HomeMy WebLinkAbout1981-039 CRA
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5/20/81
RESOLUTION NO. 81-39
A RESOLUTION OF THE REDEVELOPMENT
COMMISSION OF THE CITY OF SANTA ANA
APPROVING A PERMANENT LOAN COMMITMENT
TO DAVID L. HOROWITZ AS TRUSTEE FOR
THE HOROWITZ BROTHERS 1975 TRUST, FOR
REHABILITATION OF PROPERTY AT
117 WEST FOURTH STREET
BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT
COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS:
A Permanent Loan Commitment to David L. Horowitz,
as trustee for the Horowitz Brothers 1975 Trust, for the
rehabilitation of property located at 117 West Fourth
Street, subject to the terms and conditions set forth in
Exhibit A, attached hereto and incorporated by reference
herein, is hereby approved.
ADOPTED this 26th day of May
1981, by the following vote:
AYES: MEMBERS:Hill, Jessee, Kane, Nalle, Newcomb
NOES:
MEMBERS: None
MEMBERS: Coil,
ABSENT:
ATTEST:
REX S S
Executive Director /
APPROVED AS TO FORM:
~,...{ ~~
DWARD J. OOP
Agency Legal Counsel
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CITY OF SANTA ANA
COMMUNITY REDEVELOPMENT AGENCY
20 CIVIC CENTER PLAZA. SANTA ANA. CALIFORNIA 92701
May 27,1981
David L. Horowitz, Trustee,
Horowitz Brothers 1975 Trust
1409 Warner Avenue
Santa Ana, CA 92705
Re:
Permanent Loan Commitment
Commercial Rehabilitation Project
117 West Fourth Street
Dear Sir:
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We are pleased to advise you that the Community
Redevelopment Agency of the City of Santa Ana commits to
make a Permanent Loan upon the security of the real property
and improvements located at 117 W. Fourth Street in the City
of Santa Ana, in accordance with that certain "Commercial
Rehabilitation participation Agreement (117 W. Fourth
Street,)" dated April 20, 1981, between the Agency and
yourself (hereinafter referred to as the "Participation
Agreement,)" and subject to the following additional terms
and conditions:
1. The Borrower shall be David L. Horowitz as trustee
of the Horowitz Brothers 1975 Trust.
2. The principal amount of the Permanent Loan shall be
One Million Dollars ($1,000,000.00).
3. The Permanent Loan shall bear interest at the rate
of ten and 5/16 percent (10.3125%) per annum.
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4. Principal and interest shall be payable in equal
monthly installments of $9308.00.
5. A guaranty of payment of all principal, interest
and charges due the Agency in connection with the Permanent
Loan shall be executed by Andrew R. Horowitz, David L.
Horowitz and Thomas W. Horowitz, jointly and severally, in a
form provided by the Agency.
EXHIBIT
A
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David L. Horowitz, Trustee
Page 2.
May 27, 1981
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6. All existing and future leases of the abovesaid
property and improvements must meet the following minimum
rent criteria, unless otherwise approved by the Agency in
writing: seventy cents ($0.70) per square foot. In
addition, prior to the funding of the Permanent Loan by the
Agency, leases of the property and improvements shall be in
place which are adequate to provide an aggregate rental
income of at least $11,635.00 per month.
7. Prior to or concurrent with your acceptance of this
Permanent Loan Commitment, you must pay the following
amounts to the Agency, or execute and deliver to the Agency
the enclosed Promissory Note for the sum thereof:
Professional Services Cost:
Reimbursement per Section l2(b)
of the Participation Agreement ....$
2% Fee per Section 15 of the
Participation Agreement ..........
4,969.00
20,000.00
TOTAL... $ 24,969.00
If and when escrow closes on the Permanent Loan, you will be
required to pay an additional 3% fee in the amount of
$30,000.00, in accordance with Section 15 of the
Participation Agreement.
8.
This commitment shall expire on July 21,1982.
In accordance with Section 13 of the Participation
Agreement, this Commitment is subject to the "Standard Terms
and Conditions, Permanent Loan Commitment," set forth in
Exhibit C of the participation Agreement, a copy of which is
enclosed herewith for your convenience. Nothing herein
changes or waives any of those terms and conditions to this
Commitment.
This Permanent Loan Commitment letter has been approved
by the Redevelopment Commission of the City of Santa Ana by
its Resolution No. 81-39.
Very truly yours,
Rex Swanson
Executive Director
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David L. Horowitz, Trustee
Page 3.
May 27, 1981
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ACCEPTANCE
The undersigned hereby accepts the above Permanent
Loan Commitment and agrees to be bound by the terms and
conditions therein set forth.
The undersigned acknowledges
that the Agency shall assign its rights in the subject
Permanent Loan as security for a loan obtained, or to be
obtained, by the Agency in contemplation of the subject
Permanent Loan, and that Agency's obligation to make the
subject Permanent Loan is conditional upon the Agency
obtaining such loan funds in accordance with Section 11 of
the abovesaid Participation Agreement.
David L. Horowitz