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Judson Brown, City of Santa Ana <br />Cornerstone Apartments: Updated Resyndication Proposal <br />EXHIBIT 2 <br />August 26, 2019 <br />Page 6 <br />Outstanding Principal Balance $6,885,972 <br />Accrued but Unpaid Interest: <br />Loan inception through June 27, 2018 2,246,469 <br />June 28, 2018 through August 31, 2019 Z 243,367 <br />Total Outstanding City Loan Balance $9,375,808 <br />The cash flow projections for the November 2018 structure are presented in Appendix A <br />and the flow projections for the currently proposed structure are presented in Appendix <br />B. The results can be summarized as follows: <br />2018 <br />2019 <br />Difference <br />Nominal Dollar Repayment <br />Upfront Payment <br />$500,000 <br />$2,204,000 <br />$1,704,000 <br />Sum of Repayment (55 Years) <br />1,792,000 <br />7,632,000 <br />5,840,000 <br />Total Nominal Dollar Repayment <br />$2,292,000 <br />$9,836,000 <br />$7,544,000 <br />Net Present Value of Repayment <br />$542,000 <br />$2,683,000 <br />$2,141,000 <br />Outstanding Loan Balance (Yr 55) <br />$18,202,000 <br />$10,902,000 <br />($7,300,000) <br />CONCLUSIONS/RECOMMENDATIONS <br />Based on the results of the preceding analysis it is KMA's conclusion that the proposed <br />restructuring terms serve the best interest of the City, the Authority and JHC. It is <br />therefore our recommendation that the City and the Authority should approve the <br />transaction modifications currently being proposed by JHC. <br />KMA also offers the following transaction structuring recommendations: <br />1. The City Loan should be subordinated to a maximum of $11.1 million in Bonds. <br />1 This amount is provided for context purposes only. The actual amount will need to be calculated on the <br />day the Bond transaction closes. <br />1908006.SNA:KHH <br />19190.017.003 <br />FOODINFOO <br />