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HomeMy WebLinkAboutCity Council - 5975 RESOLUTION NO. 5975 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING THE FIRST AMENDMENT TO AN OWNER PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND MOLA DEVELOPMENT CORPORATION FOR THE MAIN-PIER REDEVELOPMENT PROJECT AREA WHEREAS, the Huntington Beach Redevelopment Agency ( the "Agency" ) is authorized to conduct redevelopment activities within the Main-Pier Redevelopment Project Area (the "Project Area" ) , which activities include the acquisition and conveyance of real property for private development; and The Agency has entered into an Owner Participation Agreement ( the "Agreement" ) with Mola Development Corporation, a California Corporation (the "Developer" ) which Agreement provides for the Agency ' s approval of a Lender, and the parties wish to amend such agreement to subordinate the Agency' s interest to a First Trust Deed and further to secure the Agency's interest with Guarantees by Frank Mola personally and the Mola Development Corporation, all as set forth with greater particularity in the First Amendment to the Agreement (the "Amendment" ) a copy of which is on file in the office of the City Clerk and is incorporated herein by this reference; and The City Council of the City ( "City Council" ) and Agency have conducted a duly noticed joint public hearing regarding the proposed { Amendment in accordance with California Health and Safety Code t Sections 33431 and 33433; and _1_ The staff report pertaining to the Amendment, which has been on display prior to the joint public hearing in accordance with Section 33433 of the California Health and Safety Code, contains a detailed description of the provisions of such Amendment . NOW THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows : Section 1 : The First Amendment to the Agreement is necessary and appropriate to finance an economically viable development unit . Section 2 : The City Council of the City of Huntington Beach finds and determines, based upon the testimony and information presented during the public hearing with respect to the First Amendment to the Agreement, that the consideration for the Amendment does not impair the Agency 's interest in the project as previously determined for the Project Area based upon the covenants established by the Amendment. Section 3 : The City Council further finds that the improvements as provided for in the Agreement are of benefit to the Project Area or the immediate area in which the project is located and that no other reasonable means of financing such improvements are available to the community, and approves the Lender, Sumitomo Bank of California. Section 4 : The City Council of the City of Huntington Beach hereby approves the Amendment and all of its provisions including, -2- 5975 without limitation the Subordination Agreement, the Guarantees, and all other attachments thereto and authorizes the Chairman and the City Administrator to execute all documents referenced in the Amendment, necessary to effectuate the provisions thereof . PASSED and ADOPTED this 17th day of January ,1989 . Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Att"or ey ,_13 r Special Counsel REVIEWED AND APPROVED: INITIATED AND APPROVED: City Administrator --- ector of Redevelopment —3— 5975 STATE OF CALIFORNIA Res, No. 5975 COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 17th day of January , 19 89 , by the following vote: AYES: Councilmembers: MacAllister, Mays, Silva, Erskine NOES: Councilmembers: Green, Winchell,, Bannister ABSENT: Councilmembers: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California