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HomeMy WebLinkAboutFord Street Project, Promissory Note 2006-08-25-----Original Message----- From: Candace Horsley (mailto:candace@cityofukiah.com] Sent: Tuesday, April 03, 2007 6:22 PM To: 'drapport'; Brent Smith Subject: RE: Ford St. I just talked to Gail. The document is recorded and in our vaultl I will retrieve it tomorrow. Can we cut the check or do you need the docs Dave? -----Original Message----- From: drapport (mailto:drapport@pacbell.net] Sent: Tuesday, April 03, 2007 4:41 PM To: Brent Smith; Candace Horsley Subject: Re: Ford St. Brent and Candace Attached is the regulatory agreement (approved by the RDA) that both Candace and Mark Rohloff have to sign and have notarized. The signed and notarized document needs to be recorded with the County Recorder. If you get me the original signed and notarized agreement, we can have it recorded for you, if you would like. Sam/ Luc, Gw /2og/J Dave _7 oN F S~L✓ 00 ro"-6y ~~7o~-yG3-s6`'/~ 5 =a August 25, 2006 Mr. Mark Rohloff Ford Street Project, Inc. 139 Ford Street Ukiah, CA. 95482 Q cc C S Re: Letter agreement concerning disbursement of funds and Recordation of Deed of Trust Dear Mr. Rohloff: This letter will acknowledge receipt of a deed of trust and promissory note, both dated August 24, 2006, and a copy of the July 18, 2006, minutes of the Mendocino County Board of Supervisors meeting. In those minutes, the Board approved the distribution of $70,000 in the Ukiah Redevelopment Agency's Low Income Housing Fund to the Ford Street Project, Inc. for use in constructing improvements ("the Project") to its temporary housing facility located on Ford Street within the City of Ukiah. Under Section 6 of the agreement between the County of Mendocino and the Ukiah Redevelopment Agency, the Agency. has agreed to set aside and make available to the County each year 25% of the Agency's Low Income Housing Fund for low-and moderate-income housing programs within the City which the Agency reasonably determines comply with Health and Safety Code Section 33334.2 and other applicable provisions of the Community Redevelopment Law. The agreements contained in the promissory note and deed of trust satisfy the requirements of the Community Redevelopment Law that the proposed use of the $70,000 will increase the number of housing units available to low income families in the City of Ukiah. Accordingly, the Redevelopment Agency authorizes disbursement from the County's 25% set aside in the Redevelopment Agency's Low Income Housing Fund of $70,000, payable to the Ford Street Project, Inc., for use in the construction of improvements to affordable housing facilities on the Ford Street property. The Redevelopment Agency agrees that it will not record the deed of trust, until it is notified by the Ford Street Project, Inc. that escrow has closed on the pending loans, the proceeds of which will be used for the Project, or prior to September 25, 2006, whichever comes first. 300 SEMINARY AVENUE, UKIAH, CA 95482-5400 Phone# 707/463-6200 Fax# 707/463-6204 Web Address: www.cityofukiah.com Letter to Mark Rohloff, Ford Street Project, Inc. Page 2 Subject: Agreement re: Low Income Housing Funds Date: August 25, 2006 Ford Street agrees to use the $70,000 for the Project and to comply with its obligations under the Promissory Note. Sincerely, Candace Horsley, Executive Dir for Ukiah Redevelopment Agency AGREED: r- r YAIWI Ford Str t Project, Inc. By: -&J.d4luva Mark Rohloff Its: Executive Director UKIAH REDEVELOPMENT AGENCY SPECIAL MEETING CIVIC CENTER COUNCIL CHAMBERS 300 SEMINARY AVENUE April 19, 2006 1. ROLL CALL 10:09:52 PM Present: Commissioners Crane, McCowen, Rodin, Baldwin, and Chairman Ashiku Staff Present: Executive Director Horsley, Associate Planner Liston, City Attorney Rapport, Planning and Community Development Director Stump, and Recording Secretary Ulvila. 2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS 10:10:03 PM No one came forward to address the Agency. 3. APPEAL PROCESS 10:10:27 PM Chairman Ashiku omitted reading the Appeal Process due to the lack of audience in attendance. 4. MINUTES 10:10:49 PM a. Regular Meetinq Minutes of January 18, 2006 M/S McCowen/Rodin approving the regular meeting minutes of January 18, 2006 as presented; carried by a unanimous voice vote. 5. UNFINISHED BUSINESS 5a. Receive Report from Greater Ukiah Chamber of Commerce Regarding Activities on Behalf of the Redevelopment Agency for July 2004 Through May 2005 10:11:12 PM Associate Planner Liston briefly reviewed the Agenda Summary Report. President/CEO Cherie Blower came forward stating that the attachments. to the Agenda Summary Report are the documents (core packets) the Chamber has available for tourists to review. Upon discussion relative to timely submittal of documentation per the performance agreement including but not limited t6 accurate financial statements, the Council's, received the report submitted by the Chamber of Commerce. 5. UNFINISHED BUSINESS 5b. Consideration and approval of Performance Agreement with the Greater Ukiah Chamber of Commerce and Authorization for Executive Director to Execute Agreement 10:18:57 PM Associate Planner Liston stated the Performance Agreement for Fiscal Year 2005/2006 that is before the Council continues the terms, conditions, and services consistent with the previous year's agreement. The term of the agreement is for one year, retroactive to July 1, 2005 through June 30, 2006. M/S Crane/McCowen approving, the Performance Agreement with Greater. Ukiah Chamber of Commerce in the amount of $25,000 and authorizing the Executive Director to execute agreement. Discussion followed regarding the Chamber meeting the conditions of the Performance Agreement. Motion carried by the following roll call vote: AYES: Commissioners Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku NOES: None ABSTAIN: None ABSENT: None. 5. UNFINISHED BUSINESS 10:27:14 PM 5c. Discussion and Possible Action Concerning Requests by The Ford Street Project and Ukiah Community Center for RDA 20% Housing Set-A-Side Funds Planning and Community Development Director Stump stated the Ford Street Project is seeking a maximum of $196,000 for its $1.5 million transitional housing project on Ford Street due to the recent rise in the cost of construction materials and a possible requirement for a fire sprinkler system. The Ukiah Community Center is seeking $3,000 for their motel voucher program to fund the next three months. Public Comment Period Opened: Mark Rohloff, Executive Director of the Ford Street Project updated Council members on the project stating he is looking for assistance from the Redevelopment Agency, County, City of Ukiah and waiver of fees for permits and the sprinkler system. Members of the public supporting the request by Mr. Rohloff: Richard Moser, Richard Ruff and Eric Idarius stating that a variety of businesses have discounted prices in order to assist this project. Discussion ensued regarding time restrictions for the project, request for funding from the County of Mendocino and the affect the sprinkler system, should it be waived, will have on the cost of the project. Councilmember McCowen stated his support in approving $66,000 to $70,000 for the project. Once funds are approved by the County and the decision by the Fire Department as to whether the sprinkler system is required is made, should additional funds be required an application for additional funds can be submitted to the URA for consideration M/S McCowen/Baldwin to adopt amended Resolution 2006-07 providing $70,000 toward the Ford Street Project carried by the following roll call vote: AYES: Commissioners Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku NOES: None ABSTAIN: None ABSENT: None. Ukiah Community Center: Carrie Hackett, Executive Director of the Community Center approached the Council requesting $3,000. to see the Center through to the end of fiscal year 2006. Requested funds will support Homeless Prevention Loans and the Motel Voucher Program. Ms Hackett stated that demands on the Community Center and. the voucher program have increased 25%o since the Ordinance banning camping was adopted in the City. An additional request was made by Ms Hackett to be considered in the 2006-2007 Fiscal Year Budget for on-going support for the Motel Voucher's Homeless Prevention Intervention Loans, in the amount of $25,000. Request for funding, if approved, would be through the application process. 10:58:36 PM M/S Baldwin/Rodin to adopt Resolution 2006-08 Allocating Housing Setaside Funds to the Ukiah Community Center in the amount of $3,000. 2 Discussion continued regarding use of the Buddy Elder Homeless Shelter and what conditions exist that would cause the need for a motel voucher rather than referral to the shelter, the Center's funding sources, and continued demands on the services the Center provides. City Manager Horsley stated that funds from the Redevelopment Agency can be used for temporary housing needs but not for operational expenses. Motion carried by the following roll call vote: AYES: Commissioners Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku NOES: None ABSTAIN: None ABSENT: None. 6. NEW BUSINESS 6a. Discussion of Policy Issues Related to the Facade Improvement Program 11:04:36 PM Associate Planner Liston approached the Council referring to the extensive Agenda Summary Report with attachments and issues relating to the Facade Improvement Program requiring a decision by the URA. Ms Liston encouraged discussion regarding "total agency contribution per fagade", the type and scope of eligible improvements,- and types of conditions of approval that can be imposed by the program. Public Comment Opened: 11:30:58 PM Ms. Teri Johnson, 255 W. Gobbi Street, read a letter dated April 19, 2006 into the record. The content of the letter is in reference to an application by Full Spectrum Realty located at 601 S State Street for the Facade Improvement Program. Discussion ensued regarding the Full Spectrum Realty application, the pole sign, and whether it is reasonable to address a non conforming issue when making public funds available. Approving multiple grants to the same business was discussed. Councilman Baldwin supports conditional approval upon removal or conformance with sign code. In response, City Manager Horsley stated staff would recommend additional funds be approved so that the project can be completed. Councilmember McCowen stated support of a second Facade Improvement grant addressing the pole sign as a separate project that would be eligible for a separate grant. M/S McCowen/Rodin that as a matter of policy, the pole sign be made to conform as a condition of receiving this grant. Staff will entertain an application from .the applicant for a second grant to help pay for the cost of bringing the pole sign into compliance; carried by the following roll call voter AYES: Commissioners Crane, McCowen, Rodin, and Mayor Ashiku . NOES: Baldwin ABSTAIN: None Discussion followed regarding the importance of historical signs that may be non-conforming. 12:26:14 AM Councilmember Crane left the meeting. 12:28:38 AM Councilmember Crane returned to meeting. Councilmember Baldwin respectfully requested being removed from the Finance Review Committee. 3 12:26:24 AM Lisa Mammina spoke to the Council regarding items brought before the Council tonight that may have an affect on her May 3, 2006 appeal regarding her project at 203 N. State Street, specifically, the removal of an unsound parapet. Ms Mammina shared her concern that the topic of multi-phase projects has not been addressed. Lengthy discussion ensued regarding phase one of 203 N State Street, specifically the removal of the parapet which Ms Mammina states is a blight and a hazard. . City Attorney Rapport stated there will be an appeal coming before the Redevelopment Development Agency on May 3, 2006, at which time the Commission could address the policy question. 7. COMMISSIONERS REPORTS None. 8. EXECUTIVE DIRECTOR REPORTS None. 9. CLOSED SESSION None. 10.ADJOURNMENT There being no further business, the meeting was adjourned at 12:46:42 AM Gail Petersen, Transcribing Secretary 4 ITEM NO: 5c DATE: April 19, 2006 UKIAH REDEVELOPMENT AGENCY AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION CONCERNING REQUESTS BY THE FORD STREET PR03ECT AND UKIAH COMMUNITY CENTER FOR RDA 20% HOUSING SET-A-SIDE FUNDS SUMMARY: The Ford Street Project and the Ukiah Community Center (UCC) have both approached the Low and, Moderate Income Housing Advisory Committee seeking 20% housing set- a-side funds for affordable housing projects. The Ford Street Project is seeking a maximum of $196,000 for its $1.5 million transitional housing project on Ford Street because of the recent rise in the cost of construction materials and the unanticipated the cost of a fire sprinkler system (Attachment No. 2). The Ukiah Community Center is seeking $3,000 for its motel voucher program for the next three months. (Attachment No. 4). Representatives from both the Ford Street Program and the UCC will be in attendance at the April 19th meeting to discuss their requests and answer questions. (continued on page 2) RECOMMENDED ACTION: Discuss and consider adopting Resolutions granting 20% housing set- a-side funds to the Ford Street Project and Ukiah Community Center. ALTERNATIVE RDA POLICY OPTION: Do not adopt the Resolutions and provide direction to Staff. Group Advised: Low and Moderate Income Housing Advisory Committee Requested by: The Ford Street Project and Ukiah Community Center Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager Attachments: 1. Resolution allocating funds to the Ford Street project 2. Correspondence received from the Ford Street Project 3. Resolution allocating funds to the Ukiah Community Center 4. Correspondence received from the Ukiah Community Center i .-N APPROVED: Candace Horsley, City Man er . i The RDA had determined the need to reserve all funds for the 2004-2006 fiscal years for a large downtown project and there was no allocation program or formal competitive application process for these years. The Low and Moderate Income Housing Advisory Committee discussed and generally supported the Ford Street and UCC projects. Some concern was expressed about the Ford Street Project request because of an apparent uncertainty regarding the overall cost of the housing project and a clear understanding of the shortfall of funds. That uncertainty has been addressed in the subsequent correspondence received by the Ford Street Project (Attachment No. 2). In January of this year, the RDA considered a request for $69,000 from the Ford Street Project for this same project. That request was not granted, and the cost for construction materials has risen sharply. However, at that meeting, the RDA did grant a request from the Community Development Commission for $30,000 for its public safety affordable housing program. The two current requests have been made very recently and due to the RDA's recent willingness to consider small projects on a case-by-case basis, the RDA could consider and act on the requests or opt to direct Staff to initiate the formal application and review process. FUND BALANCE: The following Table lists the fund balances in the College Reserve, Mendocino County Reserve, and Discretionary Reserve accounts: RDA HOUSING FUND RDA SPECIAL PROTECT FUND BALANCE COLLEGE RESERVE COUNTY RESERVE FY 04-05 Balance $139,050.18 462142.96 $438,854.34 FY 05-06 Net Revenue $817,273.58 Disbursements 0 $6,857.00 366 500.00 Pro Tax Admin Fees $6,708.99 1032.15 $2,580.38 Current Reserve Balance $949,614.77 $454,253.81 $69,773.96 If the RDA were to grant the two current requests, it would reduce the Special Project fund balance to $750,614.77. RECOMMENDED ACTION: Discuss and consider adopting Resolutions granting 20% housing set- a-side funds to the Ford Street Project and Ukiah Community Center. 2 s. s a The RDA had determined the need to reserve all funds for the 2004-2006 fiscal years for a large downtown project and there was no allocation program or formal competitive application process for these years. The Low and Moderate Income Housing Advisory Committee discussed and generally supported the Ford Street and UCC projects. Some concern was expressed about the Ford Street Project request because of an apparent uncertainty regarding the overall cost of the housing project and a clear understanding of the shortfall of funds. That uncertainty has been addressed in the subsequent correspondence received by the Ford Street Project (Attachment No. 2). In January of this year, the RDA considered a request for $69,000 from the Ford Street Project for this same project. That request was not granted, and the cost for construction materials has risen sharply. However, at that meeting, the RDA did grant a request from the Community Development Commission for $30,000 for its public safety affordable housing program. The two current requests have been made very recently and due to the RDA's recent willingness to consider small projects on a case-by-case basis, the RDA could consider and act on the requests or opt to direct Staff to initiate the formal application and review process. FUND BALANCE: The following Table lists the fund balances in the College Reserve, Mendocino County Reserve, and Discretionary Reserve accounts: RDA HOUSING FUND RDA SPECIAL PROJECT FUND BALANCE COLLEGE RESERVE COUNTY RESERVE FY 04-05 Balance $139,050.18 462142.96 $438,854.34 FY 05-06 Net Revenue $817,273.58 Disbursements 0 $6,8S7.00 $366,500.00 Pro Tax Admin Fees $6,708.99 1032.15 $2,580.38 Current Reserve Balance $949,614.77 $454,253.81 69 773.96 If the RDA were to grant the two current requests, it would reduce the Special Project fund balance to $750,614.77. RECOMMENDED ACTION: Discuss and consider adopting Resolutions granting 20% housing set- a-side funds to the Ford Street Project and Ukiah Community Center. 2 URA RESOLUTION NO. 2006-07 RESOLUTION OF THE UKIAH REDEVELOPMENT AGENCY ALLOCATING HOUSING SETASIDE FUNDS - APRIL 2006 WHEREAS, the Ukiah Redevelopment Agency appointed the Low and Moderate Income Housing Advisory Committee to advise the Agency regarding housing programs and the use of the 20% housing setaside fund; and WHEREAS, the Advisory Committee had a discussion of a proposal for use of the setaside fund from the Ford Street Project for its transitional housing project on Ford Street, and was generally supportive of the requested a maximum of $70,000; and WHEREAS, the intended uses of these funds are consistent with State of California Community Redevelopment Law Section 33334.2, et seq. NOW, THEREFORE, the Ukiah Redevelopment Agency does hereby resolve: 1. $70,000 of the 20% Low and Moderate Income Housing Setaside Fund are allocated to the Ford Street Project for its transitional housing project located at 137 Ford Street, Ukiah; 2. The Ford Street Project is a viable provider of services to the targeted population; the use of the funds is immediate; the project has received Planning Commission approval; the living units will be retained for low and moderate income persons; and these funds are not the sole source of financial assistance for the proposed project; 3. The $70,000 is to be used only for direct costs incurred by the Ford Street Project for predevelopment activities related to this project, such as architectural and engineering costs; 4. The project shall be solely for the use of persons meeting Housing and Urban Development (HUD) criteria for low and moderate income; 5. A development agreement between the Ford Street Project and the Redevelopment Agency shall be entered into to insure the conditions of this allocation are met; 1 6. The uses of these funds meets the requirements of California Community Redevelopment Law Section 33334.2 et seq. and are consistent with the housing needs as assessed and identified in the City of Ukiah's General Plan Housing Element; 7. The project is consistent with the Ukiah Redevelopment Plan to provide assistance toward implementation of low and moderate income housing. PASSED AND ADOPTED this 19th day of April 2006, by the following roll call vote: YES: Commissioners Crane, McCowen, Rodin, Baldwin, and Chairman Ashiku NOES: None ABSENT: None ABSTAIN: None ark Ashiku, Chairman ATTEST: Marie Ulvila, Secretary 2 NIIIIYIIIAtlIIIII11111~IIIIINI~lllll ps0e~~ 830 RECORDED REQUESTED BY AND MAIL TO: City of Ukiah Redevelopment Agency Ukiah Civic Center 300 Seminary Ave. Ukiah, CA. 95482 I i c:r e: c1 r~ t:l c:~ t:l 11 e •r e Cl to e <.:s 1° o f t::'I:'1"flI l.li~,:I:t11~ I:::1...01.')111:.., ihl1, 001%1: C::I:FBI... Iir::(:C)fsI);i I'Irir<sllrt Ft WI1<.r,.I:.I:~ ftier I'Ier1dac,:i.r1o C: ca 1.t 11 t: C: F1 SHORT FORM DEED OF TRUST AND ASSIGNMENT OF RENTS SECURING PROMISSORY NOTE. This Deed of Trust, made this day of m 2006, between Ford Street Project, Inc., herein called Trustor- whose address is 31 9 Ford Street, Ukiah, California 95482, FIRST AMERICAN TITLE COMPANY, a California corporation, 551 South Orchard Avenue, Ukiah, California 95482, herein called Trustee, and the City of Ukiah Redevelopment Agency, Ukiah Civic Center, Ukiah, California 95482. 4.9 b4M 1:ift ry WITNESSETH: That Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS TO TRUSTEE IN TRUST, WITH POWER OF SALE, that property in the City of Ukiah, Mendocino County, California, described as: SEE EXHIBIT A, attached hereto and incorporated herein by this reference. TOGETHER WITH the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right power and authority given to and conferred upon Beneficiary by paragraph (10) of the provisions incorporated herein by reference to collect and apply such rents, issues and profits. FOR THE PURPOSE OF SECURING the performance of the Trustor as set forth in the Promissory Note executed by T, y n vor of Beneficiary, dated August 23 2006 ("Promissory Note"), including repayment in full of $ /to~Uou• do this Deed of Trust is granted by the Trustor subject to the following conditions, as well as other conditions set forth in an unrecorded portion of the Deed of Trust and in the Promissory Note (which is incorporated by reference into this Deed of Trust). 1. The Beneficiary shall have no rights under this Deed of Trust until such date, if ever, that the Trustor fails to satisfy its obligations to pay monies to the Beneficiary as set forth in the Promissory Note. 2. The interests and rights conveyed by this Deed of Trust shall be fully and completely reconveyed to the Trustor at such time as the Trustor has fully and timely paid all amounts due and payable under the Promissory Note, or such amounts have been forgiven in accordance with the terms of the Promissory Note. . 3. Subordination. This Deed of Trust is subordinate to any deed of trust or mortgage on the Property, which deed of trust or mortgage is senior in recording priority to this Agreement, and is likewise subordinate to any mortgage or deed of trust which is given in connection with any refinancing of the loan secured by such senior deed of trust or mortgage, provided the loan amount of such refinancing does not exceed the then outstanding balance (plus refinancing and closing costs) of the existing senior loan. Any party, and its successors and assigns, receiving title to the Property through a trustee's sale, judicial foreclosure sale, or deed in lieu of foreclosure of such senior deed of trust or mortgage, including a deed of trust or mortgage which is given in connection with such refinancing, and any conveyance or transfer thereafter, shall receive title free and clear of the provisions of this option Agreement. The Deed of Trust is further subordinate to the deeds of trust or mortgages described on the attached Exhibit B, which is incorporated herein by this reference. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: By the execution and delivery of this Deed of Trust and the Personal Surety Bond secured hereby, that provisions (1) to (14), inclusive of the fictitious deed .of trust recorded in Napa County, July 10, 1978, and in all other Counties, July 7, 1978, in the book and at the page of Official Records in the office of the County Recorder of the County where said property is located, noted below opposite the name of such County, viz: s:\djr\docs97\ncihadot August 22, 2006 COUNTY BOOR PAGE COUNTY BOOK PAGE Alameda RE 5477 IM 148 Orange 12749 728 Alpine 30 374-376 Placer 1996 591 Amador 333 343 Plumas 291 119 Butte 2301 464 Riverside 1978 140181 Calaveras 475 244 Sacramento 78-07-07 1144 Colusa 461 325 San Benito 432 18 Contra Costa 8914 326 San Bernardino 9469 1383 Del Norte 219 441 San Diego 1978 78-285214 E1 Dorado 1649 92 San Francisco C601 709 Fresno 7069 711 San Joaquin 4420 184 Glenn 631 343 San Luis Obispo 2084 280 Humboldt 1500 553 San Mateo 7759 2337 Imperial 1418 1241 Santa Barbara 78-30910 - Inyo 232 93 Santa Clara D797 194 Kern 5123 521 Santa Cruz 2933 275 Kings 1122 516 Shasta 1536 350 Lake 942 153 Sierra 78 652 Lassen 334 458 Siskiyou 824 414 Los Angeles 78-738583 - Solano 1978 55321 Madera 1406 233 Sonoma 3421 802 Marin 3400 76 Stanislaus 3074 385 Mariposa Mendo ✓ i 185 364 Sutter 929 678 c no 1157 523 Tehema 755 108 Merced 2130 629 Trinity 192 632 Modoc 255 590 Tulare 3549 778 Mono 246 573 Tuolumne 539 129 Monterey 1257 744 Ventura 5158 219 Napa 1088 368 Yolo 1316 148 Nevada 963 297 Yuba 671 393 (which provisions, identical in all counties, are printed on the attached page 2 hereof) hereby are adopted and incorporated herein and made a part hereof as fully as though set forth herein at length; that he will observe and perform said provisions; and that the references to property, obligations, and parties in said provisions shall be construed to refer to the property, obligations, and parties set forth in this Deed of Trust. The undersigned Trustor requests that a copy of any Notice of Default and any Notice of Sale hereunder be mailed to him at his address hereinbefore set forth. This trust deed is re-recorded to correct for the omission of "Exhibit All in the prior recording on November 26, 1996, in Book 2377, Page 340, Official Records, Mendocino County. Signature of Trustor: irV/rd S-Ir- fe/_ Pk- ).t d/ ~241C> M By : mt IIIIIIYII~NII~IIIINIIIIInIIIIIIIAW;ga;,;e3m August 2006 ACKNOWLEDGMENT State of California ) ss. County ofh On personally personally known to me OR proved to me on_the basis of s t~ isfact~ evi once t.o be the person (,g1 whose name (,s,.)- s~are subs abed to the within instrument an acknowledged do a to me that oshe/they y executed the same in is her/their KELLY KEVES authorized capacity , and that by iiS)her their signa- Coi,w,* bn # 1667$17 tures on the instrument the person W, or the entity upon Notary PNC behalf of which the person (,sj. acted, executed the Mendocino County instrument. UE~.comm.ExpkesApr11,201 WITNESS my hand and official seal. OPTIONAL Though Statute does not requi a the Votary to fill in the data below, doing so may prove valuable to persons relying on the document. DESCRIPTION OF ATTACHED DOCUMENT: Title or Type of Document: Document Date: Signer(s) Other Than Named Above: CAPACITY CLAIMED BY SIGNER: Signer's Name: Individual Corporate Officer(s) Title (s) Partner - Limited Attorney-in-Fact Trustee(s) Guardian Other: before me, f~2~~V ~QVPS Notary Number of Pages: CAPACITY CLAIM33D BY SIGNER: Signer's Name: Individual Corporate Officer(s) Title(s) General Partner Limited General Attorney-in-Fact Trustee(s) Guardian Other: SIGNER IS REPRESENTING: Person(s) or Entity(ies) SIGNER IS REPRESENTING: Person(s) or Entity(ies) 1111 Jill py 31]9830 s:\djr\docs97\ncihadot August 22, 2006 Title Order Number: File Number: 2306-2251654 Exhibit "A" Real property in the City of Ukiah, County of Mendocino, State of California, described as follows: Tract One: Commencing at the intersection of the South line of Ford Street and the Westerly right of way. line of the Northwestern Pacific Railroad; thence Westerly along the South line of said Ford Street, 137.12 feet to the Northwest corner of the Ford Street Project property as described in Instrument #2004-21560, Official Records, Mendocino County Records, thence along the West line of said Ford Street Project property South 03015'00" East, 73.00 feet to the point of beginning of this description; thence leaving said West line South 86045'00"West, 62.50 feet; thence South 03015'00" East, 19.00 feet; thence South 86045'00" West, 37.50 feet; thence South 03015'00" East, 200 feet, more or less, to the center of Orr Creek; thence Easterly down the center of Orr Creek 100 feet, more or less, to a point from which the point of beginning bears North 03015'00" West, thence North 030 15'00" West, 197 feet, more or less, to the point of beginning. APN: 002-121-19 The above legal description is. pursuant to the City of Ukiah Boundary Line Adjustment #05-30, which was completed by a Quit Claim Deed recorded January 18, 2006 as 2006-01089, Mendocino County Records. Tract Two: A non-exclusive easement for ingress, egress and public utilities 25 feet in width and extending from the North line of Tract One above to Ford Street. The East line of said easement is described as follows: Beginning at the Northwest corner of the Ford Street Project property as described in the Deed recorded in 2004-21560; thence West, along the South line of Ford Street, 60 feet to the point of beginning of this line; thence due South to the North line of Tract One above. APN: 002-121-19 ~ilIIX11~lINi~111AIN~I11uIIWIi~11I~U~II P906l19830 DO NOT RECORD The following is a copy of provisions (1) to (14), inclusive of the fictitious deed of trust, recorded in each count in California, as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being part thereof as if set forth at length herein. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: (1) To keep said property in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title, and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. (3) To pay; at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may; make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and in exercising any such powers, pay necessary expenses, employ counsel and pay his or her reasonable fees. (4) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof, regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. (5) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to, Beneficiary who may apply or release such moneys received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. (6) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due or all other sums so secured to declare default for failure so to pay. (7) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed for endorsement, and without affecting the personal liability of any person or payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge thereof. (8) That upon written request of Beneficiary stating that said Personal Surety Bond has been exonerated, and upon surrender of this Deed to Trustee for cancellation and retention and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Five years after issuance of such full reconveyance, Trustee may destroy this Deed (unless directed in such request to retain same). (9) That upon default by Trustor in payment of any indebtedness secured hereby,or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any proration of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof.. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. ws°•"2. 2006 `°`1111111 RQIIIINYI111IRI111IdY;~°s;,se3m d After deducting all costs, fees and expenses of trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. (10) Beneficiary, or any successor-in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. (11) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledges, of the Personal Surety Bond secured hereby, whether or not named as Beneficiary herein, in this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. (12) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. r\doc August ,aos m`111111111 RlI PaOin 830 PROMISSORY NOTE This Note ismade this 23rd day of A,'gm-.t , 2006, and is incorporated into the Deed of Trust (ASecurity Instrument@) of the same date given by the undersigned (ABorrower@) to secure Borrower=s Note (ANote@) to the City of Ukiah Redevelopment Agency (ALender@) of the same date and covering the property described in the Security Instrument and located at: 133. A-D & 135 A-D ford sThereinafter referred to as the AProperty. @ Ukiah, CA 95482 In return for a grant to increase the supply of low and moderate income housing in the City of Ukiah from the City of Ukiah Redevelopment Agency's Low and Moderate Income Housing Fund, including money on deposit in said fund to the credit of the County of Mendocino, the Borrower promises to pay U.S. seventy thousd.nd Dollars 70,000.00 (this amount is called Aprincipal@) to the order of the Lender. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the ANote Holder. @ In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree to the following: Term: The term of this Note is fifty-five (55) years from the date it is made. Payment No installment payments are required under this Note. The entire principal amount plus accrued interest shall become immediately due and payable, -if, during the term of this Note, for a continuous period of six or more months, Borrower or its successors or assigns, fails to keep housing units on the Property available at affordable housing cost to persons and families of low or moderate income and very low income and extremely low income households in accordance with the provisions of Health and Safety Code Sections 33334.3. If Borrower complies with this requirement for the full term of this Note, no payments shall be due from Borrower and this Note shall terminate and be of no further force or effect. Interest Interest shall accrue on the unpaid principal at the simple annual rate of three percent (3%). Giving of Notices 8:Wjrkiocs97\ncihanoU August 18, 2006 Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the property address above or at a different address if Borrower gives the Note Holder a notice of a different address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated above or at a different address if Borrower is given a notice of that different address. Notice shall be deemed given on the date it is personally delivered or 48 hours after it is deposited in the U. S. mail with proper first class postage prepaid and address placed on the envelope. Insurance Borrower will keep the Property insured for not less than the principal. The insurance shall cover damage to the Property caused by fire, vandalism, flood, weather and earthquake. Insurance shall be issued by companies admitted to issue insurance in the State of California. Lender shall be named as a loss payee on the policy. Borrower shall furnish Lender with proof of insurance satisfactory to Lender and the company issuing the insurance shall be required to notify Lender 30 days in advance, if the policy is canceled or not renewed. In the event Lender is notified of cancellation or non-renewal, it shall be entitled to pay the premiums which will be added to the principal owed under this Note. Waivers Borrower and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. Uniform Secured Note In addition to the protections given to the Note Holder under this Note, the Security Instrument, dated the same date as this Note, protects the Note Holder from possible losses which might result if Borrower does not keep the promises which it makes in the Note. The Security Instrument describes to which liens and encumbrances it is subordinate and how and under what conditions Borrower may be required to make immediate payment in full of amounts owed under this Note. Attorneys' Fees Ita the event that either party is required to obtain the services of an attorney for enforcement S:\djrldocs47\n&hauoW August 18, 2006 2 of the terms herein, the prevailing parry shall be entitled to recovery of such attorneys' fees and other costs associated with such enforcement, including costs of litigation and including any appeals therefrom, FORD STREET PROJECT, INC. By: Type Name: Ron Arkin Its: President 8:\djr\docs97\ncihanote August 22, 2006 DO NOT RECORD REQUEST FOR FULL RECONVEYANCE To be used only when the Personal Surety Bond has been exonerated. Dated: To Trustors Security Service, Trustee: The undersigned is the legal owner and hold of the Personal Surety Bond secured by the within Deed of Trust. That said personal surety bond has been exonerated and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of the said Deed of Trust, to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, the estate now held by you under the same. MAIL RECONVEYANCE TO By: Its: CITY OF UKIAH Do not lose or destroy this Deed of Trust. It must be delivered to the Trustee for cancellation before reconveyance will be made. s:\djr\docs97\ncihadot August 22, 2006 ACKNOWLEDGMENT State of California County of ) On before me, Notary Public, personally appeared personally known to me OR proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signa- tures on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. OPTIONAL Though Statute does not require the Notary to fill in the data below, doing so may prove valuable to persons relying on the document. DESCRIPTION OF ATTACHED DOCUMENT: Title or Type of Document: Document Date: Signer(s) Other Than Named Above: CAPACITY CLAIMED BY SIGNER: Signer's Name: Individual Corporate Officer(s) Title(s) Partner - Limited General Attorney-in-Fact Trustee(s) Guardian Other: SIGNER IS REPRESENTING: Person(s) or Entity(ies) - Number of Pages: CAPACITY CLAIMED BY SIGNER: Signer's Name: Individual Corporate Officer(s) Title (s) Partner Limited General Attorney-in-Fact Trustee(s) Guardian Other: SIGNER IS REPRESENTING: Person(s) or Entity(ies) s:\djr\docs97\ncihadot August 22, 2006 AUnited%yAgency The Ford Street Project, Inc. 139 Ford Street, Ukiah; CA 95482 Tole - 707-462-1934 Fax - 707-468-9860 fordstproj@sbcglobalmet http://www.fordsft-eeLorg Serving Mendocino Copty Since 1973 ATTACHMENT A ~ Letter of Intent to the Ukiah Redevelopment Agency The Ford Street Project is requesting funding assistance from the Ukiah Redevelopment Agency to combine with other funding sources in purchasing two "built-to-suit" four- plex apartment buildings at 137 Ford Street. It is our intent to build additional needed transitional housing units for homeless families in a setting close to our main campus where our services can most effectively be provided. Even though Ford Street has received two (HUD SHP and State HOME) awards over the past four years to build housing on this property, the property has proven to be too narrow to accommodate the structure(s) we need. To facilitate this project, Ford Street Project recently sold its 137 Ford Street property to Robert Gitlin and Associates . Mr. Gitlin is also the owner of 125 Ford Street, the property bordering 137 Ford Street on its west side. Mr. Gitlin has been granted a boundary line adjustment from the City of Ukiah so that the 137 Ford Street Property can be enlarged on its western end to accommodate the construction of the two apartment buildings. Upon completion of construction Ford Street would re-purchase the property. Until recently, our relationship with Gitlin and Associates has been conditioned by a purchase agreement for $1,333,000 to buy back this reconfigured property with the construction is completed. However, in meeting with the project architect and builder, Ford Street has determined that, due to the sharp inflation of wood products, concrete and steel, it will no longer be possible to build the structures at the price of the original purchase agreement.. The project's builder, Richard Moser, states that the re-adjusted cost of the project is $1.5 million. A summary of project revenue to date: All of the funding Ford Street has sought for this project has been committed. Our agency has received a loan/grant award for $1 million from the State's Emergency Housing Assistance Program-Capital Development (EHAP-CD). We have already provided Mr.Gitlin,with a loan of $184,000 in connection with our sale of 137 Ford Street to him which will be credited toward the purchase price. Further, Ford Street has been awarded an Affordable Housing Program grant of $120,000 ($15,000 per unit) for supplemental funding of the project. This brings the total amount of funds raised for the project to $1,304,000, as shown in the table below. Ford Street is thus $196,000 under the current project cost. 0 Measures taken to meet the additional costs: Ford Street has already made formal request of $100,000 from the County of Mendocino's 25% share of the URA fund. I have been unofficially informed that there may be no more than.$70,000 in that fund. Additionally, we have made request of the City of Ukiah that the sprinkler system requirement for the project be withdrawn. That would save the project and additional $60,000. Unfortunately, Ford Street Project is unable to request a.precise amount from the URA because we do not know, at this point, how much is in the County's share of URA Redevelopment funds. Moreover, to my knowledge, the City of Ukiah has not yet made a determination on the matter of the sprinkler system requirement or any other City-imposed costs and fees which could be reduced or eliminated. Ford Street also appreciates the difficulty facing Mr. Moser as he tries to "lock up" the costs of the project against other possible inflationary pressures. We are convinced that our ability to commence the project as quickly as possible will help to keep costs stable. List of Committed Revenue Sources EHAP-CD $1,000,000 Loan to Robert Gitlin (applied to purchase) 184,000 Affordable Housing Program Grant 120,000 Total Revenue $1,304,000 Current Project Cost $1,500,000 Amount Needed to Complete Project 196,000 In conclusion, I want to acknowledge the fact that our proposal was turned down a year ago by the City Council (URA). However, much has changed since that time. First, none of the revenue sources were committed for this project a year ago. Now all of them are committed, and in the case of the Affordable Housing Program, we have received $40,000 more than anticipated. Second, in our original application, I may have mistakenly conveyed the impression that a bank loan was a possible alternative to assistance from the URA. What makes a loan on this project functionally impossible is. the fact that the State of California, in granting us $1 million for this project, stipulates that we cannot require a rental payment from any family living in the project which exceeds 30% of its monthly income. We will thus never be able to generate enough income beyond meeting our operational needs to service a debt. Third, this project has advanced in the last year to secure the boundary line adjustment, a use permit and a site development permit. We lack only the building permit to commence construction. These advances have been made possible by a project team which didn't exist a year ago. Representatives of this team plan to be present at the URA meeting on April 19 to further explain the project and to answer any questions Council members might have. Re ectfully Submitted, Mark Rohloff Executive Director Ford Street Project April 12, 2006