HomeMy WebLinkAbout1991-03-05; City Council; 11055; PGP Carlsbad Seniors LTD IICIP” OF CARLSBAD - AGEND- BILL do I :am L!J
AB# II,05 5 TITLE:
MTG. 3-5-q 1 ACCEPTANCE/APPROVAL OF THE
PROMISSORY NOTE & DEED OF TRUST BETWEEN THE I DEPTdfL---- 1 C/TY OF CARLSBAD & PGP CARSLBAD SENlORS ICITY MGRS I RECOMMENDED ACTION:
Adopt ResoWion No. 02 1 - 3 c( approving and accepting the Promissory
Note and Deed of Trust between the City of Carl&ad and PGP Carlsbad Seniors,
LTD., a California Limited Partnership.
In April of 1986, approval for construction of a 57 unit senior housing project at
Jefferson Street and Home Avenue was approved. Pursuant to the provisions of
the Senior Housing Ordinance, Section 27.78.045, the applicant was permitted to
increase density for the project to 75 dwelling units/acre, and reduce 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 required to furnish a second trust deed on the
property to the City in the amount of $?,573,392.00. This trust deed was never
recorded with the County of San Diego.
The current owner of the project, Jefferson House, a General Partnership is selling
the property to PGP Car&bad Seniors, LTD., a California Limited Partnership
pending approval of the Promissory Note and Deed of Trust 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’! PGP Carlsbad Seniors has submitted
a letter to the City, stating an understanding of their obligations and that they
agree to the terms and conditions of the Conditional Use Permit.
Although the original security with the current owners of the project, Jefferson
House, was never recorded, the new purchasers of the property have agreed to
record the Note and Deed concurrent with the transfer of tit/e. The Deed of Trust
will place the City of Carlsbad in second position, subordinate to the primary
lender, Coast Savings and Loan Association. Jefferson House, the current
owners, will be p/aced in the third position on the Deed of Trust.
A
PAGE 2 OF AGENDA BILL NO. o,c2 5s
FISCAL IMPACT
Since the project was approved in 1986, the $1,573,392 Note has compounded
at 10% giving it a value of approximately $2.3 million. That, together with the first
deed loan amount, exceeds the total value of the property. The existing loan will,
therefore, have the effect of reducing the value of the second, to be held by the
City of Carl&ad. However, the remaining security which encompasses the entire
equity in the building is adequate to ensure the continued operation of the
building as a senior project or to fund any necessary conversion required to bring
it into compliance with the ordinance. The City’s secured position approximates
$800 Thousand, which is adequate to protect the City’s interest in the project.
EXHIBITS
1. Resolution No. 9 1 -T-t
2. Promissory Note and Deed of Trust
3. Terms of sale (Supplemental Escrow Instructions
4. PGP Carlsbad Seniors, acknowledgement of terms and conditions.
,
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RESOLUTlON NO. 9 I- 7 4
A RESOLUTION OF THE C/N COUNCIL OF THE GIN OF CARLSBAD,
CALIFORNIA APPROVING AND ACCEPTING THE PROMISSORY NOTE AND
DEED OF TRUST BETWEEN THE CINOF CARLSBAD AND PGP CARLSBAD
SENIORS. LTD.
WHEREAS, in 1986 a Senior Housing Project was approved and
9 constructed which allowed for a density bonus and reduced parking; and
10 WHEREAS, the applicant as conditioned, submitted a conversion plan
11 and a agreed to name the City of Carlsbad as the holder of the second trust deed;
12 and
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14 WHEREAS, Jefferson House, A General Partnership is selling the
15 property to PGP Carlsbad Seniors, LTD; and
16 WHEREAS, pursuant to the Senior Housing Ordinance, Section
17 21.18.0045, security required by the ordinance is transferrable upon sale so long
18 as the buyer agrees to abide by the tears of this ordinance and the conditional
19 I use permit;
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21 WHEREAS, the buyer has agreed to the terms of the ordinance.
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23 NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council
24 of the City of Carl&ad as follows:
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26 A) That the foregoing recitations are true and correct.
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B)
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That the City Council approves and accepts the Promissory Note and Deed
of Trust between the City of Carlsbad and PGP Carlsbad Seniors, LTD.
PASSED, APPROVED AND ADOPTED at a regular meeting of
the Carlsbad City Council held on the 5th day of March , 7991 by the
following vote, to wit:
AYES: Council Members Lewis, Kulchin, Larson, Stanton and Nygaard
NOES: None
ABSENT: None
CLAUDE A. LEWIS, MAYOR AnEST:
%.-&42&d F ALETHA L. RAUTENKRANZ
(=w
PROMISSORY NOTE
$1.573.392.00 San Diego. California February 6 , 1991
FOR VALUE RECEIVED, the undersigned promises to pay to the CITY OF CARLSBAD. at
Carlsbad, California, the sum of $1,573.392.00 with interest at the rate of ten
percent (10%) per annum simple interest until paid or canceled as herein provided.
This note is given to the City of Carlsbad pursuant to Section 21.18.045 of the
Carlsbad Municipal Code to insure that the maker hereof constructs, operates and
maintains the property described in the deed of trust secured hereby as a Senior
Citizens Housing Project in accordance with the requirements of said Section and
Conditional Use Permit 86-3, or if not so constructed, operated and maintained, that
the property is brought up to the standards of the approved conversion plan pursuant
to CUP 86-3 or any other conversion plan approved by the City of Carlsbad.
No payment shall be required on this note except as -follows:
1. If the Council of the City of Carlsbad or any successor thereto determines
that the property is being operated or maintained in violation of any of the terms of
said Section 21.18.045 or said Conditional Use Permit 86-3. or used for other than a
Senior Citizens Housing Project without the consent of the City Council, the City
Council may declare the whole sum of principal and any accrued interest thereon immediately due and payable. lhe maker hereof shall then have the option to elect to
pay said principal and accrued interests in full or within a reasonable time
thereafter to convert the project to meet the approved conversion plan pursuant to
CUP 86-3 or any other conversion plan approved by the City of Carlsbad. Upon said
payment in full or conversion of the project to the approved conversion plan pursuant
to CUP 86-3 or any other conversion plan approved by the City of Carlsbad. the City
of Carlsbad shall return this note to the maker and reconvey the lien of the deed of
trust securing this note.
2. The entire principal and accrued interest thereon shall become immediately
due and payable at the option of the City of Carlsbad in the event that upon the
sale. conveyance or other disposition of the property described in the deed of trust
securing this note, the buyer fails to agree in writing to accept and abide by all
the terms and provisions of this promissory note.
The maker hereof shall have the right at any time to prepay all or any part of
this note or to elect to convert the property to meet the approved conversion plan
pursuant to CUP 86-3 or any other conversion plan approved by the City of Carlsbad.
Upon prepayment in full or such conversion of the property, this note shall be
canceled and the lien of the deed of trust securing this note shall be reconveyed to
the maker hereof.
This note is given solely to conform with the provisions of said Section
21.18.045 of the Carlsbad Municipal Code. and neither the maker nor any partner,
officer, agent or employee of the maker shall have personal liability for payment of
this note. The holder hereof shall look only to its interest in the property secured
hereby for payment.
If action be instituted on this note. the undersigned promises to pay such sum
as a court may affix as attorneys' fees. This note is secured by a deed of trust to
SMS Trust Deed Service, a California corporation, as Trustee.
PGP CARLSBAD SENIORS LTD. II. a California limited partnership
By: Pacific Growth Properties. a general partnership
By:
Frekk4. Berlage, General Partner
.
- RECORDING REOUESTED BY
CHICAGO TITLE COMPANY
I
AND WHEN RECORDED MAIL TO:
Order No. 920628-02 Escrow No. 823829DT SPACE ABOVE THIS LINE FOR RECORDER’S USE
DEED OF TRUST WITH ASSIGNMENT OF RENTS
BY THIS DEED OF TRUST, made this 6th day of February ,199l , between
PGP CARLSBAD SENIORS LTD. II, a California limited partnership
, herein called TRUSTOR, whose address is
1120 Silverado Street, La Jolla, CA 92037 (number and strael) (city) (state
and SMS TRUST DEED SERVICE, a California corporation, herein called TRUSTEE, and
ZiP)
THE CITY OF CARLSBAD
, herein called BENEFICIARY,
Trustor grants, transfers, and assigns to trustee, in trust, with power of sale, that property in the City of.Carlsbad, San Diego County, California, described as:
Lots 14, 15, 16, 17 and 18 of SCHELL AND SITES ADDITION TO CARLSBAD, in the City of Carlsbad, County of San Diego, State of California, according to Map
thereof No. 2145, filed in the Office of the County Recorder of San Diego
County on February 20, 1929.
See Exhibit "A" attached hereto and incorporated herein for additional provisions to this Deed of Trust.
Together with the rents, issues and profits thereof. subject, however. lo the right, powar and authority her&after given to and conferred UPOn Beneficiary t0 COlkt and apply such rents, issues and profits.
For the Purpose of Securing: (1) Payment of the indebtedness evidenced by ona promissory note in the principal sum of S 1,s 7 3,39 ‘2.00 with Interest thereon according to the terms of a promissory note or notes of even date herewith made by Trustor, payable to order of Beneficiary, and extensions M renewals thereof, and (2) the performance of each agreement of Trustor incorporated by reference or contained herein (3) Payment of addftlonal sums and interest thereon which may hereafter be loaned to Trustor, or his successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust.
To Protect the security of this Deed of Trust, and wilh respeci to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth In subdivision A, and il is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18, 1964. in the book and at the page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely:
COUNTY Aluntil -
BOOK PAOE COUNTY BOOK PAGE COUNTY BOOK PAQE COUNTY BOOK PAGE 121 055 KInen asA 713 PIU.r 1020 379 slurs 35 147
3 worn Ml. 437 110 PlWl.. 1M 1307 81&d~ SW 742 -VT. UT !%-.l.M 125? 021 2007 427 CAT. NO. NN00637 TO 1956 CA (l-83)
(Partnership as a Partner of a Partnership)
STATE OF CALIFORNIA
COUNTY OF San Dieqo
Lfd\L. rcicll -. -cl--
~TlCORTlTlE INSURANCE
ss.
before mc..thc. undersiencd. a Notary Public in and for
1070 55 5555 so.5 457 ia3
wa so5 2530 108 I77 fso ?m7 227 7* 10 3s5 oe3
CAT. NO. NN00630 TO 1946 CA (S-84)
(Partnership)
STATE OF CALIFORNIA
COUNTY OF dd~-~ Dieqo
n Sam sucdlvlsion
@ TICOR TITLE INSURANCE %%fhog:%
,inbafors set (orth.
0"
sa’ ’ ^ before me, the undersigned 2 Nnfnrrr I).,~I:.- :.. -nd for ia state. personally appeared Frank R. Berlaqe o----I - .._.-. ip
personally known to me or proved to me on the basis’of satisfactory evidence to be
the person who executed the within instrument as
- that executed the of the partners of rhe partnership =? O.,.-+~C.,- ‘al L _L LLLSL
1
'artner
I Signatu
RECORDING REQUESTED BY
CHICAGO TITLE COMPANY
AND WHEN RECORDSD MAIL TO:
Order NO. 920628-02 Escrow NO. 823829DT SPACE ABOVE THIS LINE FOR RECORDERS USE
DEED OF TRUST WITH ASSIGNMENT OF RENTS
BY THIS DEED OF TRUST, made this 6th day of February I1991 , between
PGP CARLSBAD SENIORS LTD. II, a California limited partnership
, herein called TRUSTOR, whose address is
1120 Silverado Street, La Jolla, CA 92037
(number and street) WY) (state
and SMS TRUST DEED SERVICE. a California corporation, herein called TRUSTEE, and
ZlP)
THE CITY OF CARLSBAD
, herein called BENEFICIARY,
Trustor grants, transfers, and assigns to trustee, in trust, with power of sale, that property in the City of Carlsbad, San Diego County, California, described as:
Lots 14, 15, 16, 17 and 18 of SCHELL AND SITES ADDITION TO CARLSBAD, in the City of Carlsbad, County of San Diego, State of California, according to Map thereof No. 2145, filed in the Office of the County Recorder of San Diego
County on February 20, 1929.
See Exhibit "A" attached hereto and incorporated herein for additional provisions to this Deed of Trust.
Together with the rents, Issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary lo collect and apply such rents, issues and profits.
For the Purpose of Securing: (1) Payment of the indebledness evidenced by one promissory note in the principal sum of S 1 ,5 7 3,39 2.00 with interest thereon according to the terms of a promissory note or notes of even date herewith made by Trustor. payable to order of Beneficiary. and extensions or renewals thereof, and (2) the performance of each agreement of Truslor incorporated by reference or contained
La
herein (3) Payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or his successors or assigns, when I’*&
evidenced by a promissory note or notes reolting that they are secured by this Deed of Trust. (f-3 .A:,# TO protect the security of this Deed of Trust, and with respect to the property above described, Truslor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision tr_-~]
A, and it is mutually agreed that each and ail of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18. 1964, in the book and at the page of Official Records in the office ,b
Of the county recorder of the county where said property is located, noted below opposite the name of such counly, namely: r---b
Aipln Alll.dO, IIUIII C.l.VWM COIUU contra co.1. 0.1 NotI. ElDomdn FRHW GlHn HUlllbddi Imprlal Inye KMl
BOOK 12s5
3 133 1330 155 323 a54 101 704 5052 45s ml llss 155 3755
PAQE 555
lm.3, 43s 513 33s 351 1 545 535 523 75 s3 7m s72 55a
Mnud Modoc Mona
M-V NW. NW&
Qf=w
BOOK PAGE COUNN 555 713 PllCU 437 110 FiYIIIas tn 357 RlrMki. 7.3475 574 Saermmto 01, 135 SW &nKo 154s 123 s.n e&llaldlne
so 453 S.n Frsnelleo 557 ss Sal Jom,ukl 155s 753 s*n Luls obl*po 19, 03 Sal M.lea 5s 3m smta 0.lb.n 357 23s Smlla Cl.” 7M 7.2 s.nt. CNZ 243 01 shut. 7152 15 San 0i.w SERIES
PAQE 375 13s7
347 125 405 755 581
253 137 175 551 s54 5s7 533 P5ga Ms:
COUNTY slnm
5onoma
stmll.l.US
5unu Tshams Trlnny TIllUs Tuolumm VUIIUI. VOIO YUh
“4
SOOK 35 545
1257
105
2530
177 207 75s 355
PAQE 157 752 521 527 55 5d5 153
sob 1M i50 237 15 553
shall Inure to and blnd the parties herelo, with respect to lhs property above described. Said agreements. lerms and provisions contained In said subdivision A and 6. (Identkai in ail counties, and printed on the reverse side hsreo() are by the wlthln referents thereto, incorporaled hsreln snd made 5 part of this Deed of Trust for all purposes as fully a5 if set forth at length herein, snd Beneficiary may charge lor a statement regarding the obligation secured hereby,
provided the chsrgs therelor does nol exceed the maxlmum allowed by law. The undersigned Trustor, requests that a copy of any nollce of default and any notice of sale hereunder bs mailed lo him at his address hereinbefore set lorth.
STATE OF CALIFORNIA.
COUNTY OF
On
SS: PGP CARLSBAD SENIORS LTD. II, a California limited partnership By: Pacific Growth Properties,
before me. the undersigned, P Notary Public in and for 5ald State.
personally appeared
personally known to me (or proved to me on lhe basis 01 satisfactory evidoncs) to bs the psmon(s) whose ndmdst IWare subscrlbsd to ths wllhln instrumeni and acknowledged to me that h&he/they executed the same.
WITNESS my hand and olfictal seal.
Signature
m-m
-. (This are* for official notarial seal)
- -
DO NOT RECOh3
Tha follo~lng Is a copy of Subdivlrlons A and B of the lictlllous Deed of Trust mcorded I” each counly I” Cllltorma as s,e,ed In the toreaolna Deed of Trust and ,“ccrpor.,ed
by r ,,.,. “c. 1” ,aid Deed 01 Trust a, blng . part th.mOt 1s if set lor,h E, Iena,h there,“.
A. TO p101*Et lh. ~~“rlty 01 thll 0..d 0, Trust. Trustor .,,,a~%
11) TO keep Uid PrOPWW I” gOod COndltion 8nd replir; no, IO remove or demo,is” any bulldlna thereon: ,I) compIe,e Or mslore promplly and I” aood and wo,kmantike
ml”“u l “Y bullding which mW h COnsfructed. dsmaaed or deslroyed thereon and 10 pay rhsn due all claims for l&or performsd rnd mrter~rls furnishsd ,herefo,; ,O
comply wllh 111 Ihs aflactina said property or requiring any alferatlons or mprovsments to be made lhsraon: not to comm~f or permtt waste the,+ not to COm,,,,t, su,tar
0, PW”it .“Y -1 UP*” Uld PrOPWlY I” “lOlJlID” 0, IL”,: lo ~“llkale. ifIl‘,~te. 1etllllle. tN”l0.t~. ,~““a and 00 II, Other aCta WhlCh tram lhs chsrsc,., 0, y,s o, s,,d p,Opeq nlW be reawnably necessary. lha specIfIc enumerations herein not arcludlnp the general.
I21 TO provtde. m~i”,al” .“d d.,,“er 10 Senslicilry Ms lnsurlnce s~lisfwlory 10 and w,h loss pqebla ,o Senelici~ry. The amount Co,&,ed ““de, an)r ,lre o, other hlrUrlnC* POW “MY be *PPbd by b@nellciay upon my mdebtadness secured hemby and i” Such order IS Senehcmry may delermma. or a, OptlO” Of b”effc,pry the a”tlr* W”ou”f SO collected Or any put lhsreol mry be released 10 Trustor. Such ~pplicalon 0, mlease shall no, cure 0, WI,“O any d&u,, or no,,ce 0, data”,, hereunder or InvalIdate rmy wt done pursun, 10 such notice.
(3) To appear in and &lend any lcllon or proceedma purportina 10 affect the seccur~,y hereof or the rlahls Or powers of Seneficwy or Truslm; and ,. PaY l t, costs and expenssr. lncludinp cost of ewdsnce 01 11110 and attorney’s leer I” a reasonable wm, I” any wch sctm or procsadmp in whch Benef~~ary or Trustee may appea,, and In any suit brouah, by Sensficmr, lo torecloss ,hls Doed
(4) To pay: at least ten days before dellnqusncy all 11x(11 and aesessmente dtectlng add properly. includlna ~sseesm.snls on appurtenant water stock; when due. all encumbrances. charges and liens. with ~nlersst. on said property or any psr( mereof, which =pp(lw 10 be prior or superior herefo: 811 cos,s, f-s and B~pe”sos ,,f ,,,,s Trust.
Should Trusfor fall 10 make any prymen, or lo do any act as herein pmvlded, fhen Saneflcmry or Truslea. but wlhout obl,aP,ion so ,a do and wlthou, “O,~CO or demand
upon Trustor and wllhou, ratersma Tlustor from my obliaalmn hereot. may make or do the same I” such manner and 10 such we”, ss sithe, may deem “eces3iary 10 proled ,he securI,y hereof. Seneficiilry Or Trus,ee bslna authorued 10 enter upon sand ploperfy for such purposes; appear I” rnd dsfsnd any scbon or proceedlna purpo,,,“g lo aIiect the security hereof or the rights or powers of Seneticlary or Trus,ee: pay. purchase. co”,851 Or compromise any encumbrsnce. charae or lie” which 1” the tudgman,
of either appears t0 be prior Of supenor hereto; and. in ererclsma any such powers. pay “e.cess~w expe”ses. employ cou”soI snd ply his reaso”&le tee$.
I51 To pay immediately and wlthou, demand all sums so expended by Senef~cwy or Trustee. w,h mtsres, from da,s of sxpendilure I, the amount =,lowed by iaw In oIlact at the date hersot, and to pay tor any statement provldsd for by law an eflect al the dale hereof regardma ,hd ob,lge.uo” sBcured hereby ~“y sm~u”, demanded
by the Bensficlary not lo exceed the marimum allowed by law at ,he ,mw when said stalemen, IS demnnded
0. It IS mul~ally agreed:
0) That any award 01 damaass 1” connection wh any condemnalm for pvbllc use 01 ot lnlurv to sand property or any par, Ihereot is hersby ssslaned a”d shalt be pud lo Saneliciaw who may apply or release Such mO”eys recewed by him I” the same manner and wth the same eltect LS above provided for dlsposibon of pr0. cwds 01 lire 0, other ,nsu,ance.
(21 Ths, by xxsptina psymen, of any sum seculsd hereby after 1,s due date, Bensllclrry does no, wlive his rlah, dither Lo rsquirr prompt plymsn, when due of aI1 other sums so secured or lo declare default lor lailure so to pay.
131 Ths, .I ly ,“,~e 0, from fime 10 Ime. wlhou, Imb,,,,,’ lherefor and wltho”, nOtiCe. “PO” wrllte” reques, 0, 0e”ef,ci.,y rnd p,ase”,~,,on 01 ,h,, Dee,, a”d slid note for endorsement, ~“d Whou, affectma the Pwso”al liablllly of any person for paymen, of ,“e lndebtednesr secured hereby. Trustee msy: reconvey any part Of sud properly; consent 10 the makina 01 any map or pla, Lhereof, join m arlnllna my easemen, fhereo”; or 101” I” any exlenslon salsemen, Or sny agreement subord,“~t,“g
the lien or change hereot.
(4 Tha, upon wrlllen requss, ot benaficmry shtma that &I sums secured hereby have been pP#d, and upon surrender of ,hu Deed and slid note lo Trus,se lo, c.“ceIIe,,o” .nd re,a”,lon 0, olhe, di~poslllo” a, Tws,.e I” t,, SW d,?lcrello” “lay C~OQSB .“d “PO” p.yme”, 01 cl1 fees. Trusfes shall rsconvay, wfho”, ,v,,,a”,y,
Ihe prope”y then held hereunder. The rscitlls In Wch ,eco”“eys”c~ of any m=,,ers 0, facts shall be co”cI”s~“s proof of Ihe t,u,hfulness thereof. The Granlw in such ,ecconvey,“ce may be described PS “the psrsan or persons leaally en,l,led therelo ”
(51 That as lddmO”al securely, Truslor hereby awes lo and confers upon Seneflclrry the right. power ~“d LU,hon,y. durlna ,he con,muancs Of these Trus,s,
lo collect the rents. ~esues and protlts 01 smd property. resenlng unto Trusror ths riahl. prior 10 any detaull by Truslor I” paymen, of sny mdebtednsss secured hereby or
!n psrtormance of any aareemsnl hereunder. to collect and retain such renls. issues and profils as they become due and payable. Upon any such defaul,. Sensficl~ry may
et any lme wlhou1 notm. allher en person, by aaen,. or by s recewdr 10 be appointed by s tour,. and wtnou, regard 10 the adequacy 01 any IOCYII,~ tar me mdsblcdness hereby sacwed. enler upon and lake possession 01 said plcperly or any part lhsreol. in his Own “Pme sue for Or olheMs8 Collect Such renls. issues. pnd profits. mcludina those pas, due and unpaid. and rpply the same, less cOs,s and expenses 01 operation end coIIec11o”. lncludma reaso”Dbla &,orney’s feds, upon any lndebtsdness secured
hereby. and in such order as Senefluary may de,srm~ne The enlerma upon snd tskma possewon of said properly, ,he collecl~o” of such renls. issues and profl,s and
the appl~almn thereat as Itoreslid. shall no, cure or wlwe any default or notice of default hereunder 0, tnval~dals any ac, done pursuant to such “obce.
IBI Th=, “PO” defwl, by Truslo, I” pwme”, 01 any ,ndsb,ed”ess secured hereby or I” P~rfor”M”Cs Of any rare,e”W”, here”“dsr. Senslicwy may deciwe a,, sums sacursd hereby ,m,“sd,~,ely due and payable by do,,“e,y 10 Truslae of wnllen de&ratio” of dstaul, and demand for ,118 and of w,l,,en “o,,ca ot delaul, and o, e,ec,,o”
to cause to be sold sad ptoperly, whlcn “Obce Trustee shall cause lo be tiled for record Beneflclaw also shall deposi, wlh Truslee this Deed. raid note and at, documenls
ewdencing axpendlturss secured hereby.
Afler the lapse 01 such bms as may lhen be requwed by law followma ,he record~bo” oi said nolice of delaull. and notice of sale havma been aiven as ,hen requwd by law, Trw,ee. witho”, damand on Trustor. ~“811 se11 saild property a, Ihe ,!me and place lwsd by I, in swd no,lce 01 sale. elthar ss P whole or I” separele puceIs, and
in wch order as ft may delermme, at publtc aucllon to ,he hiahest Diddw lo, car” 8” lwful money of the Umled Slates. payable 11 bme Of sale Truslea may postpone
,.,a of .,I 0, my portion 01 sad propa,,” by p”bl,c an”ou”~ement al such ,,me and P,X% Of Salk, and fro”? llms ,o ,ime ,hefe.f,er may postpone sue,! sale by p”blic I”- nouncement at the lme flved by the prscesdmp postponement. Trustee shall deliver to such purchaser 1,s deed conveyma ,he properly so sold. but WI,“OU, any convenan, or wamnly, exprsrs or tmpl~ed The recl,als 6” such deed of any mailers or facls shall be concI~s~ve Proof ot the Irulhfulness thereof. Any Person. mcludma Twslor, Trus,ee.
or Benet,~i.ry IS hersmnllsr deftned. ma” purchass a, s”ch 548
Alter deduclma all costs. fees and expensss of Truslse and of ,hls Tws,. mcludma co51 of evidence of title m connec,lon wI,h sale. Trustee shall apply the proceeds o, ,.,a ,o p.ymsn, 01: .,I sums expended under ,he Ien-“, he,eof. no, then rePaId. w,h .ccr”ed l”,eres, I, the I”w”“, IllOwed by law I” etl‘,c, I, the 6110 hartrot; 111 othw
sums Ihe” s(Icuwd hersby; rnd ,he remainder. II my, to ,he person or PersOns legally ewrlsd lhereto
m Seneticmry. Or any successor I” Ownsrship of any mdabledness secured hereby. may from tlma lo tams. by mstr~men, in wntma. subsliluts a successor
or s~cc(~esors to any Truslee namsd hsrein or sclma heRunder. whG” ms,rumen,. execuled by Ihe Benellclary and duly xknowledaed and recorded 1” ,he ottics ot ths recorder o, ,he cow,” or cou”,,es wham Said property IS sIt”.,ed. shall be co”cIusi~e Proof 0, Proper subs,Itu,Io” Of S”ch Successor Truslee or Truslees. who shalt w,,i,ou, c~w~ymce km the Truslw predac~ssor. succeL)d ID 4, i,o ,Me estale. rlahls, powels and dulles Said ins,rument mus, con,un ,he name of ,he or!gmal Truslor, Trustee and Bene#tmary hereunder. the book and paas where ,hls Deed IS recorded and the name and address of the new Trustee.
(9) TM ,hls Dead r.ppfies lo. mures to the bePet!, of. and bmds all par,ms hereto. the!, hews. leaa,ees. dewsees. ~dmmwa~ors, execu,ors. successors ilnd
arsrgne The term Benef~3ary ahall mem the owner and holder. miudma pledpees. of the note secured hereby. whether or not named as Eenet~cwy hewn. In ,hls Deed. whenever ,he contex, M rsquwes. the m~scult”e sender includes ,he temmme lndiol “eu,er. and ,he slnaular number Includes ths plural.
(91 Tha, Tu$to %cep,s lhis Trus, when fhls Deed. duly executed and acknowledaed. II made P public recOrd ZB provided by Iw Trustse is no, obhagwd lo
nouly my party here,0 01 pending we under any other Deed of Trus, or of any acuon or proceedma I” which Trusilor. Bsnatuary or Trustee shall be D party unless brwah,
by Trus,.~. DO NOT RECORD REQUEST FOR FULL RECONVEYANCE
TO SMS TRUST DEED SERVICE. TRUSTEE
The underwgnsd is the legal Owner md holder Of tne “OM or notes. and 01 all other indebtedness secured by lhe fOregoIng Deed 01 Trust. Said note or
“Otes. tOga,her wth all Other mdebtedness secured by wd Deed Of Trus,. have been fully pald and SaIlslied; and you are hereby reques,ed and directed. On
payme”, to YOU Of my sums owmg to you under ,he terms of said Deed 01 Trust. ,O cancel said ndte Or “0,~ above montloned. and 111 other ewdences Of indebtedness securnd by said Deed of Trust delivered t0 you herewith, togelher with ,he sud Deed Of Trusl. and lo recOvey. wllhoul warranty, to the parties dssianated by the terms Of said Deed of Trust. ~1, t”e es,~,e “Ow held by you under Ihe asme.
Beneficiary’s
Current Address
Do not lose or desfroy this Deed ol Trust OR THE NOTE wh,ch ,t s.scurb~. Both must be dslivweed to Ihe Trustee lor vancbllalion be/ore reconvsyance wll be made. i \ 1
h
EXHIBIT "A"
ADDITIONAL PROVISIONS TO SUBORDINATED DEED OF TRUST
This deed of trust is given to the City of Carlsbad pursuant to Section
21.18.045 of the Carlsbad Municipal Code to insure that the maker hereof constructs,
operates and maintains the property described herein as a Senior Citizens Housing
Project in accordance with the requirements of said Section and Conditional Use
Permit 86-3. or if not so constructed, operated and maintained, that the property is
brought up to the standards of the approved conversion plan pursuant to CUP 86-3 or
any other conversion plan approved by the City of Carlsbad.
No payment shall be required on the note secured by this deed of trust except as
follows:
1. If the Council of the City of Carlsbad or any successor thereto determines
that the property is being operated or maintained in violation of any of the terms of
said Section 21.18.045 or said Conditional Use Permit 86-3. or used for other than a
Senior Citizens Housing Project without the consent of the City Council, the City
Council may declare the whole sum of principal and any accrued interest thereon
immediately due and payable. The maker hereof shall then have the option to elect to
pay said principal and accrued interests in full or within a reasonable time
thereafter to convert the project to meet the approved conversion plan pursuant to
CUP 86-3 or any other conversion plan approved by the City of Carlsbad. Upon said
payment in full or conversion of the project to the approved conversion plan pursuant
to CUP 86-3 or any other conversion plan approved by the City of Carlsbad, the City
of Carlsbad shall return the note to the maker and reconvey the lien of this deed of
trust.
2. The entire principal and accrued interest thereon shall become immediately
due and payable at the option of the City of Carlsbad in the event that upon the
sale, conveyance or other disposition of the property described in this deed of
trust, the buyer fails to agree in writing to accept and abide by all the terms and
provisions of the promissory note.
The maker hereof shall have the right at any time to prepay all or any part of
the note or to elect to convert the property to meet the approved conversion plan
pursuant to CUP 86-3 or any other conversion plan approved by the City of Carlsbad.
Upon prepayment in full or such conversion of the property, the note shall be
cancelled and the lien of this deed of trust shall be reconveyed to the maker hereof.
The note secured by this deed of trust is given solely to conform with the
provisions of said Section 21.18.045 of the Carlsbad Municipal Code, and neither the
maker nor any partner, officer, agent or employee of the maker shall have personal
liability for payment of the note. The holder thereof shall look only to its
interest in the property secured hereby for payment.
Pursuant to said Section 21.18.045. this deed of trust shall be subordinated and
subject to any first deeds of trust to be executed by Trustor or his successor in
interest concurrently herewith or at any time hereafter to secure loans called
"construction loans." "permanent loans" or any other form of loan, refinancing,
additional financing, or promissory note given by the purchaser of the property on
condition that:
(1) This deed of trust shall be subordinated to only a first deed of trust and
no additional secondary or junior financing:
(2) The loan to which this deed of trust is to be subordinated shall not exceed
ninety percent (90%) of the fair market value of the property at the time of
subordination.
(3) The proceeds of any such loan, financing or refinancing may be used to pay
loan fees, interest or other charges in connection with the making of said
loan, and any excess may be retained by the Trustor or his successor in
interest so loan as the other provisions of this subordination clause have
been satisfied.
PGP CARLSBAD SENIORS LTD. II. a California limited partnership
By: Pacific Growth Properties, a general partnership
1 *
FLU B’r’: *IERG% TELEZI~PIER 7~~10 ; ~-19-9~ 9: l&PI ;
FROM BOWES-T ESCROW LJ A 619 Js’3 83’s?+
;# 2
2.19.1991
-I
: 16 P. 2 .
1) w BcmesTEsc~C~~ 7660 TAY AVENUE. SUITL 0 LA lOLLA, CALIFORNIA 920374097
(619) 459-8300 TELLFAX: (619) 4S9-8397
AMENDED AND/OR SUPPLEMENTED
ESCROW INSTRUCTIONS
ESCrOW No. 823829DT February 15, 1991
Re: 2848 Jefferson Street, Carlsbad, CA
TO: SOWEST ESCROW COMPANY
MY prrviOu8 inStrUCtiOn in the above tlUft?bered e8cmv are her&y Mlef&d an&Or 8u@ernented in the following pet’ticul~f8 only:
l.TERMS OF SALE: The sales price of $3,283.000.00 is hereby amended to be paid as
2.follows:
3.
s.Cash through escrow. . . . . . . . , , . . . . . . . . . . . . . . $ 833,OOO.OO 5.Existing First Trust Deed in favor of Coast Savings. . . , . . . . $1,900,000.00
8.New Third Trust Deed in favor of Jefferson House II. , . , . . , . $ 550,OOO.OO
7.Total Consideration. . , . . . . . . . . . . , . . . . . , . , . . $3.283.000.00
8.
B.Subject property shall be subject to a Second Deed of Trust and Note in favor of the
iO.Clty of Carlsbad In the amount of $1.573.392.00 executed by PGP Carlsbad Seniors Ltd.
11.II which shall record concurrently with the Deed from Jefferson House II to sard PGP
re.Carlsbad Seniors Ltd. II. No consideration will be given for said Deed of Trust and
13.said Deed of Trust will not be given as part of the consideration being given jn thls 14.escrow for subject property.
15.
18.The terms of the Deed of Trust and Note to be in favor of Jefferson House II shall
17.remain the same as set forth in Amended Escrow Instructions dated October 17, 1990 with
18.the exception that said Deed of Trust shall now be Third and subsequent in lien to a
lB.First Deed of Trust with Coast Savings and a Second Deed of Trust in favor of the City
Boof Carlsbad,
21.
22.
23.
24.
25.
28.
27.
28.
29.
30'JEFFERSON HOUSE II, a California
general partnership
BY: William B. Rick, general partner
PGP CARLSBAD SENIORS LTD. II, a California
llmited partnership
BY: Pacific Growth Properties, a general
partnership, general partner
BY: John Michaelsen, general partner
BY:
Prank R. Berlage, general partner
EACH OF THE PARTIES ABOVE STATE THAT THEY HAVE READ THE FOREGOING INSTRUCTIONS AND UNDERSTAND AND APPROVE
THEM AND DO HEREBY ACKNOWLEDGE RECEIPT OF A COPY OF THESE INSTRUCTIONS.
i Growth %re!rties. rnc.
N E. MICHAELSEN
FREslDENt
November 14, 1990
Mr. Marty Orenyak Director of Community Development CITY OF CARLSBAD 2075 Las Palmas Drive Carlsbad, CA 92008
RE: Promissory Note in Favor of the City of Carlsbad on Jefferson House II Apartments 2848 Jefferson Street Carlsbad, California i,
Dear Mr. Orenyak,
I am the General Partner of the buying entity that is Purchasing Jefferson House II Apartments. This letter is to make you aware that I have reviewed all the documents relating to the Note, fully understand my obligations as the new owner and agree to be bound by the terms and conditions of the Note, Deed of Trust, Exhibit A to the Deed, Section 2x.18.045 of the Carlsbad Municipal Code and Conditional Use Permit 82-3.
I understand that the amount of the Note is $1,573,392 plus interest from the date of origination in 1987. I understand that no payment shall be required on the Note except as provided in 2, of Exhibit A, Additional Provisions to
in the operation of the project I must comply 8.045 of the Carlsbad Municipal Code in all fully reviewed Exhibit A and Code Section understand and agree to comply.
TEL: (61 U} -7
FAX: (61@) 4549217
1120 SILVERADO STREET
LA JOLU, CAUFORNfA 22927 ’ .F
I am involved as a General Partner in three other apartment properties in Carlsbad, namely Laguna Palms Apartments, Carlsbad Coast Apartments, and Jefferson House I, a Seniors project at 3090 Jefferson.
Your acceptance of this letter acknowledges that the project is now in full compliance with Section 21.18.045 of the Carlsbad Municipal Code.
I appreciate your help and look forward to working with your office in the future.
Please call with any questions that you may have.
Sincerely,
JEM/dmm
Enclosures: Escrow Instructions* Municipal Code Section 21.18.045 Promissory Note-. ..:.- bed of Trust " :.
Exhibit A to De6d bf T$.%st '. I'. ':'. - SubordW&tion Agrement- -. . ,.._- ,. _..' "1 '.,
. . *_ 'd
Brokerage Ccm@z%ny.... ,- :s. ,,l
610 West Ash Street : : ._ :' '. ':: , San Diego, CA 92101 .;--, : .'-';. .: : .:, (' I ,. f:,,:-:s _ , .' Ti >-* ,_ ,, ., i, ~$"?y;-- %?I 7:. .- ;. _.. -'I . j. p --:a. - .- :s,$= -'- , 4 , '. : : '_ -., ., -,.' 0 ;.: "'$ l,< :<:j;'jJ-, Ii::; s; :, ,.i _ zr ::-,., ._ -, . '. ,f,;; *a,", _ 1 1;:. '5 ,.: . n . J.<.:- : I ,-. 1 '..( : cc .,..' ; 1 -.. ,‘, .:.rp; -.:::'
z