HomeMy WebLinkAbout2011 CC RESO 2011-25 CDCROVED AS TO FORM:
RESOLUTION 2011 — 25
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF NATIONAL CITY (CDC) AUTHORIZING THE CHAIRMAN
TO EXECUTE A SUBORDINATION AGREEMENT WITH MIKE N. DALLO
AND MONA DALLO TO PLACE THE CDC FACADE LOAN AGREEMENT
IN A SECOND TRUST DEED POSITION FOR THE PROPERTY
LOCATED AT 303 HIGHLAND AVENUE (FOODLAND)
WHEREAS, on September 18. 2006, the Community Development Commission
of the City of National City ("CDC") entered into a Facade Improvement Loan for $542,349 to
Mike Dallo and Mona Dallo, the Property Owners secured by a Deed of Trust on the Foodland
Grocery Market located at 303 Highland Avenue, National City ("Property"), approved by
Resolution 2006-216, on October 3, 2006; and
WHEREAS, the Facade Improvement Loan from the CDC was issued in second
lien position with a loan from Union Bank in first lien position; and
WHEREAS, in April of 2008, the Property Owners refinanced the Union Bank
loan with a $3.5 Million from Sterling Bank to improve the Property and expand operations, and
the CDC executed a subordination agreement with Sterling Bank; and
WHEREAS, the Property Owners have purchased the note at a discount from
Sterling Bank on December 31, 2010, for cash; and
WHEREAS, the Owners wish to encumber the Property with a new loan from
Zions Bank for $2,470,000, and have requested that the CDC execute a subordination of the
Facade Improvement Loan to a new first trust deed with Zions Bank as the beneficiary; and
WHEREAS, the Property has been recently appraised for $3,800,000, and the
subordination provides minimal exposure to the loan interests of the CDC.
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 in favor of Zions Bank and any escrow documents required to place
the Facade Improvement Loan's Deed of Trust in second lien position on the Property located at
303 Highland Avenue, subject to resolving all outstanding permit issues. Said Subordination
Agreement is on file in the Office of the City Clerk.
PASSED and ADOPTED this 1st day of February, 2011.
on Morrison, Chairman
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DC Gene
sel
Passed and adopted by the Community Development Commission of the City of
National City, California, on February 1, 2011, by the following vote, to -wit:
Ayes: Commissioners Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secre mty Development Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-25 of the Community Development Commission of the City of
National City, California, passed and adopted on February 1, 2011.
Secretary, Community Development Commission
By:
Deputy