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HomeMy WebLinkAbout2009-06-02; Housing & Redevelopment Commission; 415; Sowing Sisters quilt shop agreementHOUSING AND REDEVELOPMENT COMMISSION - AGENDA 415 6/2/09 EDRE Release and Satisfaction Agreement Between Sowing Sisters Quilt Shop and the Carlsbad Redevelopment Agency DEPT. HEA CITY ATTY. CITY MGR. RECOMMENDED ACTION: If Council concurs, adopt Resolution No 467 approving the Release and Satisfaction Agreement between the Rebecca Biddle dba Sowing Sisters Quilt Shop and the Carlsbad Redevelopment Agency, and authorizing the City Clerk to accept the Quitclaim Deed. ITEM EXPLANATION: In May 2007, the Carlsbad Redevelopment Agency, "the Agency", entered into a lease agreement with Rebecca Biddle dba Sowing Sister's Quilt Shop for lease of the premises located at 2787A State Street, in order to relocate their existing business in downtown Carlsbad to a larger retail space. In mid 2008, Sowing Sisters Quilt Shop experienced a severe downturn in their retail sales as a result of the overall economic conditions in the retail sector, and became delinquent in their lease payments. In an effort to stay open, Sowing Sister's contacted the City's Economic Development and Real Estate Department and asked to renegotiate the terms of their lease agreement. The Agency agreed to reduce the square footage of space that Sowing Sister's Quilt Shop leased, extend the lease term, and approve a repayment plan for delinquent rent to be repaid in installments to the Agency over an 18 month period. In March 2009, Sowing Sister's notified the Economic Development and Real Estate Department that the continued loss of retail sales, combined with the significant debt that had been accumulated during 2008 and 2009, had caused them to reach the point where the business was no longer viable. Sowing Sisters was able to provide documentation that confirmed their financial situation and on April 2, 2009, the Redevelopment Agency directed staff to prepare a settlement agreement with Rebecca Biddle dba Sowing Sisters Quilt Shop. The Release and Satisfaction Agreement terms provide for the application of the security deposit amount of $6,014 to toward debt owed to the Agency, and acceptance of a Quit Claim Deed relinquishing any/all leasehold interests back to the Agency. In addition, the Settlement Agreement, releases Rebecca Biddle dba Sowing Sister's Quilt Shop from all claims and demands, rights and causes of action of any kind related to the Lease agreement including the existing debt owed to the Agency. DEPARTMENT CONTACT: City Employee 760-602-2732 cynthia.haas@carlsbadca.gov FOR CITY CLERKS USE ONLY. COMMISSION 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 FISCAL IMPACT: Sowings Sisters vacated the premises at 2787A State Street on March 18, 2009 and returned the building in good condition. The cumulative monies owed to the Agency at time the premises were vacated totaled $32,601. Sowing Sister's Quilt Shop's security deposit totaled $6,014. As a result of the agreed settlement, $6,014 was applied toward the monies owed to the Agency, reducing the debt owed to the Agency to $26,587. A total of $26,587 will be written off as a bad debt expense out of Redevelopment Agency Fund. ENVIRONMENTAL IMPACT: The Planning Director has determined that the project is exempt from the California Environmental Quality Act, pursuant to Section 15301 of the CEQA Guidelines. Section 15301 exempts projects or activities that consist of leasing or existing public facilities involving no expansion of use. Termination of a lease of public property that was used for operation of a retail business, an agreement to settle a default in the lease terms, and acceptance of a Quitclaim deed relinquishing any leasehold rights, is such an activity. Should the Agency decide to pursue development of the site at a future date, additional environmental review will be conducted. EXHIBITS: 1. Resolution No. 467 2. Release and Satisfaction Agreement between the Carlsbad Redevelopment Agency and Rebecca Biddle. 3. Security Deposit Statement. 4. Quit Claim Deed. 1 RESOLUTION NO. 467 2 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF 3 CARLSBAD, CALIFORNIA, APRROVING THE RELEASE 4 AND SATISFACTION AGREEMENT BETWEEN THE CARLSBAD REDEVELOPMENT AGENCY AND REBECCA 5 BIDDLE dba SOWING SISTERS QUILT SHOP AND AUTHORIZING THE CITY CLERK TO ACCEPT THE 6 QUITCLAIM DEED. 7 WHEREAS, the current recession and its disastrous impact on the local business8 Q community has made it impossible for Sowing Sister's Quilt Shop to pay delinquent 10 rents in the amount of $32,601 or future rents to be come due under the Lease 11 Agreement, or to continue on in business; and 12 WHEREAS, Sowing Sisters has provided documentation of its financial condition 13 and inability to pay the Agency; and 14 WHEREAS, review of financial documents make it apparent that Sowing Sisters will be unable to pay arrearages in rent both now and in the foreseeable future; and 16 WHEREAS, Sowing Sisters has vacated the premises as of March 18, 2009, 17 returned all keys to the premises and left it in good condition; and 18 WHEREAS, Sowing Sisters has fully cooperated with the Carlsbad 20 Redevelopment Agency in terminating the Lease Agreement by executing a quitclaim 21 deed in favor of the Carlsbad Redevelopment Agency and executing an 22 acknowledgement that Sowing Sisters Quilt Shop security deposit in the amount of 23 $6,014 is being forfeited and applied toward arrearages in rent: 24 25 NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment 26 Commission of the City of Carlsbad, California, as follows: 27 1. That the above recitations are true and correct. 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 2. The Chairman of the Carlsbad Redevelopment Agency is hereby authorized to execute the Release and Satisfaction Agreement between the Agency and Rebecca Biddle dba Sowing Sisters Quilt Shop. 3. The City Clerk is authorized to accept the Quit Claim Deed executed in favor of the Agency by Rebecca Biddle dba Sowing Sisters Quilt Shop. 4. That a total of $26,587 will be written off as a bad debt expense from the Redevelopment Fund. PASSED, APPROVED AND ADOPTED at a Special Meeting of the Housing and Redevelopment Commission of the City of Carlsbad on the 2nd day of jnnp , 2009, by the following vote, to wit: AYES: Commission Member? Lewis, Kulcbin, Hall, Packard & Blackburn. NOES: None. ABSENT: None. o; ESTABLISHED \; — </>*. j^-.«197° ATTEST: LlS'A'HILDABRAND, SECRETARY (SEAL) RELEASE AND SATISFACTION RE: LEASE AGREEMENT BETWEEN CARLSBAD REDEVELOPMENT AGENCY AS LESSOR AND REBECCA BIDDLE D/B/A SOWING SISTERS QUILT SHOP - A SOLE PROPRIETOR, AS LESSEE, DATED JANUARY 29,2009 WHEREAS, Sowing Sisters Quilt Shop became a tenant of the Carlsbad Redevelopment Agency in its building located at 2787A State Street on May 7, 2007 and faithfully paid all rental amounts due for over one and a half years; and WHEREAS, the current recession and its disastrous impact on businesses has made it impossible for Sowing Sisters Quilt Shop to pay delinquent rents in the amount of $ 32,384.05 or future rents to become due under the Lease Agreement, or to continue on in business; and WHEREAS, Lessee has provided the City Attorney's Office with documentation of the severity of its financial problems; and WHEREAS, it is apparent that Lessee will be unable to pay arrearages in rent within the foreseeable future; and WHEREAS, Lessee has vacated the premises as of March 18, 2009 and returned the keys to the leased premises to the Carlsbad Redevelopment Agency; and WHEREAS, Lessee has cooperated with the Housing and Redevelopment Agency in terminating the Lease Agreement by executing a quitclaim deed in favor of the Carlsbad Redevelopment Agency and executing an acknowledgment that the Sowing Sisters Quilt Shop security deposit in the amount of $ 6014.00 i s being forfeited and applied towards arrearages in rent: THEREFORE, for the considerations set forth above, the Housing and Redevelopment Agency hereby releases and discharges Rebecca Biddle d/b/a Sowing Sisters Quilt Shop from all claims and demands, rights and causes of action of any kind related to the Lease Agreement. By signing this General Release, the City of Carlsbad Redevelopment Agency intends to give up and discharge all rights and claims related to the Lease Agreement, even though some of such damages may not have shown themselves at the time of acceptance of this Release. DATED: REBECCA BIDDLE, Sole Proprietor d/b/a SOWING SISTERS QUILT SHOP LESSEE DATED: CARLSBAD REDEVELOPMENT AGENCY LESSOR CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of On f r I \&U [ SbO*} before me, late / Z. :^£L Date; personally appeared Y\<PJQ&C . , Here Insert Name and Title of the Officer Namejs) of Signer(s) J. KOTOS CommUilon » 1S19950 Notary PuWfc • California Swi Ditgo County MyComm. Expires Nov 23,2012 who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/afe subscribed to the within instrument and acknowledged to me that he/she/they 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(s)-acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Place Notary Seal Above Signature OPTIONAL - Though the information below ;s not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of fh/s form to another document. Description of Attached Document Title or Type of Document: ("VfJ Document Date: \Y\l^JJt |.Number of Pages: Signer(s) Other Than Named Above: acity(ies) Claimed by Signer(s) Signer's Name: D Individual D Corporate Officer — Title(s): D Partner — D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Signer Is Representing: Top of thumb here Signer's Name: D Individual D Corporate Officer — Title(s): D Partner — D Limited D General :orney in Fact D Truste D Guardian or CSrtsetyator D Other:. RIGHTTHUMBPRINT OF SIGNER ©2007 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.NationalNotary.org Item #5907 Reorder: CallToll-Free 1 -800-876-6827 SECURITY DEPOSIT STATEMENT FOR THE LEASE BETWEEN THE CARLSBAD REDEVELOPMENT AGENCY AND REBECCA BIDDLE DBA SOWING SISTERS OUDLT SHOP DATED APRIL 24 2007 Lessee: Address of Premises: Security Deposit: Interest Earned: Total on Deposit: Rebecca Biddle d/b/a Sowing Sister's Quilt Shop 2787 A State Street, Carlsbad CA 92008 $5,580.00 $ 434.00 $6,014.00 Deductions To Deposit; Unpaid Rent: Unpaid Utilities: Late Charges: Returned Check Charge: Total Deductions $32,384.43 (September 2008-March 2009) $ 75.47 $ 106.15 $ 35.00 $32,601.05 • I Rebecca Biddle do hereby acknowledge that the Lease Agreement dated April 24,2007 states that failure of the Lessee to pay rent is considered a default and that the Lessor, the Carlsbad Redevelopment Agency ("Agency"), may use, apply or retain all or any portion of the Security Deposit for the payment of any amount due to the Lessor. I also acknowledge that I have prematurely terminated my lease with the Agency and that I owe Thirty-Two thousand Six Hundred One dollars and Five Cents, in unpaid rent and other charges and that this amount exceeds the amount of Security held by the Agency for my faithful performance of the terms of the Lease Agreement. The Agency may forthwith apply Six Thousand Fourteen Dollars ($6014.00) it holds as Security Deposit for the Lease Agreement to the unpaid balance I owe currently owe the Agency. Rebecca Biddle Date CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of On Ak?rtl 3, 3.000. before me, I Date I personally appeared Name(s) of Signerfs) 1BARBARA J. HEDROS Commission * 1819950 Notary Public • California 1 San Diego County j My Comm. Expires Nov 23.20121 who proved to me on the basis of satisfactory evidence to be the person(e)- whose name(&) is/afe-subscribed to the within instrument and acknowledged to me that he/she/they executed the same in tHs/her/theif authorized capacity(iee)-, and that by bie/her/theif signature® on the instrument the person(&), or the entity upon behalf of which the person(e) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Place Notary Seal Above Signature OPTIONAL - Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: PepoS>C,T . Number of Pages:. Signer(s) Other Than Named Above: Capacftyfies}Claimed by Signer(s) Signer's Name: D Individual D Corporate Officer — Title(s): D Partner — D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer's Name: D Individual D Corporate Officer — Title(s): jrtner — D Limited D General D Attorrteyjn Fact D Trustee D Guardian or Conse? D Other:. RIGHTTHUMBPRINT OF SIGNER ©2007 National Notary Association• 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402• www.NationalNotary.org Item #5907 Reorder:Call Toll-Free 1 -800-876-6827 RECORDING REQUESTED BY Grantee • WHEN RECORDED MAIL TO Name City of Carlsbad/Carlsbad Redev. Agency Address ^2QQ Car|sbad Vi||age Drive City & Carlsbad, CA 92008StateL ESCROW NO. NA TITLE ORDER NO. NA J SPACE ABOVE THIS LINE FOR RECORDER'S USE ONLY 0803 QUITCLAIM DEED The undersigned grantor(s) declare(s): Documentary transfer tax is $_0 Parcel No. 203-295-01-01 | I computed on the full value of property conveyed, or | | computed on the full value less the value of liens and encumbrances remaining theron at the time of sale. | | Unincorporated area: | | City of Carlsbad FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Rebecca Biddle hereby REMISE(S), RELEASE(S), AND FOREVER QUITCLAIM(S) to The Carlsbad Redevelopment Agency the following described real property in the City of Carlsabd County of San Diego , State of California: All leasehold interest in the property located at 2787 A State Street, Carlsbad CA 92008 Date Rebecca Biddle State of California County of On rxrii 3,before me,. a Notary Public in and for said County and State, personally appeared who proved to me on the basis of satisfactory evidence to be the person(e) whose namefs) is/are- subscribed to the within instrument and acknowledged to me that fce/she/they executed the same in hie/her/the*- authorized capacity(iee), and that by his/her/their signature^ on the instrument the person(s)-or the entity upon behalf of which the person(s)- acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hang and official seal. Signature: » SAMARA J. NEDROS Comminiofl #1819950 Notary Public - California San Diego County Comm. Expires Nov 23.2012 CERTIFICATION FOR ACCEPTANCE OF QUITCLAIM DEED This is to certify that the interest in real property conveyed by the Quitclaim Deed dated April 3. 2009. from Rebecca Biddle, to the City of Carlsbad/Carlsbad Redevelopment Agency, California, is hereby accepted by the Redevelopment Agency of the City of Carlsbad, California, pursuant to Resolution No. 467, adopted on June 2, 2009, and the grantee consents to the recordation thereof by its duly authorized officer. DATED: June 4. 2009 LIS'A'HILDABRAND, Secretary