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Agenda Item 31.

City Council Meeting

Meeting Date:	10/19/2021
FROM:	Bill Gallardo

Subject:

Estoppel Certificate and Agreement of Lessor and Reaffirmation of Estoppel Certificate and Agreement of Lessor related to the City's Retail Commercial Parcel located at 910 E. Birch Street (Lessee: Nesbitt Partners Brea Venture, Ltd.)

RECOMMENDATION

Authorize the City Manager to execute the attached Estoppel Certificate and Agreement of Lessor (Estoppel Certificate) and Reaffirmation of Estoppel Certificate and Agreement of Lessor (Reaffirmation) in favor of Bank Leumi USA (Bank Leumi) related to an amendment to loan documents between Nesbitt Partners Brea Venture, Ltd. (Nesbitt) and its lender, Bank Leumi.

BACKGROUND/DISCUSSION

The City of Brea owns property located at 900 and 910 E. Birch Street, adjacent to the Brea Civic and Cultural Center. The properties are occupied by Embassy Suites Hotel and a Retail Commercial Center, respectively through a ground sublease with Nesbitt.

From time to time, Nesbitt requires the City to execute an Estoppel Certificate to confirm the terms of the ground sublease to a lender. At this time, Nesbitt is amending its loan documents with Bank Leumi and Nesbitt is requesting that the City execute the attached Estoppel Certificate and the attached Reaffirmation. The proposed Estoppel Certificate and Reaffirmation have been reviewed by the City Attorney's office and are consistent with similar document previously executed by the City.

FISCAL IMPACT/SUMMARY

There is no fiscal impact to the City related to this action.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Cindy Russell, Administrative Services Director

Attachments
Estoppel Certificate
Reaffirmation