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HomeMy WebLinkAboutRDA Reso 03-2010RESOLUTION NO. 03-2010 REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING THE EXECUTION OF AN OWNER PARTICIPATION AND LOAN AGREEMENT WITH BUON GUSTO RISTORANTE, APPROVING THE PROVISION OF A LOAN FOR THE REHABILITATION OF THE PROPERTY LOCATED AT 222-224 GRAND AVENUE, AND AUTHORIZING THE EXECUTION OF DOCUMENTS IN CONNECTION WITH SUCH FINANCING 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 (the "Redevelopment Plan") for the Downtown/Central Redevelopment Project Area (the "Project Area"); WHEREAS, the Agency operates a commercial rehabilitation loan program pursuant to which the Agency provides financing for the rehabilitation of buildings located within the Project Area; WHEREAS, Ristorante Buon Gusto, a California corporation ("Borrower") leases the property located in the Project Area at 222-224 Grand Avenue, and known as San Mateo County Assessor's Parcel No. 012-315-120 (the "Property"), and Borrower has applied to Agency for financing in order to rehabilitate and improve the Property (the "Project"); WHEREAS, the Project will be of benefit to the Project Area because it will improve the streetscape appearance of the Property, permit Borrower to expand Borrower's restaurant, and provide increased j ob and economic development opportunities; WHEREAS, the terms and conditions for the rehabilitation of the Property and the financing of the Project are more particularly described in a proposed Owner Participation and Loan Agreement (the "OPA") between Agency and Borrower, copies of which have been provided to the Agency; WHEREAS, the proposed Agency financing for the Project includes a loan in the amount of Six Hundred Fifty Thousand Dollars ($650,000) (the "Loan"); WHEREAS, the Project would be infeasible without the Loan; and WHEREAS, Borrower and Agency staff have negotiated the terms and conditions of (i) a Secured Promissory Note (the "Note") to be executed by Borrower and its principals and that provides for repayment of the Loan over atwenty-five (25) year term; and (ii) a Security Agreement (the "Security Agreement") pursuant to which the Agency will be provided a security interest in Borrower's personal property used in connection with the operation of the restaurant on the Property, including but not limited to furniture, fixtures and equipment; intangible property, including without limitation, contracts and insurance proceeds; and intellectual property, including without limitation, the right to use the business name and trade dress to secure repayment of the Loan in the event of default. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that it hereby: 1. Finds that the rehabilitation of the Property in accordance with the OPA and the provision of the Loan for the Project will be of benefit to the Project Area, will further the goals of the Redevelopment Plan, and will be consistent with the implementation plan adopted in connection therewith. 2. Approves the provision of the Loan pursuant to the terms and conditions set forth in the OPA. 3. Approves the OPA, the Note, and the Security Agreement and authorizes the Executive Director or his designee to execute and deliver the OPA and the Security Agreement substantially in the form on file with the Agency Secretary. 4. Authorizes the Executive Director or his designee to execute and deliver such other instruments and to take such other actions as necessary to carry out the intent of this Resolution, including without limitation the filing of instruments with the California Secretary of State in order to perfect the Agency's interest in Borrower's personal property. * ~ 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 13t" day of January, 2010 by the following vote: AYES: Boardmembers Pedro Gonzalez, Richard A. Garbarino, Vice Chair Kevin Mullin and Chairman Mark Addie~o NOES: Boardmember Karyl Matsumoto ABSTAIN: N ABSENT: None ~~ ~` ~ -`' ATTEST: `~ ~' ~. ``~~.~.~~- pity Cl~r ~,~.