RESOLUTION NO. 25-108
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AUTHORIZING EXECUTION OF A TRI-PARTY AGREEMENT, COLLATERAL ASSIGNMENT OF LEASE, AND MEMORANDUM OF AGREEMENT IN CONNECTION WITH AN SBA LOAN FOR SALTY TURF, LLC WHEREAS, the City of San Clemente (“City”) is the owner of certain real property located at 987 Avenida Vista Hermosa, San Clemente, California, APN 678-163-01, commonly known as a portion of the Vista Hermosa Sports Park (“the Property”); and WHEREAS, on April 1, 2024, the City entered into a lease agreement with Salty Turf, LLC (“Lessee”), a Delaware limited liability company, for the purpose of constructing and operating a miniature golf course on the Property; and WHEREAS, Salty Turf, LLC has applied for a Small Business Administration (SBA) 7(a) Construction-to-Permanent Loan in the amount of $3,900,000 from American Business Bank (“Lender”) to fund development of the leased premises; and WHEREAS, the Lender requires, as a condition of the loan, the execution of a Tri-Party Agreement, a Collateral Assignment of Lease, and a Memorandum of Tri-Party Agreement among the City, Lessee, and Lender to establish and secure the Lender’s rights in the leasehold estate and collateral; and WHEREAS, the City will retain full ownership of the Property and has determined that consenting to the loan documents is in the best interest of the City and the public interest and will facilitate a private recreational use that serves the community.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby resolve as follows:
SECTION 1. The City Council hereby approves the Tri-Party Agreement for Leasehold Mortgage, the Collateral Assignment of Lease, and the Memorandum of Tri-Party Agreement with the Lessee and the Lender.
SECTION 2. The City Manager is authorized and directed to execute the above-referenced agreements in forms substantially similar to those presented to the City Council on August 5, 2025, and any related documents or actions that are necessary and proper to accomplish the purposes of this resolution or implement the transaction, including requesting a copy of the final loan documents for City records.
SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this _____ day of ____________________, _______.
ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-108 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
Resolution No. 25-108 Page 2
Attachment 1