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File Number: 18-646 <br />WHEREAS, the City paid the Litigation Costs, and Borrower has agreed to repay to the <br />City an amount equal to the Litigation Costs, totaling Four Hundred Fifty Five Thousand One <br />Hundred Seven Dollars and Thirty Sixty Cents ($455,107.36.) (the “Loan”) pursuant to the terms <br />and conditions of a loan agreement; and <br />WHEREAS, the Loan would be evidenced by a promissory note, and secured by a Deed <br />of Trust on 2539 Grant Avenue. The terms of the loan are 2% simple interest per annum, <br />repayment would commence July 1, 2019, and would be for a 10 year term. If the property is sold, <br />assigned, or otherwise transferred as defined by the agreement, then the loan payments would <br />accelerate to pay off the loan; and <br />WHEREAS, the City Council is familiar with the terms and conditions of the Loan <br />Agreement, the Promissory Note, and the Deed of Trust; and <br />WHEREAS, the City Manager recommends approval of the Loan, the Loan Agreement, <br />the Promissory Note, and the Deed of Trust. <br />NOW THEREFORE, the City Council for the City of San Leandro does RESOLVE as <br />follows: <br />That a General Fund Loan to MTLG, LLC in the amount of $455,107.36 is approved; and <br />That the Loan Agreement, the Promissory Note, and the Deed of Trust between the City <br />and MTLG, LLC are hereby approved, and execution by the City Manager, subject to <br />approval as to form by the City Attorney, is hereby authorized; and <br />That the City Manager is authorized to take all actions otherwise necessary to effect the <br />intent of this Resolution. <br />Page 2 City of San Leandro Printed on 12/11/2018