HomeMy WebLinkAboutCouncil Agenda StatementMEETING DATE:
CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION
COUNCIL AGENDA STATEMENT
February 1, 2011
AGENDA ITEM NO.
ITEM TITLE:
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).
PREPARED BY: Alfredo Ybarra DEPARTMENT: Community Development
PHONE: 619 336-4279 APPROVED BY:
EXPLANATION:
The CDC made a $542,349 loan of tax increment funds to Mike N. Dallo and Mona Dallo (Borrowers) on
September 18, 2006 for the purpose of rehabilitating the facade at 303 Highland Avenue in National
City. Pursuant to the promissory note, the loan will be forgiven five (5) years from the completion date
of the improvements as long as the Foodland Market facade improvements are maintained for at least
five years.
The Borrowers are now requesting a refinancing of the property by applying for a new first trust deed
loan with Zions Bank. To facilitate this refinancing, they are requesting the CDC execute the attached
subordination agreement that will allow the new Zions Bank loan to take first position with the CDC loan
taking a second position. The purpose of the financial restructuring is to allow the borrowers to pull
funds out of the property that the Borrowers had previously invested. (see staff background report for
further details)
FINANCIAL STATEMENT: APPROVED: Finance
ACCOUNT NO. APPROVED: MIS
There is no fiscal impact associated with this request
ENVIRONMENTAL REVIEW:
Not Applicable
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Approve resolution
BOARD ! COMMISSION RECOMMENDATION:
ATTACHMENTS:
1. Staff Background Report
2. Subordination Agreement