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Resolution No. 2013-033Juarez, Debbie From: Wilson, Kevin Sent: Thursday, June 27, 2013 3:35 PM To: Chris Maffris (cmaffris@metahousing.com) Cc: Goetz, Jon (JGoetz@kmtg.com); Juarez, Debbie Subject: Assignemenrt and Assumption Agreement Attachments: Assigment agreement.PDF Chris, Attached is a scanned copy of the assignment and assumption agreement. Good luck and I hope we get the funds. 1 ;:mmi A, w.(o)a Imnml,nv II( i r,un a VY� 4.;;II ai �. III II June 27, 2013 Christopher B. Maffris Vice President Meta Housing Corporation 1640 S. Sepulveda Blvd., Suite 425 Los Angeles, CA 90025 RE: Assignment and Assumption Agreement Dear Mr. Maffris: Please find enclosed a fully executed original agreement as referenced above, approved by City Council on February 19, 2013, as part of Resolution No. 2013-33. If you have any questions, please contact Kevin Wilson at (323) 583-8811 extension 245. Thank you. Sincerely, Deborah R.Juarez Records Management Assistant Enclosure c: S. Kevin Wilson Purchasing Department Resolution No. 2013-33 Agreement File No. 13-014 CONTRACT/AMENDMENT SIGNATURE ROUTING FORM CONTRACTOR: M E 0-D U S l -i V �d�-i o(LR Rort 5 L U nl new IA (�\t(=c(M-rc�lt CONTRACT PURPOSE: VVt-C- C CONTRACT IS: ❑ FEDERAL ❑ PREVAILING WAGE ❑ COMPETIVE SELECTION & NOTICED RFP ❑ COMPETITIVE BID & NOTICED INVITATION TO BID ❑ EXEMPT FROM COMPETITIVE PROCESS (APPROVAL ATTACHED) ❑ SERVICES ❑ MATERIALS O BUDGETED ❑ NOT BUDGETED TOTAL CONTRACT VALUE: $ Charge Acct, No(s) Amendment Value $ ❑ Contract is an Amendment to Contract No. (if Applicable) RESPONSIBLE DEPARTMENT PERSON: [�6v 1 -3 VA VU%0N PHONE: X 2-e-t5 AUTHORIZATION: ❑ Approved by Council on (Check One) Resolution No. (if applicable) ❑ Approved by City Administrator on Note: Attack supporting documentation XAmendment Approved by �2vv VCw t% (if applicable) w -9 9 a �+ ROUTING SEQUENCE: (Please Follow In Order — Do not use N/A) Initials Date (1) Responsible Department Person Checks substance of contract and assembles two (2) copies of Contract, insurance & bond documents, certifies compliance With Competitive Bidding and Purchasing Ordinance (2) Liability and Claims Approves insurance and sureties, if bonds required 2� (3) Finance (Purchasing) Checks compliance with Competitive Bidding & Living Wage Ordinances And reflected in current budget (4) City Attorney tn/ G �4�I♦ Approves contract as to form, verifies bonds and insurance included 1" (5) City Signatory Signs all copies on behalf of City (� (6) City Clerk Attests signatures, numbers, files contract, insurance and bonds, and / / 7 transmits duplicate original to contractor Rev. 4/25/13 W. ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Agreement") is entered into as of this _ day of June, 2013, by and among Meta Housing Corporation (the "Assignor"), 52nd Drive Apartments, L.P., a California limited partnership (the "Assignee"), and the City of Vernon (the "City"), with reference to the following facts: RECITALS A. WHEREAS, City and Assignor entered into that certain Disposition and Development Agreement dated February 19, 2013, between the City/LA and the Borrower ("DDA"); B. WHEREAS, Assignor desires to assign and delegate all of its rights, titles and related obligations under the DDA to Assignee, and Assignee desires to accept such assignment and assume all of Assignor's duties under the DDA; C. WHEREAS, the City desires to consent to the assignment of the DDA to Assignee, and agrees to release Assignor from its obligations, if any, under the DDA; and D. WHEREAS, the parties are entering into this agreement to (i) effectuate the assignment and delegation by Assignor, and the acceptance and assumption by Assignee, of all of Assignor's rights and obligations under the DDA with respect to that certain real property located at 4675 52nd Drive, Vernon, California and (ii) evidence the City's consent to such assignment and acceptance of such delegation and assumption and release of Assignor. NOW, THEREFORE, with reference to the foregoing Recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties mutually agree as follows: 1. Assignment. Assumption and Consent. Assignor hereby assigns and delegates to Assignee and Assignee hereby accepts and assumes from Assignor, all of Assignor's rights, titles, interests and obligations, if any, under the DDA. Assignee hereby agrees to perform all of the obligations of Assignor under the DDA. 2. Representations. Assignor hereby represents and warrants that except as otherwise disclosed herein, it has not previously assigned, pledged, hypothecated or otherwise transferred any of its rights under the DDA. 3. Indemnification. Assignee agrees to indemnify, protect, hold harmless and defend Assignor, and its respective partners, from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of the Assignee's failure to perform any obligation under the DDA which are assumed by Assignee under Section 1 above, except as such failure may have been caused by Assignor's willful misconduct or negligence. 4. Release of Assignor by the City. Except as otherwise set forth herein, the City hereby releases and discharges Assignor from all of its obligations, if any, under the DDA. The City agrees that in no event shall Assignor have any liability for any acts or omissions of Assignee or its agents with respect to the DDA or for any defaults by Assignee under any of the DDA as assigned to and assumed by Assignee hereunder; provided that the assigning Assignor shall retain the indemnification obligations pursuant to Section 206.7 of the DDA. 1 60029648.1 5. Governing Law. The Agreement shall be interpreted under and be governed by the laws of the State of California, except for those provisions relating to choice of law or those provisions preempted by federal law. 6. Entire Agreement. This Agreement is the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral, between the parties with respect to the matters contained in this Agreement. Any waiver, modification, consent or acquiescence with respect to any provision of this Agreement shall be set forth in writing and duly executed by or on behalf of the party to be bound thereby. No waiver by any party of any breach hereunder shall be deemed a waiver of any other or subsequent breach. 7. Counterparts. This Agreement may be executed in counterparts by the parties hereto, each of which shall be deemed to be an original, and all such counterparts shall constitute but one and the same instrument. 8. Further Assurances. Each of the parties agrees to execute further and supplemental instruments as may be requested by another party to effectuate the purposes and intent of the Agreement. 9. City Consent. The City hereby consents to the aforesaid assignment and assumption and releases the Assignor from its obligations under the DDA. [remainder of page intentionally left blank] N 50029648.1 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. ASSIGNOR: Meta Hoye�ng Corpor;ion, a California corporation Nam 4U Its: �sSI�J crN ASSIGNEE: 52ND DRIVE APARTMENTS, L.P., a California limited partnership By: CHBA Affordable III, LLC, a California limited liability company, its Managing General Partner By: Community Home Builders and Associates, a California nonprofit public benefit corporation, its sole member and manager By fik? _ Grah�i P. Esp�ne— President By: 52nd Drive Apartments LLC, a California limited Iiabilit company, its Administrative Gener I Partner By: N �otFN 6(vSUEY : MEM6E2 [Signatures continue on the following page] S-1 50028848.1 CITY: CITY OF VERNON, a California charter city and municipal corporation J % By: ATTE Marl Whitworth, City A ministrator Dana Reed, Interim City Clerk APPROVE AS TO FORM: Nicholas Gborge Rodriguez, City Attorney Kronick Moskovitz Tiedemann & Girard, Special Counsel to City 50029648.1 CITY: CITY OF VERNON, a California charter city and municipal corporation By: ATTEST: City Clerk APPROVED AS TO FORM: 2 50029648.1 kestern Community Housing, Inc. June 26, 2013 Via Email (KWilson@ci.vemon.ca.us) and Mail City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attn: Kevin Wilson, Dir. Of Community Services Re: 52nd Drive Apartments L.P.: MGP - Vernon Family Apartments — affordable community Dear Mr. Wilson: By this letter we provide background into Western Community Housing, Inc. ("WCH") and Community Home Builders and Associates ("CHBA") which are both California non-profit public benefit corporations in connection with the above project. WCH and CHBA share the same headquarters in Costa Mesa. Both have Mr. Graham-Espley Jones, as President, who has over a decade of experience operating the non -profits as the managing general partner (MGP) in collectively almost 100 affordable tax credit communities. Mr. Espley- Jones is involved in all of the major decisions and day-to-day operations for both WCH and CHBA. Mr. Espley-.tones also serves on the board of directors for both non -profits. WCH and CHBA similarly use the same officers: Sandra Gibbons serves as the Chief Financial Officer and Vice President for both and Leanne Truofreh serves as Secretary and Vice President for both. Ms. Gibbons and Ms. Truofreh also manage the daily operations with Mr. Espley-Jones from the Costa Mesa office. Along with both non -profits sharing the same officers (who all have signing authority), there is a second board member, Wing Lam serving on the boards for both non -profits. Lastly, certain of the employees for the non -profits (such as in-house counsel and the asset managers) perform services for both non -profits. In sum, while WCI-f and CHBA are legally separate entities, the individuals comprising the experience and talent behind both are the same making both equally capable as an MGP. Enclosed are copies of recent incumbency certificates for both non -profits. While WCH originally was to serve as the MGP for the above Vernon project, CHBA (or its wholly owned/controlled LLC) was the intended MGP. To the extent express provisions of' the City's DDA may preclude this, we request a waiver to allow CHBA to serve as the MGP. Very truly yours, Western Community Housing, Inc., a California nonprofit public benefit corporation, By: Grahan sp e Prest Enclosures cc via email: Chris Maffris / Nicole Deddens IS I ICalnuis Drive, Suite J-5 Costa Mesa, CA 92626-5974 1e1 714.549.4100 Fax 714.S49.4600 Certificate of Incumbency I, Leanne Truof-eh, do hereby certify that I am the duly elected, qualified and acting Secretary of Community Home Builders and Associates, a California corporation (the "Corporation"). I do further certify that as of the date hereof the following individuals are all of the Directors of the Corporation, whose respective terms shall expire at the Annual Meeting of Directors in 2014: Directors Graham Espley-Jones Peter Barker Vicki Clark Wing Lam John McAlister Kent Davis 1 do further certify that as of the date hereof the following individuals are all of the Officers of the Corporation: Officers Graham Espley-Jones, President Sandy Gibbons, Vice President, Chief Financial Officer Leanne Truofreh, Vice President, Secretary IN WITNESS WHEREOF, I have hereunto set my hand, this 25"' day of June, 2013. Leanne Truofreli, Secreta Certificate of Incumbency I, Leanne Truofreh, do hereby certify that I am the duly elected, qualified and acting Secretary of Western Community Housing, Inc., a California corporation (the "Corporation'). I do further certify that as of the date hereof the following individuals are all of the Directors of the Corporation, whose respective terms shall expire at the next Annual Meeting of Directors: Directors Joe Briganti Kathleen Calvert Tom Dallape Graham Espley-Jones Wing Lam Jeffrey Meyers Mark Strutner i do further certify that as of the dale hereof the following individuals are all of the Officers of the Corporation: Officers Graham Espley-Jones, President Sandra Gibbons, Vice President, Chief Financial Officer Leanne Truofreh, Vice President, Secretary IN WITNESS WHEREOF, I have hereunto set my hand, this 25"' day of June, 2013. Leanne Truofre , Secreta