City Council
MEETING DATE: 5/27/2015
TITLE:
Title
Agreement to Reconvey Deed of Trust in Consideration or General Release of Liability
End
FROM:
Charles R. Green, City Attorney
RECOMMENDATION:
Recommendation
To approve the attached Agreement to Reconvey Deed of Trust in Consideration of General Release of Liability.
Body
BACKGROUND:
The City is currently in discussions with a certain developer to develop certain real property located in the Rio Vista/Verano area. In performing its due diligence, a recent preliminary title report shows that certain City-owned parcels are encumbered by a $35 million Deed of Trust.
On or about February 3, 2004, Vestin ("Vestin"), as defined in the attached Agreement, made a construction loan (the "Loan") in the amount of THIRTY FIVE MILLION AND NO/100 DOLLARS ($35,000,000.00) to Rio Vista Nevada, LLC a Nevada limited liability company ("Rio Vista"). The Loan was secured by, among other things, that certain Construction Deed of Trust, Assignment of Leases and Rent and Security Agreement dated on or about February 3, 2004 (the "Deed of Trust"), which was given by Rio Vista, as trustor, to First American Title Company, as trustee, for the benefit of Vestin, as beneficiary. The Deed of Trust was recorded in the Official Records of Riverside County (the "Official Records") on February 3, 2004 as Document Number 2004-0075872. The Deed of Trust encumbered all that certain real property consisting of fourteen (14) separate tax parcels (the "Property"). Subsequent to the recordation of the Deed of Trust, certain beneficial interests in the Deed of Trust were transferred from Vestin to the other Vestin Companies (as defined in the attached Agreement). In lieu of foreclosure, Rio Vista transferred the Property to PSRV pursuant to that certain Grant Deed dated October 2, 2006 and recorded in the Official Records on July 11, 2007, as Document Number 2007-0450576.
On or about October 4, 2011, the C...
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