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Home My Public Portal About2021.036 - (04-06-21) RESOLUTION NO. 2021.036 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REQUESTING THE FEDERAL GOVERNMENT, THE STATE OF CALIFORNIA AND THE COUNTY OF LOS ANGELES TO FORMERLY ADOPT LEGISLATION PROHIBITING LENDERS OF FINANCIAL INSTITUTIONS FROM FORECLOSING ON COMMERCIAL PROPERTY OWNERS DURING THE PENDENCY OF THE STATE OF CALIFORNIA'S "STATE OF EMERGENCY" AS DECLARED BY GOVERNOR NEWSOM WHEREAS, international, national, state, and local health and governmental authorities are responding to a pandemic outbreak of a respiratory disease caused by a novel coronavirus now known as COVID-19; and WHEREAS, the Federal Government, the State of California and the County of Los Angeles have adopted legislation to address various economic hardships and provide relief to members of the public; and WHEREAS, on March 4, 2020, California Governor Gavin Newsom proclaimed a "state of emergency" throughout the State of California in response to COVID-19, and in furtherance of this proclamation has issued several Executive Orders that include extraordinary measures directed at slowing the spread of COVID-19 and reducing impacts to residents and businesses; and WHEREAS, since the initial declaration of a "state of emergency" Governor Newsom has issued additional Executive Orders in an effort to address the circumstances surrounding the impacts created by COVID-19; and WHEREAS, on March 16, 2020, the City Council of the City of Lynwood adopted Resolution No. 2020.041, which confirmed the existence of a local emergency related to the COVID-19 Pandemic to allow prompt response to emergency conditions at the local level, and provide the City access to federal, state, and local resources during the crisis; and WHEREAS, the proclamation of local emergency has been deemed to continue to exist until it is terminated by the City Council of the City of Lynwood pursuant to Resolution No. 2020.041; and WHEREAS, a statewide shutdown of particular businesses, especially restaurants, indoor malls, gyms, and other venues that include public gathering, occurred in March of 2020 due to the pandemic; and WHEREAS, the state of emergency continues to exist more than 13 months later; and 1 WHEREAS, due to the continuation of the COVID-19 "state of emergency", businesses in the City of Lynwood have faced governmental restrictions forcing them to temporarily close or severely limit operations as health regulations have been revised overtime; and WHEREAS, it is in the best interest of the City of Lynwood to encourage and facilitate stability in its business community, as businesses prepare to eventually open up; and WHEREAS, when open, and at typical capacity, the City of Lynwood business community contributes substantially to the overall success of the State of California, County of Los Angeles and the City of Lynwood's economy. The business community's survival and success is a major component of the future success of Lynwood as other development project's and public improvements fall into place. Without a successful business community, the City of Lynwood will lose significant businesses throughout the City and along with those losses, the City will suffer significant revenue loss and the community will be face with the loss of reduced lodging, dining, shopping and foot traffic; and WHEREAS, since March 2020, the businesses in Lynwood have been primarily closed to the public and this closure has resulted in significant economic hardships to the businesses and the City of Lynwood; and WHEREAS, the impact of the COVID-19 closure of the businesses have been felt by both leaseholders and property owners of commercial properties; and WHEREAS, the property owners have reported advising their lenders that their failure to make loan payments is solely based on the pandemic and loss of revenue from businesses unable to make lease payments; and WHEREAS, property owners are seeking to delay foreclosure procedures to allow time for businesses to recoup their losses and get caught up on lease payments, which will allow property owners to be made whole and able to make loan payments; and WHEREAS, the City of Lynwood supports a delay on the foreclosure procedures of properties that have been impacted by COVID-19; and WHEREAS, vaccines have emerged in recent months that present an opportunity for the eventual opening of businesses to one-hundred percent of capacity in the City of Lynwood. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS: Section 1. The above recitations are true and correct.. 2 Section 2. The City Council of the City of Lynwood finds that the' continuity of ownership and tenancies is important for re-opening the City and commercial properties are a key part of the City's successful economy. Section 3. The City Council of the City of Lynwood encourages lenders of commercial properties to refrain from foreclosing on the properties. Lenders are further encouraged to be open to reasonable terms for repayments of back payments. Section 4. The City Council of the City of Lynwood formerly requests that the Federal Government, the State of California and the County of Los Angeles adopt legislation to protect commercial property owners from commercial foreclosure actions and prohibit lenders of financial institutions from foreclosing on commercial property owners during the pendency of State of California's "state of emergency" as declared by Governor Newsom. Section 5. The City Council of the City of Lynwood also requests that any adopted legislation provide commercial property owners up to six months following the expiration of the State of California's "state of emergency"to repay any and all back payments due to the financial institution. Section 6. The City Council of the City of Lynwood directs the City Manager, or his designee, to send a certified copy of this resolution to the U.S. Department of Housing & Urban Development (HUD), California Governor's Office, and the County of Los Angeles Board of Supervisors. Section 7. The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APP r-OVED AND ADOPTED this 6th day of April_ Myl ,Jdayor TTEST: .. • / Maria Quinonez, City Clerk PP,"OVED AS TO FORM APPROVE[* AT TO CONTI. NT Noel Tapia, Ernie Herna.0., City Attorney City Manager 3 STATE OF CALIFORNIA ) ) § COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of said City at its special meeting thereof held in the City Hall of the City on the 6t" day of April, 2021 and passed by the following vote: AYES: COUNCIL MEMBERS FLORES, SOLACHE, SOTO, MAYOR PRO TEM CASANOVA AND MAYOR SANTANA NOES: NONE • ABSTAIN: NONE ABSENT: NONE 4/tiOria40 °- aria Quinonez, City Clerk STATE OF CALIFORNIA ) ) § COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. 2021.036 on file in my office and that said resolution was adopted on the date and by the vote therein stated. Dated this 6t" day of April, 2021. t/A.44a aria Quinonez, City Clerk 4