HomeMy WebLinkAbout11100RESOLUTION NO. 11100
A RESOLUTION APPROVING A SUBORDINATION AGREEMENT RELATING TO THE
SANTA FE CROSSING PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY
COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Subordination Agreement dated as of June 25, 2007 relating to the Santa Fe
Crossing Project, a copy of which is attached hereto, having been approved as to form by the
City Attorney, is hereby approved.
SECTION 2
The President of the City Council is authorized to execute and deliver the Subordination
Agreement in the name of the City.
INTRODUCED September 10, 2007
BY Randy Thurston
Councilperson
APPROVED: a
#? ESIDEINTof City Council
ATTESTED BY:
CITY CLERK
CITY CLERK
Rg's //I 00
Background Paper for Proposed
RESOLUTION
AGENDA ITEM #
DATE: September 10, 2007
DEPARTMENT: Law Department
TITLE
A RESOLUTION APPROVING A SUBORDINATION AGREEMENT RELATING TO
THE SANTA FE CROSSING PROJECTAND AUTHORIZING THE PRESIDENTOF
THE CITY COUNCIL TO EXECUTE SAME
ISSUE
Should City Council approve the Subordination Agreement?
RECOMMENDATION
None.
BACKGROUND
As a result of the transactions relating to the Santa Fe Crossing Project, the City is
the beneficiary of a deed of trust on the property securing Santa Fe Crossing,
LLLP's promissory note dated September 28, 2001 in the principal amount of
$650,000 payable to the City.
In order for Santa Fe Crossing, LLLP to complete its obligation for $138,620 in grant
funds received from the Colorado Historical Foundation for historic preservation
work, City must subordinate its deed of trust lien to a conservation easement. The
Subordination Agreement does not modify or limit the right of the City to enforce its
deed of trust but subordinates the deed of trust and the property to the covenants
and conditions of the conservation easement.
FINANCIAL IMPACT
See Background.
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Gilert Ortiz Clark /Recorder, Pueblo County, Ca
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SUBORDINATION AGREEMENT
FOR THE PROPERTY KNOWN AS:
HOLDEN BLOCK
PUEBLO
2007
RECORDING REQUESTED BY:
WHEN RECORDED RETURN TO:
John E. Moye, Esq.
Moye White LLP
16 Market Square, 6 " Floor
1400 16 " Street
Denver, Colorado 80202 -1473
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Gilbert Ortiz Clerk /Recorder, Pueblo County, Cc
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SUBORDINATION AGREEMENT
I
This Subordination Agreement ( "Subordination Agreement ") is dated as of thisday of
,5 " 7ji 1 ,er , 2007 ("Effective Date "), by and among Santa Fe Crossing, LLLP, a Colorado
limited liability limited partnership, whose address is 1414 N Santa Fe (10 s Floor), Pueblo, Colorado
81003 ( "Owner"), City of Pueblo, a municipal corporation, whose address is 1 City Hall Place, Pueblo,
Colorado 81003 ( "City "); Housing Authority of the City of Pueblo, a body corporate and politic, organized
under the laws of the State of Colorado, whose address is 1414 N Santa Fe Avenue, Tenth Floor, Pueblo,
Colorado 81003 ( "Housing Authority'D and the Colorado Historical Foundation, a Colorado nonprofit
corporation ( "CHF ").
RECITALS
A. Owner granted to City a Deed of Trust dated September 28, 2001, in the original principal
sum of $650,000.00 (Six Hundred Fifty Thousand and 00 /100 Dollars) recorded on October 12, 2001, at
Reception No. 1406176, of the records of the County of Pueblo, State of Colorado ( "Deed of Trust ").
B. Owner granted Housing Authority a Deed of Trust dated May 1, 2004, in the original
principal sum of $937,429.85 (Nine Hundred Thirty Seven Thousand, Four Hundred Twenty Nine and
851100 Dollars), recorded on June 4, 2004 at Reception No. 1569170, of the records of the County of
Pueblo ( "Deed of Trust ");
C. Owner granted Housing Authority a Deed of Trust dated May 1, 2004, in the original
principal sum of $613,518.20 (Six Hundred Thirteen Thousand, Five Hundred Eighteen and 20/100
Dollars), recorded June 4, 2004, at Reception No. 1569172, of the records of the County of Pueblo ( "Deed
of Trust ");
D. Owner granted Housing Authority a Deed of Trust dated May 1, 2004, in the original
principal amount of $503,211.00 (Five Hundred and Three Thousand, Two Hundred Eleven and No/ 100
Dollars), recorded on June 4, 2004 at Reception No. 1569176, of the records of the County of Pueblo
( "Deed of Trust ");
E. Owner will simultaneously herewith, grant to CHF a Deed of Conservation Easement (the
"Conservation Easement ") over and across the real property described on Exhibit A attached hereto (the
"Property").
F. City, Housing Authority and CHF wish to establish their respective rights with respect to
the Property and to the indebtedness secured by the Deeds of Trust.
NOW THEREFORE, in consideration of Ten Dollars ($10.00), the receipt of which is hereby
acknowledged, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:
1. Subordination.
1.1. City and Housing Authority hereby agree that the right, title and interest of each of
them in and to the Property, pursuant to the terms of the Deeds of Trust, are hereby made subordinate and
junior in priority to the operation and effect of the Conservation Easement, as if the Conservation Easement
were recorded first and the Deeds of Trust were recorded after the Conservation Easement. The priority of
each recorded Deed of Trust as among themselves shall be governed by the order of recording.
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G1lbert Ortiz Clerk /Recorder, Pueblo County, Cc
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1.2. Foreclosure Nothing contained herein shall impair or impede the rights of City
and/or Housing Authority to foreclose upon the Deeds of Trust and to realize the benefits of such Deeds of
Trust, provided, however, that a foreclosing party shall not join CHF as a party unless it is necessary to do
so to confirm the rights granted to CHF herein. CHF agrees it will attorn to and recognize the successful
bidder at any such foreclosure sale as the owner of the Property subject to the Conservation Easement, after
such foreclosure.
Miscellaneous
2.1. Successors and Assigns This Subordination Agreement shall be binding upon the
parties hereto and their successors and assigns and shall inure to the benefit of CHF, its successors and
assigns.
2.2. Governing Law This Subordination Agreement shall be deemed to be a contract
made under the laws of the State of Colorado and for all purposes shall be governed by and construed in
accordance with the laws of Colorado.
IN WITNESS WHEREOF, the Owner, City, Housing Authority and CHF have executed
this Subordination Agreement to be effective as of the date first written above.
OWNER:
SANTA FE CROSSING, LLLP,
By Historic Renovations of Pueblo, Inc.,
General Partner
By:
LioilK Trujillo, President
MORTGAGEES:
CITY OF PUEBLO,
a in ci corporation
By
Judy Weav' ,President of City Council
HOUSING AUTHORITY OF THE CITY OF PUEBLO
By: ((7
Frank D. Pacheco, Executive Director
CHF:
COLORADO HISTORICAL FOUNDATI
a Colorad nonprofit corporation
By.
Frank A. Kugeler, Preside
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ACKNOWLEDGMENT
STATE OF COLORADO )
ss.
COUNTY OF PUEBLO }
The foregoing instrument was subscribed to and acknowledged before me this '5J4ay of
b er , 2007, by Lionel Trujillo, as President, Santa Fe Crossing, LLLP, a Colorado
limi ed liability limited partnership for and on behalf of the partnership.
Witness my hand and official seal.
My commission expires: /(a/c20lt
Zle
Nofary Public
[SEAL} W",_,
BARBARA L. BERNARD
NOTARY PUBLIC
STATE CF COLO RADO
My Commission EXPlres M2010
STATE OF COLORADO )
ss.
COUNTY OF PUEBLO )
The foregoing instrument was subscribed to and acknowledged before me this day of
tQ 2007, by Judy P. Weaver, as President of City Council, City of Pueblo, a
municipal corporation, for and on behalf of the City.
Witness my hand and official seal.
My commission expires: 9 1 -201 1
LORENE BRAVO -NEFF
IS AI,) NOTARY PUBLIC
STATE OF COLORADO
&em &a - q�
N cr t ary Pub I ic *
17 SUB AG 09/28/2007 04:11:62 PM
Gilbert Ortiz
z Clark /Recorrde T
Clark/Recorder, Puebla County, Cc
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STATE OF COLORADO )
COUNTY OF PUEBLO ) ss.
�T n e foregoing instrument was subscribed to and acknowledged before me this S7 {day of
- l' I to -?T. — 2007, by Frank D. Pacheco, as Executive Director, Housing Authority of City of
Pueblo, a body corporate and politic, for and on behalf of the Housing Authority.
Witness my hand and official seal.
My commission expires: J /Q
[JEMBARA L. BERNARD
TARY PUBLIC
STATE OF _ t
My Commission Expir
R6-2 '
STATE OF COLORADO
CITY & COUNTY OF DENVER
ss.
Notary Public
e f egoing instrument was subscribed to and acknowledged before me this day of
EN. 2007, by Frank A. Kugeler, as President of the Colorado Historical Foundation, a
Colorado nonprofit corporation, for and on behalf of the corporation.
Witness my hand and official seal.
My commission expires: zbQ
, ' 'S 1T T tJlu�4 °'`b.
Notary blic
Oi.'AR
SEAL 'e
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Gilbert Ortiz Clerk /Recorder, Pueblo County, Co
1111 K RT«IlD10I4M.RM 11111
Exhibit A
LEGAL DESCRIPTION
Parcel 1:
Lot 1 and the South Yz of Lot 2, Block 29, in that part of the present City of Pueblo which was surveyed
and platted by H. M. Fosdick, Civil Engineer, for the probate judge of said Pueblo County, in March
1869, County of Pueblo, State of Colorado, and that portion of Second Street in said City adjoining said
lot; bounded and described as follows, to -wit:
COMMENCING at the SE Corner of said Lot 1;
Thence South along the West line of Santa Fe Avenue, 10 feet;
Thence West parallel with the South line of said Lot 1, 120 feet to the East line of an alley in said block;
Thence North along the East line of said alley 10 feet to the SW comer of said Lot 1;
Thence East along the South line of said Lot 1, 120 feet to the POINT OF BEGINNING, County of
PUEBLO, State of Colorado.
TOGETHER with vacated streets and alleys adjacent to the above property, if any.