Laserfiche WebLink
REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br /> Budget <br />Agenda Date Requested: September 10, 2018 <br /> <br />Source of Funds: N/A <br />Requested By: Corby D. Alexander <br /> <br />Account Number: N/A <br /> <br />Department: Administration <br />Amount Budgeted: N/A <br /> <br />Report: Resolution: Ordinance: <br />Amount Requested: N/A <br /> <br />Exhibits: Subordination Agreement <br />Budgeted Item: N/A <br /> <br />Exhibits: Chapter 380 Agreement <br /> <br />SUMMARY & RECOMMENDATION <br />On October 10, 2016, the City entered into a Chapter 380 Agreement with Roland Ybarra for the right-of-way <br />at West Main Street and Sens Road with the intent of building a new El Toro restaurant at this location. On <br />December 12, 2016, this agreement was amended to list the fair market value as 75% of the appraised value, <br />consistent with City policy at that time. <br />Recently, the City was notified that Ybarra Restaurants (a.k.a. El Toro) is ready to move forward with their <br />project and in order to secure a loan with the bank, the bank is requesting the City sign a Subordination <br />Agreement. The Subordination Agreement means that in the event El Toro defaults, the money owed to the <br />City would be paid once the bank is paid. The current 380 agreement has a subordination agreement clause. <br />The attached agreement would be consistent with that clause. <br /> <br />Action Required by Council: <br />Consider approval or other action authorizing the City Manager to execute the proposed subordination <br />agreement. <br />Approved for City Council Agenda <br />Corby Alexander, City Manager Date <br /> <br />