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Home My WebLink AboutD-2125 Termination of Agreement - Instrument 1996-030242 - issuance of bonds for lease agreementTO BE RECORDED AND WHEN RECORDED RETURN TO: City of San Luis Obispo Finance Department 990 Palm Street San Luis Obispo, CA 93401 2019017168 Tommy Gang San Luis Obispo - County Clerk -Recorder 05/03/2019 03:26 PM Recorded at the request of: PUBLIC Titles: 1 I Pages: 6 Fees: $0.00 Taxes:$0.00 Total: $0.00 1111 WEA 1A It THIS DOCUMENT IS EXEMPT FORM RECORDING FEES UNDER SECTION 27383 OF THE CALIFORINA GOVERNMENT CODE. TERMINATION AGREEMENT This TERMINATION AGREEMENT (this "Agreement"), dated for convenience as of May 9, 2019, is among the CITY OF SAN LUIS OBISPO, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California, as lessee (the "City"), the CITY OF SAN LUIS OBISPO CAPITAL IMPROVEMENT BOARD, a public body corporate and politic duly organized and existing under Ordinance No. 1059 (1986 Series) adopted by the City Council of the City of San Luis Obispo on April 15, 1986 (the "Ordinance"), and under the Constitution and laws of the State of California (the "Board"), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the Unites States of America, as trustee (the "Trustee"). BACKGROUND: 1. The Board has previously issued its 1996 Lease Revenue Bonds in the aggregate principal amount of $7,100,000 (the "1996 Bonds") for the purpose of financing the construction of a fire station and headquarters, land acquisition, seismic an other improvements to the City Hall and the acquisition of street lighting facilities. 2. In connection with the issuance of the 1996 Bonds, the Board leased certain property financed from the proceeds of the 1996 Bonds to the City under a Lease Agreement dates as of June 1, 1996 (the "1996 Lease"), which was recorded on June 19,1996 in the Office of the San Luis Obispo County Recorder as Instrument No. 1996-030242; including the land and improvements more particularly described in Appendix A attached to this Agreement, consisting generally of the fire headquarters and station and portions of the Corporation Yard Property, one which (fire headquarters and station) was financed from the proceeds of the 1996 Bonds (the "Leased Property"). 1- D -2%v5- 3. For the security of the 1996 Bonds, the Board has previously assigned certain of its rights under the 1996 Lease to First Trust of California, National Association, as trustee for the 1996 Bonds, under an Assignment Agreement dated as of June 1, 1996, which was recorded in the San Luis Obispo County Recorder's Office on June 19, 1996, as Instrument Number 1996- 030243 (the "1996 Assignment"). 4. In 2005, the Board and the City determined that as a result of favorable financial market conditions it was in the best interest of the Board and the City to advance refund the outstanding 1996 Bonds, and to that end the Board authorized the issuance of its 2005 Refunding Lease Revenue Bonds in the aggregate principal amount of $6,550,000 (the "Bonds") under the Ordinance and under an Indenture of Trust dated as of May 1, 2005 (the "Indenture") between the Board and the Trustee. 5. In order to secure the Bonds and provide a source of funds for the payment of debt service thereon, the City and the Board have amended and restated the 1996 Lease under a First Amended and Restated Lease Agreement dates as of May 1, 2005, which was recorded concurrently herewith (the First Amended and Restate Lease Agreement), between the Board as lessor and the City as lessee in the San Obispo County Recorder's Office on May 10, 2005, as Instrument Number 2005037687/(the "2005 Assignment") 6. On May 1, 2005, The Board and the Trustee entered into an Agreement for the purpose of assigning certain of its rights under the Lease to the Trustee for the benefit of the Bond owners and the Bond Insurer, and for the purpose of terminating the 1996 Assignment which has been recorded on May 10, 2005 as Instrument No. 2005037687#he "2005 Assignment"). 7. In 2018, the Board and the City determined that as a result of favorable financial market conditions it is was in the best interest of the Board and the City to refund the outstanding 2005, 2006, and 2009 Bonds, and to that end the Board authorized the issuance of its 2018 Refunding Lease Revenue Bonds in the aggregate principal amount of $16,950,000 (the "Bonds") under the Ordinance and under an Indenture of Trust dated as of May 8, 2018 (the "Indenture") between the Board and the Trustee. 8. The Board has requested the Trustee to enter into this Agreement for the purpose of terminating the 1996 and 2005 Assignment, and for explicitly releasing the liens on the land and improvements of the Fire Station and Corporation Yard more particularly described in Appendix A attached to this Agreement. -2- AGREEMENT: In consideration of the material covenants contained in this Agreement, the parties hereto hereby formally covenant, agree and bind themselves as follows: SECTION 1. Defined Terms. All capitalized terms not otherwise defined herein have the respective meanings given those terms in the Indenture. IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized officers as,4 the day and -year first written above. (S E A L) Alest: City Cler Attest: Secreta -3- CITY OF SAN LUIS OBISPO By. Direc of Finance CITY OF SAN LUIS OBISPO CAPITAL IMPROVEMENT RD By: Chi Financial Officer -kic.\`rtr,- Euc r -- U.S. BANK NATIONAL ASSOCIATION As Trustee By: Vice sident APPENDIX A DESCRIPTION OF THE LEASED PROPERTY The Leased Property consists of the certain real property situated in the City of San Luis Obispo County of San Luis Obispo, which is more particularly described as follows: I. Fire Station Property Lots 1 to 16 inclusive in Block A of the Maymont Addition, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to map recorded April 9, 1988 in Book B, Page 91 of Maps. EXCEPTING THEREFROM that portion of said land described in the deed to the State of California, recorded May 4, 1974 in Book 1777, Page 571 of Official Records. Assessor's Parcel No: 003,753,002 II. Corporation Yard Property A portion of Lots 6, 7, 8, and 19 of the Suburban Tract, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to the map filed for record in Book 1, Page 92 of Surveys, in the office of the County Recorder of said County, described as follows: Beginning at Station 710 + 00 on the centerline of U.S. Highway #101, said centerline bearing North 270 45' 40" East as shown on California Department of Transportation Right -of -Way Plot, SLO 101 26.9, sheet 33 and 32: thence South 62° 14' 20" East a distance of 100.00 feet to point on the Easterly right-of-way of U,S, Highway #101, said point being the True Point of Beginning; thence North 32 20' 40" East, 450.39 feet along said right-of-way; thence on a curve to the right having a radius of 750.00 feet, through an angle of 14 12' 57" for a length of 186.08 feet along said right-of-way; thence North 46 34' 10" East 196.72 feet along said right -of -way; thence South 87 36' 50" East 10.60 feet along said right-of-way; thence parallel with the old centerline of Prado Road and distance therefrom 54.00 feet, South 62 55'50" East, 425.23 feet; thence along a curve, concave to the right having a radius of 20.00 feet through an angle of 90 00 00 for a length of 31.42 feet; thence South 27 04' 10" West, 399.38 feet; thence along a curve, concave to the right, having a radius of 50.00 feet through an angle of 94 45' 00", for a length of 82.68 feet; thence North 58 10' 50" West, 54.09 feet; thence along a curve, concave to the left, having a radius of 235.00 feet through an angle of 91 10' 00" for a length of 373.92 feet; thence South 30 39' 10" West, 135.93 feet; thence South 62 55' 35" West, 233.23 feet to the True Point of Beginning. -4- ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of C omi County of �U On m before me C h iA' roo 1ri (insert name and title of the officef) personally appeared ► IW. who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ALEXANDRA VERESCHAGIN CARR WITNESS m hand and official al. Notary Public -California } y x � San Luis Obispo County Commission k 2255915 My Comm. Expires Aug 26, 2022 !I n n Signature (Seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. j State of C forni County, , 1106, L Ly .✓/ /�, Nin On �Jbefore me,D o m a& D (insert name and title of the o r) personally appeared �� C who proved to me on the basis of saWfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my d andV- 0,*0 Signature ALEXANDRA VERESCHAGIN Notary Pubhic - California San Luis Obispo County Commission N 2255915 My Comm. Expires Aug 26, 2021 (Seal) s R 119. ,1 4,111