07-24-2017 BPU RPT 04 - Laserfiche WebLink

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W A T E R E N E R C Y I RIVERSIDE PUBLIC UTILITIES WI& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JULY 24, 2017 ITEM NO: 4 SUBJECT: CONSENT TO ENCUMBRANCE AND ESTOPPEL CERTIFICATE WITH JVE HOLDING, LLC AND COMMONWEALTH BUSINESS BANK — 1408-1520 SOUTH E STREET, SAN BERNARDINO, CALIFORNIA ISSUE: Recommend that the City Council approve a Consent to Encumbrance and Estoppel Certificate with JVE Holding, LLC, as Tenant and Commonwealth Business Bank, as Lender, on Riverside Public Utilities (RPU) owned property located at 1408-1520 South E Street in San Bernardino, California. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the Consent to Encumbrance and Estoppel Certificate with JVE Holding, LLC and Commonwealth Business Bank; and 2. Authorize the City Manager, or his designee, to execute the Consent to Encumbrance and Estoppel Certificate, including making minor non -substantive changes, and to sign all documents necessary to complete the transaction. BACKGROUND: The City, through Riverside Public Utilities (RPU), 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 commercial 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). On October 15, 2015, the Board of Public Utilities approved a Consent and Estoppel Certificate between the Tenant and Commonwealth Business Bank (Lender) allowing the Tenant to refinance their mortgage in the amount of one million three hundred thousand dollars ($1,300,000.00). On November 10, 2015, City Council approved the Consent and Estoppel Certificate. The Tenant refinanced their mortgage on the Property shortly thereafter.