REPORT TO COUNCIL AND SPORTS AND OPEN SPACE AUTHORITY
SUBJECT
Title
Action to Adopt Resolutions Authorizing the Removal of Financing Encumbrances from the Title on Santa Clara Golf & Tennis Property
Report
BACKGROUND
On June 28, 2016, Council approved a Disposition and Development Agreement (DDA), a Development Agreement (DA) and project entitlements for the Related Santa Clara Project (the "Project," also known as City Place). The Project involves 240 acres of development in several phases on land principally used at Santa Clara Golf & Tennis (Property).
There are a number of encumbrances recorded against title on the Property. Under the terms of the DDA, the City agreed among other items, to remove certain recorded encumbrances prior to the conveyance of a Ground Lease.
Between 1987 and 2002, the City obtained bonds to finance the development of the Santa Clara Golf & Tennis and other public improvements. A series of leases and lease-back arrangements (Financing Leases) were made between the City and the Sports & Open Space Authority (SOSA) to provide security for the bonds.
The bonds have now been paid in full and the City's obligations have been satisfied. Therefore, there is no further need for any of the Financing Leases. All entities with interest in the Financing Leases concur that the encumbrances can be removed. The title company will require the City and SOSA to provide confirmation that the financial encumbrances on title have been terminated and their obligations satisfied before they can be removed from title.
DISCUSSION
As a condition precedent to lease of the Property to the developer, the City agreed to remove certain title encumbrances. Removing the title encumbrances allows for Related to obtain title insurance without exceptions related to the Financing Leases.
In order to remove the exceptions, four documents (attached), must be executed by the City and SOSA and recorded (Financing Lease Quitclaims). Three of the document...
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