12-11-2012 CC RPT 43 - Laserfiche WebLink

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CITY OF ' �D City Council Memorandum mmuuuuwuuuuuuwuuuuuuuuuwuuuuuwumwuuuuuwuuuuuuuumuuuuuwuuuuuuwuuuuuuuwuuuuuuwum muuuuuwuuuuuwuunnmwuuuuuuwuuuuwuuuuuwuuuuuuwuuuuwuuuuuwuuuu� TO: HONORABLE MAYOR AND CITY COUNCIL DATE: December 11, 2012 FROM: PUBLIC WORKS DEPARTMENT ITEM NO: 43 WARD: 7 SUBJECT: SUBORDINATION AGREEMENTS FOR TRACT MAPS 29027, 28632 AND 28632-1 (RANCHO LA SIERRA) ISSUE: The issue for City Council consideration is approval of the attached Subordination Agreements between the City of Riverside and the property owners confirming the City's prior and superior lien rights on the properties within Tract Maps 29027, 28632 and 28632-1, which are located within the Rancho La Sierra Specific Plan. RECOMMENDATION: That the City Council approve the three attached Subordination Agreements and direct the City Manager or designee to execute the agreements. BACKGROUND: On June 6, 2006, the City Council approved final Tract Maps; 29027, 28632 and 28632-1, which subdivided approximately 252 vacant acres of land, located northerly of Arlington Avenue and westerly of Tyler Street, into 173 lots for residential and open space purposes and accepted the Subdivision Improvement Agreements. The City Council also approved and accepted a Deed of Trust for the properties in each Tract Map to guarantee installation of the improvements outlined in the Subdivision Improvement Agreement. The Subdivision Improvement Agreements and Deed of Trusts named the City of Riverside as the principal lien holder with superior rights on the property within the subdivisions. Recent changes to other deeds of trusts on the property, which are currently in foreclosure, require that the City's superior position on the Deeds of Trust be reaffirmed. The attached Subordination Agreements reaffirm the City's position as prior and superior lien holder on the properties. FISCAL IMPACT: There are no fiscal impacts to the City of Riverside by approval of the subordination agreements. 43-1