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RIVERSIDE RIVERSIDE City 9f Arts &Innovation City Council Memorandum IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 1111111111111111111111111111111111111111111111111 1111111111111111111111111111111111111111111111111 11111111111111111 TO: HONORABLE MAYOR AND CITY COUNCIL DATE: NOVEMBER 10, 2015 FROM: PUBLIC UTILITIES DEPARTMENT WARDS: ALL SUBJECT: CONSENT TO ENCUMBRANCE AND ESTOPPEL CERTIFICATE WITH JVE HOLDING, LLC AND COMMONWEALTH BUSINESS BANK— 1408-1520 SOUTH E STREET, SAN BERNARDINO CALIFORNIA ISSUES: The issue for City Council consideration is approval of the Consent to Encumbrance and Estoppel Certificate with JVE Holding, LLC, as Tenant and Commonwealth Business Bank, as Lender, on Riverside Public Utilities (RPU) owned properties located at 1408 -1520 South E. Street in San Bernardino, California, as part of the Tenant's mortgage refinancing. RECOMMENDATIONS: That the City Council: 1. Approve the Consent to Encumbrance and Estoppel Certificate with JVE Holding, LLC, and Commonwealth Business Bank for the current Tenant's building mortgage refinancing; and 2. Authorize the City Manager or his designee to execute all necessary documents, including making minor non - substantive changes to those documents. BOARD RECOMMENDATION: On October 16, 2015, the Board of Public Utilities, voted to recommend City Council approve the Consent to Encumbrance and Estoppel Certificate with JVE Holding, LLC, and Commonwealth Business Bank. BACKGROUND: The City of Riverside (City), through Riverside Public Utilities, owns the 5.13 -acre parcel of land at 1408 -1520 South E Street in San Bernardino (Property). The property was first developed by a tenant in 1985 and has various retail buildings which are subleased to small businesses. In December 2012, City Council approved a new 55 -year ground lease (Lease) with CRE Retail, LLC for commercial, office and retail use of the Property. On October 15, 2014, CRE Retail assigned its rights and obligations under the lease to JVE Holding, LLC (Tenant).