Loading...
HomeMy WebLinkAboutRDA Reso 07-2009RESOLUTION NO. 07-2009 REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING AN $88,000 LOAN TO TIl'TON METRO, LLC FOR PAYMENT OF PROPERTY TAXES, AUTHORIZING EXECUTION OF LOAN DOCUMENTS IN CONNECTION THEREWITH, AND APPROVING AN AMENDMENT TO THE REDEVELOPMENT AGENCY'S OPERATING BUDGETS WHEREAS, the Redevelopment Agency of the City of South San Francisco ("Agency") is a redevelopment agency existing pursuant to the Community Redevelopment Law, California Health and Safety Code Section 33000, et seq. (the "CRL"), and pursuant to the authority granted thereunder, has the responsibility to carry out the Redevelopment Plan ("Redevelopment Plan") for the Downtown/Central Redevelopment Project Area ("Project Area "); and WHEREAS, Tipton Metro, LLC, a California limited liability company ("Owner") purchased the real property located at 220 Linden Avenue in South San Francisco, California ("Property") in 2006; and WHEREAS, Owner operates a 62-unit single room occupancy hotel on the Property known as the Metropolitan Hotel ("Metropolitan Hotel"); and WHEREAS, the Property is subject to a Rent Regulatory Agreement dated April 30, 1996 executed by the Agency and Owner's predecessor in interest, Tipton Management Company, Incorporated ("1996 Rent Regulatory Agreement"); and WHEREAS, the 1996 Rent Regulatory Agreement requires Owner to rent all of the units in the Metropolitan Hotel to very low-income households at affordable rents for a period of 25 years; and WHEREAS, in connection with Owner's purchase of the Property in 2006, the San Mateo County Assessor's office reassessed the value of the Froperty and the improvements thereon; and WHEREAS, as a result of such reassessment, Owner recently received a retroactive tax bill in the amount of $88,000; and WHEREAS, $68,000 of the outstanding taxes is related to the residential portion of the Property and the remaining $20,000 is related to the commercial portion of the Property; and WHEREAS, the revenue generated from the Metropolitan Hotel is insufficient to cover the additional taxes; and WHEREAS, Owner has requested, and Agency has agreed, to provide a loan to Owner in the ariount of $88,000 for payment of the additional taxes ("Loan"); and WHEREAS, the Agency will fund the Loan using $68,000 from its Low- and Moderating Income Housing Fund ("Low/Mod Fund") and $20,000 from its non- housing funds; and WHEREAS, in exchange for the Loan, Owner has agreed to extend the affordability of all of the units in the Metropolitan Hotel for an additional 10 years; and WHEREAS, the Agency and Owner have negotiated (i) a Loan Agreement ("Loan Agreement"), (ii) a Promissory Note ("Note") in the amount of the Loan, (iii) a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing which shall provide Agency with a security interest in the Property ("Deed of Trust"); and (iv) an Amended and Restated Rent Regulatory Agreement substantially in the forms on file with the Agency Secretary ("Regulatory Agreement"). The Loan Agreement, the Note, the Deed of Trust and the Regulatory Agreement are collectively referred to as the "Loan Documents;" and WHEREAS, the Agency has determined that provision of the Loan to Owner pursuant to the terms of the Loan Documents is consistent with the Redevelopment Plan and is in the in~erests of the health, safety and welfare of the residents of the Project Area and the City of South San Francisco. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that it hereby: 1. Authorizes the provision of the Loan to Owner pursuant to the terms of the Loan Documents. 2. Approves the Loan Agreement, the Note, the Deed of Trust and the Regulatory Agreement substantially in the forms on file with the Agency Secretary. 3. Approves an amendment to the Redevelopment Agency's Operating Budgets. 4. Authorizes the Executive Director of the Agency (or his designee) to execute the Loan Documents substantially in the forms on file with the Agency Secretary; to make revisions to the Loan Documents, subject to the approval of counsel, which do not materially or substantially increase the Agency's obligations thereunder; to record the Regulatory Agreement in the Official Records of San Mateo County; to sign all documents, to make all approvals and take all actions necessary or appropriate to carry out and implement the intent of this Resolution. I hereby certify that the foregoing Resolution was regularly introduced and adopted. by the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the 8th day of April, 2009 by the following vote: AYES: Boardmembers Pedro Gonzalez, Richard A. Garbarino, and Kevin Mullin, Vice Chair Mark Addiego and Chair Karyl Matsumoto NOES: None ABSTAIN: None ABSENT: None ATTEST: J( /h~~iL4 V / /X~ ity Clerk