REQUEST FOR CITY COUNCIL ACTION AND
CORONA HOUSING AUTHORITY ACTION
DATE: 07/19/2023
TO: Honorable Mayor and City Council Members
Honorable Chairman and Board of Commissioners
FROM: Office of Economic Development
SUBJECT:
Title
APPROVAL OF AMENDMENT NO. 3A TO DISPOSITION AND DEVELOPMENT AGREEMENT WITH LAB HOLDING, LLC (AUTHORITY SOUTH MALL PROPERTY - REST AREA, LLC) AND FIRST AMENDMENT TO PROMISSORY NOTE SECURED BY DEED OF TRUST (AUTHORITY SOUTH MALL PROPERTY)
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EXECUTIVE SUMMARY:
This staff report asks the City Council to approve Amendment No. 3A to the Disposition and Development Agreement between the City, the Corona Housing Authority and Lab Holding LLC, as well as the First Amendment to the Promissory Note Secured by Deed of Trust pertaining to the South Mall Property, which will extend that due date for the balloon payment required under the promissory note to the earlier of June 1, 2024 or the date construction on the South Mall Property is complete. Lab Holding has reserved the necessary funds to pay off the promissory note as part of their construction funding for the project on the South Mall Property, but the lender will not release these funds until construction is complete. Construction of the project on the South Mall Property continues and is expected to be completed soon, but Lab Holding has requested an extension of the due date for the balloon payment because there is an unanticipated delay in securing the switchgear that is needed in order to provide a permanent source of electricity for the project.
RECOMMENDED ACTION:
Recommended action
That the City Council approve Amendment No. 3A to Disposition and Development Agreement with Lab Holding, LLC (Authority South Mall Property - Rest Area, LLC.
That the Corona Housing Authority:
a. Approve Amendment No. 3A to Disposition and Development Agreement with Lab Holding, LLC (Authority South Mall Property - Rest Area, LLC).
b. Approve the First Amendment to Promissory Note ...
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