HomeMy WebLinkAbout2025-60 - Ratification of a Subordination Agreement for an Affordable Housing Density Bonus Development Located at 1628 Orange St. RESOLUTION NO. 2025 - 60
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, RATIFYING A SUBORDINATION AGREEMENT WITH ORANGE ST
PARTNERS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AND ARV
FINANCE INC., SUBORDINATING THE PERFORMANCE DEED OF TRUST TO THE
LENDER DEED OF TRUST AND SUBORDINATING THE LENDER DEED OF TRUST
TO THE AFFORDABLE HOUSING DENSITY BONUS AGREEMENT FOR 1628
ORANGE ST. IN NATIONAL CITY.
WHEREAS, on January 17, 2023, the City Council approved by Resolution 2023-01
a Density Bonus Agreement ("Agreement") that obligates Orange St. Partners, LLC
("Developer") to restrict one (1) unit as affordable to very low-income households for fifty-
five (55) years; and
WHEREAS, the Agreement was entered into on December 12, 2022 and recorded
with the Office of the Recorder of the County of San Diego on January 27, 2023; and
WHEREAS, a Performance Deed of Trust was recorded concurrently with the
Agreement on January 27, 2023 to secure the Agreement on the property located at 1628
Orange St. in National City; and
WHEREAS, Orange St. Partners, LLC requested that the City expedite the
Subordination Agreement process in order to secure refinancing for the development and,
on April 28, 2025, the City Manager executed the Subordination Agreement with Developer
and ARV Finance Inc. ("Lender") incorporated herein as Exhibit "A"; and
WHEREAS, the Deed of Trust securing the performance of the Agreement was
made subordinate and subject to Lender's Deed of Trust through the Subordination
Agreement; and
WHEREAS, the Density Bonus Agreement will remain a lien superior to Lender's
Deed of Trust.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
Section 1: That the City Council hereby ratifies the Subordination Agreement with
Orange St. Partners, LLC and ARV Finance Inc., subordinating the Deed of Trust to the
performance of an Affordable Housing Density Bonus Agreement entered into on January
17, 2023.
Section 2: That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 3rd day of , 2025.
Ro orrison, ayor
ATTEST:
CJ1LOJAi
Shelley ChapALLel, M C, City Oerk
APPROVED AS TO FORM:
0
Barry J.J. , City Attorney
Passed and adopted by the City Council of the City of National City, California, on June
3, 2025 by the following roll-call vote, to-wit:
Ayes: Molina, Rodriguez, Yamane, Bush, Morrison
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: Ron Morrison
Mayor of the City of National City, California
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* Shelley Chapel
City Clerk of the City of National City, California
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°f cnuF° BY:
Shelley Chapel, M , City Clerk