RES-ORA-0520 Loan Agreement ApprovalRESOLUTION NO.ORA-
0520 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING
A FOURTH AMENDMENT TO LOAN
AGREEMENT WITH 234 WEST CHAPMAN, LLC, A
CALIFORNIA LIMITED LIABILITY COMPANY, RELATING
TO REDEVELOPMENT OF PROPERTY
COMMONLY KNOWN AS 234-238 W. CHAPMAN
AVENUE IN THE ORANGE MERGED
AND AMENDED REDEVELOPMENT
PROJECT AREA.WHEREAS, the Orange Redevelopment Agency, a public body, corporate
and politic the "Agency"), has been duly created, established and authorized to transact
business and exercise its powers under and pursuant to the Community Redevelopment
Law (commencing with Section 33000 of the Health and Safety Code of the State of California and
herein referred to as the "
CRL"); and WHEREAS, the Amended and Restated Redevelopment Plan (
the "Redevelopment Plan") for the Orange Merged and Amended Redevelopment Project
Area (the Redevelopment Project Area") was duly approved by the Orange City
Council on November 27, 2001 by Ordinance No. 21-01, pursuant to
the CRL; and WHEREAS, the Agency is engaged in activities necessary to
carry out and implement the Redevelopment Plan for the Redevelopment
Project Area; and WHEREAS, 234 West Chapman, LLC, a California limited
liability company (the Borrov~~er"), and the Agency have previously entered into that
certain Loan Agreement,dated as of June 10, 2008 (Agreement No. 5286), as amended by
that certain First Amendment thereto dated as of February 13, 2009, as further amended by
that certain Second Amendment thereto dated as of June 18, 2009, and as further amended by
that certain Third Amendment thereto dated as of October 27, 2009 (collectively
the "Agreement"), wherein the Borrower contracted to purchase certain real property located at
234-238 W. Chapman Avenue (the "Property") within the Project Area to (i) restore
and rehabilitate the existing historical structure located on the Property for the purpose of operating
therein a "Wahoo's Fish Taco" style restaurant (including ancillary second floor
office uses and tenant improvements), and (ii) develop and construct on the Property
additional new retail space and second floor office space for lease by Borrower to retail
and office tenants,
respectively the "Project"); and WHEREAS, pursuant to the Agreement, the Borrower applied
to and did receive from the Agency a loan in the amount of Eight Hundred Thousand
andNo/100 Dollars 800,000.00) to be used to finance acquisition of the Property (
WHEREAS, this Board of Directors desires to further amend the Agency Loan to
Borrower on terms and conditions set forth in that certain Fourth Amendment to Loan
Agreement in the form executed and submitted to the Agency by Borrower; and
WHEREAS, Borrower desires to further rehabilitate the existing historical structure
located on the Property by performing certain additional seismic related work; and
WHEREAS, Borrower seas applied to the Agency for a second loan in the amount of
Five Hundred Thousand and No/100 Dollars ($500,000.00) to be used to finance further
rehabilitation of the Property (the "Seismic Loan"); and
WHEREAS, this Board of Directors desires to extend the Seismic Loan to Borrower
on the terms and conditions set forth in said Fourth Amendment to Loan Agreement; and
WHEREAS, this Board of Directors has duly considered all the terms and conditions
of the Fourth Amendment to Loan Agreement and believes that the amendment to the
Agency Loan and further rehabilitation of the Property pursuant to the Seismic Loan as set
forth in the Fourth Amendment to Loan Agreement are in the best interests of the City and
the health, safety, morals and welfare of its residents, and in accord with the public purposes
and provisions of applicable State and local law and requirements, and that such activities
promote the objectives of the CRL, as well as the Redevelopment Plan for the
Redevelopment Project Area.
NOW, THEREFORE, the Board of Directors of the Orange Redevelopment Agency
the "Agency Board"), resolves, finds and determines, on the basis of the facts set forth in the
agenda report presented to it and any testimony received at the meeting at which this matter was
considered, as follows:
1. The foregoing recitals are true and correct.
2. The terms and provisions of the Fourth Amendment to Loan Agreement
between the Agency and the Borrower, with respect to further amendment to the Agency
Loan and the addition of the Seismic Loan to further finance rehabilitation of the Property, in
the form submitted and executed by the Borrower, and as modified, supplemented and
amended by the Agency Board at the meeting at which this matter was considered, are
approved and that the Chairman is authorized to execute, and the Agency Clerk to attest, the
Fourth Amendment to Loan Agreement, as so modified, supplemented and amended, on behalf
of the Agency. A copy of the Fourth Amendment to Loan Agreement, when executed by
both parties, shall be placed on file in the office of the Agency Clerk.
3. Except as may otherwise be provided in the Fourth Amendment to Loan
Agreement, the Executive Director is hereby authorized and directed to execute on behalf of the
Agency all documents necessary and appropriate to carry out and implement the Fourth
Amendment to Loan Agreement and to administer the Agency's obligations, responsibilities and
duties to be performed thereunder.
2
ADOPTED this l Ot"day of August, 2010.
ATTEST:
Mary E urp ,Agency Cler
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Orange Redevelopment Agency at a regular meeting thereof held on the lOt'' day of August,
2010, by the following vote:
AYES:DIRECTORS:Smith, Murphy, Dumitru
NOES:DIRECTORS:Cavecche, Bilodeau
ABSENT:DIRECTORS:None
ABSTAIN:DIRECTORS:None
Mary E. hy, Agency Clerk