HomeMy WebLinkAbout1997-07-15; City Council; 14266; La Posada De Guadalupe Homeless ShelterREQUEST FOR FINANCIAL ASSISTANCE FOR THE MTG. 9 ’5 9 7 ACQUISITION OF PROPERTY BY CATHOLIC CHARITIES FOR CITY ATTY.
LA POSADA DE GUADALUPE HOMELESS SHELTER
IEPT. HlRED CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 97 -536 , to authorize an appropriation of $200,000 from the Housing Trust
Fund for the acquisition of property located at 2472-2478 Impala Drive by Catholic Charities, San Diego
for La Posada de Guadalupe Homeless Shelter.
ITEM EXPLANATION:
The City has received a request for financial assistance in the amount of $200,000 to assist Catholic
Charities, San Diego with the acquisition of property for La Posada de Guadalupe. Currently, Catholic
Charities leases the property located at 2472-2478 Impala Drive on a year to year basis to provide La
Posada de Guadalupe Homeless Shelter. Notwithstanding the success of La Posada, the lack of long
term site control has negatively impacted Catholic Charities’ ability to provide a cost effective shelter and
service program.
Catholic Charities has continually applied for funding grants to support operation of the shelter but has
been unable to obtain these significant sources of revenue due to the lack of site control over the
applicable grant period. To this point, Catholic Charities has been able to absorb the construction and
operating deficits of La Posada. However, the continuing loss of significant operating revenues from
grants and rising costs would cause the shelter to operate at a level of loss beyond Catholic Charities’
ability to sustain.
The property owners have informed Catholic Charities of their interest and intent to sell the property. The
property owners, strong supporters of the shelter, have agreed to provide Catholic Charities an
opportunity to purchase this property for $362,500. Catholic Charities would be able to provide $1 62,500
of its own financial resources for the acquisition of the property and is requesting assistance with the
remaining balance of the purchase price.
The acquisition of this property would help in resolving issues of long term site control and, consequently,
positively impact Catholic Charities’ ability to secure funding for the operation of the La Posada. If
Catholic Charities were unable to acquire the property, significant additional expense could be expected
from a rent increase by new owners or possibly expenses associated with relocating to another site.
La Posada de Guadalupe provides transitional housing for a maximum of 50 homeless men. This shelter
assists in meeting the great need in Carlsbad for housing single homeless men and is devoted to
improving the quality of life for its participants by encouraging and enabling employment and the
acquisition of permanent housing. Residents are able to maintain shelter for up to 90 days, receive food
and hygiene services, and participate in other supportive service programs. La Posada de Guadalupe
has been able to serve 1,576 unduplicated individuals, with 61,061 bed nights and 174,791 meals in its
four years of operation. Continued support and operation of this shelter will assist the City’s homeless
population and create a supportive community environment with enhanced supportive services and
facilities.
RECOMMENDATION:
On May 8, 1997, the Housing Commission approved a recommendation to City Council to provide
$200,000 from the City of Carlsbad Housing Trust fund for the purpose of assisting Catholic Charities, San
Diego to acquire property located at 2472-2478 Impala Drive for the continual operation of La Posada de P
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Guadalupe Homeless Shelter for single men. Catholic Charities will be required to operate the facility as a
homeless shelter consistent with the requirements of the Conditional Use Permit for the facility and the
application for financial assistance.
On June 17, 1997, staff recommended to the City Council that the financial assistance be provided in the
form of a loan that would be deferred (no interest or principle payments) and “forgiven” (reduced to zero
principle) over IO years. City Council requested that this particular feature be renegotiated with a
provision for repayment of the City’s loan.
After further discussion with Catholic Charities the following terms have been agreed upon and will be
reflected in the loan documents:
0 Financial assistance will be provided in the form of a non-interest bearing deferred loan to be secured
by the property. The term of the loan shall be twenty (20) years. Repayment of any and all of the
loan principal will be required upon the first to occur of the following: (1) the expiration of the loan
term; (2) upon sale or transfer of the property; or (3) the expiration of the Conditional Use Permit for
the operation of the homeless shelter.
0 Financial assistance provided to Catholic Charities, San Diego, for the acquisition of property for La
Posada de Guadalupe Homeless Shelter will be subject to granting the City a right of first refusal to
purchase the real property should it at any time be made available for purchase. Additionally, the
City will be offered an opportunity to purchase the property upon the fifth year of the loan term and
every year thereafter for the term of the loan. The purchase price of the property will be the fair
market value of the property at the time of purchase.
0 Upon the sale of the property, any proceeds shall first be disbursed to Catholic Charities for payment
of the First Deed of Trust Loan, any accrued interest paid, and reasonable and customary costs of
sale of the property. The City shall then be repaid any and all of the principal owed. Any additional
proceeds, shall be used by Catholic Charities for the sole purpose of supporting programs and
services to benefit Carlsbad residents.
Should the City exercise its option to purchase the property, the City shall, if determined necessary or
appropriate based on the housing and social service needs of the community, assist Catholic
Charities with the identification of alternative sites for a homeless shelter and provide relocation
assistance.
Staff believes that the requested financial assistance will be acceptable based upon an appraisal of the
property to be completed by Catholic Charities substantiating the $362,500 purchase price and the
leveraging of other financial resources. Additionally, for every $1 the City is contributing to the purchase
price of the property, Catholic Charities is providing $0.81 of their own financial resources. While this may
not meet the leveraging goal the City would seek with other affordable housing projects, subsidy funds for
homeless shelters, particularly for land and capital improvements, are very scarce.
It is staffs recommendation that the City Council authorize the appropriation of $200,000 from the
Housing Trust Fund for the acquisition of property by Catholic Charities, San Diego, for La Posada de
Guadalupe Homeless Shelter. La Posada is the only homeless shelter located within Carlsbad offering
shelter and services to the community’s homeless population. The Housing Trust Fund shall be used only
for the purpose of providing funding assistance for the provision of affordable housing consistent with the
policies and programs contained in the Housing Element of the City’s General Plan. This shelter and the
case management services are consistent with Objective 3.3 of the Housing Element to provide shelter
and assistance for the homeless.
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.. , ; PAGE~OFAGENDABILLPW. Iyi t(,&
FISCAL IMPACT:
A total undesignated balance of approximately $2,260,000 currently exists in the Housing Trust Fund.
Appropriation of the $200,000 recommended financial assistance for the acquisition of property by
Catholic Charities for La Posada de Guadalupe Homeless Shelter will not substantially impact the fund
balance.
EXH IBlTS :
1. Resolution No. .%J&authorizing the appropriation of $200,000 from the Housing Trust Fund for
the acquisition of property by Catholic Charities for La Posada de Guadalupe Homeless Shelter.
2. Housing Commission Review Application
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CITY COUNCIL RESOLUTION NO. 97-536
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING THE APPROPRIATION OF
$200,000 IN THE FORM OF A NON INTEREST BEARING DEFERRED
LOAN FROM THE CITY OF CARLSBAD’S HOUSING TRUST FUND FOR THE PURPOSE OF ASSISTING CATHOLIC CHARITIES, SAN
DRIVE FOR THE LA POSADA DE GUADALUPE HOMELESS
SHELTER
DIEGO TO ACQUIRE PROPERTY LOCATED AT 2472-2478 IMPALA
WHEREAS, a request for financial assistance was submitted to the City of Carlsbad’s
Housing Commission for review and consideration by Catholic Charities, San Diego; and
WHEREAS, Catholic Charities, San Diego has expressed a need to receive financial
assistance in the amount of $200,000 from the City of Carlsbad Housing Trust Fund for the
purpose of acquiring property located at 2472-2478 Impala Drive for La Posada de Guadalupe
Homeless Shelter; and
WHEREAS, said Housing Commission did, on the 8‘h day of May, 1997, hold a public
meeting to consider said application requesting financial assistance; and
WHEREAS, the Housing Commission, upon hearing and considering all testimony, if any,
of all persons desiring to be heard, and considering all factors relating to the application and
request for financial assistance, has recommended to the City Council that the appropriation be
approved because the Commission believes that the City’s financial participation in the
acquisition of the property for La Posada de Guadalupe will be a sound investment based upon
La Posada de Guadalupe’s ability to effectively serve the City’s housing needs and priorities as
expressed in the Housing Element and the Consolidated Plan and the cost effectiveness of
acquiring said property based on the appraised value of the property and the leveraging of the
financial assistance recommended; and
WHEREAS, the City Council APPROVES the expenditure of an amount not to exceed
$200,000 from the City of Carlsbad Housing Trust Fund for the purpose of providing financial
assistance to Catholic Charities, San Diego for the acquisition of property located at 2472-2478
Impala Drive in Carlsbad for La Posada de Guadalupe Homeless Shelter.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. The City Council hereby AUTHORIZES the Finance Director to appropriate an amount not to
exceed $200,000 in the form of a non interest bearing deferred loan from the Housing Trust
Fund to financially assist Catholic Charities, San Diego with the acquisition of property
located at 2472-2478 Impala Drive for La Posada de Guadalupe Homeless Shelter.
3. That the City Manager or his designee is authorized to enter into additional agreements with
Catholic Charities, San Diego, execute such other documents, or take other actions as may
be necessary or appropriate to assist Catholic Charities, San Diego with the acquisition of
the subject property.
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CITY COUNCIL REF'-UTION NO. 97-536
PAGE 2
General Conditions:
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Financial assistance in the amount of $200,000 from the City of Carlsbad Housing
Trust Fund will be made available as a non interest bearing deferred loan, This loan will
be secured by a Trust Deed and Promissory Note for the property on behalf of the City
of Carlsbad.
The term of the loan shall be twenty (20) years.
Repayment of any and all of the loan principal will be required upon the first to occur of the
following: a) the expiration of the loan term, b) upon the first date of sale or transfer of the
property, or c) failure to operate the facility as a homeless shelter consistent with the
requirements of the permits governing the use of the facility and the application for financial
assistance.
Catholic Charities will be required to operate the facility as a homeless shelter consistent
with the requirements of the Conditional Use Permit for the facility and the application for
financial assistance.
Financial assistance shall be subject to granting the City of Carlsbad a right of first
refusal to purchase property should it at any time be made available for purchase.
Upon sale of the property, any proceeds shall first be disbursed to Catholic Charities for
payment of the First Deed of Trust Loan, any accrued interest paid, and reasonable and
customary costs of sale of the property. The City shall then be repaid any and all of the
principal owed. Any additional proceeds, shall be used by Catholic Charities for the sole
purpose of supporting programs and services to benefit Carlsbad residents.
Upon this approval of financial assistance by the City Council, Catholic Charities shall enter
into a loan agreement with the City of Carlsbad. The loan agreement shall include all terms
and conditions of said project approval; the amount and form of the City's financial
assistance; compliance reporting requirements and implementing agreements.
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CITY COUNCIL RESP UTION NO. 97-536
PAGE 3
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the
AYES: ~ouncil Members Nygaard, Kulchin, and Hall
city of Carlsbad, California, held on the 1 fith day of July 1997, by the following vote, to wit:
NOES: Council Members Lewis and Finnila
ABSTAIN: None
ATTEST:
a& L
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
EXHIBIT 2
Housing Commission Review Application
I C'L~~~~~~ CHARITIES
February 28,1997
Ms. Leilani Hines
Department of Housing and Redevelopment
City of Carlsbad
2965 Roosevelt St., Suite B
Carlsbad, CA 92008-2389
Dear Ms. Hines,
Catholic Charities, Diocese of San Diego seeks the assistance of the City of Carlsbad
to ensure the continued operation of La Posada de Guadalupe as a shelter benefitting
homeless men in the Carlsbad area. Specifically, we request financial support from the
Housing Trust Fund in the amount of $200,000 to purchase the property at 2472-2478
Impala Drive from the current owners who are strongly desirous of selling the land in the
very near future. With this level of assistance, Catholic Charities will be able to secure the
remaining resources needed to affect a timely transfer of Deed. In its absence, CCSD could
lose this opportunity to obtain the site control required to receive significant operational
funds from the federal government as well as risk our ability to remain at this location.
Catholic Charities requests that you utilize the attached amended Project
Description which was contained in our application to the City of Carlsbad for capital costs
under the CDBG Program. We are also prepared to provide any additional information
that you may require and request.
Thank you for your assistance in processing this request.
Sincerely,
Robert J. goser, Ph.D.
Department Director
catholic
charities
ACOMMUNITY SERVICE MINISTRY Diocese of San Diego
4575 Mission Gorge Place, Suite A, Sa Diego, CA 92120. Tel. (619) 287-9454 Fax (619) 287-6328
Member Agency of United Way Member Agency of Catholic Charities USA 0
PROJECT DESCRIPTION
I. SUMMARY
Capital funds in the amount of $ 200,000 are requested to
purchase the property upon which is located the unique and
successful shelter facility and program known as La Posada de-
Guadalupe de Carlsbad. Commenced in 1992 and operated by
Catholic Charities of San Diego (CCSD) in partnership with the
Caring Residents of Carlsbad (CRC), La Posada is an important
asset for and component of the City of Carlsbad’s response to the
perennial problem of homelessness among farm workers and day
laborers. Located on a 3.62 acre parcel adjacent to the City’s Safety Center on Impala Drive, La Posada represents a physical
plant and communal environment unlike any other in San Diego
County. To preserve the benefits of this resource is the purpose
of this grant application.
11. NEED
La Posada was originally conceived and constructed as a
temporary shelter. Designed with mobile units and a maximum stay
of 90 days, the physical and programmatic character of the
shelter was planned as a test of its capacity and capability to
contribute to a meaningful response to homelessness and its
compatibility with the community‘s will and willingness to share
in that solution. Fortunately the outcomes have all been
positive for all concerned - CCSD, CRC, the City of Carlsbad and
the homeless themselves. Unfortunately, the temporary character
has had some negative consequences for the program.
First, although the tenure of occupancy has always been
uncertain, the prospects of losing the ability to remain at the
current site are now real. The land’s owners, strong supporters
of the shelter since its inception, have indicated their decision
to act on their investment by placing the property for sale.
Should another buyer have alternative use for the space, the ability of CCSD to identify a suitable substitute is unlikely.
Based on the experience of establishing La Posada at its present
premise, the costs of locating a comparable tract plus preparing
the site and moving the mobile units would also be prohibitive
absent sufficient funding. The likely level of needed assistance
would nearly match the sale price being asked by the owners, and
the loss of service time and community support would be great.
Second, the lack of site control beyond a year-to-year lease
has resulted in the loss of significant operating revenues. Our
1996 application for a two-year, $ 200,000 federal emergency
shelter grant (FESG) was not even evaluated because it lacked
sufficient site control over the course of the grant period. The
1997 round of FESG funding is currently in process, and without
ownership of the site, our ability to demonstrate sufficient site
control to qualify for these needed operating monies is negated.
Conversely, if we are able to attain ownership, then the level of
funds we could receive would go a long way to making the shelter
able to operate in the black.
Third, the lack of long-term or permanent site control has
also adversely affected the site’s ability to secure a long-term
Conditional Use Permit. The Planning Commission was willing to
grant such a permit before it learned of the tentative nature of
our tenancy. The cost in application fees for renewing the CUP is another savings to be realized if ownership is secured.
Fourth, the single largest expense besides personnel is
space. It is unlikely that a new landlord would provide CCSD
with the same rental rate as we currently experience. Additional
costs could cause the shelter to operate at a level of loss beyond its ability to sustain. In fact, Catholic Charities has
already absorbed significant sums of deficit (nearly $ 200,000) in both the original construction costs and operating expenses
over the past three years. The City of Carlsbad has been able to
contribute only a fraction of this amount through annual awards
of CDBG Public Service funds. By approving this request, the
City can make a significant contribution to maintain a program
that has been beneficial from its beginning.
111. lvlETHODS
Catholic Charities has already held discussions with the
current owners who are willing to work out a deal for the sale of
the property to Catholic Charities. Representatives from the
City of Carlsbad’s Planning and Housing Departments have also
been involved. The asking price is $ 362,000 and a formal
appraisal will be completed by March 5 to assess its market
value. A funding package that includes significant Housing Fund
support would go a long way to assuring the acquisition of this
property. The Allied Irish Bank, which has financed several
other property purchases for Catholic Charities, has indicated
its agreement to provide credit for the remaining amount.
Negotiations for the land will include the authorized agents
of the agency, the Executive Director and members of the
Corporate Board. All legal and fiscal requirements would be
handled in accordance within standard procedures and mechanisms,
including those established for HUD-funded projects.
IV. FE NEFITS
1. Acquisition of permanent site control
2. Continuance of program operations
3. Enhancement of opportunities for operating funds
4. Realization of savings in space costs
5. Availability of site for future services
6. Location of Catholic Charities as a long-term resource
within Carlsbad
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L
I, I CITY OF CARLSSAO COMMUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM
FUNDING PROPOSAL APPLICATION
1997-98
The followkg informa tion must be completed by each person/agency/organization interested in
being considered for CDBG/HOME funding. All information requested musf be provided or the
application will be considered incomplete and will not be further evaluated for funding
consideration. Please type or print clearly. Attach additional sheets or information as necesfiry.
The application must not exceed a total of ten (IO) pages, not including the required
attachments as listed in the Checklist of Required Documents.
ADMINISTRATING AGENCY - --
Name of Agency:
Address:
Catholic Charities, Diocese of San Diego 349 Cedar Street, San Diego, CA 92101
Federal Tax ID Number: 23-73340 12
. PROPOSED PROGRAM/PROJECT
Title of Program/Project:
Location of ProgramlProject:
La Posada de Guadalupe 2472-78 Impala Drives Catlsbad, CA 92008
Contact Person: Robert J.Moser, Ph,D. Telephone~o.: 1 619 287-9454
Requested Funding Amount: $ 3O0,OOO
Brief Description of Program/Project (Describe the work to be performed, including the activities
to be undertaken or the services to be provided, the goals and objectives of the
program/project. etc.):
La Posada is a unique 50-bed facility serving hmeless male farm workers and day laborers with basic szrvices of shelter and food and with case management
assistance directed at employment and permaneilt housing. Funds will be used
to purchase the property thereby assuring site control and the continuity of the facility and its services, plus enhancing the ability to . secure operating funds.
-,- 1997-98 COsG/HOME FuFdhg - Appficolion
I Page2
I
1. ORGANIZATIONAL ABILITY/CAPACm
A. This agency is: Kl Non-profit 0 For-jxofit
0 Localpublicagency 0 State public agency
0 Other (Pleat? specify.)
What is the pu
and justice, to acknowledge the sacredness of the human person, to enhance the quality of life for all, to advocate for F Just society, to call men and women to action on behalf of the poor, and to promote self -determi nation for a1 1 .
8. se/missionof the agency? A cornunity service minis@Y that exists to wi 'p" ness actively on behalf of the scriptural values of mercy
C. How long has this agency been in operation? Please include the date of
incorporation?
Since 1919 as the social service agency of the Roman Catholic Diocese; officially inforporated as 501 (C) (3) in February, 1974.
0. How long has this agency been providing the proposed prograrn/project?
Since November 1 , 1992
E. Please submit an organizational chart for the agency cs Attachment A.
F. Please describe the agency's existing staff positions dbectly responsible for the proposed programlprqect and their 'qualifcafm and experience in
implementing such o progrornlproject. (Resumes may ab be submitied as
Attachment B.) Dept.Director:Liaison with city, budgeting, program development, program evaluation - Ph.0.; 15 years administrative experience, Program Manager: Daily program operation, staff supervision, maintain site and services, Liaison with other agencies. Casemanagers: Direct service delivery, client supervision, intake, assessment, case planning, referral follow-@. Cook: Prepare meals, plan menu, supervise kitchen, food storage.
Please indicate you agency's level of experience with the CDBG/HOME program
and/or other State or Federol Funding Sources.
G.
COBGIHO ME MOO raw
0
0
0 I8
No or tittle. experience, up to 1 year of wing CDBGIHOME funds. Some experience, 2 to 3 yean of wing CDBGMME funds.
Moderate experience. 4 to 5 yeon of Wing CDBG/HOME funds.
Considerable experience. more than 5 yean of using CDBG/HOME funds.
Other $totelFederal Fundina Sourcef:
0
0
0
@
No or little experience. up to 1 year of using ofher Slote/Federol funds.
Some experience, 2 to 3 yean of Wing other State/Federal funds.
Moderate experience, 4 to 5 yeon of wing other Stote/Federol funds..
Considerable experience. more than 5 yeon of using other Stote/Federal
funds.
-1-
, 1997-98 CDBG/HOME funf-q Application 1 Poge3
H. ll you have received federal funds. including CDBGIHOME funds, in pre- yeas. hove program ViOlOfiOn findings ever been made agaht your
agencylorganizotion?
ff yes. please explain notwe of linding(s) and how tin&ng(s) has been addressed byw orgonizatiorr. -
11. FINANCIAL CAPACITY/STABILITY
A. Please submit the proposed budget for the program/project, itemizing revenues
and expenses, to this application as Attachment C. Indicate how the requested
CDBG/HOME funds would relate to the overon proposed budget.
8. Please submit a copy of the organization's finoncia1 audit report for the lost fucal
year as Attachment D.
C. Did you receive any of the following sources of funding from the Ciiy cf Carisbod
within the last hvo years (1995-96 and 199697) for the proposed
programtprojec ti!
CDBG (hr&n8y Activities (General Fund monies) w 0
If yes, please *Micote amount and StotvS of previovsly awarded funds [fufly
emnded, funds remaining, programlptoject disconhued).
Amount ReceiveQ sfotcn' CDBGIHOME funds 10,000 (95-96) fully expended (operating) 30,000 (95-96) project complete (capital)
Cmmwlity Activities 9,790 (96-97) 1/2 funds remaining (operating)
D. Did you receive any federol funds, includihg CDBG/HOME funding from other
cities, lost year (July 1996 - June 1597)?
0 No pb Yes (Please list funds below.)
Proarom Source
FEMA
Amount Received
$ 25,000
$
$
E. WJI additional CDBG/HOME funds be required in future yeon for the project?
0 No i Yes
'1 3
+.\ City of Carlrbod -
. . 1997-98 COBG/HOME Fui I .J Applicofion ' .' Page 4
111. BENEFITS & BENEFICIARIES
A. How accessible or convenient is the proposed pcogramlpcojecl to Cotisbad
relidenfit (Pleose be specifc such OS direct ten/icer lo cfienl'r home. traruportat'bn provided lo and from fWlV, w relalion lo pubk hanspodofm.) .
Project located within Carlsbad, near migrant camps, adjacent to safety center, near El Camino Real, and less than 1 mile from -
bus stop.
8. Who1 is the oppoxhate percentage Of your clients that have annual fa- ihcomes in each of the.foBowing ranges: (Percentages rhoold odd to 1oo"x;
Please see the 1994-95 Income Limits for the CDBG/HOME Rogram)
80 20 X of clients are at 30 percent or below of lhe area median .ncorne X of clients ore between 31 ond 50 percent of the cxea median income
X of clients are between 51 and 80 percent of the area median income
5% of clients are above w) percent of the area medin income
C. Pleose describe how low and moderate income persons will benefit from the
proposed program/project. Include the need or woblem to be addressed in
relation to Consolidated Plan housing and community development priorities. 0s weU as the population to be served or the orea to be benefited. (See
Consolidated Plan Prion'ties)
By providing a safe, sanitary and sober shelter environment for homeless men within which they are encouraged and enabled through casemanagement and support services to obtain employment a permanent housing and social assimilation; transitions men from unsafe migrant camps to an effective shelter program to affordable rental hous i ng .
0. plecue *Wiiote the number of clients. by harsehdds or *ndividUab. benefifhg
from the proposed och'ty and the percenloge that are Corlsbad residents.
Households 01 475 Persons of wtu'ch 100% are Cdbad residents
E. Does your ogency focus its activities on populations with spedal needs?
0 No b Yes (Please specify)
Please specify which special needs popviafions. (Homeless individuols/farnilies.
Persons with dsobilities. Persons with substonce obuse problems, Valerans. Farm
workers & day loborers. Elderly, Children. etc.)
Homeless male farm workers and day laborers.
- City of Carlsbad
*~~ 1997-98 CDBG/HOME Fur Application
, ’ Page5
‘1
IV. IMPLEMENTATION OF ACTIVITY
A. Please submit a schedule for implementation of the proposed construction,
rehabilitation, property acquisition, other construction related or new
public/community service program/project as Attachment E. The agency must
ensure the expenditure of all CDBG/HOME funds awarded within the program
year. -
I, the undersigned, do hereby attest that the above information is hue and correct to the best of
my knowledge.
Executive Director 12/4/96
SignCIture Title Dafe
Date Received: 12’04-9b
Date Reviewed: 12- \0-9&
Staff Person Completing Review: m I\ -E%lczLsr~ <ST
National Objective: L-/W 1J-c & -17-
Local Objective: bMdk.
Eligibility Detemination: 970. Zol fa> I 370.zoAfa wc ;)(a)
(WP\APPLICATIONJ UevisSd: I0/29#6
\4
PROJECT DESCRIPTION
Capital funds in the amount of $ 300,000 are requested to purchase the property upon which is located the unique and
successful shelter facility and program known as La Posada de Guadalupe de Carlsbad. Commenced in 1992 and operated by Catholic Charities of San Diego (CCSD) in partnership with the- Caring Residents of Carlsbad (CRC), La Posada is an important asset for and component of the City of Carlsbad's response to the perennial problem of homelessness among farm workers and day
laborers. Safety Center on Impala Drive, La Posada represents a physical plant and communal environment unlike any other in San Diego County. To preserve the benefits of this resource is the purpose of this grant application.
Located on a 3.62 acre parcel adjacent to the City's
La Posada was originally conceived and constructed as a temporary shelter. of 90 days, the physical and programmatic character of the shelter was planned as a test of its capacity and capability to contribute to a meaningful response to homelessness and its compatibility with the community's will and willingness to share
in that solution. Fortunately the outcomes have all been positive for all concerned - CCSD, CRC, the City of Carlsbad and the homeless themselves. Unfortunately, the temporary character has had some negative consequences for the program.
uncertain, the prospects of losing the ability to remain at the current site are now real. The land's owners, strong supporters of the shelter since its inception, have expressed an interest and intent to act on their investment by placing the property for
sale. the ability of CCSD to identify a suitable substitute is
unlikely. its present premise, the costs of locating a comparable tract
plus preparing the site and moving the mobile units would also be prohibitive absent sufficient funding. The likely level of needed assistance would nearly match the sale price being asked by the owners, and the loss of service time and community support
would be great.
Designed with mobile units and a maximum stay
First, although the tenure of occupancy has always been
Should another buyer have alternative use for the space,
Based on the experience of establishing La Posada at
Second, the lack of site control beyond a year-to-year lease has resulted in the loss of significant operating revenues. Our recent competitive application for a two-year, $ 200,000 federal emergency shelter grant (FESG) was not even evaluated because it lacked sufficient site control over the course of the grant period. Another round of FESG funding is coming in the Spring of 1997, and without ownership of the site, our ability to apply for and acquire these needed operating monies is next to nil. Conversely, if we are able to attain ownership, then the level of funds we could receive would go a long way to making the shelter able to operate in the black.
Third, the lack of long-term or permanent site control has
The Planning Commission was willing to
The cost in application fees for renewing the CUP
* .‘
also adversely affected the site’s ability to secure a long-term Conditional Use Permit. grant such a permit before it learned of the tentative nature of our tenancy. is another savings that could be realized if ownership was secured.
Fourth, the single largest expense besides personnel is space. with the same rental rate as we currently experience. Additional
costs could cause the shelter to operate at a level of loss beyond its ability to sustain. In fact, Catholic Charities has already absorbed significant sums of deficit (nearly $ 200,000) in both the original construction costs and operating expenses over the past three years. The City of Carlsbad has been able to contribute only a fraction of this amount through annual awards of CDBG Public Service funds. By approving all or part of this capital request, the City can make a significant contribution with federal funds to maintain a program that has been beneficial from its beginning.
It is unlikely that a new landlord would provide CCSD
111. METHODS
Catholic Charities has already held discussions with the current owners who are willing to work out a deal for the sale of the property to Catholic Charities. Representatives from the City of Carlsbad’s Planning and Housing Departments have also been involved. The actual asking price is still under review but it will likely rest in the $ 300,000 - $ 375,000 range. funding package that included significant CDBG support would go a long way to assuring the acquisition of this property.
agents of the agency, the Executive Director and members of the Corporate Board. All legal and fiscal requirements would be handled in accordance within standard procedures and mechanisms, including those established for HUD-funded projects.
A
Negotiations for the land would include the authorized
IV. BENEFITS
1. Acquisition of permanent site control 2. Continuance of program operations 3. Enhancement of opportunities for operating funds
4. Realization of savings in space costs
5. Availability of site for future services 6. Location of Catholic Charities as a long-term resource within Carlsbad
ATTACHMENT E: IMPLEMENTATION SCHEDULE
A meeting between representatives of Catholic Charities, the City of Carlsbad and the property owners is scheduled for December 12, just three days after the due date of this application. Pending the outcome of that and subsequent discussions, plus the decision of the CDBG Review Panel and tKe City Council, the amount available through CDBG should be known
in early 1997. sale in a timely manner during the first quarter of the '97-'98 fiscal year should be highly probable and desirable. No expenses covered by CDBG will be incurred, however, until and unless authorization from the City is provided. Since the steps needed
to be taken to implement this project do not require any intermediary (e.g. real estate broker) or physical alteration of the site prior to sale, the involved fiscal and legal activities should not pose any delays or difficulties.
If favorable, then the ability to execute the
--
NOTE TO BORROWER:
This Note is not assumable.
PROMISSORY NOTE
SeDtember 9, 1997
Secured by a Deed of Trust
Carlsbad California
[City] [State]
2476-2478 ImDaIa Drive {the "Property"). [Property Address]
1. Borrower's Promise To Pay. For value received, the undersigned Catholic Charities, A
Communitv Ministrv of the Diocese of San Dieclo, a California nomrofit corDoration, (the
"Borrower") promises to pay to the City of Carlsbad, a municipal corporation (the "City"), or
order, at the Housing and Redevelopment Department, 2965 Roosevelt 'Street, Suite B,
Carlsbad, California 92008, or such other place as the City may designate in writing, the
principal sum of $200,000 (the "principal"). The City or anyone who takes this Note by
transfer and who is entitled to receive payments under this Note is called the "Note Holder."
(a) Use Of Funds. Borrower is purchasing the real property located at 2476-2478
Impala Drive in the City of Carlsbad. This Note evidences the loan made by the City to assist
Borrower in purchasing the Property for operation of a homeless shelter and/or supportive
services consistent with the requirements of permits governing its use. The full purchase
price (i.e. the gross purchase price) of the Property is $362,500.
2.
this Note.
Definitions. The terms set forth is this Section shall have the following meanings in
(a) "Security Instrument" shall mean the Deed of Trust and Security Agreement,
sometimes herein referred to as Deed of Trust, executed concurrently herewith and recorded
in the Office of the San Diego County Recorder as document no. 1997-0466871
(b) "Transfer" shall mean any sale, assignment or transfer, voluntary or involuntary, of
any interest in the Property. Any transfer without satisfaction of the provisions of this Note
is prohibited.
3. Security. This Note is secured by a deed of trust dated the same date as this Note
(the "Deed of Trust").
4. Interest. There will be no interest charged on the Loan.
5. Term. The term of this Note shall mean the period commencing on the date of this
Note and expiring on the date twenty (20) years thereafter, the date the Property is sold or
transferred, or failure of Borrower to operate a homeless shelter and/or supportive services on
the Property consistent with the requirements of permits governing the use of the facility and
Borrower's application to the City requesting financial assistance, whichever occurs first.
*
The term of this Note may be extended by mutual agreement of the parties, if determined
necessary and appropriate based upon the housing and social services needs of the City, and
as agreed upon by both the City and Borrower.
6. Payments
(a) Time and Place of Payments. The principal amount of this Note shall be due and
payable in full upon the first of the following to occur after the date of this Note: (i)
acceleration of the Note in the event of a default of the Security Instrument, (ii) the date 20
years after the date of this Note, (iii) the date of the first sale or transfer of the Property, or
(iv) failure of Borrower to operate a homeless shelter and/or supportive services on the
Property consistent with the requirements of permits governing the use of the facility and
Borrower's application to the City requesting financial assistance, whichever occurs first.
(b) Deferral. Provided that Borrower complies with the terms of the Security
Instrument (defined below), the amounts due and payable under this Note shall be deferred
and payable as follows:
Upon Borrower's sale of the Property, Borrower will pay to the City any and all of the
principal amount of the Loan. The principal amount of the Loan shall be payable from the
amount received by the Borrower as the sales price of property less a) the Borrower's
payment of the First Deed of Trust Loan and any accrued interest paid, (b) Borrower's
reasonable and customary costs of sale of the Property (including any broker's commission).
Upon payment of the principal amount of the Loan, any remaining proceeds received
by Borrower as a result of the sale of the Property shall be used for the sole purpose of
supporting programs andlor services to benefit City of Carlsbad residents.
7. Borrower's Right To Repay. Borrower has the right to prepay the principal amount of
this Note without any prepayment charge.
8. No Assumptions Of Note. Borrower acknowledges that this Note is given in
connection with the purchase of property as part of a program of the City to assist with the
provision of shelter and/or supportive services for the homeless. Consequently, this Note is
not assumable by transferees of the Property, but is due and payable in full upon expiration of
the term of this Note, on the date the Property is sold, or transferred or failure of Borrower to
operate a homeless shelter and/or supportive services on the Property consistent with the
requirements of permits governing the use of the facility and Borrower's application to the
City requesting financial assistance, whichever occurs first.
9. Maintenance; Taxes; Insurance. Borrower shall maintain the Property in good, clean
and orderly condition. Borrower shall promptly pay all property taxes due on the Property
prior to any delinquency and shall comply with the insurance requirements set forth in the
Deed of Trust.
IO. Default.
(a) Borrower shall be in default under this Note if, after the notice and cure period
provided by the City to Borrower pursuant to the notice and cure provisions of the Deed of
Trust, Borrower (i) fails to pay any money when due under this Note; (ii) breaches any
representation or covenant made in this Note in any material respect; or (iii) breaches any
provision of the Deed of Trust.
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(b) Upon Borrower's breach of any covenant or agreement of Borrower in this
Note or Deed of Trust, including, but not limited to, the covenants to pay, when due, any
sums secured by the Deed of Trust, the City prior to acceleration, will send, in the manner
set forth in Section 15, notice to Borrower specifying: (1) the breach; (2) if the breach is
curable; (3) a date, not less than 30 days from the date the notice is given to Borrower, by
which the breach must be cured; and (4) if the breach is curable, failure to cure the breach on
or before the date specified in the notice may result in acceleration of the sums secured by
this Security Instrument and sale of the Property. The notice shall further inform Borrower of
Borrower's right to reinstate after acceleration and the right to bring a court action to assert
the nonexistence of default or any other defense of Borrower to acceleration and sale.
11. Acceleration. Upon the occurrence of default under this Note or the Deed of Trust,
the City shall have the right to declare the full amount of the principal under this Note
immediately due and payable. Any failure by the City to pursue its legal and equitable
remedies upon default shall not constitute a waiver of the City's right to declare a default and
exercise all of its rights under this Note and the Deed of Trust. Nor shall acceptance by the
City of any payment provided for in the Note constitute a waiver of the City"s right to require
prompt payment of any remaining principal owed.
12. No Offset. Borrower hereby waives any rights of offset it now has or may later have
against the City, its successors and assigns, and agrees to make the payments called for in
this Note in accordance with the terms of this Note.
13. Waivers. Borrower and any endorsers or guarantors of this Note, for themselves, their
heirs, legal representatives, successors and assigns, respectively, severally waive diligence,
presentment, protest, and demand, and notice of protest, dishonor and non-payment of this
Note, and expressly waive any rights to be released by reasons of any extension of time or
change in terms of payment, or change, alteration or release of any security given for the
payments hereof, and expressly waive the right to plead any and all statutes of limitations as
a defense to any demand on this Note or agreement to pay the same, and jointly and
severally agree to pay all costs of collection when incurred, including reasonable attorney
fees. If an action is instituted on this Note, the Borrower promises to pay, in addition to the
costs and disbursements allowed by law, such sum as a court may adjudge reasonable as
attorneys' fees in such action.
14. No Waiver by the City. No waiver of any breach, default or failure of condition under
the terms of this Note shall be implied from any failure of the City to take action with respect
to such breach, default or failure or from any previous waiver of any similar or unrelated
breach, default or failure.
15. Giving Of Notices. Except for any notice required under applicable law to be given in
another manner, any notice to Borrower provided for in this Note shall be sent certified mail,
return receipt requested or express delivery service with a delivery receipt, or personally
delivered with a delivery receipt obtained, and shall be deemed to be effective as of the date
shown of the delivery receipt as the date of delivery, the date delivery was refused, or the
date the notice was returned as undeliverable.
-3-
c
, *-
I
P..)tices shall be directed as ,.)llows:
Borrower:
Catholic Charities, A Community Ministry of the Diocese of San Diego
349 Cedar Street
San Diego CA 92101
Attn: Executive Director
Citv of Carlsbad:
Housing and Redevelopment Department
2965 Roosevelt Street Suite B
Carlsbad CA 92008-2389
Attn: Housing and Redevelopment Director
The parties may subsequently change addresses by providing written notice of the
change in address to the other parties in accordance with this Section.
16. This Note is the joint and several ,obligation of all
makers, sureties, guarantors and endorsers, and shall be binding upon them and their
successors and assigns.
Joint and Several Obligations.
17.
the laws of the State of California.
Controlling Law. This Note shall be construed in accordance with and be governed by
18. Assignment by the City. The City may assign its right to receive the proceeds under
this Note to any person and upon notice to Borrower by the City all payments shall be made
to the assignee.
19. Invalid Provisions. If any one or more of the provisions contained in this Note shall for
any reason be held to be invalid, illegal or unenforceable in any respect, then such provision
or provisions shall be deemed severable from the remaining provisions contained in this Note,
and this Note shall be construed as if such invalid, illegal or unenforceable provision had
never been contained in this Note.
20. Entire Agreement. This Note (along with the Deed of Trust) sets forth the entire
understanding and agreement of the City and Borrower and any amendment, alteration or
interpretation of this Note must be in writing signed by both the City and Borrower.
-4-
IN WITNESS WHEREOF the parties hereto have caused this Promissory Note to be
executed as of the day and year first written above.
Catholic Charities, A Community Ministry of the Diocese of San Diego, a California
nonprofit corporation,
/’
~ SISTER RAYMONDA DUVALL, President n
/
REVEREND MON cretary/Treasurer
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n
I .
INTEROFFICE MEMORANDUM
DATE SEPTEMBER 10, 1997
TO: CITY CLERK
FROM: MANAGMENT ANALYST
SUBJECT: LOAN DOCUMENTS FOR LA POSADA
cc: FILE
On July 15, 1997, City Council approved a non-interest bearing deferred loan in the amount of
$200,000 for Catholic Charities to acquire the property for La Posada de Guadalupe homeless shelter.
The loan documents have since been executed and will be recorded against the property. Escrow for
the property is scheduled to close by September 19, 1997 upon remittance of the City's loan proceeds
to the escrow company.
Please find attached the original Promissory Note and a copy of the Loan Agreement and Related
Restrictive Covenants and the Deed of Trust and Security Agreement between Catholic Charities and
the City of Carlsbad for a loan in the amount of $200,000 for the purchase of property located at 2476-
2478 Impala Drive for use as La Posada de Guadalupe Homeless Shelter. Once the loan documents
have been recorded? a copy will be forwarded to the City Clerk's Office.
If you should have any additional questions? please contact my office at x2818.
LEILANI HINES
NOTE TO FILE:
11/20/97
Attached are copies of the final version of the Promissory Note and of
the Recorded Deed of Trust and Security Agreement and Loan Agreement
and Related Restrictive Covenants. (The originals are in the "45" file)
Karen
RECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
695
DOC # 1997-0466871
OFFICIAL RECORDS SFIN DIECO COUNTY RECORDER'S OFFICE GREGORY J. SHlTHI COUNTY RECORDER FEES : 0.00 UAY: . 2
Carlsbad CA 92008 c-: i '. - L' ; , ,I
r
' IVF (Space above for Recorder's Use)
NOTE TO BORROWER:
This Deed of Trust Contains Provisions Prohibiting Assumptions
DEED OF TRUST AND SECURITY AGREEMENT
THIS DEED OF TRUST AND SECURITY AGREEMENT ("Security Instrument") is made
on the gth day of September, 1997, among Catholic Charities, A Community Service Ministry
of the Diocese of San Diego, a California non-profit corporation ("Borrower") as trustor, agd
Lawyers Title Company, a California corporation ("Trustee"), and the City of Carlsbad, a
municipal corporation ("the City"), as beneficiary.
The Borrower, in consideration of the promises herein recited and the trust herein
created, irrevocably grants, transfers, conveys and assigns to the Trustee, in trust, with
power of sale, the property located in the City of Carlsbad, State of California, which has the
address of 2476-2478 Impala Drive and is further described in the attached Exhibit "A" (the
"Property").
TOGETHER WITH all easements, appurtenances, and fixtures now or hereafter a part
of the property, all of which, including replacements and additions thereto, shall be deemed
to be and remain a part of the property covered by this Security Instrument; and,
TO SECURE to the City the repayment of the sums evidenced by a promissory note
executed by the Borrower to the City dated September 9, 1997 the principal sum of two
hundred thousand dollars ($200,000) (the "Note").
TO SECURE to the City the payment of all other sums, with interest thereon,
advanced in accordance herewith to protect this Security Instrument; and the performance of
the covenants and agreements of Borrower herein contained; and,
TO SECURE the performance of any obligations of Borrower in the Loan Agreement
and Related Restrictive Covenants and any other agreements with respect to the financing of
the Property, the failure of which would adversely affect Beneficiary, whether or not
Beneficiary is a party to such agreements.
I.
c c
696
BORROWER AND THE CITY COVENANT AND AGREE AS FOLLOWS:
1. Borrower's Estate. That Borrower is lawfully seized of the estate hereby
conveyed and has the right to grant and convey the Property, and that other than this
Security Instrument, the Property is unencumbered. Borrower warrants and will defend
generally the title to the Property against all claims and demands, subject to any declarations,
easements or restrictions listed in a schedule of exceptions to coverage in any title insurance
policy insuring the City's interest in the Property.
2. Payment of Principal and Prepayment. Borrower shall promptly pay when due
any and all of the principal of the debt evidenced by the Note. The Note contains the
following provisions concerning payment of the loan under certain conditions:
No AssumDtions of Note. Borrower acknowledges that the Note is given in
connection with the purchase of property as part of a program of the City to assist with the
provision of shelter and/or supportive services for the homeless. Consequently, the Note is
not assumable by transferees of the Property, but is due and payable in full upon expiration of
the term of the Note, on the date the Property is sold or transferred, or failure of Borrower to
operate a homeless shelter and/or supportive services on the Property consistent with the
requirements of permits governing the use of the facility and Borrower application to the City
requesting financial assistance, whichever occurs first.
3 Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and
impositions attributable to the Property which may attain priority over this Security
Instrument. Borrower shall pay these obligations on time directly to the person owed
payment. Borrower shall promptly furnish to the City all notices of amounts to be paid under
this Section. If Borrower makes these payments directly, Borrower shall promptly furnish to
the City receipts evidencing the payments.
Borrower shall promptly discharge any other lien which shall have attained priority
over this Security Instrument unless Borrower: (1) agrees in writing to the payment of the
obligation secured by the lien in a manner acceptable to the City; (2) contests in good faith
the lien by, or defends against enforcement of the lien in, legal proceedings which in the
City's opinion operate to prevent the enforcement of the lien; or (3) secures from the holder
of the lien an agreement satisfactory to the City subordinating the lien to this Security
Instrument. If the City determines that any part of the Property is subject to a lien which may
attain priority over this Security Instrument, the City may give Borrower a notice identifying
the lien. Borrower shall satisfy such lien or take one or more of the actions set forth above
within 10 days of the giving of notice.
4. Hazard or Property Insurance. Borrower shall keep the improvements now
existing or hereafter erected on the Property insured against loss by fire, hazards included
within the term "extended coverage" and any other hazards, including floods or flooding, for
which the City requires insurance. This insurance shall be maintained in an amount equal to
the replacement cost of the Property and for the periods that the City requires. The
insurance carrier providing the insurance shall be licensed to do business in the State of
California and be chosen by Borrower subject to the City's approval which shall not be
unreasonably withheld. If Borrower fails to maintain coverage described above, the City may,
at the City's option, obtain coverage to protect the City's rights in the Property in accordance
with Section 6.
-2-
L
All insurance policies and renewals shall be acceptable to the City and shall include a
standard mortgagee clause with standard lender's endorsement in favor of the Deed of Trust
and the City as their interest may appear and in a form acceptable to the City. The City shall
have the right to hold, or cause its designated agent to hold, the policies and renewals
thereof, and Borrower shall promptly furnish to the City, or its designated agent, the original
insurance policies or certificates of insurance, all renewal notices, and receipts of paid
premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier
and the City or its designated agent. The City or its designated agent, may make proof of
loss if not made promptly by Borrower. The City shall receive thirty days advance notice of
cancellation of any insurance policies required under this Section.
Unless the City and Borrower otherwise agree in writing, insurance proceeds shall be
applied to restoration or repair of the Property damaged, provided such restoration or repair is
economically feasible and the City's security is not thereby impaired. If the restoration or
repair is not economically feasible or the City's security of this Deed of Trust would be
impaired, the insurance proceeds shall be applied to repay the sums secured by this Security
Instrument, whether or not then due, with any excess paid to Borrower. If Borrower
abandons the Property, or does not answer within 30 days a notice from the City or its
designated agent that the insurance carrier has offered to settle a claim, then the City or its
designated agent may collect the insurance proceeds. City may use the proceeds to repair or
restore the Property or to pay sums secured by this Security Instrument, whether or not then
due. The 30-day period will begin when the notice is given.
5. Occupancy, Preservation, Maintenance and Protection of the Property.
Borrower shall obtain all necessary permits required to occupy, establish, and use the
Property as a facility providing shelter and/or services for the homeless and maintain the
property consistent with the requirements of such permits. Borrower shall not destroy,
damage or impair the Property, allow the Property to deteriorate, or commit waste on the
Property. Borrower shall be in breach if any forfeiture action or proceeding, whether civil or
criminal, is begun that in the City's good faith judgment could result in forfeiture of the
Property or otherwise materially impair the lien created by this Security Instrument or the
City's security interest. Borrower may cure such a breach and reinstate, as provided in
Section 18, by causing the action or proceeding to be dismissed with a ruling that, in the
City's good faith determination, precludes forfeiture of the Borrower's interest in the Property
or other material impairment of the lien created by this Security Instrument or the City's
security interest.
6. Protection of the City's Rights in the Property. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument or if any action or
proceeding is commenced which may materially affect the City's rights in the Property,
including but limited to breach under any other deed of trust encumbering the property,
eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then the City, at the City's option, upon notice to the Borrower, may
make appearances, disburse such sums and take such actions at it deems necessary to
protect the value of the Property and the City's rights in the Property. The City's actions
may include paying any sums secured by a lien which has priority over this Security
Instrument, appearing in court, paying reasonabre attorneys' fees and entering on the
Property to make repairs.
-3-
Any amounts disbursed by the City pursuant to this Section shall become additional
debt of Borrower secured by this Security Instrument. Unless Borrower and the City agree to
other terms of payment, these amounts shall bear interest from the date of disbursement at
the lesser of ten percent (1 0%) or the highest rate permissible under applicable law and shall
be payable, with interest, upon notice from the City to Borrower requesting payment.
Nothing contained in this Section will require the City to incur any expense or take any action
hereunder.
7. Inspection. The City or its agent may make reasonable entries upon and
inspections of the Property. The City shall give Borrower notice at the time of or prior to an
inspection specifying reasonable cause for the inspection.
8. Forbearance By the City Not a Waiver. Any forbearance by the City in
exercising any right or remedy will not be a waiver of the exercise of any such right or
remedy.
9. Remedies Cumulative. All remedies provided in this Security Instrument are
distinct and cumulative to any other right or remedy under this Security Instrument or any
other document, or afforded by law or equity, and may be exercised concurrently,
independently, or successfully.
IO. Successors and Assigns Bound. The covenants and agreements of this
Security Instrument shall bind and benefit the respective successors and assigns of the City
and Borrower, subject to the provisions of this Security Instrument.
11. Notices. Except for any notice required under applicable law to be given in
another manner, any notice to Borrower provided for in this Security Instrument shall be sent
certified mail, return receipt requested or express delivery service with a delivery receipt, or
personally delivered with a delivery receipt obtained, and shall be deemed to be effective as
of the date shown of the delivery receipt as the date of delivery, the date delivery was
refused, or the date the notice was returned as undeliverable.
Notices shall be directed as follows:
Borrower:
Catholic Charities, A Community Ministry of the Diocese of San Diego
349 Cedar Street
San Diego CA 92101
Attn: Executive Director
Citv of Carlsbad:
Housing and Redevelopment Department
2965 Roosevelt Street Suite B
Carlsbad CA 92008-2389
Attn: Housing and Redevelopment Director
The parties may subsequently change addresses by providing written notice of the
change in address to the other parties in accordance with this Section.
-4-
699
12. Governing Law. This Security Instrument shall be construed in accordance
with and be governed by the laws of the State of California. In the event that any provision
or clause of this Security Instrument or the Note conflicts with applicable law, such conflict
shall not affect other provisions of this Security Instrument or the Note which can be given
effect without the conflicting provision. To this end the provisions of this Security
instrument and the Note are declared to be severable.
13. Severability. In the event that any provision or clause contained in this Security
Instrument or the Note shall for any reason be held to be invalid, illegal or unenforceable in
any respect, then such provision or clause shall be deemed severable from the remaining
provision, and this Security Instrument and the Note shall be construed as if such invalid,
illegal, be severable.
14. Captions. The captions and headings in this Security Instrument are for
convenience only and are not to be used to interpret or define the provisions hereof.
15. Default; Remedies. Upon the Borrower's breach of any covenant or agreement
of the Borrower in this Security Instrument, including, but not limited to, the covenants to
pay, when due, any sums secured by this deed of Trust, the City, prior to acceleration shall
give notice to Borrower specifying: (1) the breach; (2) if the breach is curable; (3) the action
required to cure the breach; (4) a date, not less than 30 days from the date the notice is
given to Borrower by which the breach must be cured; and (5) if the breach is curable, failure
to cure the breach on or before the date specified in the notice may result in acceleration of
the sums secured by this Security Instrument and sale of the Property. The notice shall
further inform Borrower of the right to reinstate after acceleration and the right to bring a
court action to assert the non-existence of a default or any other defense of Borrower to
acceleration and sale. If the breach is not cured by the Borrower on or before the date
specified in the notice, , then the City, at its option may: (a) require immediate payment in
full of all sums secured by this Security Instrument without further demand and may invoke
the power of sale and any other remedies permitted by California law; (b) either in person or
by agent, with or without bringing any action or proceeding, or by a receiver appointed by a
court, and without regard to the adequacy of its security, enter upon the Property, in its own
name or in the name of the Trustee, and do any acts which it deems necessary or desirable
to preserve the value or marketability of the Property, or part thereof or interest therein,
increase the income therefrom or protect the security thereof. The entering upon and taking
possession of the Property shall not cure or waive any breach hereunder or invalidate any act
done in response to such breach and notwithstanding the continuance in possession of the
Property, the City shall be entitled to exercise every right provided for in this Security
Instrument or by law upon occurrence of any uncured breach, including the right to exercise
the power of sale; (c) commence an action to foreclose this Security Instrument as a
mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (d) deliver
to the Trustee a written declaration of default and demand for sale, pursuant to the
provisions for notice of sale found at California Civil Code Sections 2924, et seq., as
amended from time to time; or (e) exercise all other rights and remedies provided herein, in
the instruments by which the Borrower acquires title to any Property, or in any other
document or agreement now or hereafter evidencing, creating or securing all or any portion of
the obligations secured hereby, or provided by law.
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The City shall be entitled to collect all reasonable costs and expenses incurred in
pursuing the remedies provided in this Section, including, but limited to, reasonable attorney's
fees.
16. Acceleration. Upon the occurrence of a default under the Note or this Security
Instrument, the City shall have the right to declare the full amount of the principal under the
Note immediately due and payable. Any failure by the City to pursue its legal and equitable
remedies upon default shall not constitute a waiver of the City's right to declare a default and
exercise all of its rights under the Note and this Security Instrument. Nor shall acceptance by
the City of any payment provided for in the Note constitute a waiver of the City's right to
require prompt payment of any remaining principal and shared appreciation owed.
17. Borrower's Right to Reinstate. Notwithstanding the City's acceleration of the
sums secured by this Security Instrument, Borrower shall have the right to have any
proceedings begun by the City to enforce this Security Instrument discontinued at any time
prior to the earlier of: (1) 5 days before sale of the Property pursuant to any power of sale
contained in this Security Instrument; or (2) entry of a judgment enforcing this Security
Instrument if Borrower: (a) pays the City all sums which then would be due under this
Security Instrument and the Note as if no acceleration had occurred; (b) cures any breach of
any other covenants or agreements of the Borrower contained in this Security Instrument; (c)
pays all reasonable expenses incurred in enforcing the covenants and agreements of this
Security Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes
such action as the City may reasonably require to assure that the lien of this Security
Instrument, the City's rights in the Property and Borrower's obligation to pay the sums
secured by this Security Instrument shall continue unimpaired. Upon such payment and cure
by Borrower, this Security Instrument and the obligations secured hereby shall remain in full
force and in effect as if no acceleration had occurred.
18. Reconveyance. Upon payment of all sums secured by this Security
Instrument, the City will surrender this Security Instrument and the Note to the Trustee. The
Trustee will reconvey the Property without warranty and without charge to the person or
persons legally entitled thereto. Such person or persons will pay all costs of recordation, if
any.
19. Substitute Trustee. The City, at its option, may from time to time remove
Trustee and appoint a successor trustee to any Trustee appointed hereunder. The successor
trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by
applicable law.
20. Hazardous Substances. Borrower shall not cause or permit the presence, use,
disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower
shall not do, nor allow anyone else to do, anything affecting the Property that is in violation
of any Environmental Law. The preceding two sentences shall not apply to the presence,
use, or storage on the Property of small quantities of Hazardous Substances that are
generally recognized to be appropriate to normal residential uses and to maintenance of the
Property.
Borrower shall promptly give the City written notice of any investigation, claim,
demand, lawsuit or other action by any governmental or regulatory agency or private party
involving the Property and any Hazardous Substance or Environmental Law of which
-6-
Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or
regulatory authority, that any removal or other remediation of any Hazardous SubStance
affecting the Property is necessary, Borrower shall promptly take all necessary remedial
actions in accordance with Environmental Law. Prior to taking any such remedial action,
however, Borrower shall notify the City that such remedial action is necessary and shall
obtain the City's prior written consent for such remedial action.
As used in this Section, "Hazardous Substances" are those substances defined as
toxic or hazardous substances by Environmental Law and the following substances: gasoline,
kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides,
volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials.
As used in this Section, "Environmental Law" means federal laws and laws of the jurisdiction
where the Property is located that relate to health, safety or environmental protection.
IN WITNESS WHEREOF the parties hereto have caused this Deed of Trust and
Security Agreement to be executed as of the day and year first written above.
Catholic Charities, San Diego, a California non-profit corporation,
SISTh RAYMONDA DUVALL, President
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk I
APPROVED AS TO FORM:
-7-
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
is/msubscribed to the within instrument and acknowledged to me that he/skefthey
executed the same in his/k&thetr ' authorized capacity(ies), and that by his/ket/thtir
signatured on the instrument the persondd), or the entity upon behalf of which the
person($ acted, executed the instrument.
WITNESS my hand and official seal. WITNESS my hand and official seal. n L' .A.
STATE OF CALIFORNIA
onb) whose name(s)
executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s1 acted, executed the instrument.
WITNESS my hand anwial seal.
8
EXHIBIT "A"
LEGAL PROPERTY DESCRIPTION
Parcel 2 of Parcel Map 'No. 15247, in the City of Carlsbad, County of San Diego, State of
California, filed in the Office of the County Recorder of San Diego County, May 25, 1988 as
File/Page No. 88-247094 of Official Records.
Excepting therefrom all oil, mineral, gas and other hydrocarbon substances below a depth of
500.00 feet from surface of said land, but without the right of surface entry as reserved by
Palomar Vista, Ltd., a limited partnership in deed recorded September 30, 1977 as File/Page
No. 77-401 720 of Official Records.
9
.
DOCUMENT
Name of the
I -
GOVERNMENT CODE 27361.7 704
I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE
Commission Number: III54b7 Date Commission Expires:)! -3 - 2 0 0 0
TO WHICH THIS STATEMENT IS AlTACHED READS AS FOLLOWS:
County where Bond is Filed: sc\ ul Die, 0
Manufacturer / Vendor Number:
Place of Execution: 56 m 13 C~C, o Date: 4-5 -5 7
..-
Signature: t* I-
.c-
419 4
Roc. Form lRlO
L
RECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad CA 92008
(Space above for Recorder's Use1
LOAN AGREEMENT
AND
RELATED RESTRICTIVE COVENANTS
THIS AGREEMENT is made on the gth day of September, 1997, by CATHOLIC
CHARITIES, A COMMUNITY MINISTRY OF THE DIOCESE OF SAN DIEGO, a California
nonprofit corporation, hereinafter referred to as "Borrower", in favor of THE CITY OF
CARLSBAD, a municipal corporation, hereinafter referred to as "the City".
1. Description of Loan. Subject to the terms and conditions set forth herein
below, the City agrees to loan Borrower an amount not to exceed two hundred thousand
dollars ($200,000). The purpose of the loan is to provide funds to Borrower for the
acquisition of real property located in the City of Carlsbad, State of California, which has the
address of 2476-2478 Impala Drive and is further described in the attached Exhibit "A" (the
"Property") and incorporated herein by reference.
Borrower shall submit to the City documentation to verify that expenditure of funds are
consistent with this Loan Agreement, the Promissory Note (the Note), and Deed of Trust.
Written purchase offer, purchase contract, documents conveying the Property, including
closing statement identifying incidental expenses are samples of appropriate methods of
documentation.
2. Use of Proceeds. Loan proceeds shall be used solely for the costs of acquiring
the Property to be occupied, established, and used as a facility providing shelter and/or
services for the homeless and maintaining the property consistent with the requirements of
permits governing its use.
3. Disbursements. The proceeds of the Loan shall be disbursed to Borrower
through direct deposit of such proceeds with an escrow company licensed to do business
in the State of California and selected by Borrower for necessary and reasonable costs
related to the acquisition of Property. Proceeds of the Loan are not to exceed a total of
$200,000.
4. Term. The term of this Loan Agreement shall mean the period commencing on
the date of this Loan Agreement and expiring on the date twenty (20) years thereafter, the
- -
* I1
date the Property is first sold or transferred, or failure of Borrower to operate a Z'cMless
shelter and/or supportive services on the Property consistent with the requirements of
permits governing the use of the facility and Borrower's application to the City requesting
financial assistance, whichever occurs first. The term of this Loan Agreement may be
extended by mutual written agreement of the parties, if determined necessary and
appropriate based upon the housing and social services needs of the City, and as agreed to
by both the City and Borrower.
5. Conditions of Loan Funding and Disbursement. The City shall have no
obligation to make the Loan or to make any subsequent disbursement of Loan proceeds, if
any of the following conditions are not satisfied at the time of such funding or disbursement:
(a) Borrower shall have delivered to the City a resolution by the Borrower's Board of
Directors duly authorizing the Loan and Borrower's execution of and performance under this
Loan Agreement;
(b) Borrower shall have executed this Loan Agreement, a Promissory Note evidencing
the Loan in a form acceptable to the City, in its sole discretion, and all other documents and
security instruments required hereunder or reasonably necessary to effectuate the purposes
hereof; and,
(c) Borrower shall have strictly complied with, and performed under this Loan
Agreement, the Promissory Note and any other agreement executed in connection with the
Loan, including but not limited to any security agreement (e.g., Deed of Trust defined in
Section 6 below).
6. Security. As security for repayment of the Loan and for Borrower's
performance under this Loan Agreement and under the Promissory Note, Borrower shall
execute, acknowledge and deliver for recordation, a Deed of Trust and Security Agreement in
favor of the City as Beneficiary ("Deed of Trust") encumbering the Property, the form and
content of which shall be acceptable to the City and in its sole discretion. This Agreement
shall be attached to, and shall be recorded as part of the Deed of Trust.
7. Borrower's Covenants. Borrower makes the following express covenants
relating to the Loan:
(a) Diligent Prosecution of Project. Borrower shall proceed diligently to complete
the acquisition of the Property. Failure to close escrow in a period not less than 180 calendar
days from the date of the Promissory Note shall constitute a default under this Loan
Agreement.
(b) Successors and Assigns Bound. This Agreement shall bind and benefit the
respective successors and assigns of the City and Borrower, subject to the provisions of the
Deed of Trust.
(c) Default. Upon the occurrence of a default under the Promissory Note or the
Deed of Trust, all covenants under this Loan Agreement shall be waived against the Property
with the following exceptions:
2
(1) The City shall have the right to declare the full amount of the principal under
the Promissory Note immediately due and payable.
(2) Any failure by the City to pursue its legal and equitable remedies upon default
shall not constitute a waiver of the City‘s right to declare a default and exercise all of its
rights under the Promissory Note and the Deed of Trust. Nor shall acceptance by the City of
any payment provided for in the Promissory Note constitute a waiver of the City’s right to
require prompt payment of any remaining principal owed.
(e) Covenant Against Discrimination. Borrower agrees that neither it nor its
agents shall discriminate against any clients, prospective clients, employees, prospective
employees, contractors, or prospective contractors on the basis of race, color, religion, sex,
national origin, age, disability or familial status.
8. Remedies. Upon Borrower’s breach of any covenant or agreement of the
Borrower in the Deed of Trust, including, but not limited to, the covenants to pay, when due,
any sums secured by this deed of Trust, the City, prior to acceleration shall give notice to
Borrower specifying: (1) the breach; (2) if the breach is curable; (3) the action required to
cure the breach; (4) a date, not less than 30 days from the date the natice is given to
Borrower, by which the breach must be cured; and (5) if the breach is curable, failure to cure
the breach on or before the date specified in the notice may result in acceleration of the sums
secured by the Deed of Trust and sale of the Property. The notice shall further inform
Borrower of the right to reinstate after acceleration and the right to bring a court action to
assert the non-existence of a default or any other defense of Borrower to acceleration and
sale. If the breach is not cured by the Borrower on or before the date specified in the notice,
then the City, at its option may: (a) require immediate payment in full of all sums secured by
the Deed of Trust without further demand and may invoke the power of sale and any other
remedies permitted by California law; either in person or by agent, with or without
bringing any action or proceeding, or by a receiver appointed by a court, and without regard
to the adequacy of its security, enter upon the Property, in its own name or in the name of
the Trustee, and do any acts which it deems necessary or desirable to preserve the value or
marketability of the Property, or part thereof or interest therein, increase the income
therefrom or protect the security thereof. The entering upon and taking possession of the
Property shall not cure or waive any breach hereunder or invalidate any act done in response
to such breach and notwithstanding the continuance in possession of the Property, the City
shall be entitled to exercise every right provided for in the Deed of Trust or by law upon
occurrence of any uncured breach, including the right to exercise the power of sale; (c)
commence an action to foreclose the Deed of Trust as a mortgage, appoint a receiver, or
specifically enforce any of the covenants hereof; deliver to the Trustee a written
declaration of default and demand for sale, pursuant to the provisions for notice of sale found
at California Civil Code Sections 2924, et seq., as amended from time to time; or
exercise all other rights and remedies provided herein, in the instruments by which the
Borrower acquires title to any Property, or in any other document or agreement now or
hereafter evidencing, creating or securing all or any portion of the obligations secured hereby,
-or provided by law.
(b)
Id)
(e)
The City shall be entitled to collect all reasonable costs and expenses incurred in
pursuing the remedies provided in this paragraph, including, but limited to, reasonable
attorney’s fees.
3
9. Remedies Cumulative. All remedies provided in this Agreement are distinct and
cumulative to any other right or remedy under the Deed of Trust or any other document, or
afforded by law or equity, and may be exercised concurrently, independently, or successfully.
10. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and
impositions attributable to the Property which may attain priority over the Deed of Trust.
Borrower shall pay these obligations on time directly to the person owed payment. Borrower
shall promptly furnish to the City all notices of amounts to be paid under this paragraph. If
Borrower makes these payments directly, Borrower shall promptly furnish to
the City receipts evidencing the payments.
Borrower shall promptly discharge any other lien which shall have attained priority
over the Deed of Trust unless Borrower: (1) agrees in writing to the payment of the
obligation secured by the lien in a manner acceptable to the City; (2) contests in good faith
the lien by, or defends against enforcement of the lien in, legal proceedings which in the
City's opinion operate to prevent the enforcement of the lien; or (3) secures from the holder
of the lien an agreement satisfactory to the City subordinating the lien to the Deed of Trust.
Except for the lien of the First Deed of Trust, if the City determines that any part of the
Property is subject to a lien which may attain priority over the Deed of Trust, the City may
give Borrower a notice identifying the lien. Borrower shall satisfy such lien or take one or
more of the actions set forth above within 10 days of the giving of notice.
11. Hazard or Property Insurance. Borrower shall keep the improvements now
existing or hereafter erected on the Property insured against loss by fire, hazards included
within the term "extended coverage'' and any other hazards, including floods or flooding, for
which the City requires insurance. This insurance shall be maintained in an amount equal to
the replacement cost of the Property and for the periods that the City requires. The
insurance carrier providing the insurance shall be licensed to do business in the State of
California and be chosen by Borrower subject to the City's approval which shall not be
unreasonably withheld. If Borrower fails to maintain coverage described above, the City may,
at the City's option, and at Borrower's expense, obtain coverage to protect the City's rights
in the Property.
All insurance policies and renewals shall be acceptable to the City and shall include a
standard mortgagee clause with standard lender's endorsement in favor of the City and in a
form acceptable to the City. The City shall have the right to hold, or cause its designated
agent to hold, the policies and renewals thereof, and Borrower shall promptly furnish to the
City, or its designated agent, the original insurance policies or certificates of insurance, all
renewal notices, and receipts of paid premiums. In the event of loss, Borrower shall give
prompt notice to the insurance carrier and the City or its designated agent. The City or its
designated agent, may make proof of loss if not made promptly by Borrower. The City shall
receive thirty days advance notice of cancellation of any insurance policies required under this
Section.
Unless the City and Borrower otherwise agree in writing, insurance proceeds shall be
applied to restoration or repair of the Property damaged, provided such restoration or repair is
economically feasible and the City's security is not thereby impaired. If the restoration or
repair is not economically feasible or the City's security of this Deed of Trust would be
impaired, the insurance proceeds shall be applied to repay the sums secured by the Deed of
Trust, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
4
Property, or does not answer within 30 days a notice from the City or its designated agent
that the insurance carrier has offered to settle a claim, then the City or its designated agent
may collect the insurance proceeds. City may use the proceeds to repair or restore the
Property or to pay sums secured by the Deed of Trust, whether or not then due. The 30-day
period will begin when the notice is given.
12. Inspection. The City or its agent may make reasonable entries upon and
inspections of the Property. the City shall give Borrower notice at the time of or prior to an
inspection specifying reasonable cause for the inspection.
13. First Right of Refusal to Purchase. Borrower grants the City the opportunity to
purchase the Property at an agreed upon price should the Borrower at any time wish to sell or
otherwise transfer any interest in the property.
(a) Notice to the City of Intention to Sell. Should Borrower at any time wish to
sell or otherwise transfer any interest in the property, Borrower shall provide the City with
written notice of its intention to sell the Property. Borrower shall permit the City or its
designated agent to inspect the property upon reasonable notice.
(b) Notice of Intention to Purchase. Upon receipt of the notice of Borrower's
intention to sell the Property, the City or its designated agent may exercise its right to
purchase the Property by delivery to Borrower of a written notice of the City's intention to
purchase the Property, within 30 days of receipt of notice of intention to sell.
(c) Effect of Failure to Exercise Right to Purchase. If the City fails to exercise in a
timely manner this right to purchase upon receipt of notice to sell the Property, waives this
right, or escrow is unable to close for the Property for any reason except Borrower's material
breach: (i) the right to purchase shall immediately terminate; and (ii) Borrower may sell the
Property to any purchaser and shall pay to the City, through escrow, any and all of the
principal amount of the Note.
(d) Purchase Price. The City shall purchase the Property for the purchase price
agreed upon between Borrower and the City.
14. Notices. Except for any notice required under applicable law to be given in
another manner, any notice to Borrower provided for in the Deed of Trust shall be sent
certified mail, return receipt requested or express delivery service with a delivery receipt, or
personally delivered with a delivery receipt obtained, and shall be deemed to be effective as
of the date shown of the delivery receipt as the date of delivery, the date delivery was
refused, or the date the notice was returned as undeliverable.
Notices shall be directed as follows:
Borrower:
Catholic Charities, A Community Ministry of the Diocese of San Diego
349 Cedar Street
San Diego CA 92101
Attn: Executive Director
5
Citv of Carlsbad:
Housing and Redevelopment Department
2965 Roosevelt Street Suite B
Carlsbad CA 92008-2389
Attn: Housing and Redevelopment Director
The parties may subsequently change addresses by providing written notice of the
change in address to the other parties in accordance with this Section.
15. Indemnification. Borrower hereby agrees to defend, indemnify, and save free
and harmless the City and its officers and employees against any and all claims, damages,
losses, cost (including by not limited to attorney's fees) and liabilities of any kind arising in
any way whatsoever from the making of the Loan, from the acquisition of the Property, or
from Borrower's ownership or operation of the Property.
16. No Partnership or Joint Venture. The relationship between Borrower and the
City is solely that of borrower and lender. Under no circumstances shall Borrower and Lender
be deemed to be partners or joint venturers.
17. Modifications. This Agreement may not be modified or amended except by
written document executed by a duly authorized officer of the City and Borrower.
18. Governing Law. This Agreement shall be construed in accordance with and be
governed by the laws of the State of California. In the event that any provision or clause of
this Loan Agreement, the Deed of Trust or the Promissory Note conflicts with applicable law,
such conflict shall not affect other provisions of this Loan Agreement, the Deed of Trust or
the Promissory Note which can be given effect without the conflicting provision. To this end,
the provisions of this Loan Agreement, the Deed of Trust and the Promissory Note are
declared to be severable.
6
*"
IN WITNESS WHEREOF the parties hereto have caused this agreement to be
executed as of the day and year first written above.
Catholic Charities, San Diego, a California non-profit corporation, L%&
SISTER RAYMONDA DUVALL, President
UGH, Secretary/Treasurer
ATTEST:
ALETHA L. RAUTkNKRANZ, City Clerk
APP VED AS TO FORM: A
RONALD R. BALL, City Attorney 7- 2.7 *.
7
STATE OF CALIFORNIA 1
COUNTY OF SAN DIEGO
1 ss.
1
executed the same in his/Wtheic authorized capacity(* and that by hish&their
on the instrument the personlsf, or the entity upon behalf of which the
executed the instrument.
WITNESS my hand
STATE OF CALIFORNIA 1 1 ss.
executed the same in his/her/their authorized capacity(ies1, and that by his/her/their
signature(s1 on the instrument the personfs), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand
-8-
GOVERNMENT CODE 27361.7
71 3
I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE
DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS:
c* ViIt4~<~Of .. Name of the Notary:
Commission Number: I I I 5'ia ci Date Commission Expires: //-3 20 00
c
County where Bond is Filed: 5w-l Dqa
J
Manufacturer / Vendor Number:
Place of Execution: 2 c, a 0 a Date: q-4 7
Signature: I , /h---
c-
4/34 Roc. Form XRlO
._-
EXHIBIT "A"
LEGAL PROPERTY DESCRIPTION
Parcel 2 of Parcel Map No. 15247, in the City of Carlsbad, County of San Diego, State of
California, filed in the Office of the County Recorder of San Diego County, May 25, 1988 as
File/Page No. 88-247094 of Official Records.
Excepting therefrom all oil, mineral, gas and other hydrocarbon substances below a depth of
500.00 feet from surface of said land, but without the right of surface entry as reserved by
Palomar Vista, Ltd., a limited partnership in deed recorded September 30, 1977 as File/Page
No. 77-401 720 of Official Records.
-9-