To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Consent
SUBJECT:
title
Execution of a Subordination Agreement with the Samoa Pacific Group
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize the County Administrative Officer to sign the Subordination of Deed of Trust in Attachment 1.
Body
SOURCE OF FUNDING:
General Fund, Long Range Planning (1100282-9360)
DISCUSSION:
This item is a request from the Samoa Pacific Group (SPG) to subordinate the county's security interest on 82 properties in the Town of Samoa to the interest in the properties held by Pacific Western Bank. According to SPG representatives, release of the remaining $2 million of a $12 million loan from Pacific Western Bank approved on April 4, 2022 for funding infrastructure improvements in the Town of Samoa requires the county's approval of the attached subordination agreement.
Description of the County's Interest in the Town of Samoa
From 2014 to 2018 SPG recorded a series of three deeds of trust in favor of the county covering the Town of Samoa to secure $2,320,000 in Environmental Protection Agency (EPA) funding for lead abatement on 102 historic structures on the site. SPG was required by the California Coastal Commission to clean up the lead contamination as a condition of approval for subdivision of the property.
The term of the loan to SPG is 10 years with 0% interest. It requires SPG provide matching funds for 20% of the total cleanup cost. It also requires all lead abatement work to be completed by June 30, 2023, and full repayment of the loan by March 31, 2024.
Lead cleanup on 34 sites and structures were completed as of March 18 of this year including 32 homes, and two community (gym/community center) structures. Several more sites and structures have been cleaned up since then. The continued cleanup of homes and other structures is now being financed by SPG's sale of homes after they are cleaned up. ...
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