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Home My WebLink AboutCDC/2005-08 RESOLUTION NO. CDC/2005-8 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS RELATING TO THE TEMPORARY INVESTMENT OF LOW- AND MODERATE-INCOME HOUSING FUNDS AND APPROVING A 2005 LOAN MODIFICATION AND COLLATERAL ASSIGNMENT AGREEMENT AND CONSENT TO ASSIGNMENT BY AND AMONG 303, L.L.C., THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND APPROVING A 2005 REDEVELOPMENT LOAN AGREEMENT BY AND BETWEEN THE CITY AND THE AGENCY (303 THIRD STREET PROJECT) 4 5 6 7 8 9 10 WHEREAS, the City of San Bernardino (the "City") and 303, L.L.C., a Californi II limited liability company (the "Borrower") have previously entered into a certain agreemen 12 entitled "2000 Community Development Block Grant Program Section 108 Project Developmen 13 Loan Agreement (303 Third Street Project)", dated as of September 18, 2000, as amended (th 14 "City Section 108 Loan Agreement"), for the purpose of furthering the community economi 15 development goals of the City within the downtown area of the City, and contemporaneousl 16 therewith, the City entered into an agreement with the United States Department of Housing an 17 Urban Development ("HUD") entitled "Contract for Loan Guaranty Assistance Under Sectio 18 108 of the Housing and Community Development Act of 1974", as amended, 42 U.S.C. 95308 19 dated September 26, 2000, as amended (the "HUD Section 108 Loan Agreement") in order t 20 provide a source of funds to support the activities contemplated under the City Section 108 Loa 21 Agreement; and 22 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") 23 and the Borrower have previously entered into a certain agreement entitled "2000 Owne 24 Participation and ED! Loan Agreement (303 Third Street Project)" dated as of September 18, 25 2000, as amended (the "OP A") in support of the activities contemplated under the City Sectio 108 Loan Agreement; and 4844-2602-7776.2 -1- P:\Agendas\Resolutiolls\Resolutiolls\2005\OS.02-22 303 W Third Sf-20US Loan Modification CDC Reso.doc CDC/2005-8 WHEREAS, the City Section 108 Loan Agreement, the HUD Section 108 Loa 2 Agreement and the OP A have each been duly amended by the parties thereto prior to the date 0 3 this Resolution, to reflect changes in circumstances and modifications to the financing of th 4 "Borrower Improvements (Phase II)" and the "303 Third Street Project", as each of these term 5 are defined in the City Section 108 Loan Agreement, including the proposed acquisition thereo 6 by the County of San Bernardino pursuant to the terms and conditions of an agreement entitle 7 "Agreement for Purchase and Sale of Real Property", dated June 29, 2004 (the "County Purchas 8 Contract") by and between the Borrower and the County of San Bernardino; and 9 WHEREAS, as a result of the greater than anticipated costs required to complete th 10 redevelopment of the Borrower Improvements (Phase II) and the 303 Third Street Project by th II Borrower, the Borrower has requested that the City arrange for the Agency to repay the HUD 12 Section 108 Loan and that in consideration thereof, the Agency accept a collateral assignmen 13 from the City of all of the "Section 108 Loan Collateral" as this term is defined in the Cit 14 Section 108 Loan Agreement, as security for the repayment by the City to the Agency of a loa 15 of Agency low- and moderate-income housing funds in an amount not to exceed $1,740,000 t 16 the City under the terms of the 2005 Agency Loan Agreement by and between the City and th 17 Agency (the "2005 Agency Loan Agreement"). The City shall use and apply the proceeds of th 18 loan made available to it by the Agency under the 2005 Agency Loan Agreement to prepay th 19 HUD Section 108 Loan; and 20 WHEREAS, the Agency deems it appropriate to further assist the City to repay the HUD 21 Section 108 Loan and that the Agency make available to the City for such purposes the 22 proceeds of a loan of low- and moderate-income housing funds of the Agency under the 2005 23 Agency Loan Agreement to be secured in favor of the Agency by a collateral assignment of the 24 City Section 108 Loan Agreement, and all security instruments thereunder. 25 4844-2602-7776.2 . -2- P:\Agendas\Resolutions\Resolutions\2005\05-02-22 303 W Third St-IOOS Loan Modification CDC Reso.doc CDC/200S-8 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 2 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 3 FOLLOWS: 4 Section 1. The Commission hereby finds and determines that a temporary investment of 5 available cash funds of the Agency's low-and moderate-income housing funds through December 31, 2006, in a maximum principal amount not to exceed $1,740,000, in accordance with the terms and 6 7 conditions of the 2005 Agency Loan Agreement in the form attached hereto as Exhibit "A", is indicated, 8 and that such a temporary investment of Agency low- and moderate-income housing funds for the 9 period of time provided in such 2005 Agency Loan Agreement shall not interfere with the Agency's programs to promote and expand the community's supply of affordable housing. The Commission further finds and determines that the rate of interest payable by the City to the Agency on the loan as may hereafter be originated by the Agency under the terms of the 2005 Agency Loan Agreement, is 10 11 \2 greater than the rate of interest payable to the Agency on cash held for investment in the Agency low- 13 \4 and moderate-income housing fund, and that the repayment of the 2005 Agency Loan is adequately secured by the collateral assignment to the Agency by the City of its security interests in the 303 Third 15 16 Street Property under the City Section 108 Loan Agreement. In light of the foregoing, the Agency hereby finds and determines that the temporary investment of up to $1,740,000, in Agency low- and moderate-income housing funds, as contemplated under the 2005 Agency Loan Agreement, is a 17 18 permitted temporary investment of such Agency low- and moderate-income housing funds. 19 Section 2. The Commission hereby approves the 2005 Loan Modification 20 Collateral Assignment Agreement and Consent to Assignment (the "2005 Loan Modificatio 2\ Agreement") by and among the Borrower, the City and the Agency in the form attached hereto 22 as Exhibit "B". The Chair of the Commission and Executive Director of the Economi 23 Development Agency are hereby authorized and directed to execute the 2005 Loan Modificatio 24 Agreement on behalf of the Agency, together with such technical and conforming changes a 25 may be approved by the Chair of the Commission upon the recommendation of the Executiv Director of the Economic Development Agency and special legal counsel to the Agency. 4844-2602-7776.2 -3- P:\Agendas\Resolutions\Rcsolutiolls\2005\05-02-22 303 W Third 8t-2005 LOlln Modification CDC Reso.doc CDC/2005-8 Section 3. The Commission hereby approves the 2005 Agency Loan Agreement i 2 the form as attached hereto as Exhibit "A". The Chair of the Commission and Executiv 3 Director of the Economic Development Agency are hereby authorized and directed to execut 4 the 2005 Agency Loan Agreement on behalf of the Agency, together with such technical an conforming changes as may be approved by the Chair of the Commission upon th 5 6 recommendation of the Executive Director of the Economic Development Agency and specia 7 legal counsel to the Agency. 8 Section 4. Subject to the execution by all parties of the 2005 Loan Modificatio 9 Agreement and the satisfaction of the conditions enumerated in Section 9(b) of the 2005 Loa 10 Modification Agreement, the Chair of the Commission and Executive Director of the Economi 11 Development Agency are hereby authorized and directed to provide the proceeds of the loan 0 Agency low- and moderate-income housing funds to the City under the terms of the 2005 12 Agency Loan at the earliest feasible time. The Chair of the Commission and Executive Directo 13 of the Executive Director of the Economic Development Agency are hereby further authorized t 14 execute the consent of the Agency to the 2005 Collateral Assignment of Section 108 Loa 15 Documents on behalf of the Agency in the form as included as an exhibit to the 2005 Loa 16 Modification Agreement, together with such technical and conforming changes as may b 17 approved by the Chair of the Commission upon the recommendations of the Executive Directo 18 of the Economic Development Agency and special legal counsel to the Agency. 19 Section 5. This Resolution shall have no further force or effect forty five (45) days 20 after its adoption unless prior to such date the 2005 Loan Modification Agreement and the 2005 Agency Loan Agreement are both fully executed by all of the parties thereto. 21 22 Section 6. The Agency Secretary shall certify to the adoption of this Resolution. 23 This Resolution shall take effect upon adoption. 24 I I I 25 I I I !/I 4844-2602-7776.2 -4- P:\Agendas\ResoJutions\Resolutiolls\2005\OS-02-22 303 W Third 51-2005 Loan Modification CDC Reso.doc CDC/2005-8 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS RELATING TO THE TEMPORARY INVESTMENT OF LOW- AND MODERATE-INCOME HOUSING FUNDS AND APPROVING A 2005 LOAN MODIFICATION AND COLLATERAL ASSIGNMENT AGREEMENT AND CONSENT TO ASSIGNMENT BY AND AMONG 303, L.L.C., THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND APPROVING A 2005 REDEVELOPMENT LOAN AGREEMENT BY AND BETWEEN THE CITY AND THE AGENCY (303 THIRD STREET PROJECT) 2 4 5 6 7 8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the joint Community Development Commission of the City of San Bernardino at a regular meeting 9 10 thereof, held on the 22nd day of February , 2005, by the following vote to wit: ]) Commission Members: Ayes Nays 12 ESTRADA X 13 LONGVILLE ----X- 14 MCGINNIS ---X- DERRY X 15 KELLEY X 16 JOHNSON ~ 17 MC CAMMACK X Abstain Absent The foregoing resolution is hereby approved this ~~ ~.~ Secre ary (!.,'ry ~ClCo1C. Ii February ,2005. 18 19 20 a les, Chairperson unity Development Commission City of San Bernardino 2] 22 23 24 Approved as to form and Legal Content: . By ~~iI~ Agency Co nsel 25 4844-2602-7776.2 -5- P:\Agendas\Resoluliolls\Resolutions\2U05\OS-02-22 303 W Third St-ZOUS Loan Modification CDC Reso.doc