HomeMy WebLinkAboutRES NO 175-99RESOLUTION NO. ! ~' 5 ' 9 9
RESOLUTION OF THE COUNCIL OF THE
CITY OF BAKERSFIELD CONSENTING TO
THE ASSIGNMENT OF THE OBLIGATIONS
UNDER AGREEMENT NO. 99-145 FROM
GOLDEN EMPIRE AFFORDABLE HOUSING,
INC. TO GEAHI PARK PLACE ASSOCIATES
LIMITED PARTNERSHIP.
WHEREAS, on June 30, 1999, the City of Bakersfield ("CITY") and Golden Empire
Affordable Housing, Inc. ("GEAHI") entered into Agreement No. 99-145, whereby CITY
granted GEAHI upto FIVE HUNDRED FIFTY THOUSAND DOLLARS ($550,000.00) to be
used to assist in the acquisition of real property upon which GEAHI will construct an 80-unit
senior housing project ("the Project"); and
WHEREAS, the assistance offered pursuant to Agreement No. 99-145 was
contingent upon GEAHI receiving a loan from the Central District Development Agency of
the City of Bakersfield (now the Bakersfield Redevelopment Agency) and GEAHI's
receiving a minimum amount tax credits from the State of California Tax Credit Allocation
Committee ("TCAC"); and
WHEREAS, GEAHI received the loan from the Central District Development Agency
and the requisite tax credits from TCAC; and
WHEREAS, GEAHI has procured a tax credit investor for the Project; and
WHEREAS, GEAHI has formed a partnership, GEAHI Park Place Associates
Limited Partnership, ('~the Partnership") to ensure the housing project is constructed
pursuant to State law and Agreement No. 99-145; and
WHEREAS, the Partnership desires to assume all of the GEAHI's obligations under
Agreement No. 99-145 and all amendments thereto, as well as take title to the property
GEAHI acquired with the assistance provided thereunder; and
WHEREAS, GEAHI has not assigned its rights under Agreement 99-145; and
WHEREAS, Agreement No. 99-145 requires that any assignment of rights or
interest be approved by the City of Bakersfield in writing; and
WHEREAS, an unexecuted agreement memorializing the assignment is attached
hereto as Exhibit "1" (the "Assignment Agreement").
Page 1 of 3 Pages
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield
as follows:
1. The above recitals are true and correct.
GEAHI's obligations under Agreement No. 99-145 and all amendments
thereto are hereby assigned to GEAHI Park Place Associates Limited
Partnership, a California limited partnership.
The City Council hereby consents to such assignment of obligations as set
forth herein, and authorizes the Mayor to sign the Assignment Agreement
consenting thereto after the parties have executed the same.
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Page 2 of 3 Pages
I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on
DEC 15 1999 , by the following vote:
AYES:
NOES:
ABSTAIN: COUNCILMEMBER
ABSENT: COUNCILMEMBER
COUNCILMEMBERCARSON, DEMOND, MAGGARD, COUCH, R(~"CcES, SULLIVAN, SALVAGGIO
COUNClLMEMBER ~Ot,A~..
APPROVED
DEC 15 1999
CITY CLERK and Ex O of the
Council of the City of Bakersfield
By
Mayor
APPROVED AS TO FORM:
BART J. THILT~EN
City Attorney /
~eeNICES~CANLAN
puty City Attorney
JS
S:\COU NClL\Resos\geahassign wpd
December 7, 1999
Page 3 of $ Pages
ASSIGNMENT AND ASSUMPTION OF RESTRICTIONS
THIS ASSIGNMENT AND ASSUMPTION OF RESTRICTIONS (the "Agreement") is
entered into as of December 20, 1999, by and between Golden Empire Affordable Housing Inc., a
California nonprofit public benefit corporation ("Assignor") and GEAHI Park Place Associates
Limited Partnership., a California Limited Partnership (the "Assignee"), with reference to the
following facts:
RECITALS
A. Assignor and the City of Bakersfield (the "City") entered into that certain
Agreement No. 99-145, HOME Investment Partnerships Program (the "HOME Agreement")
dated June 30, 1999 as amended on August 11, 1999 to evidence a grant in the amount of Five
Hundred Fifty Thousand Dollars ($550,000) from the City to the Assignor to assist in the
acquisition of land and the development of an eighty (80)-unit aff'ordable housing project for
seniors (the "Project") by Assignee;
B. Pursuant to the terms of the HOME Agreement, Assignor agreed to record
that certain Declaration of Restrictions, attached as Exhibit I to the HOME Agreement (the
"Restrictions"), against the Project;
C. Assignor desires to assign to Assignee, and Assignee desires to accept from
Assignor, the obligation under the HOME Agreement to operate the Project and comply with the
HOME requirements applicable to the Project, including recording the Restrictions against the
Project;
D. Assignor and Assignee further desire to set forth the priority of liens to be
recorded against the Project.
NOW, THEREFORE, in consideration of the foregoing, of the mutual promises of the
parties to this Agreement and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the parties mutually agree as follows:
1. Assignment by Assignor. Assignor assigns and delegates to Assignee, and
Assignee accepts from Assignor, Assignor's obligation under the HOME Agreement to operate
the Project and comply with the HOME requirements applicable to the Project, including
recording the Restrictions against the Project (collectively, the "Obligations").
2. Acceptance of Assignment. Assignee accepts the above assignment and assumes,
agrees, and undertakes to perform the Obligations.
Priority of Liens. Assignor and Assignee further agree to the following
priority of liens to be placed against the Project;
a. the deed of trust securing any loan to the Project from Columbia Housing SLP
1157~02\125998 4
Corporation, or PNC Bank, NA, including any predevelopment or construction loan;
b. the deed of trust securing the loan to the project from the Central District
Development Agency of the City of Bakersfield (the "Agency");
c. the Restrictions;
d. the Agreement Regarding Senior Rental Housing Complex, dated July 12, 1999
between the Agency and Assignor;
e. the deed of trust securing the loan of up to $415,617 from the Assignor to the
Assignee.
4. Subordination. Assignor and Assignee further agreement that they will execute any
subordination or other agreement required to maintain the priority of liens as set forth in Section 3
above.
1157~02\125998.4
1N WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.
ASSIGNOR:
GOLDEN EMPIRE AFFORDABLE HOUSING
1NC., a California nonprofit public benefit
corporation
By:
Name:
Its:
ASSIGNEE:
GEAHI PARK PLACE ASSOCIATES LIMITED
PARTNERSHIP, a California Limited Partnership
By:
Golden Empire Affordable Housing Inc., a
California nonprofit public benefit
corporation, its general partner
By:
Name:
Its:
CONSENT:
CITY OF BAKERSFiELD, a municipal
corporation
By:
Name:
Its:
1157\02\125998 4
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The Property referred to is situated in the State of California, County of Kern, City of Bakersfield,
and is described as follows:
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