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HomeMy WebLinkAbout1982-040 CRA .. -. . -8 . -. 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 ~~ 4-~fl;~ EXECUTIVE DIRECTOR APPROVED AS TO FORM: t:J--i J. C-,Ø4' ;;,. EDWARD J. COOPER / R. r. £ AGENCY LEGAL COUNSEL 2.~ 4A. ,. . . . . . 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 EXHiBiT A z. 1 4~ ". . . . . . 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. -2- Ltf.\ z.¡ '. ". . . . . . 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 -3- "LC 4A