HomeMy WebLinkAbout2011-08-23; City Council; 20653; REFUND TOBRIA TERRACE LLCCITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
20.653
8/23/11
FIN
REFUND TO TOBRIA TERRACE, LLC
FOR EXCESS GROUND LEASE
PAYMENTS
DEPT. DIRECTOR
CITY ATTORNEY
CITY MANAGER
RECOMMENDED ACTION:
Adopt Resolution No. 2011-197 authorizing a $55,405 refund of excess ground lease
payments to Tobria Terrace, LLC.
ITEM EXPLANATION:
On July 19, 1994, the City Council approved a ground lease between the city and the El
Camino Villas Associates of which Bridge Housing Corporation is the general managing partner
(AB 12,790 / R 94-209). The lessee is La Terraza Associates, LP. The agreement is dated
April 13, 1994 and has a term of fifty-seven years. Per the agreement, $150,000 is required to
be paid annually provided that the annual payment does not exceed 30 percent of La Terraza's
surplus cash. If the annual payment is less than the required $150,000, the difference shall be
paid when surplus funds are available and will accrue interest at 3 percent compounded
annually. All lease payments and accrued interest received are accounted for as program
income for the city's CDBG program.
During March and April of 2011, Bridge Housing Corporation refinanced the ground lease
through Tobria Terrace, LLC. In May 2011, the city received a payment in the amount of
$1,903,311 to pay for all lease payments in arrears and the accrued interest as of March 30,
2011. The outstanding balance was $1,847,906, thus,Tobria Terrace, LLC overpaid the lease
payments due by $55,405. Section 3.32.030 of the Carlsbad Municipal Code requires Council
approval of any refund in excess of $25,000. Therefore, staff is requesting approval of a
$55,405 refund to Tobria Terrace, LLC.
FISCAL IMPACT:
There is no direct impact in processing the refund for excess payments received by, but not due
to, the city.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code Section 21065 and CEQA Guidelines Section 15378, this
does not constitute a "project" within the meaning of CEQA and, therefore, does not require an
environmental review.
DEPARTMENT CONTACT: Conrad Avila 760-602-2475 conrad.avila@carlsbadca.gov
FOR CITY CLERKS USE ONL Y.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER - SEE MINUTES D
Page 2
EXHIBITS:
1. Resolution No. 2011-197 authorizing a $55,405 refund of excess ground lease payments to
Tobria Terrace, LLC.
Exhibit 1
1 RESOLUTION NO. 2011-197
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, REFUNDING EXCESS
3 GROUND LEASE PAYMENTS TO TOBRIA TERRACE,
4 LLC.
5
WHEREAS, in July 1994 the City Council approved a ground lease between the
6
city and the El Camino Villas Associates of which Bridge Housing Corporation is the
7
managing partner and La Terraza Associates, LP is the lessee; and8
9 WHEREAS, Bridge Housing Corporation refinanced the ground lease through
10 Tobria Terrace, LLC during April 201 land in May of 2011 remitted $1,903,311 to the
11 city for lease payments in arrears and the accrued interest thereon; and
12 WHEREAS, the outstanding balance was $1,847,906; and
13 WHEREAS, the payment received was $55,405 greater than the amount owed.
14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
15 Carlsbad, California, as follows:
16
1. That the above recitations are true and correct.
17
, 0 2. That a refund of $55,405 payable to Tobria Terrace, LLC is hereby approved.lo
19
20
21
22
23
24
25
26
27
28
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 23rd day of August 2011, by the following vote to wit:
AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
NOES: None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
LORRAINE M. WOOD, City Clerk
(SEAL)