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HomeMy WebLinkAbout2007 CC RESO 2007-11 CDCRESOLUTION NO. 2007 — 11 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A SUBORDINATTION AGREEMENT WITH CONSTELLATION PROPERTY GROUP (NATCITY 12TH) FOR THE R1 AND R2 PROJECT SITES WHEREAS, the CDC entered into a DDA with Constellation Property Group on August 30, 2005, for development of the Centro Project. The developer's obligtion to develop the site was secured by a Deed of Trust dated October 21, 2005; and WHEREAS, Constellation Property Group is in the process of extending the term of its acquistion loan for the R1 and R2 projects. The lender has requested that the CDC subordinate its deed of trust to the lender's deed of trust; and WHEREAS, the proposed Subordination Agreement would place the CDC's deed of trust in second position to the lender's deed of trust if there were a default by the developer in complying with its obligations under the DDA. The subordination of a deed of trust is a customary practice in transactions such as this, and would facilitate completion of the project. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute a Subordination Agreement with Constellation Property Group (NatCity 12th). Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 16th day of January 29J7. on Morrison, Chairman ATTEST: Brad Ra '^on, Secretary APPROVED AS TO FORM: George H. Eiser, III Legal Counsel Passed and adopted by the Community Development Commission of the City of National City, Califomia, on January 16, 2007, by the following vote, to -wit: Ayes: Commissioners Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman, Community Development Commission Secretary*C miry Development Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2007-11 of the Community Development Commission of the City of National City, California, passed and adopted on January 16, 2007. Secretary, Community Development Commission By: Deputy