lewis, Kulchin, Larson, Mamaux and Pettine NOES: None ABSENT: None CLAUDE A. LEWIS, MAYOR . . lC7 il iiiiiiiti-. . KAREN R. KUNDTZ, Assistant City Clerk 13 (SEAL) 14 15 16 17 18 19 I 20 21 22 23 24 25 26 27