HomeMy WebLinkAboutReso 25-24 87-88 Consent to Encumber-Deed of TrustRESOLUTION NO. 25-24
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
CONDITIONALLY AUTHORIZING THE MAYOR TO EXECUTE DOCUMENTS
NECESSARY TO REFINANCE EXISTING CONSTRUCTION LOAN INTO A
PERMANENT LOAN AND ACCEPTING A DEED OF TRUST RELATED THERETO
FOR LEASE SITE 87-88/87W-88W (TLC FAMILY ENTERPRISES,
833 EMBARCADERO ROAD)
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro
Bay Waterfront described as City Tidelands leases and properties; and
WHEREAS, since December 2018, TLC Family Enterprises has been the lessee
of Lease Site 87-88/87W-88W, located at 833 Embarcadero Road and is a tenant in
good standing; and
WHEREAS, on January 25, 2022, City Council approved for TLC Family
Enterprises loan documents and a deed of trust with Arles Capital to secure the
financing necessary for the complete redevelopment of the lease site using the lease
agreement and project improvements as security; and
WHEREAS, TLC Family enterprises is now requesting City Council approval of a
new Consent to Encumbrance for lending with American Riviera Bank against the
leasehold interest in the amount of $3,300,000, which will provide a fixed payment for
the remainder of the loan term and pay off the construction loan.
WHEREAS, lease site lending can only be used to purchase a lease site, to
refinance existing lending on the lease site and/or for leasehold improvements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California, the Mayor is hereby directed to execute, as necessary, any and all
documents, as approved by the City Attorney, necessary to refinance an existing
construction loan into a permanent loan and accepting a deed of trust related thereto
regarding the leasehold interest at Lease Site 87-88/87W-88W desired by TLC Family
Enterprises.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting thereof held on the 23rd day of April 2024 on the following vote:
AYES: Wixom, Barton, Edwards, Ford, Landrum
NOES: None
ABSENT: None
ABSTAIN: None
RECUSE: None
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CARLAMIXOM, Mayor
ATTEST:
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A SWANSON, City Clerk
01181.00241976937.1