HomeMy WebLinkAbout1985-46 CRA
RESOLUTION NO. 85-46
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A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA AUTHORIZING
THE REFINANCING OF A REHABILITATION LOAN
SECURED BY PROPERTY LOCATED AT 505 NORTH
MAIN STREET
WHEREAS, the Community Redevelopment Agency of the City
of Santa Ana made a loan of One Hundred Fifty-Two Thousand Six
Hundred Sixty-Five Dollars ($152,665.00) to 505 North Main Street
Company, a California general partnership, to provide partial
funding for the rehabilitation of an office building located at
505 North Main Street in the City of Santa Ana; and
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WHEREAS, the obligation to repay said loan is evidenced
by a promissory note dated April 27,1983 (hereinafter the "1983
Note") by which 505 North Main Street Company, a California general
partnership, undertook to pay the principal sum of One Hundred
Fifty-Two Thousand Six Hundred Sixty-Five Dollars ($152,665.00)
with interest thereon from the date of said note on unpaid principal
at the rate of ten and 5/16 percent (10.3125%) per annum, to the
Agency on or before December 21, 1985, and
WHEREAS, the said 1983 Note is secured by a deed of
trust of the same date on the abovesaid real property, duly
recorded in the records of Orange County (hereinafter, the "1983
Trust Deed"); and
WHEREAS, 505 North Main Street Company, a California
general partnership, now requests the refinancing of the abovesaid
loan and the Agency agrees to such refinancing on the terms and
conditions hereinafter set forth;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AS FOLLOWS:
1. The Executive Director of the Agency is authorized to
cancel the 1983 Note and reconvey the Agency's interest under the
1983 Trust Deed, subject to the following terms and conditions:
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(a) 505 North Main Street Company, a California general
partnership, shall duly execute and deliver to the Agency, through
escrow, a new promissory note in the principal amount of One
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Hundred Fifty-Two Thousand Six Hundred Sixty-Five Dollars
($152,665.00)plus accrued interest (hereinafter, the "New Note")
and a new deed of trust, securing the same with the subject
property (hereinafter the "New Deed of Trust").
(b) The New Note shall bear interest at the rate of ten
percent (10%) per annum.
(c) The New Note shall provide that all profit received
by the borrower from the rental of space in the subject property
shall be paid to the Agency on an annual basis until the New Note
is paid in full; provided, however, that in the event that such
profit is insufficient in any given payment year to pay interest
due for that year, the amount of the deficiency for that year
shall be waived and forgiven by the Agency;
(d) The New Note shall provide for adequate financial
reports from the borrower to determine that payments are made as
required.
(e) The lien of the New Trust Deed shall be subordinate
only to the liens of trust deeds securing an indebtedness of not
more than One Hundred Seventy-Five Thousand Dollars ($175,000.00)
held by The Church of Jesus Christ of Latter Day Saints and Two
Hundred Eighty-Seven Thousand Five Hundred Dollars ($287,500.00)
held by Wells Fargo Bank, and to such other minor liens as the
Executive Director may determine to be acceptable.
(f) The borrower shall provide satisfactory evidence
of title to the subject property, subject only to such easements
or other encumbrances as the Executive Director may determine to
be acceptable,
BE IT FURTHER RESOLVED that the Executive Director is
authorized to take such actions on behalf of the Agency as are
appropriate to carry out the above described refinancing, including,
but not limited to the signing of all appropriate documents, the
establishment of a loan escrow, and execution of agreements with
the borrower, including joint escrow instructions, and in so
doing to impose such requirements as he deems appropriate for the
protection of the Agency's interest.
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ADOPTED this
following vote:
22nd day of
AYES:
MEMBERS
NOES:
MEMBERS
ABSENT:
MEMBERS
~kt%
Rex S son
Executive Director and
Recording Secretary
APPROVED AS TO FORM:
er
ounsel
October
, 1985, by the
Griset, Johnson, Luxembourger,
McGuigan, and Young
None
Acosta, Hart, and Morgan
w
Daniel E. Griset
Chairman
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