HomeMy WebLinkAbout1982-040 CRA
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RESOLUTION NO. 82-40
A RESOLUTION OF THE REDEVELOPMENT COMMISSION OF
THE CITY OF SANTA ANA APPROVING A PERMANENT LOAN
COMMITMENT TO ELIZABETH PHILLIPS, LOUISE HUTTON
AND AUDREY E. PHILLIPS FOR REHABILITATION OF
PROPERTY AT 301/305 WEST FOURTH STREET AND 410
NORTH BROADWAY
BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT
COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS:
A Permanent Loan Commitment to Elizabeth Phillips,
Louise Hutton and Audrey E. Phillips, for the rehabilitation
of property located at 301/305 West Fourth Street and 4l0
North Broadway, subject to the terms and conditions set
forth in Exhibit A, attached hereto and incorporated by
reference herein, is hereby approved.
ADOPTED this 6th day of
1982, by the following vote:
July
REL: jd
6/29/82
MEMBERS: Coil, Burton, Jessee, Kane, McLean,
Newcomb
MEMBERS: None
AYES:
NOES:
ABSENT:
MEMBERS: Nalle
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EXECUTIVE DIRECTOR
APPROVED AS TO FORM:
t:J--i J. C-,Ø4' ;;,.
EDWARD J. COOPER / R. r. £
AGENCY LEGAL COUNSEL
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CITY OF SANTA ANA
COMMUNITY REDEVELOPMENT AGENCY
20 CIVIC CENTER PLAZA. SANTA ANA. CALIFORNIA 92701
July 6,1982
Elizabeth Phillips, Louise Hutton,
and Audrey E. Phillips
301/305 W. Fourth Street
Santa Ana, CA 92702
Re:
Permanent Loan Commitment
Rehabilitation Project
301/305 W. Fourth Street
and 410 N. Broadway
Dear Participants:
We are pleased to advise you that the Community
Redevelopment Agency of the City of Santa Ana (the "Agency")
hereby commits to make a permanent loan (the "Loan") upon
the security of the real property and improvements located
at 301/305 W. Fourth Street and 410 No. Broadway in the City
of Santa Ana, in accordance with the subject to all the
terms and conditions set forth in that certain Project
Agreement (301/305 W. 4th Street) (the "Project Agreement")
dated as of December 1,1981, among the Agency, Wells Fargo
Bank, National Association ("Bank") and you (the "Project
Agreement") and that certain Commercial Rehabilitation
Participation Agreement dated August 17,1981, between
Agency and you, as amended by the Project Agreement (as so
amended, the "Participation Agreement"). Without limitation
of any such terms and conditions, the principal terms of the
Loan are as follows:
1. The principal amount of the Loan shall be
$350,000.00.
The Loan shall be evidenced by a promissory note
("Participant Note") executed by Elizabeth Phillips, Louise
Hutton, and Audrey E. Phillips in the form of Exhibit C to
the Project Agreement.
3. The Loan shall bear interest and be payable as
provided in the participant Note. The rate of interest on
the Participant Note from the date thereof to December 1,
1986 shall be 11.5375% per annum (calculated on a Base Rate,
as defined in the Participant Note, on December 1,1981 of
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11.5%). The rate of interest will be adjusted on December
1,1986 in accordance with the Bank's Base Rate in effect on
December 1,1986. The amount of the monthly installments of
principal and interest payable from January 1,1982 to
December 1, 1986 shall be $3476.04. The amount of the
monthly installments due from and after January 1,1987 will
be adjusted as necessary to reflect any change made on
December 1,1986 in the rate of interest.
4. All obligations evidenced by the Participant Note
shall be guaranteed by Elizabeth Phillips, Louise Hutton,
and Audrey E. Phillips.
5. Prior to or concurrent with your acceptance of
this Commitment, you shall pay the following amounts to the
Agency, or execute and deliver to the Agency the enclosed
Promissory Note for the sum thereof:
Professional Services Cost:
Reimbursement per Sections l2(b) and 16
of the Participation Agreement... $23,927.00
2% Fee per Section 15 of the
Participation Agreement ......... $ 7,000.00
$30,927.00
If and when escrow closes on the Loan, you shall be required
to pay an additional 3 percent fee in the amount of
$10,500.00, in accordance with Section 15 of the
Participation Agreement.
6.
This Commitment shall expire on October 20,1982.
Reference is hereby made to Section 8 of the Project
Agreement and to the Standard Terms and Conditions (as
modified by said Section 8) set forth as Exhibit C to the
Participation Agreement for a statement of the terms and
conditions to which this Commitment is subject. Copies of
said Section 8 and said Standard Terms and Conditions are
attached hereto for your convenience. Please note the lease
and income coverage requirements of Section 8.2.2 of the
Project Agreement. Nothing herein changes or waives any
. conditions to this Commitment, as set forth in Section 8 and
the Standard Terms and Conditions.
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This Commitment has been approved by the Redevelopment
Commission of the City of Santa Ana at its meeting of July
6, 1982.
This Commitment may not be assigned.
Very truly yours,
Rex Swanson
Executive Director
RS:ag
ACCEPTANCE
The undersigned hereby accepts the above
Commitment and agrees to be bound by the terms and
conditions set forth or referenced therein. The undersigned
acknowledges that the Agency will assign its rights in the
subject loan as security for a loan obtained by the Agency
from Wells Fargo Bank in contemplation of the subject Loan,
and that Agency is not obligated to make the subject Loan
except from the proceeds of the loan obtained from said
Bank.
Dated:
Elizabeth Phillips
Louise Hutton
Audrey E. Phillips
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