ACTION:
____________________________
Clerk/Secretary
Department: City Manager Item No: C10
Prepared by: John Conley, City Manager Meeting Date: April 14, 2026 Approved by:
Imelda Huerta, Assistant City Manager
John Conley, City Manager Agenda Location: Consent Calendar S
UBJECT: LOAN AGREEMENT FOR BUILDING DEMOLITION AT 165 EUCALYPTUS AVENUE RE
COMMENDATION: Adopt City Council Resolution No. 2026 - , approving a Secured Promissory Note and Deed of T rust for a $500,000 loan to LLJ Cross Park, LLC, to facilitate demolition of the existing structures located at 165 Eucalyptus Avenue (APN 175-306-11-00).
CO
RRELATION TO CITY COUNCIL GOALS: A Cleaner, More Beautiful Vista P
RIOR ACTION: On March 10, 2026, approved City Council Resolution No. 2026 -44, declaring that the property at 165 Eucalyptus Ave (APN 175-306-11-00) constitutes a public nuisance and authorizing the City Manager to abate the public nuisance (Vote: 5-0).
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TATEMENT ON THE SUBJECT: On March 10, 2026, the City Council declared the property at 165 Eucalyptus Avenue a public nuisance and authorized the City Manager to abate the nuisance. Since that time, staff have been coordinating with representatives of the property owner, LLJ Cross Park, LLC, to secure the property, provide full-time security for the site, and initiate demolition activities on the remaining structures.
The pr
operty owner’s representatives are actively working with a contractor and the affected utility providers to demolish the remaining structures on the property. The cost estimate to perform demolition on this property is $500,000. The property owner’s representatives initially indicated to staff that they intend to start demolition activities once financing of a future development project on the site is secured, which is anticipated in January, 2027. In an effort to expedite demolition and address the public health and safety concerns related to the remining buildings on the site, staff is recommending a loan to the property owner to allow demolition to proceed as soon as possible.
The
proposed loan includes a promissory note (Exhibit 2), detailing the terms of the loan and deed of trust (Exhibit 3), securing the loan with the subject property as collateral. Staff is recommending a market rate of
6.25% interest, with a two- year term to allow demolition, completion of project financing, and repayment.
The estimated value of the subject property is $7,548,000 based on the latest Assessor’s records. There are currently no recorded liens on the property securing any outstanding loans.
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taff recommend approval of the Secured Promissory Note and Deed of Trust with the noted terms and authorizing the City Manager, or designee, to take all actions necessary pertaining to amendments to the loan agreement.
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
Approved above recommendation, adopted City Council Resolution No. 2026-66. Vote: 5-0