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HomeMy WebLinkAboutD Avenue Housing Associates, L.P. - Kimball Highland Ground Lease Agreement - Amendment No. 1 - 2026 FIRST AMENDMENT TO GROUND LEASE (KIMBALL HIGHLAND MASTER PLAN PROJECT SITE 2) THIS FIRST AMENDMENT TO GROUND LEASE ("Amendment") is dated effective as of April , 2026 (the "Effective Date"), and is entered into by and between COMMUNITY DEVELOPMENT COMMISSION-HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY("Landlord"), and D AVENUE HOUSING ASSOCIATES,L.P., a California limited partnership ("Tenant"). WITNESSETH: A. Landlord and Tenant are parties to that certain Ground Lease dated June 1, 2022 (the"Ground Lease")relating to that certain real property(the"Real Property") as more particularly described on Exhibit A attached hereto and certain improvements to be constructed on the Real Property(collectively, the"Project"); B. Landlord and Tenant desire to enter into this Amendment in order to correct a clerical error in Section 4.1 of the Ground Lease. AGREEMENT NOW, THEREFORE, for good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows. 1. Defined Term. Capitalized terms used but not defined herein shall have the respective meanings attributed thereto in the Ground Lease. 2. Amendment. The Ground Lease is hereby amended by amending and restating Section 4.1 of the Ground Lease in its entirety: "Section 4.1 Rent. The rent shall be $3,000,000 which equals the amount of pre-paid operating expenses relating to the Property to be released ratably during the term of the Ground Lease. The Rent shall be payable at the Construction Loan Closing via a Promissory Note in the amount of$3,000,000 (the"Note"), which Note shall be secured by a deed of trust(the"Deed of Trust"). The Note shall be for a term of 55 years, bearing simple interest of 3%per annum with a minimum annual payment of$30,000 per year. The Note and the Deed of Trust shall be in forms reasonably approved by Landlord and Tenant." 3. This Amendment shall be governed by and construed in accordance with the laws of the State of California. 4. In the event of any inconsistency between the terms of this Amendment and the terms of the Ground Lease, the terms of this Amendment shall control. 5. Each of the parties hereto (i)has agreed to permit the use of telecopied or electronic signatures in order to expedite the transaction contemplated by this Amendment, (ii) intends to be bound by its respective telecopied or electronic signature, (iii) is aware that the other parties will rely on its telecopied or electronic signature, and(iv) acknowledges such reliance and waives any defense to the enforcement of this Amendment based on the fact that a signature was sent by telecopy or email. 6. This Amendment may be executed in two or more counterparts, all of such counterparts shall constitute the same agreement, and the signature of any party to any counterpart shall constitute the same agreement, and the signature of any party to any counterpart shall be deemed a signature to, and may be appended to, any other counterparts 7. Except as amended by this Amendment,the Ground Lease is unchanged and, as amended hereby,the Ground Lease shall remain in full force and effect. Parties Signatures On Next Page IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this Amendment as of the day and year first above written. LANDLORD: COMMUNITY DEVELOPMENT COMMISSION- HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, a public body,corporate and politic By: 4/7 Ls4 Name: SY'trl��.�. dr+ati.eIL Title: A f:.L 3 (:¢y 1-1.—1 -i ea- -APPROVED AS TO FORM: By: 6ASZ D'---� Name: 1-1-0 CI: A 5N-14n — Title: City Attorney TENANT: D AVENUE HOUSING ASSOCIATES, L.P., a California limited partnership By: CHW D Avenue, LLC, a California limited liability company, its Managing General Partner By: Community HousingWorks, a California nonprofit public benefit corporation, its Sole Memb and Manager By: vin • er Senior Vice President EXHIBIT A LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of San Diego and described as follows: SITE 2 KIMBALL WEST (LEASE) APN: 560-410-06 LOT 6 OF CENTER CITY PROJECT, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 8807, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, FEBRUARY 24, 1978.