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HomeMy WebLinkAbout1980-066 CRA . I . 8 ~,J REL:adg 6/4/80 RESOLUTION NO. 80-66 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE CHAIRMAN TO EXECUTE A REVOLVING LOAN AGREEMENT BRTWEEN THE AGENCY AND SYLVIA JACKMAN, ET AL. BE IT RESOLVED by the Community Redevelopment Agency of the City of Santa Ana as follows: 1. The Chairman of the Agency is hereby authorized to execute that certain agreement entitled "Revolving Loan Agreement," form dated Rev. 5/7/80 , between the Agency and Sylvia Jackman, et al., coples of which are on file in the office of the Executive Director of the Agency and to which reference is hereby made for full particulars. 2. The Executive Director is hereby authorized to take all steps, and to sign all documents and instruments necessary to implement and carry out the Agreement on behalf of the Agency. ADOPTED this 16th day of 1980, by the following vote: June MEMBERS: Bricken, Griset, Luxembourger, Serrato, Yamamoto MEMBERS: None AYES: NOES: ABSENT: MEMBERS: Ward, Markel A~~ %.f:;úJ~ DÞ.: ID N. EAM 0 CHAII EXECUTIVE DIRECTOR/ RECORDING SECRETARY APPROVED AS TO FORM: e {/7IP , ~ AGENCY LEGAL COUNSEL 4;;. 58 '/' . I . I BEL:adg 4/9/80 Bev.5/7/80 REVOLVING LOAN AGREEMENT THIS AGREEMENT, made and entered into this day of , 1980, by and between the Community Redevelopment Agency of the City of Sant6 Ana, a public body, corporate and politic ("AGENCY"), and Sylvia Jackman, James A. Jackman, Karen Jackman, Richard Jackman, Nadine Jackman, Andrew Jackman, Joann Jackman, and Robert Jackman ("PARTICIPANT"), W-I-T-N-E-S-S-E-T-H Recitals: A. AGENCY and PARTICIPANT have previously entered into that certain agreement entitled "Commercial Rehabilitation Participation Agreement," dated , 19 -' hereinafter referred to as "said agreement," the purpose of which is to cause the rehabilitation of the improvements on PARTICIPANT'S real property as therein described. B. In accordance with said agreement, PARTICIPANT is obligated to seek financing for said rehabilitation work, and, if approved, PARTICIP~NT will thereafter become obligated for certain costs and will experience certain income losses prior to permanent financing. C. The parties hereto desire to provide for a noninterest bearing loan from AGENCY to PARTICIPANT on the . terms and conditions herein stated to defray the costs and losses as aforesaid and for the method of repayment of said loan. 13 58 . 8 . I " WHEREFORE, for and in consideration of their mutual covenants and promises hereinafter set forth, and subject to all the terms, conditions, limitations and other provisions of this agreement, the parties hereto do hereby agree as follows: AGENCY agrees to lend to PARTICIPANT an amount not exceed ing ($ (tl said loan") on the following terms and conditions: (a) Said loan shall only be made to defray the costs allowable pursuant to the "development budget," attached hereto as "Exhibit A" and in- corporated herein by reference. (b) The proceeds of said loan shall be provided to pARTICIPANT in monthly increments in accordance with the "development schedule," attached hereto as "Exhibit B" and incorporated herein by reference, subject to verification on a form ftnd in the manner as required by the Executive Director of AGENCY, showing that PARTICIPANT has previously paid or incurred allowable expenses as reflected in "Exhibit A," the "development budget." (c) Each monthly increment borrowed by PARTICIPANT as hereinabove provided shall be evidenced by PARTICIPANT'S separate promissory note, the form of which is shown on "Exhibit C," attached hereto and incorporated herein by reference. (d) Said loan shall not bear interest and shall be repaid as hereinafter provided. 2. 4.1- 58 . . . t 2. AGENCY and PARTICIPANT agreed in said agreement to open an escrow with First American Title Insurance Company, 114 E. Fifth Street, Santa Ana, California 92702, hereinafter referred to as "said e~crow." AGENCY and PARTICIPANT agree that said loan shall be ppid by PARTICIPANT through said escrow in accordance with "Exhibit D," "escrow instructions," attachèd hereto and incorporated herein by reference. 3. Notwithstanding paragraph 2, hereinabove, PARTICIPANT may otherwise repay said loan in whole or in part at any time prior to the close of said escrow. 4. On breach by PARTICIPANT of said agreement, this agreement, or of any promissory note or notes hereunder, AGENCY may declare the loan immediately due and payable, and thereupon AGENCY shall be released from any and all obligations to PARTICIPANT hereunder. 5. waiver by AGENCY of any breach hereof is not a waiver of any subsequent breach. 6. Time is of the essence for performance of this agreement. 7. This agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the subject matter hereof. All waivers of any of the provisions of this agreement must be mutually agreed upon in writing. This agreement and any provisions thereof may be amended by mutual written agreement by PARTICIPANT and AGENCY and such amendment shall not require the consent of any other person or entity. 3. ~s- 58 8. If more than one person signs this agreement . as PARTICIPANT, their obligations hereunder are joint and several. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date and year first above written. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ATTEST: CHAIRMAN DAVID N. REAM EXECUTIVE DIRECTOR "AGENCY" . APPROVED AS TO FORM: Sylvia Jackman ~~ EDWARD ~ C~ Agency Legal Counsel James A. Jackman Karen Jackman Rlchard Jackman Nadine Jackman . Andrew Jackman Joann Jackman Robert Jackman "PARTICIPANT" , 4. '-I~ 58 Allowable Expenses Architectural Fees Engineering Fees Appraisal Fees In Place Loan Payments Construction Loan Payments Construction Loan Fee Loss of Business Vacancy TOTAL RM/mmc 6/9/80 . . EXHIBIT "A" Development Budget Maximum Reimbursable Amount $ 3,000.00 2,000.00 1,000.00 3,000.00 3,OOO.Oø 3,000.00' 2,500,00 2,500.00 $ 20,000.00 Actual Exeenses $ 5,000.00 3,000.00 1,000.00 4,500.00 $2,OOO/mo. - 3,000.00 $2,000/mo. - $l,OOO/mo. - $ 41,500.00 . $lO,OOO (5 mos.) $10,000 (5 mos.) $ 5,000 (5 mos.) . = It:> r-- ~ EXHIBIT B . DEVELOPMENT SCHEDULE FUNCTION Submission - Basic Concept Drawlngs. Participant shall submit Basic Concept Drawings for the real property. Approval - Basic Concept Drawlngs. Agency shall approve or disapprove the Basic Con- cept Drawings for the real property. . Agency Execution of Agreement. Agency shall execute the Commercial Rehabilitation Participation Agreement and return to Participant. TIME OF PERFORMANCE Prior to or concurrent with submission of the executed Commercial Rehabilitation Participation Agreement by Participant. Concurrent with execution of the Commercial Rehabilitation Participation Agreement by the Agency. Within 60 days after execution of the Commercial Rehabili- tation Participation Agreement by Participant. IMPROVEMENTS BY PARTICIPANT Submission - Architect. Participant shall submit to Agency name and quali- fications of its architect. Approval - Architect. Agency shall approve or disapprove the architect.' . Submission - Schematic Drawings. Participant shall prepare and submit to Agency Schematic Drawings. , Concurr~ntly with submission of Basic Concept Drawings. Within 30 days after receipt by Agency of the name and qualifications submitted by Participant. within 30 days after Agency approval of the architect. 1 of 3 4t 58 .pproval - Schematic Drawings. Agency shall approve or disapprove such Schematic Drawings. . Submission - Preliminary Construction Drawings. Participant shall prepare and submit to Agency Preliminary construct~on DrEwings for rehabilitation. Approval - Preliminary Construc- tion Drawings. Agency shall approve or disapprove the Preliminary Instruction Drawings for Rehab- itation. Submission - Final Construction Drawings and Specifications. Participant shall prepare and submit to the Agency Final Construction Drawings and Spec if- ications for rehabilitation. Approval - Final Construction 4IÞawings and Specifications. Agency shall approve or disapprove the Final Construction Drawings and Specifications for rehabilitation. t Within 30 days after receipt by Agency. Within 60 days after ~gency approval of Schematic Drawings. Within 30 days after receipt by the Agency. Within 90 days after Agency approval of preliminary Construction Drawings and Specifications. Within 30 days after receipt by the Agency. 2 of 3 "If 5B Commencement of Rehabilitation. Participant shall commence rehabilitation of structure. . Completion of Rehabilitation. Participant shall complete rehabilitation of structure. opening of Escrow. Agency and Participant shall open escrow. ~lose of Escrow. . , " Within 60 days after Agency approval of Final Construction Dra\~ing and Specifications. Within 180 days after commence- . , ment of rehabilitation. ESCROW - Within 30 days after receipt of commitment letter from Wells Fargo Bank, N.A. Upon recordation of Agency pledge of Participant Note and Deed of Trust secured by the rehabilitated real property, and disbursement of bond proceeds. 3 of 3 S1) 5B J . 8 . t EJC:adg 4/8/80 EXHIBIT C PROMISSORY NOTE $ Santa Ana, California ,19- For value received, I promise to pay on demand to the Community Redevelopment Agency of the City of Santa Ana, a . public body, corporate and politic, on order, at 20 Civic Center plaza, Santa Ana, CA 9270l,the principal sum of ($ in lawful money of the United States of America. This note shall not bear interest. The undersigned shall have the right to repay the whole or any part of the unpaid principal of this note at any t~me, If suit be commenced on this note, the undersigned promises to pay such sum as the court may fix as attorney's fees, If this note is signed by more than one person, the obligations hereunder of each and all of the parties signing it is and shall be joint and several. $"1 58 . I . t ~ EJC:/idg 4/8/80 EXHIBIT D April 8, 1980 First American Title Insurance Co. 114 E, 5th Street Santa Ana, CA 92702 Gentlemen: An escrow, No, . , has been established with your company covering the loan proceeds to be used for the rehabilitation of the commerical real property located at , and the borrower ("participant") is This letter is your nonrevocable authority to remit to the Community Redevelopment Agency of the City of Santa Ana ("Agency") from the proceeds of this escrow as payment in full for any and all promissory notes bearing participant's signature, drawn in favor of the Agency, and deposited in this escrow by Agency pursuant to that certain "Revolving Loan Agreement" between the Agency ant! the Participant, dated , a copy of which is deposited in this escrow herewith, The source of funds to repay said promissory note or notes shall be credited as follows: In accordance with said "Revolving Loan Agreement," participant may pay said promissory notes from any other ~-..t 5JL . " , . , source as may be desired by participant. In such event, the parties hereto shall file amended escrow instructions regarding payment and disbursement, Please acknowledge receipt of these instructions directly to the Community Redevelopment Agency of the City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92701. Very truly yours, Community Redevelopment Agency of the City of Santa Ana Executive Director Partlclpant Participant EJC:adg EXHIBIT D 2. S"3 58