HomeMy WebLinkAboutResolution 2017-095 N.C.S. 06/19/2017Resolution No. 2017 -095 N.C.S.
of the City of Petaluma, California
APPROVING SUBORDINATION AGREEMENTS WITH AN AFFILIATE OF
BURBANK HOUSING CORPORATION, OLD ELM PARTNERS, L. P., IN
CONNECTION WITH THE REFINANCING OF OLD ELM VILLAGE, AND
AUTHORIZING THE CITY MANAGER TO SIGN DOCUMENTS
RELATED TO THE FINANCING OF THE PROJECT
WHEREAS, the City previously provided a Housing loan in the amount of $1,730,745,
pursuant to loan documents executed January 31, 2001 for the development of Old Elm Village,
an affordable housing rental project consisting of 87 units of multifamily housing (the "Project ")
located at 2 Sandy Lane; and
WHEREAS, the City of Petaluma also provided a loan of HOME funds in the amount of
$800,000, pursuant to loan documents executed January 31, 2001 for the Project; and
WHEREAS, Burbank or an affiliate of Burbank is the general partner in Old Elm
Village L.P., a California limited partnership ( "Owner "), intends to refinance the Project; and
WHEREAS, to ensure the financial feasibility of the Project, Burbank has requested that
the City subordinate the HOME loan and the Housing loan to the deed of trust with Housing
Trust Silicon Valley bank securing the refinancing of the senior debt for the Project in the
amount of $1,400,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby:
1. Agrees to subordinate the City's deeds of trust executed in connection with the
financing of the Project to the first deed of trust to be executed by Owner for the
benefit of the Project refinancing.
2. Authorizes and directs the City Manager and/or his designees to execute all
documents and to take all actions reasonably necessary to implement this Resolution
and the transactions described herein.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved s'
Council of the City of Petaluma at a Regular meeting on the 19th day of June, 2017, form
by the following vote: ,
City Attornz�
AYES: Albertson, Vice Mayor Barrett, Mayor Glass, Healy, Kearney, King, Miller
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
City Clerk
Mayor
Resolution No. 2017 -095 N.C.S. Page 1