CITY OF SAN MATEO
RESOLUTION NO. ____ (2024)
APPROVING A CHILD CARE FACILITIES FUND LOAN OF $1,143,800 TO MI SECOND CASA SPANISH IMMERSION PRESCHOOLS, INC. FOR TENANT IMPROVEMENTS AT 847-849 N. SAN MATEO DR. IN SAN MATEO TO
ESTABLISH A NEW CHILD CARE FACILITY AND AUTHORIZING THE EXECUTION OF LOAN DOCUMENTS
WHEREAS, the City Council has prioritized its commitment to providing and developing innovative approaches to increase the supply of child care spaces within our community and strives to serve as a model for other communities throughout the county and the country; and
WHEREAS, on November 15, 2021, the City Council adopted an ordinance codifying Chapter 23.65, “Child Care Development Fee;” and
WHEREAS, on August 15, 2022, the City Council approved the revision of the Interim Child Care Fund Guidelines facilitating the implementation of the Child Care Facilities Fund program; and
WHEREAS, in November 2022, the new Child Care Facilities Fund program was launched, allowing for access to funding assistance on an open and rolling basis; and
WHEREAS, in April 2023, the first request for financial assistance from the Child Care Facilities Fund was submitted; and
WHEREAS, a City staff reviewed the project application for viability and concurred in a recommendation of approval for a loan in the amount of $1,143,800 to Mi Second Casa Spanish Immersion Preschools, Inc for tenant improvements at 847-849 N. San Mateo Dr. in San Mateo to establish a new child care facility.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. The childcare facility is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)
2. Funds have previously been allocated to CIP project CHILD CARE FACILITIES 310600 with a balance of $1,800,000 and the loan will be drawn from project PRJ-00016.
3. The project loan listed below is approved and the City Manager or his designee is authorized to execute the loan documents, including the Loan Agreement Between the City of San Mateo and Mi Second Casa Spanish Immersion Preschools, Inc. (Exhibit 1), Promissory Note (Exhibit 2), Short Form Deed of Trust (Exhibit 3) and Agreement Containing Covenants Affecting Real Property (Exhibit 4) and any related documents that do not substantially change the loan terms, on behalf of the City:
a. Mi Second Casa Spanish Immersion Preschools, Inc. - $1,143,800
Exhibit 1
PROMISSORY NOTE
(San Mateo-Child Care Loan Program)
$1,143,800 San Mateo, California
October_, 2024
FOR VALUE RECEIVED, MI SECOND CASA SPANISH IMMERSION
PRESCHOOLS INC., a California S Corporation ("Borrower"), promises to pay to the City of San Mateo, a California municipal corporation ("Holder"), the principal sum of one million one hundred forty-three thousand and eight hundred Dollars ($1,143,800) plus interest thereon pursuant to Section 2 below. All capitalized terms used but not defined in this Promissory Note (the "Note") have the meanings set forth in the Loan Agreement (as defined below).
1. Borrower's Obligation. This Note evidences the Borrower's obligation to pay the Holder the principal amount of one million one hundred forty-three thousand and eight hundred Dollars ($1,143,800) loaned to Borrower by Holder pursuant to that certain Loan Agreement between Borrower and Holder of even date herewith (the "Loan Agreement").
2. Interest. Except as otherwise set forth herein, this Note does not bear interest. If a Default occurs, interest on the principal balance will begin to accrue as of the date of Default (following expiration of applicable notice and cure periods) and continuing until such time as the Loan funds are repaid in full or the Default is cured, at which time the accrued interest shall be automatically forgiven at the default rate of the lesser often percent (10%), compounded annually, or the highest rate permitted by law.
3. Term and Repayment Requirements. Annual forgiveness and payments due under this Note, if any, are due in accordance with this Note and as set forth in Section 2. 7 of the Loan Agreement.
4. No Assumption. This Note is not assumable by the successors and assigns of Borrower without the prior written consent of the Holder, except as may be otherwise set forth in the Loan Agreement.
5. Security. This Note is secured by that certain Short Form Deed of Trust and Assignment of Rents (the "Deed of Trust") wherein the Borrower is the trustor and the Holder is the beneficiary.
6. Terms of Payment.
(i) Borrower shall make all payments due under this Note in currency of the United States of America to Holder at the City of San Mateo, 330 W. 20th Avenue, San Mateo, CA 94403, Attn: Community Development Department, or such other place as Holder may from time to time designate.
660\01 \2572024.1
(a) All payments on this Note are without expense to Holder. Borrower shall 1 Exhibit 2
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403
Attention: Community Development Department
NO FEE FOR RECORDING PURSUANT
TO GOVERNMENT CODE SECTION 27383
SPACE ABOVE THIS LINE FOR RECORDER'S USE
SHORT FORM DEED OF TRUST AND ASSIGNMENT OF RENTS
This Deed of Trust, made as of October_, 2024, between, Michael Tejada and Graciela Tejada and Miguel Tejada, herein called Trustor,
whose address is: 601 RAND STREET
SAN MATEO, CA94401
First American Title Company, a California corporation, herein called Trustee, and the City of San Mateo, a California municipal corporation, herein called Beneficiary, Witnesseth: That Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to TRUSTEE IN TRUST, WITH POWER OF SALE, That property located at 601 Rand Street, San Mateo, California, 94401, described as follows:
SEE EXHIBIT A, incorporated herein by this reference
TOGETHER WITH the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right, power and authority given to and conferred upon Beneficiary by paragraph ( 10) of the provisions incorporated herein by reference to collect and apply such rents, issues and profits.
For the Purpose of Securing:
1. Performance of each agreement of Trustor incorporated by reference or contained herein. 2.
Payment of the indebtedness evidenced by one promissory note of even date herewith, and any extension or renewal thereof, in the principal sum of up to one million one hundred forty-three 660\01 \2574271.1 1
Exhibit 3
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403
Attention: Community Development Department
NO FEE FOR RECORDING PURSUANT
TO GOVERNMENT CODE SECTION 27383
AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY
(Child Care Loan Program)
This Agreement Containing Covenants Affecting Real Property (this "Agreement") is made and entered into as of October_, 2024 (the "Effective Date"), by and between the City of San Mateo, a California municipal corporation (the "City"), and MI SECOND CASA SPANISH IMMERSION PRESCHOOLS INC., an S Corporation, and its successors or assigns (collectively, the "Child Care Operator"), and Great Wall Advertising, a California Limited Liability Company (the "Owner"), with reference to the following facts, purposes, and understandings.
RECITALS
A. The Owner owns certain real property located at 847-849 N. San Mateo Dr, San Mateo, CA 94401 in the City of San Mateo, County of San Mateo, State of California, as more particularly described in Exhibit A (the "Property").
B. The Child Care Operator will operate a child care facility on the Property, as more particularly described in Exhibit A (the "Child Care Facility" as further defined below).
C. The Child Care Operator and the City are parties to that certain Loan Agreement dated as of October_, 2024 ( the "Loan Agreement"). Pursuant to the Loan Agreement, the City has made a loan to the Child Care Operator in the amount of one million one hundred forty-three thousand and eight hundred Dollars ($1,143,800) (the "Loan") for the development of an approximately six thousand six hundred sixty-eight (6,668) square foot childcare facility providing child care services for up to sixty (60) participants (the "Child Care Facility").
D. In addition to this Agreement, the Loan is evidenced by certain loan documents, as more particularly set forth in the Loan Agreement ( collectively, the "Loan Documents"), including, but not limited to a deed of trust executed by the Owner, as trustor, in favor of the City, as beneficiary, recorded against the Property (the "Deed of Trust") in the official records of the County of San Mateo (the "Official Records"). The City and the Owner desire to enter into 1 660\01 \2572014.2
Exhibit 4