HomeMy WebLinkAbout2011 CON CDC Dallo - Foodland Facade ImprovementRecording Requested By
Lawyers Title
CTFI21`[•
AND WHEN RECORDED MAIL TO:
Community Development Commission
of the City of National City
Economic Development Division
1243 National City Blvd
National City, CA 91950-4301 3417
DOC it 2011-010$078
FEB 28, 2011 8:00 AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES: 24.00
PAGES:
4
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I HIJ JYHUt FUN KtUUKUtKb Ubt ONLY:
Escrow No.: 048096-RJ Title Order No.: 310327522
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY
BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
THIS AGREEMENT, made January 7, 2011, by Mike N. Dallo and Mona Dallo, Husband and Wife
Owner of the land hereinafter described and hereinafter referred to as "Owner", and Community Development
Commission of the City of National City, Present owner and holder of the deed of trust and note first hereinafter
described and hereinafter referred to as "Beneficiary";
WITNESSETH
THAT WHEREAS, Mike N. Dallo and Mona Dallo, Husband and Wife did execute a deed of trust, dated March 24,
2008, to Chicago Title Company, a California Corporation, As trustee, covering:
Parcel 1:
The Southerly half of the Easterly half of the Westerly half, the Southerly half of the Westerly half of the Northerly half and the Westerly
quarter of the Southerly half of 20 acre Lot 2 of quarter Section 131 of Rancho De La Nacion, in the City of National City, County ofSan
Diego, State of California, according to Map thereof No. 166 by Morrill, filed in the office of the County Recorder of San Diego County. AS
MORE PARTICULARLY DESCRIBED IN LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF.
to secure a note in the sum of $542,349.00, dated March 24, 2008, in favor of the Community Development
Commission of the City of National City, which deed of trust was recorded April 8, 2008, as Instrument No. 2008-
0183750, Official Records of said county; and
WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $2,470,000.00, dated
February 10, 2011 in favor of Zions First National Bank hereinafter
referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust
is to be recorded concurrently, herewith; and
WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall
unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to
the lien or charge of the deed of trust first above mentioned; and
WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon
the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and
provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first
above mentioned to the lien or charge of the deed of trust in favor of Lender; and
WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is
willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is
unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned.
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable
consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce
Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows;
(1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall
unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to
the lien or charge of the deed of trust first above mentioned.
SUBORDINATION RECORDED DEED OF TRUST TO RECORD
3418
(3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or
charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above
referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust
hereinbefore specifically described, any prior agreements as to such subordination including, but not limited to,
those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of
the lien or charge thereof to another deed or deeds of trust or to an other mortgage or mortgages.
Beneficiary declares, agrees and acknowledges that
(a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred
to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender
for the disbursement of the proceeds of Lender's loan.
(b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has
Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender
disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in
such agreement or agreements shall not defeat the subordination herein made in whole or in part;
(c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of
trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above
referrred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and
subordination specific loans and advances are being and will be made and, as part and parcel thereof, specific
monetary and other obligations are being and will be entered into which would not be made or entered into but for
said reliance upon this waiver, relinquishment and subordination; and
(d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said
deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender
above referred to.
NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON
OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE
EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND.
Community
National Ci
By
ment Commission of the City of
Ron Morrison, Chairman
Beneficiary
STATE OF CALIFORNIA
COUNTY OF SAn.1 D'GGI O
On F-6FuNARY f zoo
before me, CHAR,1.L3 A• 135C.zZ1 -72• , q
a Notary Public in and for said State, personally appeared ON MoitizAbot l
Owner
who proved to me on the basis of satisfactory evidence to be the person whose name* isiare-subscribed to the within
instrument and acknowledged to me that heleheltiwy executed the same in hisiiherAhreit authorized capacity4ies), and that by
his/hcrithcir signature* on the instrument the person(ef,, or the entity upon behalf of which the person acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the aws of the State of Californi thattt elorestoioa earao a .b is tfae and correct.
WITNESS my hand and official seal. .+ CHARLESA JR.t
... 3 COMM.44756224
,,� Notary PWI lo.i 5
�4_,y'4 J SAN olaeoccuarr
wit'comnEN).,M)3.2blI
Signature
(This area for official notarial seal)
(ALL SIGNATURES MUST BE ACKNOWLEDGED)
IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE
PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
(CLTA SUBORDINATION FORM "A")
3419
State of California
County of
On
ACKNOWLEDGMENT r 7i 2-o 11
before me,
D.T. BAREENBRUGGE, CA. NOTARY PUBUC
A Notary Public in and for said State personally appeared
1411,44, N, fl
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
A/are subscribed to the within instrument and acknowledged to me that a/they executed
the same in *Mkf/their authorized capacity(ies), and that by lifsfber/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
D.T.T N;.r UGGE, CA NOTARY PUBUC
D. T. BARENBRUGGE 4
CoMM. # 1839320 in
NOIARY PUBLN%•CAUFDRNU vJ
COWRY OF 3,4 Oiaoo `
Mr Co* EMP, MM. 30. 3013 "
(Seal)
3420
EXHIBIT "A"
All that certain real property situated in the County of San Diego, State of California, described as
follows:
Parcel 1:
The Southerly half of the Easterly half of the Westerly half, the Southerly half of the Westerly half
of the Northerly half and the Westerly quarter of the Southerly half of 20 acre Lot 2 of quarter
Section 131 of Rancho De La Nacion, in the City of National City, County of San Diego, State of
California, according to map thereof No, 166 by Morrill, filed in the Office of the County Recorder of
said San Diego County.
Excepting from said Westerly quarter of the Southerly half, the Southerly 240 feet thereof and the
Westerly 40 feet thereof.
Also excepting that portion of the property described above which lies Easterly of the following
described line:
Beginning at a point in the Northerly line of said Southerly half of the Westerly half of the Northerly
half of 20 acre Lot 2, which is distant Westerly 172.50 feet from the Northeasterly corner of said
Southerly half of the Westerly half of the Northerly half; Thence Southerly in a straight line to a
point in the Southerly line of said 20 acre Lot 2, which is distant thereon 171.46 feet Westerly from
the Southeasterly corner of the Westerly half of said lot.
Parcel 2:
An easement and right-of-way for ingress and egress for drainage purposes, over a strip of land 6
feet wide in 20 acre Lot 2 of quarter Section 131 of Rancho De La Nacion, in the City of National
City, County of San Diego, State of California, according to map thereof No. 166 by Morrill, filed In
the Office of the County Recorder of San Diego County, the center line of said 6 foot strip being
described as follows:
Beginning at a point in the Northerly line of the Southerly half of the Westerly half of the Northerly
half of said 20 acre Lot 2, which is distant thereon 172.50 feet from the Northeasterly corner of
said Southerly half of the Westerly half of the Northerly half, being the Northerly terminus of the
straight line which connects said point of beginning with a point in the Southerly line of said 20
acre Lot 2 which is distant 171.46 feet Westerly from the Southeasterly corner of the Westerly half
of said lot; Thence Southerly along said straight connecting line, 90.00 feet to the True Point of
Beginning; Thence Northeasterly in a straight line to a point in said Northerly line of the Southerly
half of the Westerly half of the Northerly half, which is distant thereon Westerly 103.46 feet from
said Northeasterly corner of the Southerly half of the Westerly half of the Northerly half of said lot,
said 6 foot strip beginning in that straight connecting line described above and ending in said
Northerly line of the Southerly half of the Westerly half of the Northerly half of said Lot 2.
Apn: 556-180-23-00,
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 Propertyand 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.
ATT
Brad
PASSED and ADOPTED this 1st day of February, 2011.
on Morrison, Chairman
ROVED S TO FORM:
►' . 'Ltd
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'=rnty 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
caooG-51
EETING DATE:
CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION
COUNCIL AGENDA STATEMENT
February 1, 2011
AGENDA ITEM NO. 22
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
PHONE: 619 336-4279
DEPARTMENT: Community Development
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
aking 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:
ACCOUNT NO. APPROVED:
There is no fiscal impact associated with this request.
ENVIRONMENTAL REVIEW:
Not Applicable
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
Finance
MIS
STAFF RECOMMENDATION:
Approve resolution
BOARD / COMMISSION RECOMMENDATION:
ATTACHMENTS:
1. Staff Background Report
2. Subordination• Agreement
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