RES 89443 - Laserfiche WebLink

CITY COUNCIL OF THE CITY OF PLEASANTON ALAMEDA COUNTY, CALIFORNIA RESOLUTION NO. 89-443 RESOLUTION APPROVINGAND CONSENTING TO SUBORDINATION AGREEMENT WHEREAS, City and Crow-Spieker-Singleton #112, (Owners), are parties to that certain Agreement ("Agreement"), dated June 24, 1985, and recorded, January 13, 1986, as Instrument 86-007150 in the Official Records of Alameda County, California, pursuant to which Owner is obligated to make financial contribution to certain municipal studies and participate in certain assessment districts or funding mechanisms for certain improvements as a condition of the development of the Property; and WHEREAS, in connection with the financing of the Property, Owner proposed to execute a Promissory Note in the amount of $17,250,000 in favor of The Prudential Mortgage Capital Company, Inc. ("Lender"), said note to be secured by a Deed of Trust and Assignment of Rents ("Deed of Trust") to be recorded in the Official Records of Alameda County; and WHEREAS, pursuant to the terms of the loan, lender requires the Deed of Trust to be and remain at all times a first lien on the property senior and prior to the charge of the Agreement; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make the loan to Owner and City is willing that the charge of the Agreement be subordinated and made subject to the Deed of Trust in that the proceeds of the loan are to be expended by Owner for developing the property, including soft costs such as engineering, architecture and accounting directly related to development of the Property. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON RESOLVES AS FOLLOWS: Section 1: The City Council approves and consents to that certain Subordination Agreement, attached hereto and made a part hereof and authorizes the City Manager to sign same. - 1-