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Home My WebLink AboutMINUTES - 11141995 - C75 pl HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA 75� TO: BOARD OF COMMISSIONERS FROM: Richard J. Martinez, Executive Director DATE: November 14, 1995 SUBJECT: RESOLUTION EXECUTING A LANDLORD'S AGREEMENT REQUIRED FOR A DISASTER RELIEF LOAN BETWEEN PITTSBURG PRESCHOOL COORDINATING COUNCIL AND U.S. SMALL BUSINESS ADMINISTRATION SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: ADOPT Board Resolution No. 3766 AUTHORIZING the Executive Director of the Housing Authority of the County of Contra Costa to execute a certain Landlord's Agreement required for a Disaster Relief Loan between the Pittsburg Preschool Coordinating Council, Inc. and the U.S. Small Business Administration for Housing Authority owned property, at 1760 Chester Drive in Pittsburg, which is leased to Pittsburg Preschool Coordinating Council. II. FINANCIAL IMPACT: None. III. REASONS FOR RECOMMENDATIONBACKGROUND Pursuant to a Board Order approved on February 15, 1994,the Housing Authority and the Pittsburg Preschool Coordinating Council, Inc. (PPCC)entered into a new lease for the property at 1760 Chester Drive, Pittsburg for use as a day care center. Under the lease,PPCC is required to maintain the building including the roofs. At this time,the original roofs are more than 10 years old and are beginning to fail. Because of damage sustained during last year's winter storms and the need to replace several of the old roofs, PPCC sought a Disaster Relief Loan from the U.S. Small Business Administration(SBA)to cover the costs for repair and replacement. The SBA loan is secured by collateral (office and classroom equipment and fixtures) located at the Preschool which the borrower,PPCC, leases from the Housing Authority. The SBA requires that the Housing Authority, as the lessor, execute a Landlord Agreement to notify the SBA in the event the borrower defaults under the lease and to give the SBA permission to enter the premises and remove its collateral in the event of a default on the SBA loan. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect to not to authorize the execution of the Landlord Agreement,the SBA would not be able to provide its loan to PPCC for this critical repair/replacement work and PPCC would have to seek other more expensive funding to complete the work. CONTINUED ON ATTACHMENT: X YES SIGNATURE RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON November 149 1995 APPROVED AS RECOMMENDED X OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A —UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: T e T T rT V.V NOES: . T T T ACTION TAKEN AND ENTERED ON THE ABSENT: p' ABSTAIN: none MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED NnvamhPr 14, 1995 PHIL BATCHELOR,CLERK OF THE BOARD OF COMMISSIONERS AND CO TY ADMINISTRATOR BY DEPUTY THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA RESOLUTION NO.3766 EXECUTING A LANDLORD AGREEMENT REQUIRED FOR A DISASTER RELIEF LOAN BETWEEN THE PITTSBURG PRESCHOOL COORDINATING COUNCIL,INC. AND THE U.S. SMALL BUSINESS ADMINISTRATION FOR REPAIR AND REPLACEMENT OF LEASEHOLD IMPROVEMENTS WHEREAS, the Housing Authority of the County of Contra Costa(hereinafter referred to as"Housing Authority")is a public body,corporate and politic established under the laws of California and empowered to own property;and WHEREAS, the Housing Authority owns the property located at 1760 Chester Drive in Pittsburg and leases that property to Pittsburg Preschool Coordinating Council,Inc. (PPCC)for use as a day care center; and WHEREAS, under the lease,PPCC is required to maintain the building including the roofs which are more than 10 years old and are beginning to fail;and WHEREAS, because of damage sustained during last year's winter storms and the need to replace several of the old roofs, PPCC sought an U.S. Small Business Administration (SBA)Disaster Relief Loan to cover the costs for the repair and replacement;and WHEREAS, the SBA loan is secured by collateral located at the day care facility which the borrower,PPCC,leases from the Housing Authority;and WHEREAS, the SBA requires that the Housing Authority,as the lessor,execute a Landlord Agreement(attached herein as Exhibit"A")to notify the SBA in the event the borrower defaults under the lease and to give the SBA permission to enter the premises and remove its collateral in the event of a default on the SBA loan;and WHEREAS, the best interests of the Housing Authority would be served by authorizing and directing the Executive Director of the Housing Authority to execute the Landlord's Agreement for PPCC's SBA Disaster Relief Loan: NOW,THEREFORE,BE IT RESOLVED,as follows: 1. That the Board of Commissioners of the Housing Authority of the County of Contra Costa hereby authorizes the Executive Director of the Housing Authority to execute that certain Landlord's Agreement required for a^Disaster Relief Loan between the Pittsburg Preschool Coordinating Council,Inc. and the U.S. Small Business Administration. 2. That this resolution shall take effect immediately. PASSED AND ADOPTED THIS 14 day of November 192,by the following vote of the Commissioners: AYES: Commissioners Rogers, Smith, DeSaulnier, 'and .Torlakson NOES: Commissioner Bishop ABSENT: None ABSTAIN: None EXHIBIT "A" Name:. Pittsburg Pre-School Coordinating Council 2766-04905 / DLB 85475730-06 LANDLORD'S AGREEMENT The Small Business Administration, an Agency of the United States Government(SBA), whose Servicing Office address is 2719 North Air Fresno Drive #107 Fresno, California, 93727-1547, proposes to make a loan to Pittsburg Pre-School Coordinating Council (Tenant) evidenced by a promissory note or notes and secured by a security agreement covering the following personal property (Collateral) machinery and equipment office equipment and furniture and fixtures. The Collateral is and/or will be located at 1760 Chester Drive, Pittsburg, California 94565-3920 (Premises), which Premises are owned by Housing Authority of the County of Contra Costa(Landlord). SBA is .willing to make the loan to Tenant on condition that Landlord execute this Landlord's Agreement. In consideration thereof, Landlord represents and agrees as follows: 1) Landlord has full power and authority to enter into this Agreement. 2) Tenant is in lawful possession of the Premises under a duly executed lease (Lease) and is not in default under any terms thereof except as follows: 3) The Collateral shall be considered personal property of the Tenant and shall not be considered affixed as part of the Premises. 4) Landlord's right and interest, if any, in and to the Collateral listed above shall be subordinate to SBA's right and interest in the same Collateral. 5) . In the event that Tenant's default under the Lease, Landlord will give SBA at least thirty (30) days written notice prior to terminating the.Lease or taking any action to enforce any claim under the Lease. 6) In the event that Tenant defaults on the SBA loan or the Lease, or both, SBA has the right to I nter the Premises, without further consent of Landlord, and: a) Without assuming responsibility for rent or other obligations of the Lease, promptly remove the Collateral; provided, however, that SBA shall use reasonable care in the removal of the Collateral and shall pay Landlord for any damage to the Premises caused directly by such removal; or b) Retain possession of the Premises for a reasonable period of time, not to exceed 90 days, in order to remove or otherwise dispose of the Collateral; provided, however, that (i) during such possession SBA shall pay Landlord rent as provided in the Lease but shall not be liable for any other Lease obligations, and (ii) SBA shall use "reasonable care in the removal of the Collateral and shall pay Landlord for any damages to the Premises caused directly by such removal. 7) This Agreement shall be binding on Landlord, its successors, heirs and assigns for the duration of the Lease and any extensions thereof. In the event Landlord assigns the Lease, Landlord shall give SBA notice thereof and provide a copy of this Agreement to such assignee(s). See Reverse for Signature &Notary Acknowledgement(s) 712/93 Dated: State of California County of }S.S.` Housing Authority of the County of Conrta Costa On before me, a Notary Public in and for the State of California,, personally By: 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 signature(s) _ 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. Signature