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HomeMy WebLinkAbout02/02/1993, C-3 - ASSIGNMENT OF GROUND LEASE OF CITY PROPERTY BY SLO COUNTY YMCA, INC. TO COMMERCE BANK OF SAN LUIS OBISPO (CITY PROPERTY - 1020 SOUTHWOOD DRIVE) hsEFING DA7E: UG 1&) y � PI7EM NUM SE R• COUNCIL AGENDA REPORT FROM: Jeffrey G. Jorgensen, City Attorney SUBJECT: Assignment of Ground Lease of City Property by SLO County YMCA, Inc. to Commerce Bank of San Luis Obispo (City Property - 1020 Southwood Drive) RECOMMENDATION: Adopt Resolution Approving Consent to Assignment BACKGROUND: In 1977, the City entered into a long-term ground lease for the development of a - racquetball/handball facility on City property located at 1020 Southwood Drive. In 1981 the City consented to an assignment .of the ground lease to SLO County YMCA, Inc. The YMCA is currently operating the facility and approximately 25 years remain on the ground lease term. The YMCA desires to refinance a $385, 000 loan on the building. After a competitive process, Commerce Bank was selected to provide the refinancing. As a part of the bank's loan process, it requires an assignment of the ground lease to protect the bank's interest in the event of a default. YMCA will remain liable for the performance of the terms and provisions of the ground lease. Article XIV of the original ground lease requires City onsent to any assignment, which shall not be unreasonably withheld. FISCAL IMPACT: None. ALTERNATIVES: 1. The City. Council may choose not to consent to the assignment of the lease agreement if it has a reasonable basis for doing so. Such a decision would result in the YMCA not being able to refinance its loan through Commerce Bank. 2 . The City Council may choose to continue this item if additional information or discussion is required. JGJ/sw Attachments: 1. Resolution 2 . Assignment,of Lease Agreement 3 . Letter from, Commerce Bank RESOLUTION NO. (1993 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO CONSENTING TO ASSIGNMENT OF THE GROUND LEASE OF CITY PROPERTY AT 1020 SOUTHWOOD DRIVE BY SAN LUIS OBISPO COUNTY YMCA, INC. TO COMMERCE BANK OF SAN LUIS OBISPO WHEREAS, The SLO County YMCA, Inc. , located on City-leased property at 1020 Southwood Drive wishes to refinance a $385, 000 loan on its building; and WHEREAS, as a condition of refinancing, Commerce Bank of San Luis Obispo requires an assignment of the ground lease to protect the Bank's interests in the event of a default, NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN LUIS OBISPO as follows: SECTION 1. The City Council hereby consents to assignment of the Ground Lease of City property at 1020 Southwood Drive by San Luis Obispo County YMCA, Inc. to Commerce Bank of San Luis Obispo, provided San Luis Obispo County YMCA, Inc. shall at all times remain liable for the performance of the terms and provisions of the ground lease. SECTION 2 . The Mayor is authorized and directed to sign the attached "Assignment of Lease Agreement" on behalf of the City. Upon motion of , seconded by and on the following roll call vote: Ayes: Noes: Absent: the foregoing Resolution was adopted this day of , 1993 . Mayor Peg Pinard ATTEST: Diane Gladwell, City Clerk Attachment 1 RESOLUTION NO. (1993 .Series) Page Two APPROVED: City A ministrative Officer tt me - - �fJL�JL�ifff�l\1L1'�\`R��/,flJtlll\�:,;�/,ll/,l/f/n1\\\\\\'�////////r•.al��111\\\ %/,�/Af/�\O\\�\� n[canmlm n[ouEST[o or ? AND WHIN RECORDED MAIL 10 �\ r Co.Tmrce IIailc of San Luis 01 spot N.A. 11 now \ 545 Iligucra Street *' C,,. San Luis Obispo, CA 93401 s iAll In. L (SPACE ABOVE THIS LINE Fon RECORDER'S USES ASSIGNMENT OF LEASE AGREEMENT This Assignment of Lease Agreement is made and entered into this8th Jay of January . 19_93•try arid between SAN LUIS OBISPO Y.M.C.A. (kncinaker referred to as••Assilgnar")whose address is: 1020 Southwood, San Luis Obispo, CA 93401. and CaOM- IM BANK Or SAN LUIS OBISPO, N.A. (hereinafter reloted to as"Assignee"),whose address is:545 Iliguera Street, San Luis Obispo, CA 93401 WIIEtiEAS.Assignor as Tenant and City of San Luis Obispo Ig unnvol+vhmbt ivar.Im L (hcrcinallgr referred to a5"Landlord**) 31, 77)cniClCd into a Lease Agrcemcnl dale) , for That certain propeny baled at 1020 Southwood,. San Taait ObisPQ,—CA 93401 pee nun Arco rLLel)1 and legally descdbcd as follows:_See1e<Jal description attached hereto and made a part hereof. the,..,lnl IM IoW vnr�mimxl (heminall Cr referred to as Itis leased premisfas'):and WHEREAS.Assignor now desires to assign all of its rigl,ls.hill:and interest as ilia Tenant under said Lease to Assignee and Assignee desires to receive 1 and accept such assignment. NOW,if fEItEFORE.it i5 agreed between the parties hereto as follows: t. In consideration of the sum at Th ndrad ciQhtY—five Thousand and 00/100* (S-385,r0O0—.00 )dollars and other valuable consideration,receipt of which Is hereby ackowledged by Assignor.Assignor hereby assigns and hanslerS to Assignee all of its lights,title acid interest In Ilse Lease and the leased premises and Assignee hereby accepts said assignment and hereby assume-and agrees to perform horn and alter lite dale this Agreement becomes elleelive,as a direct obligation to IIIc Landlord,all at the terms and provisions of the Lease. $. IIIc assipmnvnl of the Lease as provided lot ill this agreement shalt take effect on Januar) 8, .Ig 93. and Assignor shall give possession of the leased premises to Assignee on that date. 0. A portion of ilia consideration tot[his Assignment is that Assignee hereby agrees to assume all of Ilia obligations and perform 30 of Ilia conditions and covenants of said Lease and Assignee hereby agrees to make all the payments provided for In said Lease now or herealler to become due thereunder, ` including the payment al all renlals specified in Sall Lease,If Assignee delaulls under Ile Lease,Assignee shag indemnify and hold Assignor harmless barn all Ilia damages mulling from any such default.II Assignee defaults In Its obligations under Ilio Lease and Assignor must pay rom ur any olller Cleugcs lu IIIc Landlord under Ilse Lease due to such 1a11mC an IVIIIIIS any of ASSlglloe'S other obligation under Ile Lease In order to cure or prevent Assignee limn being in default.Assignee shad immediately relnbwse Assignor br the around of end er or amounts paid at costs incurred by Assignor to tullifl Asstgner's obligations under lite Lcasc of this Assignment of Lcasc Agrcemcnl,together with alwasl thereon at the rate of hen(10%)percent per amum. 4. Assignu Merely represents to Assignee that the Lease is in full lorce and clInt and blot Assignor.as Tend undo said Lease,Is not in dyfaub muter any of Idle forms.cOndiliuns,and provisions contained in Ilia Lease on Ilse pan at Ito Ienanl to be kept and performed therein. J 5. IIIc parties hcrela acknowledpc that Landlord now holds lite sum of zero L$_D_QO )dollars as a security deposit and/or prepaid rent pursuant to Article of the Lease,to be applied subject to Ile provisions of IIIc Lease.Assignor hereby lefcases all claim to Said slim.and said sum Stoll be held by the Landlord lot IIIc benefit of Assignee Subject to IIIc provisions of Ito Lease. O. this Assignment Stuart tic binding upon and!nine to the hencfit of the panties hereto.their heirs,personal represculatives,successors and assigns. IN WITNESS 7IEIIEOF,the parties hcrela/7 - Ided this Assignment of Lease Agreemmll on the day and year first above millen. nss1D a _ Lui Obi pp . AsslcNIE ce 4alk of San Luis Obispo, N.A. liar 731ood resit t Char F it, Vice President By: Dr: Lodtad in Jim Lease desruibrd alms,herary mnsenl to the above Assignment of LeasL•,pruvidLd Ilett this con5m11 shall fol in airy way be dinned To W.1 consent to any Who asrpunnd,aW follow provided Ilial Assignor Strait at ail limes lannain liable for Ile performance of lite Imo;and provisions of Ito Lcasc. WED: 17_ LANDLonD: City of San Luis Obispo a By: { I Q fly: YMCaI I'. .r,UUIiia.mi of W IA JAI'. ©ae;WW11.11S,gees I1 W Wu uv n.nom,.. U.W w,E WJnM1\.YW wfM.h\hese[lunger r,.v 6,x"amt iitrW,i1,o pur pJnkxnr hanf,rllon,rAt UNS a IIA W g px ided Ire Iwma 4lueff W pe ywµM sW uu.wu,[W,r rJee m�emeuw„m r wa�un,Y.e.Ixe»a Y„yI,N,mIM1 ItayeJ W Ile xmrLmIJW4Y m 44rtff ul ll,if L+m Lx An x„agN YY Y IxxWL. Attachment 2 <3 COMMERCE BANK OF SAN LUIS OBISPO RECEIVED January 15, 1993 JAN 15 1993 OFFICE OF CnY ArrORWV 3:3o pM Mr. Jeff Jorgenson City Attorney P. O. Box 8100 San Luis Obispo, California 93403 RE: Assignment of Ground Lease YMCA Facility Dear Jeff: Commerce Bank is preparing to fund a $385, 000. 00 loan to refinance the YMCA building at 1020 Southwood, San Luis Obispo. The YMCA building is on leased property from the City of San Luis Obispo. As part of our loan documentation, we require an assignment of the ground lease to protect the Bank's interest in the event of a default. We are enclosing the original "Assignment of Lease Agreement" for the City's review and execution. Unfortunately, we cannot close this loan escrow until the City executes the Agreement. Therefore, we would appreciate your earliest attention to this matter. I would appreciate a call if I can answer any questions or be of assistance in this matter. Best Regards, (� l ✓�� Char ie Fruit Vice President — CF:mb Enclosure 545 Hi uerg Siree1 I=00 Grund A,enue =10 Mono pn.Boule,:ud 1'01 Spring S;reei San Lul,ON` pn.CA 9P:01 Amro Grmde.CA 4:_20 Mono B:n•.CA 44=1 'uso F.ohlct.CA 9:4.6 iFO51511-ZIP6 C(i5)4;;-(Ij=? 1F(4J 172.6173 Attachment 3 '3 M ;IN G AGENDA DATE oZ--,7-93 ITEM C�3 -;... _ _. l 1993 SAN OLUIS OE SPO, CA SLO-892824 MG FIRST AMERICAN TITLE INSURANCE COMPANY 899 Pacific Street (P.O. Box 1147) San Luis Obispo, CA 93406 COI Aaron ❑ (805) 543-8900 �.,/ FYI nO C=MI ❑ CDD DIP, SUPPLEMENTAL REPORT gCHILF -,/CAO ❑ FIRE e ATTORNEY D Pw DIP, January 28, 1993 2CLERK/ORK:. ❑ POLICE CEL ❑ MGMT.TEA_.M O P.EC DIR ❑� C�READF'ILE 13 UTILMR Your No. Supplementing our original report relative to the above numbered escrow and title order, we wish to advise you of the following: Vesting Amended to read as follows: Taxes amended as follows: X Other: PLEASE BE ADVISED THAT THE LEGAL DESCRIPTION OF SAID REPORT HAS BEEN AMENDED TO READ AS FOLLOWS: SEE EXHIBIT "A" Mari Allen - Title Officer 1062 (5/90) I SLO-892824 MG Exhibit "A" Parcel 1 That portion of the South half of Section 36 in Township 30 South, Range 12 East, Mount Diablo Base and Meridian, according to the official plat or plats of the survey of said lands returned to the General Land Office by the Surveyor General, described as follows: Beginning at a point on the Northwesterly line of County Road No. 324 as conveyed to the County of San Luis Obispo, by deed dated September 5, 1946 and recorded in Book 424 , at page 179 of Official Records of San Luis Obispo County, which is South 300 41' West 1248.71 feet from the intersection of said Northwesterly line with the Southerly line of County Road No. 257 as shown on map of a portion of said Section 36, recorded in Book 3, at page 34 , of Records of Surveys; thence leaving said Northwesterly line North 72" West a distance of 826 feet to a point, said point being the Southwesterly corner of the property conveyed to Emily Allen Baker, by deed dated April 13, 1949 and recorded May 11, 1949 in Book 522, at page 134 of Official Records; thence North 30' 41 ' East along the Northwesterly line of the property so conveyed a distance of 43 . 00 feet, thence North 590 19 ' West a distance of 7 . 00 feet to the true point of beginning, thence North 28" 08 ' 30" East a distance of 134 . 67 feet; thence North 61' 51 ' 30" West a distance of 97. 33 feet; thence South 28° 08 ' 30" West a distance of 104 . 00 feet; thence North 61° 51' 30" West a distance of 6. 00 feet; thence South 28" 08 ' 30" West a distance of 36. 67 feet; thence South 610 51' 30" East a distance of 36. 00 feet; thence North 280 08 ' 30" East a distance of 6. 00 feet; thence South 61' 51' 30" East a distance of 67. 33 feet to the true point of beginning. AREA FOR MAINTENANCE, INGRESS AND EGRESS EASEMENT: Parcel 2. That portion of the South half of Section 36 in Township 30 South, Range 12 East, Mount Diablo Base and Meridian, according to the official plat or plats of the survey of said lands returned to the General Land Office by the surveyor General, described as follows: SLO-892824 MG y Beginning at a point on the Northwesterly line of County Road No. 324 as conveyed to the County of San Luis Obispo, by deed dated September 5, 1946 and recorded in Book 424 , at page 179 of Official Records of San Luis Obispo County, which is South 300 41' West 1248.71. feet from the intersection of said Northwesterly line with the Southerly line of County Road No. 257 as shown on map of a portion of said Section 36, recorded in Book 3, at page 34 , of Official Records of Surveys; thence leaving said Northwesterly line North 72" West a distance of 826 feet to the true P.O. B. , said point being the Southwesterly corner of the property conveyed to Emily Ellen Baker, by deed dated April 13 , 1949 and recorded May 11, 1949 in Book 552, at page 13 of Official Records ; thence North 30 " 41 ' East along the Northwesterly line of the property so conveyed a distance of 180. 67 feet; thence North 59° 19 ' West a distance of 180. 33 feet; thence South 300 41 ' West a distance of 165. 00 feet; thence South 180 00 ' West to the Northerly line of Southwood Drive; thence South 720 00 ' East to the true P.O.B. Excepting therefrom Parcel 1.