City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00349 3/25/2025 Consent Item 14.
(Redevelopment Agency Successor Agency/City Council) Agreements Related to Forgiveness of Loans to The Good Neighbors Club of Del Paso Heights, California File ID: 2025-00349
Location: 3700 Knightlinger St., District 2
Recommendation: 1) Adopt a Redevelopment Agency Successor Agency (RASA) Motion authorizing the Interim City Manager or designee to execute the attached Assignment and Assumption Agreement on behalf of RASA, which will assign RASA loans totaling $426,000, which were made to The Good Neighbors Club of Del Paso Heights, California in 1989 and 1991, to the City of Sacramento; and 2) adopt a City Council Motion: a) allocating $10,000 from Del Paso Heights Redevelopment Bond funds (Fund 3809) for the City’s payment of $10,000 to RASA for City assumption of the loans pursuant to the attached Assignment and Assumption Agreement; b) authorizing the Interim City Manager or designee to execute the attached Assignment and Assumption Agreement on behalf of the City; and c) authorizing the Interim City Manager or designee to execute the attached Agreement for Loan Forgiveness and Deed Restriction with The Good Neighbors Club of Del Paso Heights, California, forgiving the loans totaling $426,000.
Contact: Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, [email protected], Office of Innovation and Economic Development Presenter: None
Attachments:
1-Description/Analysis
2-Assignment and Assumption Agreement
3-Agreement for Loan Forgiveness and Deed Restriction
Description/Analysis
Issue Detail: The Sacramento City Redevelopment Agency Successor Agency (“RASA”) is responsible for winding down the obligations of the dissolved Redevelopment Agency of the City of Sacramento (“Agency”) under the review of the Sacramento Countywide Oversight Board, the State Department of Finance (“DOF”), the State Controller’s Office, and the Sacramento County Auditor- Controller. The City Council for the City of Sacramento (“City”) serves as the governing body for RASA and City employees staff RASA’s activities. Other cities in the County with redevelopment
File ID: 2025-00349 3/25/2025 Consent Item 14.
agencies also have successor agencies with these same obligations. One of the obligations of successor agencies is the management of outstanding Agency loans, including collection of applicable loan payments.
This report requests the City Council approve the assignment from RASA to the City of two former Agency loans made to The Good Neighbors Club of Del Paso Heights, California (Good Neighbors) in exchange for the City’s payment of $10,000 to RASA (see Assignment and Assumption Agreement attached as Attachment 2). The two loans total $426,000 (one loan was made in 1989 for $266,000 and the second was made in 1991 for $160,000). In addition, the report requests City Council approve execution of an Agreement for Loan Forgiveness and Deed Restriction (included as Attachment 3) which would provide for City forgiveness of the loans if Good Neighbors continued to operate a childcare center at its current location at 3700 Knightlinger Street for the next ten years.
Background
The Good Neighbors Child Development Center (“Center”) was officially opened on November 28, 1965, at Allen Chapel Church in Del Paso Heights. It provided preschool education for 52 children.
The Center employed a staff of 12, all residents of Del Paso Heights. In April 1968, Good Neighbors purchased three lots on the corner of Morey Avenue and Knightlinger Street for a future expanded childcare center. In 1973, they received a license from the State of California to operate a “child development center” for 32 children.
In 1989, the Agency provided a construction loan in the amount of $266,000 to Good Neighbors to construct a childcare facility at 3700 Knightlinger Street. In 1991, the Agency provided a second construction loan to Good Neighbors in the amount of $160,000. In 1992, Good Neighbors’ Minnette Smith Child Development Center (“Center”) was dedicated. The Center has provided uninterrupted community childcare services in this facility since it opened, including through the COVID pandemic, when it provided childcare services for children of front-line responders. In 2023, the childcare services were expanded to accept toddlers, in addition to preschoolers.
Good Neighbors currently has eight full-time employees and four are residents of Del Paso Heights.
The Center serves up to 50 children.
The two Agency loans carry no interest and only become due if certain specified actions occur, including without limitation the property is sold, transferred, or loan debt is refinanced. In 2023, Good Neighbors submitted a letter to RASA requesting forgiveness of the loans because Good Neighbors now desires to expand the Center and cannot secure financing until the loan encumbrances are removed from title to the property.
On November 13, 2023, the Sacramento County Oversight Board, by Resolution No. 2023-008, approved forgiveness of these two loans. However, on December 22, 2023, DOF denied the request, indicating the Oversight Board had not made a proper determination that forgiveness of the loans is
File ID: 2025-00349 3/25/2025 Consent Item 14.
in the best interests of the taxing entities.
At the January 8, 2024 meeting, the Oversight Board instructed RASA staff to secure letters from the taxing entities indicating that loan forgiveness was in their best interests. These letters were collected and RASA staff returned to the Oversight Board on May 13, 2024, at which time the Oversight Board approved Resolution No. 2024-0009, authorizing forgiveness of the loans again.
On July 2, 2024, DOF responded by denying the loan forgiveness request again, indicating the Oversight Board had not addressed how this action would reduce liabilities and increase revenue for the taxing entities. DOF staff indicated though that the loans could be forgiven if they were transferred to the City. With that information, the Oversight Board approved the assignment of these two loans to the City of Sacramento at its meeting on January 13, 2025. On March 4, 2025, DOF approved assignment of the two loans totaling $426,000 from RASA to the City.
Policy Considerations: The recommendations in this report are consistent with the City’s goals to support existing child care centers and work to support increasing the supply of childcare in the City.
Economic Impacts: None.
Environmental Considerations: The recommendation actions in this report are government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment, and thus do not constitute a “project” under the California Environmental Quality Act (CEQA Guidelines § 15378(b)(4); Sustainability: None.
Commission/Committee Action: None.
Rationale for Recommendation: City staff is asking the City Council to approve the assignment of the two Agency loans from RASA to the City of Sacramento and authorize City payment of $10,000 to RASA for the assignment. California Health and Safety Code section 34181(e) allows amendment or termination of Agency agreements when such action would be in the best interests of the taxing entities. If assignment of the loans to the City is approved, the City would pay $10,000 as consideration for assumption of these loans, allowing the taxing entities to collectively receive some compensation.
The taxing entities are currently not receiving any payment on the loans and are not expected to in the near future since Good Neighbors plans on continuing to operate a child care center at the 3700 Knightlinger Street site and the loans are due only if certain conditions occur, such as the property is sold, transferred, or refinanced. Accordingly, assignment of the loans to the City in exchange for $10,000 is in the best interests of the taxing entities. Assignment of the loans will also further RASA’s
File ID: 2025-00349 3/25/2025 Consent Item 14.
duty to wind down the affairs of the Agency expeditiously, as required by Health and Safety Code section 34181(a)(1).
Staff is also recommending forgiveness of these loans because Good Neighbors has been operating as a childcare center at its current location for approximately 35 years and plans on continuing to serve future generations of Del Paso Heights children. Forgiveness of the loans is conditioned on Good Neighbors operating as a childcare center for at least 40 children from 12 months to 5 years with affordable tuition rates for 10 more years, as outlined in the Agreement for Loan Forgiveness and Deed Restriction document (Attachment 3).
Assignment of the loans from RASA to the City will increase the availability of much-needed childcare in the City, which furthers the City’s goal of increasing opportunities for childcare slots and enhancing after-school activities for youth. Expansion of the Good Neighbors childcare center would benefit the general Sacramento community by provided further affordable childcare in the Del Paso Heights community. Such expanded childcare also helps the local economy because parents can remain in the workforce when they secure reliable and affordable childcare. In addition, forgiving the loans reinforces the City’s commitment to small businesses that serve disadvantaged areas of the community.
Financial Considerations: The proposed Assignment and Assumption Agreement requires City payment of $10,000 to RASA. Such $10,000 would come from Del Paso Heights redevelopment funds (Fund 3809).
Local Business Enterprise (LBE): Good Neighbors is a local business enterprise.
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A
SSIGNMENT AND ASSUMPTION AGREEMENT
G
OOD NEIGHBORS CHILDCARE CENTER
T
his Assignment and Assumption Agreement (“ Assignment Agreement ”) is executed as of __________, 2025 (the “Effective Date”), by and between the SACRAMENTO CITY REDEVELOPMENT AGENCY SUCCESSOR AGENCY (“ RASA” or “ Assignor”), a municipal corporation, in its capacity as successor agency to the dissolved Redevelopment Agency of the City of Sacramento (the “ Agency”), and the CITY OF SACRAMENTO , a municipal corporation (“City” or “Assignee”), in connection with the transfer of two Agency loans made to THE GOOD NEIGHBORS CLUB OF DEL PASO HEIGHTS , CALIFORNIA, a California nonprofit corporation (“Good Neighbors ” or “Borrower” ), relating to the property at 3700 Knightlinger Street, Sacramento, California 95838, more particularly described in Exhibit A attached hereto (the “Property”), on which Borrower has operated a childcare center since 1965. RASA and City agree as follows:
B
ackground
A. C
alifornia Assembly Bill 26 (primarily codified in California Health and Safety Code section 34170 et seq. and referred to as the “Dissolution Law” ) dissolved California redevelopment agencies as of February 1, 2012. On January 31, 2012, the City Council of the City of Sacramento adopted Resolution No. 2012-018, electing to serve as the successor agency (called the “Sacramento City Redevelopment Agency Successor Agency” or “RASA”) to the Agency pursuant to Health and Safety Code section 34173. Health and Safety section 34173(g) provides that RASA is a separate legal entity from the City. Accordingly, RASA is now managed by the City and the City Council serves as the governing board for RASA.
B. O
n January 31, 2012, the Board of Directors of the Agency adopted Resolution No. 2012 -001, transferring and assigning certain Agency assets and agreements to RASA. Regarding implementation of outstanding Agency agreements that were transferred to RASA , Health and Safety Code section 34177(c) requires RASA to “ [p]erform obligations required pursuant to any enforceable obligations” and “enforceable obligations” in Health and Safety Code section
RECORDING REQUESTED BY AND WHEN
RECORDED RETURN TO:
Space Above This Line for
Recorder’s Use Only
Attachment 2
34171(d)(1)(E) include “[a]ny legally binding and enforceable agreement or contract that is not otherwise void as violating the debt limit or public policy.”
C. The Agency provided a construction loan to Borrower in the amount of $266,000 in 1989 (“$266,000 Loan”) and another construction loan to Borrower in the amount of $160,000 in 1991 (“$160,000”) for construction of a 3,000 square foot childcare center (“Center”) at the Property. The $266,000 Loan and the $160,000 Loan are collectively referred to in this Assignment Agreement as the “Loans.” To effectuate the Loan, the Agency and Borrower executed a series of agreements, including a Construction Loan Agreement (“Loan Agreement”), an Owner Participation Agreement (“OPA”), two Promissory Notes (“Notes”), two Deeds of Trust, and a Regulatory Agreement (collectively referred to as the “Borrower Agreements”).
D. Pursuant to the Notes, the Loans have a zero percent interest rate . However, if any interest in the Property is ever sold, transferred, or alienated, or the loan debt is refinanced in any amount, without the prior written consent of Agency, then the entire balance of the Loans becomes immediately due. As a condition of the Loans, the OPA requires Borrower to satisfy certain conditions, including without limitation operation of a childcare center on the Property for at least 40 children between the ages of 30 months and 5 years with tuition rates affordable to the residents of the Del Paso Heights Project Area. The Loans were backed by the Notes and secured by two Deeds of Trust in the Property.
E. All Agreements related to the Agency’ s loans to Good Neighbors were transferred to RASA pursuant to Agency Board of Directors Resolution No. 2012 -001 and are considered “enforceable obligations” for RASA.
F. Borrower has provided uninterrupted community childcare services at the Property since 1965, including throughout the COVID- 19 pandemic. In 2023, childcare services were expanded to accept toddlers ages 12 months to 29 months , in addition to children between 30 months and 5 years. In 2023, Borrower submitted a letter to RASA reques ting forgiveness of the Loan. This request was made by the Borrower because it now desires to expand the Center and cannot secure financing until the encumbrances of the Loans are removed from title to the Property.
G. Health and Safety C ode section 34181(e) allows amendment or termination of successor agencies agreements when such action would be in the best interests of the taxing entities (i.e. the entities that typically receive a portion of the property tax but did not during the existence of redevelopment agencies as the funds flowed directly to the redevelopment agencies).
H. The Sacramento Countywide Oversight Board (“Oversight Board”) and t he State of California’s Department of Finance (“DOF”) oversee RASA’s operations. Although the Oversight Board approved forgiveness of the Loans on November 13, 2023 ( Resolution No. 2023- 008), the DOF denied such forgiveness in a letter dated December 22, 2023, stating there was not sufficient showing that forgiveness was in the best interests of the taxing entities who would receive compensation if the Lo ans were repaid. RASA staff then obtained signed letters from all taxing entities approving such forgiveness and the Oversight Board approved forgiveness based on
these letters on May 13, 2024 (Resolution No. 2024 -0009). The DOF again denied forgiveness though in a letter dated July 2, 2024. DOF suggested that the City acquire the Loans from RASA and then the City could forgive such Loans.
I. Accordingly, t he City now desires to purchase the Loans from RASA d ue to the fact that forgiveness of the Loans would benefit the general Sacramento community as follows: reducing encumbrances on the Property would allow Borrower to expand its provision of affordable childcare in the Del Paso Heights community , which also helps the local economy because parents can remain in the workforce when they secure reliable and affordable childcare. As a condition of assignment, the City will ensure that the Property remains a childcare facility.
J. Assignment of the Loans is consistent with Health and Safety C ode section 34181(a)(1), which requires successor agencies to expeditiously wind down the affairs of the former redevelopment agencies.
Based on the facts in the foregoing Background, RASA and City hereby agree as follows:
1. Purchase Price. As consideration for assignment of the Loans from RASA to the City, the City will provide payment to RASA in the amount of $ 10,000, which represents the estimated administrative costs for staff tasks such as the following: staff report approvals , agreement drafting, communications with taxing entities, and recording of applicable documents .
Payment will be made to the “ Sacramento City Redevelopment Agency Successor Agency ” and recorded as revenue for sale of an asset and reported to DOF as such.
2. Owner Participation Agreement . On April 25, 1988, Agency and Borrower entered into an Owner Participation Agreement (“OPA”) for construction of the Center on the Property . A First Amendment to the OPA was executed on August 26, 1991 to reference the $160,000 Loan in addition to the $266,000 Loan.
A. RASA hereby certifies, acknowledges , and agrees as follows for the benefit of the City:
(1) Borrower is the “Participant” under the OPA.
(2) The Project was constructed by Borrower in accordance with the OPA.
Borrower has satisfied all construction obligations under the OPA, and there remain no outstanding, unfulfilled construction obligations of Borrower under the OPA.
(3) Since the Center began operations, Borrower has continually satisfied its requirement to use the Center as a childcare center for at least 40 children between the ages of 30 months and 5 years in accordance with Section IV.A on Page 4 of the OPA and is complying with such requirement as of the date of this Assignment Agreement.
(4) Since execut ion of the OPA, the Property has not been sold, transferred, encumbered, conveyed, assigned, or leased in whole or in part without the prior written approval of Agency or RASA, in compliance with Section IV.A . on
(5) Since completion of the Center on the Property, Borrower has properly and consistently maintained the Property and all improvements in accordance with Section V.D. of the OPA.
(6) There are no defaults by any party under the terms and provisions of the OPA, and there are no facts that, with the giving of notice or the passage of time, or both, would constitute a default or an event of default thereunder by any party under the terms and provisions of the OPA. There has been no failure by any party to perform or observe any covenants, provisions or conditions under the OPA.
(7) There are no disputes between RASA and Borrower concerning the OPA. RASA has no pending claims or demands against Borrower under the OPA.
B. RASA hereby sells, assigns, conveys, transfers , and grants to City all of RASA’s right, title, and interest in, to and under the OPA, from and after the Effective Date . RASA retains all of the rights, obligations , and liabilities under the OPA to the extent such rights, obligations, and liabilities arose prior to the Effective Date and will indemnify the City for any liabilities that arose prior to the Effective Date.
C. This Assignment Agreement does not diminish, impair, release , or relinquish the liens, powers, titles, security interests, and rights of the City under the OPA.
D. City hereby certifies, acknowledges, and agrees as follows for the benefit of RASA:
(1) City hereby accepts all of RASA’s right, title, and interest in, to and under the OPA as of the Effective Date , and agrees to comply, from and after the Effective Date with all of the terms of the OPA.
(2) Effective upon the Effective Date , the City will be the “Agency” under the OPA.
3. $266,000 Loan. Agency made a l oan to Borrower for construction of the Center at the Property in the amount of $266,000. To effectuate such loan, Agency and Borrower executed the following: (i) a Construction Loan Agreement on February 23, 1989, which was amended on August 26, 1991 to reference the $160,000 Loan (collectively, the “Loan Agreement”); a Note Secured by Deed of Trust on March 27, 1989 (“$266,000 Note”); and a Deed of Trust and Assignment of Rents on March 27, 1989 , which was recorded in Book No. 890327, Page
0710 in the Sacramento County Official Records (“$266,000 Deed of Trust ”). The Loan Agreement, $266,000 Note, and $266,000 Deed of Trust are collectively referred to in this Assignment Agreement as the “$266,000 Loan Documents.”
A. RASA hereby certifies, acknowledges , and agrees as follows for the benefit of the City:
(1) Borrower is the “ Borrower” under the $ 266,000 Loan Documents. “ Good Neighbors Club of Del Paso Heights , California” is the Trustor under the $266,000 Deed of Trust and Fidelity National Title Insurance Company is the Trustee.
(2) The $266,000 Loan Documents are in full force and effect. The $ 266,000 Loan Documents have not been modified, altered, or amended in any respect.
(3) The outstanding principal balance of the $266,000 Loan is $266,000.
(4) The interest rate of the $266,000 Loan is 0%.
(5) The $266,000 Loan becomes immediately due if Borrower sells, transfers, or alienates its interest in the Property or refinances any amount of the $266,000 Loan debt without the prior written consent of Agency or RASA.
(6) A Certificate of Completion was not recorded, but Agency issued the final disbursement for the $266,000 Loan after verifying that Borrower completed construction of the Center in accordance with the plans and specifications referred to in the Loan Agreement.
(7) There are no defaults by any party under the terms and provisions of the $266,000 Loan Documents, and there are no facts that, with the giving of notice or the passage of time, or both, would constitute a default or an event of default thereunder by any party under the terms and provisions of the $266,000 Loan Documents. There has been no failure by any party to perform or observe any covenants, provisions , or conditions under the $ 266,000 Loan Documents.
(8) There are no disputes between RASA and Borrower concerning the $ 266,000 Loan Documents. RASA has no pending claims or demands against Borrower or Trustor, as applicable, under the $266,000 Loan Documents.
(9) There are no delinquent sums owed by Borrower or Trustor, as applicable, to any party under the $266,000 Loan Documents.
(10) The improvements and uses located on the Property comply with the
$266,000 Loan Documents.
(11) The $266,000 Loan Documents remain in full force and effect and represent legal, valid, and binding obligations of Borrower and are enforceable against Borrower in accordance with their terms. Borrower agrees that except as otherwise provided in this Assignment Agreement, this Assignment Agreement does not diminish, impair, release , or relinquish the liens, powers, titles, security interests , and rights securing or guaranteeing payment of the $266,000 Loan, including the validity or priority of the liens and security interests encumbering the Property identified in the $ 266,000 Loan Documents.
B. RASA hereby sells, assigns, conveys, transfers , and grants to City all of RASA’s right, title, and interest in, to and under the $266,000 Loan Documents, from and after the Effective Date . RASA retains all of the rights, obligations , and liabilities under the $266,000 Loan Documents to the extent such rights, obligations , and liabilities arose prior to the Effective Date and will indemnify the City for any liabilities that arose prior to the Effective Date.
C. This Assignment Agreement does not diminish, impair, release , or relinquish the liens, powers, titles, security interests, and rights of the City under the $266,000 Loan Documents.
D. City hereby certifies, acknowledges, and agrees as follows for the benefit of RASA:
(1) City hereby accepts all of RASA’s right, title, and interest in, to and under the $266,000 Loan Documents, and agrees to comply, from and after the Effective Date with all of the terms of the $266,000 Loan Documents.
(2) Effective upon the Effective Date , the City will be the “Agency” under the $266,000 Loan Documents.
4. $160,000 Loan. In addition to the $266,000 Loan, A gency made a loan to Borrower for construction of the Center at the Property in the amount of $160,000. To effectuate such loan, Agency and Borrower executed the following: (i) a Construction Loan Agreement on February 23, 1989, which was amended on August 26, 1991 to reference the $160,000 Loan in addition to the $266,000 Loan (collectively, the “ Loan Agreement”); a Note Secured by Deed of Trust on August 26, 1991 (“$266,000 Note”); and a Deed of Trust and Assignment of Rents on August 26, 1991, which was recorded in Book No. 910919 , Page 0125 in the Sacramento County Official Records (“$160,000 Deed of Trust”) . The Loan Agreement, $160,000 Note, and $ 160,000 Deed of Trust are collectively referred to in this Assignment Agreement as the “$160,000 Loan Documents.”
A. RASA hereby certifies, acknowledges , and agrees as follows for the benefit of the
City:
(1) Borrower is the Borrower under the $ 160,000 Loan Documents. Good Neighbors Club of Del Paso Heights , California is the Trustor under the $160,000 Deed of Trust and Fidelity National Title Insurance Company is the Trustee.
(2) The $160,000 Loan Documents are in full force and effect. The $ 160,000 Loan Documents have not been modified, altered, or amended in any respect.
(3) The outstanding principal balance of the $160,000 Loan is $160,000.
(4) The interest rate of the $160,000 Loan is 0%.
(5) The $160,000 Loan becomes immediately due if Borrower sells, transfers, or alienates its interest in the Property or refinances any amount of the $160,000 Loan debt without the prior written consent of Agency or RASA.
(6) A Certificate of Completion was not recorded, but Agency issued the final disbursement for the $160,000 Loan after verifying that Borrower completed construction of the Center in accordance with the plans and specifications referred to in the Loan Agreement.
(7) There are no defaults by any party under the terms and provisions of the $160,000 Loan Documents, and there are no facts that, with the giving of notice or the passage of time, or both, would constitute a default or an event of default thereunder by any party under the terms and provisions of the $160,000 Loan Documents. There has been no failure by any party to perform or observe any covenants, provisions , or conditions under the $ 160,000 Loan Documents.
(8) There are no disputes between RASA and Borrower concerning the $ 160,000 Loan Documents. RASA has no pending claims or demands against Borrower or Trustor, as applicable, under the $160,000 Loan Documents.
(9) There are no delinquent sums owed by Borrower or Trustor, as applicable, to any party under the $160,000 Loan Documents.
(10) The improvements and uses located on the Property comply with the $160,000 Loan Documents.
(11) The $160,000 Loan Documents remain in full force and effect and represent legal, valid, and binding obligations of Borrower and are enforceable against Borrower in accordance with their terms. Borrower agrees that except as
otherwise provided in this Assignment Agreement, this Assignment Agreement does not diminish, impair, release , or relinquish the liens, powers, titles, security interests and rights securing or guaranteeing payment of the $160,000 Loan, including the validity or priority of the liens and security interests encumbering the Property identified in the $ 160,000 Loan Documents.
E. RASA hereby sells, assigns, conveys, transfers , and grants to City all of RASA’s right, title, and interest in, to and under the $160,000 Loan Documents, from and after the Effective Date . RASA retains all of the rights, obligations , and liabilities under the $160,000 Loan Documents to the extent such rights, obligations , and liabilities arose prior to the Effective Date and will indemnify the City for any liabilities that arose prior to the date of this Assignment Agreement.
F. This Assignment Agreement does not diminish, impair, release , or relinquish the liens, powers, titles, security interests, and rights of the City under the $160,000 Loan Documents.
G. City hereby certifies, acknowledges, and agrees as follows for the benefit of RASA:
(1) City hereby accepts all of RASA’s right, title, and interest in, to and under the $60,000 Loan Documents, and agrees to comply, from and after Effective Date with all of the terms of the $160,000 Loan Documents.
(2) Effective upon the Effective Date , the City will be the “Agency” under the $160,000 Loan Documents.
5. Regulatory Agreement. On October 11, 1988, Agency and Borrower entered into a Regulatory Agreement, recorded on March 27, 1989 in Book 890327, Page 0703 in the Sacramento County Official Records (“Regulatory Agreement”) to document the restrictions on the use, maintenance, and rental of the Property in accordance with the OPA , $266,000 Loan Documents, and $160,000 Loan Documents. The Regulatory Agreement had a term of 15 years, which commenced on October 11, 19 88, and expired on October 10, 2003 . RASA hereby certifies that Borrower complied with all covenants and operating requirements of the Regulatory Agreement during the term of the Regulatory Agreement. RASA and the City hereby agree that if the City elects to forgive either the $266,000 Loan or the $160,000 Loan, City will ensure that a new deed restriction is recorded on the Property ensuring (at a minimum) that the Center continues to be used as an affordable childcare facility.
6. No Representations. Except as provided in this Assignment Agreement, RASA has made no representations or warranties, either express or implied , regarding the Property and has no responsibility whatsoever with respect to the Property, its condition, or its use, occupancy or status.
7. Notices. Any notice which a party is required or may desire to give the other shall be addressed as follows (subject to the right of a party to designate a different address for itself):
To RASA:
Redevelopment Agency Successor Agency
915 I Street, 3rd Floor
Sacramento, California 95814
Attention: Leslie Fritzsche
To City:
City of Sacramento
915 I Street, 5th Floor
Sacramento, California 95814
Attention: Michael Jasso
8. Entire Agreement. This Assignment Agreement contains the entire agreement between the parties with respect to assignment of the Borrower Agreements.
9. Successors and Assigns. This Assignment Agreement and the terms and provisions hereof shall inure to the benefit of and be binding upon the heirs, successors , and assigns of the parties, subject to any provisions regarding assignment in the Borrower Agreements which will govern upon any inconsistency with this Assignment Agreement.
10. Governing Law. This Assignment Agreement shall be construed in accordance with the law of the State of California, and venue for any action under this Assignment Agreement shall be in Sacramento County, California.
11. Compliance with Laws. Both parties shall comply with all applicable federal, state, and local laws, regulations, and requirements in performing their respective obligations under this Assignment Agreement.
12. Counterparts. This Assignment Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and same instrument. The parties agree this document may be executed with electronic signatures.
13. Severability. If any term, covenant or condition of this Assignment Agreement is held to be invalid, illegal or unenforceable in any respect, this Assignment Agreement shall be construed without such term, covenant or condition and the validity or enforceability of the remaining terms, covenants or conditions shall not in any way be affected.
14. Authorization. By executing this Assignment Agreement, each of the signatories represents
and warrants, respectively, that they are authorized to execute this Assignment Agreement on behalf of the respective named party and the respective named party is authorized to enter into this Assignment Agreement.
[Signature Page Follows]
This Assignment Agreement has been entered into as of the Effective Date stated above.
SACRAMENTO CITY REDEVELOPMENT
AGENCY SUCCESSOR AGENCY
By:_______________________________
Michael Jasso, Assistant City Manager
APPROVED AS TO FORM:
By:________________________________
Senior Deputy City Attorney
ATTEST:
By: _______________________________
Assistant City Clerk
CITY OF SACRAMENTO
By:_______________________________
Michael Jasso, Assistant City Manager
APPROVED AS TO FORM:
By:________________________________
Senior Deputy City Attorney
ATTEST:
By: _______________________________
Assistant City Clerk
[Notary Page Follows]
State of California )
County of )
On , before me, , a Notary Public,
personally appeared , who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
State of California )
County of )
On , before me, , a Notary Public,
personally appeared , who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
Exhibit A
Legal Description of Property
All that certain real property situated in the City of Sacramento, County of Sacramento, State of California, described as follows:
Lots 13, 14 and 15 of Block 24 of “Amended Plat of West Del Paso Heights”, per the official map thereof, recorded in the office of the Recorder of Sacramento County, California, on December 5, 1911 in Book 12 of Maps, Map No. 52.
Attachment 3