Resolution of the City Council of the City of Rocklin Authorizing the City Manager to Execute an Agreement to Terminate the Whitney Ranch Apartments Project Fee Deferral and Letter of Credit Agreement

Adopt a Resolution of the City Council of the City of Rocklin Authorizing the City Manager to Execute an Agreement to Terminate the Whitney Ranch Apartments Project Fee Deferral and Letter of Credit Agreement

Whitney Ranch Apartments is a low- and moderate-income apartment complex located at 711 University Avenue in Whitney Ranch. During the development approval process the City Council adopted Resolution 2008-313, which approved the deferral of certain developer impact fees. The fee deferral was to be supported by Letter of Credit.

The Whitney Ranch Apartments Project Fee Deferral and Letter of Credit Agreement (the “Agreement”) was signed by Whitney Rocklin L.P. (the “Developer”) and the City. The Agreement was recorded April 1, 2009 at the Placer County Recorder. Subsequently a Letter of Credit was issued by Bank of the West on April 3, 2009 in the amount of $963,362 for a period of one year.

The developer impact fees were paid timely, and the City of Rocklin issued a Letter of Credit Cancellation to Bank of West on January 20, 2010.

The Developer wishes to sell its interest in Whitney Ranch Apartments. A title search revealed that a termination of the Agreement was never recorded. The Developer requests that the City sign a termination agreement so the sale process can continue.