HomeMy WebLinkAbout2007 CC RESO 2007-219 CDCRESOLUTION NO. 2007 — 219
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY
AUTHORIZING THE CHAIRMAN TO EXECUTE
A THREE YEAR MARKET RATE (10-PERCENT)
LOAN AGREEMENT FOR UP TO $2.6 MILLION
WITH THE CONSTELLATION PROPERTY GROUP
FOR THE CENTRO REDEVELOPMENT PROJECT
ON NATIONAL CITY BOULEVARD
WHEREAS, the Community Development Commission of the City of National
City ("CDC") is implementing the Redevelopment Plan for the National City Redevelopment
Project; and
WHEREAS, implementing the Downtown Specific Plan through establishing
Market Supported Values is a Strategic Goal (5a) as adopted by the City Council of the City of
National City; and
WHEREAS, the Centro condominium project, as proposed by the Constellation
Property Group was determined to be consistent with the Downtown Specific Plan on October
18, 2005 by Resolution 2005-92; and
WHEREAS, the CDC desires to make a short term market rate loan to assist
with property acquisition related to the project; and
WHEREAS, the Term Sheet is attached to this Resolution as Exhibit "A".
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby approves a Term Sheet, and authorizes the
Executive Director to execute a three-year market rate (10-percent) Loan Agreement for up to
$2.6 million with the Constellation Property Group for the Centro Redevelopment Project on
12th Street.
PASSED and ADOPTED this 4th day of Septem
on Morrison, Chairman
ATTEST: APPROVED AS TO FORM:
-I
delirz
Brad on, fr etary
George H. Eiser, III
Legal Counsel
TERM SHEET
Proposed $2.6 Million Loan
from CDC to Constellation Property Group (NatCity 12th) LP
Loan Amount:
Not to exceed S2,600,000.
Interest Rate:
Ten percent (10%) per annum non -compounded.
Security:
Second Deed of Trust on the Centro project (subordinate only to the approximate
$5,700,000 First Deed of Trust to UCB on a new construction loan Deed of Trust on
the Centro Project in the approximate amount of S21,000,000), plus personal
guaranty from Eugene Marchese.
Use of
Loan Proceeds:
Assemble properties to construct the Centro condominium project — a 91,199 square
foot, four story condominium project housing 61 residential units and 108 parking
spaces, not to exceed 50 feet in height.
Conditions to
Loan Closing:
Transfer of Centro project property from Constellation Property Group (NatCity
12th) to Constellation Property Group (A Avenue) LP on or before the
closing of the loan.
ALTA lenders title insurance policy in favor of CDC insuring second priority
position of CDC Deed of Trust subject only to UCB loan on new
construction loan on Centro Project.
Approval by CDC of construction lender and construction loan terms and provisions
for Centro Project.
Approval by CDC of general contractor and agreement between Constellation
Property Group (A Avenue) LP and general contractor for construction of
Centro Project.
Constellation indemnifies the City and the CDC from any liability arising from the
transaction, and that Constellation provide a policy of Commercial General
Liability insurance in the amount of $2 Million, with the City, the CDC, and
their officers and employees as additional insureds.
Repayment
Terms:
Loan would be repaid from Centro project profit/cash flow subject only to payments
to Centro construction lender and prior to any distribution to Constellation Property
Group (A Avenue) LP. In any event, the loan would be all due and payable no later
than three years from initial funding.
Needed
Documents:
Preliminary Title Reports on Centro.
Loan Agreement.
Promissory Note.
Second Deed of Trust.
Guaranty.
Insurance certificate.
EXHIBIT"A"
Passed and adopted by the Community Development Commission of the City of
National City, Califomia, on September 4, 2007, by the following vote, to -wit:
Ayes: Commissioners Morrison, Natividad, Parra, Ungab.
Nays: None.
Absent: Commissioner Zarate.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secret-�:� • �=.. " Development Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2007-219 of the Community Development Commission of the City
of National City, Califomia, passed and adopted on September 4, 2007.
Secretary, Community Development Commission
By:
Deputy