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HomeMy WebLinkAbout2011-10-25; City Council; Resolution 2011-2521 CITY COUNCIL RESOLUTION NO. 2011-252 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, TO APPROVE AMENDMENTS TO THE 3 REGULATORY AGREEMENT, DEED OF TRUST, PROMISSORY NOTE AND RELATED DOCUMENTS FOR THE $1,932,000 RESIDUAL RECEIPTS LOAN PROVIDED TO CHELSEA 5 INVESTMENT CORPORATION FOR CONSTRUCTION OF ONE HUNDRED SIXTY EIGHT (168) AFFORDABLE APARTMENT UNITS 6 WITHIN THE VILLAGES OF LA COSTA MASTER PLAN, KNOWN AS HUNTERS POINT. 7 APPLICANT : CHELSEA INVESTMENT CORPORATION - 8 HUNTERS POINT AFFORDABLE PROJECT CASE NO: SDP 04-13 9 - 10 WHEREAS, Chelsea Investment Corporation developed and currently operates the 168 11 apartment units affordable to lower income households known as Hunters Point; and 12 WHEREAS, Chelsea Investment Corporation received a residual receipts loan from the 13 City of Carlsbad in the amount of $1,932,000 to provide financial assistance for the construction14 of said apartment units; and 16 WHEREAS, the City of Carlsbad recorded a regulatory agreement and related loan 17 documents in connection with the noted loan against the real property known as Hunters Point 1 8 affordable housing development, and holds a junior loan position as a result of subordination to 19 the senior loan on said property; and 20 WHEREAS, Chelsea Investment Corporation desires to refinance the senior loan on the 21 subject property by receiving a HUD 223f insured loan to provide $9,750,000 loan to pay off the 22 existing $9,630,000 mortgage balance; and 23 WHEREAS, in order for Chelsea Investment Corporation to refinance said loan through 24 the noted HUD financing program, the City of Carlsbad must approve amendments to its 25 regulatory agreement and related loan documents for its financial assistance to said development 26 to add HUD financing requirements and subordinate to said loan; and 28 "" 1 Page 2 of CC Resolution No. 2011-252 2 WHEREAS, on the date of this resolution, the City Council did hold a public meeting to consider said request for approval of amended regulatory and loan documents to allow for the 5 6 7 8 9 10 11 12 13 14 15 18 19 20 21 22 23 24 25 26 27 28 HUD 223f refinancing of the senior loan for the Hunters Point affordable housing development; and, WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Council considered all factors relating to the request for amended regulatory and loan documents. 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. That the City Council of the City of Carlsbad hereby APPROVES the request by Chelsea Investment Corporation to amend applicable regulatory and loan documents to allow for the HUD 223 f refinance of the senior loan for the affordable housing project known as the Hunters Point Affordable Apartments. 3. That the City Council authorizes the City Manager or her designee to provide final approval and to execute all city documents required to allow for the refinance of the senior loan for the Hunters Point Affordable Apartments, including but not limited to the Promissory Note, Deed of Trust and Regulatory Agreement, in substantially the form presented to the City Council, and subject to review and approval by the City Attorney as to form. 4. That the City Council authorizes the City Manager or his designee to provide final approval and to execute subsequent subordination agreement(s), as required, subject to approval by the City Attorney as to form. 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 25th day of October, 2011, by the following vote to wit: AYES: Council Members Hall, Blackburn, Douglas and Packard. NOES: None. ABSENT: Council Member Kulchin. MATf'HALL, Mayor ATTEST: