RPVCCA_CC_SR_2014_09_02_C_Release_Liens_Against_North_Windport_Canyon_PropertiesCfTYOF
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR & CITY COUNCIL MEMBERS
CAROLYNN PETRU, AICP, ACTING CITY MANAGE~
SEPTEMBER 2, 2014
REQUEST FOR RELEASE OF LIENS AGAINST NORTH
WINDPORT CANYON PROPERTIES (ASSESSOR'S
PARCEL NOS. 7583-022-012 & 7583-022-013)
Project Manager: Kit Fox, AICP, Senior Administrative Analyst@
RECOMMENDATION
Adopt Resolution No. 2014-_, thereby agreeing to forgive the interest accrued since
October 1, 1996, for the lien for $36,551.06 recorded on October 24, 1996, as Instrument
No. 96-1732129; and to release the lien for $6,450.19 recorded on October 24, 1996, as
Instrument No. 96-1732130.
DISCUSSION
At the City Council meeting on August 19, 2014, the City Council agreed to forgive the
accrued interest for the $36,551.06 lien against the larger of the two (2) parcels owned
by Friends of Chabad Lubavitch San Diego, Inc. (Chabad SD) in Windport Canyon (i.e.,
Scenario 3, as described in the August 19th Staff report). Therefore, Staff has prepared
the attached draft resolution to memorialize this decision. The resolution provides that
the City will recover the principal balance of $36,551.06 upon close of escrow for the sale
or transfer of either or both of the Chabad SD parcels in Windport Canyon.
Attachment:
• Draft Resolution No. 2014-_
M:\Finance\Release of Windport Canyon Liens\20140902_ StaffRpt_ CC.docx
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RESOLUTION NO. 2014-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES, AGREEING TO FORGIVE THE INTEREST ACCRUED
SINCE OCTOBER 1, 1996, FOR THE LIEN FOR $36,551.06 RECORDED
ON OCTOBER 24, 1996, AS INSTRUMENT NO. 96-1732129; AND TO
RELEASE THE LIEN FOR $6,450.19 RECORDED ON OCTOBER 24,
1996, AS INSTRUMENT NO. 96-1732130 FOR THE PROPERTIES
COMMONLY KNOWN AS "NORTH WINDPORT CANYON" (APNs 7583-
022-012 AND 7583-022-013)
WHEREAS, in July 1996, the City of Rancho Palos Verdes undertook the
abatement of a public nuisance on property commonly known as "Windport Canyon,"
consisting then of Assessor's Parcel Nos. 7583-022-012, 7583-022-013 and 7583-039-
030, and incurring total costs for said abatement of $43,001.25; and,
WHEREAS, on October 1, 1996, the City Council of the City of Rancho Palos
Verdes adopted Resolution No. 96-87, approving the report of nuisance abatement costs
for Windport Canyon and authorizing liens for such costs to be placed upon then
Assessor's Parcel Nos. 7583-022-013 and 7583-039-030; and,
WHEREAS, on October 24, 1996, the City caused liens to be recorded against
these parcels in the amounts of $36,551.06 against Assessor's Parcel No. 7583-022-013
(Instrument No. 96-1732129) and $6,450.19 against then Assessor's Parcel No. 7583-
039-030 (Instrument No. 96-1732130); and,
WHEREAS, in about 2000, Assessor's Parcel Nos. 7583-022-012 and 7583-022-
013, commonly known as "North Windport Canyon" were donated to Friends of Chabad
Lubavitch San Diego, Inc., (Chabad San Diego) by the previous property owner,
whereupon Chabad San Diego assumed ownership and responsibility for North Windport
Canyon; and,
WHEREAS, on January 21, 2010, the City received fee title to then Assessor's
Parcel No. 7583-039-030, commonly known as "South Windport Canyon," via Tax Deed
to Purchaser of Tax-Defaulted Property (Instrument No. 20100089227), thereby
effectively rendering moot the lien of $6,450.19 against South Windport Canyon
(Instrument No. 96-1732130), which Assessor's Parcel number is now 7583-039-900;
and,
WHEREAS, on June 23, 2014, upon learning of the existence of the above-
mentioned liens affecting North and South Windport Canyon, Chabad San Diego made a
request of the City for forgiveness of accrued interest and reduction in principal balance
for these liens affecting its property, which it now desires to sell.
WHEREAS, on August 19, 2014, and September 2, 2014, the City Council of the
City of Rancho Palos Verdes considered Chabad San Diego's request at regular City
Council meetings.
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NOW BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES:
Section 1: On the basis that A) Chabad San Diego is a non-profit organization
registered in the State of California and that the proceeds of the sale of the North Wind port
Canyon properties will benefit charitable and educational purposes; B) Chabad San Diego
has been an excellent steward of its properties since 2000, conducting annual weed
abatement and keeping the property taxes current; C) Chabad San Diego is a part of a
larger network of Chabad centers in California-including Chabad of Palos Verdes in
Rancho Palos Verdes-that provide a variety of charitable and educational services to
the residents of local communities, including the City of Rancho Palos Verdes; and
D) Chabad San Diego's acquisition of the properties in 2000 through a donation led to
greater complexity than would a sale, through which the existence of the liens would
presumably have come to light much sooner; the City Council agrees to forgive the
interest accrued since October 1, 1996, for the lien for $36,551.06 recorded on October
24, 1996, as Instrument No. 96-1732129. The principal balance of $36,551.06 shall be
payable to the City of Rancho Palos Verdes upon close of escrow for the sale or transfer
of either or both of the North Windport Canyon properties.
Section 2: On the basis that it was erroneously recorded against the title of the
North Windport Canyon properties in 1996 and should not have encumbered their title,
the City Council agrees to release the lien for $6,450.19 recorded on October 24, 1996,
as Instrument No. 96-1732130, plus any interest accrued thereon.
Section 3: The City Manager and City Clerk are authorized to execute and
cause to be recorded the necessary instrument(s) to effectuate the City Council's
decision.
Resolution No. 2014-
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PASSED, APPROVED, AND ADOPTED THIS nd DAY OF SEPTEMBER 2014.
Mayor
ATTEST:
City Clerk
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, CARLA MORREALE, City Clerk of the City of Rancho Palos Verdes, hereby certify that
the above Resolution No. 2014-_ was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on September_, 2014.
City Clerk
M:\Finance\Release of Windport Canyon Liens\20140902_Reso_CC.docx
Resolution No. 2014-
Page 3 of 3
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