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Home My WebLink AboutAGENDA REPORT 1999 0505 CC REG ITEM 11GTO: FROM: MOORPARK CITY COUNCIL AGENDA REPORT Honorable City Council ITEM John E. Nowak, Assistant City Manager DATE: 26 April 1999 (Council meeting of 05- 05 -99) SUBJECT: Consider Termination of Consent and Agreement between the City of Moorpark and East West Bank pertaining to Simi - Conejo Construction Inc. BACKGROUND: At its September 23, 1998 meeting the City Council approved a Consent and Agreement which required the City to remit reimbursement of costs to Simi - Conejo Construction, Inc. related to Community Facilities District 94- to East West Bank as security for a loan to Simi - Moorpark Freeway Properties, Ltd. The bank and the property owner are requesting the City to terminate that Agreement. DISCUSSION: In September 1998 Simi- Conejo Construction, Inc. (SCCI) assigned its rights in the Acquisition Agreement dated July 1, 1997 between SCCI and the City to East West Bank as security to a loan from the bank to Simi - Moorpark Freeway Properties, Ltd. As a result, the City has been remitting reimbursement payments under Community Facilities District 96 -1 to East West Bank. Both SCCI and East West Bank are requesting that the City terminate the Consent and Agreement since the loan has been paid off. The City's consent is required. RECOMMENDATION: Staff recommends that the City Council consent to the termination of the Consent and Agreement between the City of Moorpark and East West Bank and Release of Consent and Agreement Meeting of 05 May 1999 Page 02 authorize the City Manager to notify the affected parties of such consent. Attached: Letter from Simi - Conejo Construction, Inc. () Q() SIMI- CONEJO CONSTRUCTION, INC. April 7, 1999 Mr. Steven Kueny, City Manager CITY OF MOORPARK 799 Moorpark Avenue Moorpark, California 93021 Re: Termination of Consent and Agreement Dear Steve: r w FACSI MME On September 30, 1998 the City of Moorpark ( "City ") and East West Bank (`Bank ") executed the attached Consent and Agreement, wherein the City acknowledged that Simi - Conejo Construction, Inc. ( "SCCI") assigned its right in the Acquisition Agreement dated July 1, 1997 between SCCI and the City to the Bank as security for a loan which the Bank was making to Simi - Moorpark Freeway Properties, Ltd. ( "SMFP "). Paragraph (b) in the Agreement provided that the City would make all payments to be made by it under or in connection with the Acquisition Agreement directly to the Bank. On March 31, 1999, SMFP paid off and obtained a Full Reconveyance from the Bank of its loan. Since the loan has been paid in full, there is a) no longer the necessity of the Consent and Agreement as security for the loan to SMFP, and b) no longer the requirement that payments made in connection with the Acquisition Agreement be sent directly to the Bank. Accordingly, the purpose of this letter is to inform the City that the Bank consents to the termination of the Consent and Agreement and that payments made by the City in connection with the Acquisition Agreement be sent to SCCI. Should you have any questions, please do not hesitate to contact the undersigned. Thank you, Steve, for your consideration and cooperation. .Q;=eer eiy f SIMI- CONEJO CONSTRUCTION, INC. Jo1'�W Jamison Vice President cc: Paul J. Giuntim Alan C. Kapanicas Gram Mitchell EAST WEST BANK, a California banking corporation Deborah Beveri e Vice President 2 NORTH LAKE AVENUE, SUITE 800 A PASADENA, C A 91 1 0 1 (626)577-1130 • FAX (626)577 -8687 �. F P.01 SEP -30 -95 12:.59 PM SIMI— CONEJO CONSTRUCTION 805 552 950SEP 30 '98 01 :00PM CONSENT AND AGREEMENT (City of Moorpark) The undersigned, City of Moorpark (the "City "), acknowledges that Simi- Conejo Construction, Inc. ( "SCCI") has assigned its rights in the Acquisition Agreement dated as of July 1, 1997 between SCCI and the City (the "Acquisition Agreement ") to East -West Bank (the "Bank ") as security for a loan which the Bank is making to Simi - Moorpark Freeway Properties, Ltd. ( "SMFP" ), and agrees with the Bank as follows: (a) The City consents to such assignment; (b) The City will make all payments to be made by it under or in conrleC:tioli with the Acquisition Agreement directly to the Bank at its office at 475 Huntington Drive, San Marino, California 91108, Attention: Deborah Beveridge, or otherwise in accordance with the instructions of the Bank; (c) Except as provided in (d) below, the City will not, without the prior written consent of the Bank, amend, otherwise modify, terminate or consent to the termination of the Acquisition Agreement; (d) After receipt by SCCI of a notice of default under the Acquisition Agreement and the expiration of any applicable period of cure given to SCCI under the Acquisition Agreement, the City shall deliver an additional notice (the "Bank's Notice ") to the Bank specifying the default and stating that SCCI's period of cure has expired. The Bank shall thereupon have the additional periods of time to cure any uncured default, as set forth below. The City shall not terminate the Acquisition Agreement or exercise its other remedies under the Acquisition Agreement if- (i) in the case of a default which can be cured by the payment or expenditure of money, the Bank cures the default within ten days after the Bank's receipt of the Bank's Notice; or (ii) in the case of a default which cannot be cured by the payment or expenditure of money, the Bank cures.the default within 60 days after the Bank's receipt of the .Bank's Notice; provided, that, in the sole discretion of the City, such 60 -day period may be extended from time to time, so long as the Bank is proceeding with diligence to cure the default; (iii) where the default cannot be cured by payment or expenditure of money or without possession of the real property on which SCCI is constructing the. "Facilities" (as defined in the Acquisition Agreement) (the "Property"), the Bank initiates foreclosure or other appropriate proceedings within 60 days after receipt of the Bank's Notice, The Bank shall then have 60 days following the date on which the Bank or its nominee is able to occupy the Property to cure such default; provided, that, in the sole discretion of the City, such 60 -day period may be extended from time to time, so long as the Bank is proceeding with diligence to ZAM t =NSENTIMT."d —1- ��0. P. 02 SEP- 30 -9.8 01 :00 PM S I M I - CONEJO CONSTRUCTION 805 552 9507 P.02 30 '98 01 : 00PM cure the default. The City agrees to accept performance by the Bank of all cures as though performed by SCCI. The Bank shall not be.required to cure any default which is not susceptible of cure by it. This Consent and Agreement shall be binding upon and shall be for the benefit of the City and the Bank and their respective successors, transferees and assigns. Date: September Lg 1998 CITY OF MOORPARK By: EAST -WEST BANK, a California banking corporation By: Deb orah Beverid e , Vice President 2:%5901. 4ACONBHNT& C[T,Wva -2 000�