Approval of the Second Amendment to the Participation Agreement for 3535 Hayden Avenue. City of Culver City California Redevelopment Agency Agenda Item Report Meeting Date: 04/21/08 AGENDA ITEM: Approval of the Second Amendment to the Participation Agreement for 3535 Hayden Avenue. Item Number: A 2 Contact Person/Dept.: John Fisanotti Phone Number: (310) 253 5767 Fiscal Impact: Yes X No General Fund: Yes No X Public Hearing: Action Item: X Attachments: X Public Notification: Master Notification List on April 17 2008. Department Approval: Sol Blumenfeld (04/16/08) Fiscal Impact Review: Jeff Muir (04/17/08) Executive Director Approval: Jerry B. Fulwood (04/17/08) RECOMMENDATION: Staff recommends the Culver City Redevelopment Agency ( The Agency ) approve a proposed second amendment to the Participation Agreement with Frederick Smith for 3535 Hayden Avenue. BACKGROUND: Mr. Smith owns the property at 3535 Hayden Avenue (the Site ). On September 5 1995 the Agency approved a Participation Agreement (the Agreement ) with the firm of Pittard Sullivan ( PS ) and Mr. Smith. The Agreement provided a loan from the Agency to PS in the amount of $190 863.63 secured by a Deed of Trust recorded against the site and signed by Mr. Smith. The loan was an economic development effort used to attract this particular business from its prior location in Los Angeles to Culver City. The Agreement allowed repayment of the loan in the form of either: principal and interest payments or forgiveness of principal and interest if certain employment and gross receipt tax revenue targets were met by PS as spelled out in the Agreement. The Agreement was modified by the Agency on July 7 2003 to substitute tenants because by then PS had gone out of business and the form of security was changed from the Deed of Trust to a personal guarantee by Mr. Smith. By 2005 the new tenants had also gone out of business which according to the terms of the Agreement constituted a default. The responsible party for rep...
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