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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. 1743194 SUB AG 09/25/2007 04:11:52 PM Page: 1 of 8 b 'A 31.00 D 0.00 T 31.00 Gilert Ortiz Clark /Recorder, Pueblo County, Ca ■III N% mr,«F INAWIN W1101'1 II1 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 1743194 SUB AG 09/25/2007 04:11:52 PM Page: 2 of 6 1 31.00 D 0.00 T 31.00 Gilbert Ortiz Clerk /Recorder, Pueblo County, Cc ■illKNTIMI?VIINIAI a� Mh 11111 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. 1743194 SUB AS 09/25/2007 04:11:82 PM Pa gge: 3 of fi 31.00 D 0.00 T 31.00 G1lbert Ortiz Clerk /Recorder, Pueblo County, Cc mill K Nfic77l00141 Milt, HI M 1111 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 1743194 SUB AG 09/28/2007 04:11:82 PM Gi8lbert o rtiz 0 D ®111 K NT1101M:ftl wm ll■ !I wiI1Ii ■ ®1111 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 ,III Ifs NY«MOVII11hIN vt*A 11111 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 !!!!41 !)llll111w[ t " „ 4 Pag 1 6 of 5 0 B 1 R 31 .00 D T 31.00 ' 52 PM 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.