HomeMy WebLinkAbout2008 CC RESO 2008-57 CDCRESOLUTION NO. 2008 — 57
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY
AUTHORIZING THE CHAIRMAN TO EXECUTE
A SUBORDINATION AGREEMENT WITH
STERLING BANK TO PLACE THE CDC FACADE LOAN
AGREEMENT WITH MIKE N. DALLO AND MONA DALLO
IN A SECOND TRUST DEED POSITION
WHEREAS, on September 18, 2006, the Community Development Commission
of the City of National City ("CDC") entered into a Facade Improvement Loan Agreement and
Deed of Trust with Mike Dallo and Mona Dallo (the "Property Onwers"), the Owners of the
Foodland Property ("Property"), which was approved by the adoption of Resolution 2006-216 on
October 3, 2006; and
WHEREAS, the Facade Improvement Agreement and Deed of Trust placed the
Union Bank of California as the first Trust Deed on the Property, and the CDC was in second
position; and
WHEREAS, the CDC moved into first position when the Property Owners paid off
their total debt to Union Bank of California; and
WHEREAS, on April 1, 2008, the CDC and the Property Owners executed an
amendment to the Facade Improvement Agreement, which increased the amount of the CDC's
loan to the Property Owners from $347,320 to $542,349; and
WHEREAS, at this time, the Property Owners desire to borrow $3.5 Million from
Sterling Bank to improve the Property and expand business operations; and
WHEREAS, in order to facilitate a loan to the Property Owners by Sterling Bank,
the Bank has requested that the CDC enter into a Subordination Agreement with the Bank,
whereby all indebtedness of the Property Owners to the CDC shall be subordinated to the loan
by the Bank to the Property Owners, including, without limitation, the CDC's Subordinated
Interests.
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 Sterling Bank to place the Facade Improvement Agreement with
Mike N. Dallo and Mona Dello in a Second Trust Deed position. Said Subordination Agreement
is on file in the Office of the City Clerk.
PASSED and ADOPTED this 1st day of April, 2 .
on Morrison, Chairman
APPROVED AS TO FORM:
George H. Eiser, III
Legal Counsel
Passed and adopted by the Community Development Commission of the City of
National City, California, on April 1, 2008, 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, Community Development Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2008-57 of the Community Development Commission of the City of
National City, California, passed and adopted on April 1, 2008.
Secretary, Community Development Commission
By:
Deputy