HomeMy WebLinkAbout1985-13 CRA
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REL: adg
3/12/85
RESOLUTION NO. 85-13
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA AUTHORIZING
THE REFINANCING OF A REHABILITATION LOAN
SECURED BY PROPERTY LOCATED AT 217 NORTH
MAIN STREET
WHEREAS, the Community Redevelopment Agency of the City
of Santa Ana made a loan of Three Hundred Twenty-Five Thousand
Dollars ($325,000.00) to Barristers Building Ltd., a partnership,
to provide partial funding for the rehabilitation of an office
building located at 217 North Main Street in the City of Santa
Ana¡ and
WHEREAS, the obligation to repay said loan is evidenced
by a promissory note dated May 26,1983 (hereinafter the "1983
Note") by which Barristers Building, Ltd. undertook to pay the
principal sum of Three Hundred Twenty-Five Thousand Dollars
($325,000.00) without interest, to the Agency on or before the date
forty-two (42) months from and after the date of the 1983 Note¡ and
WHEREAS, the said 1983 Note is secured by a deed of trust
of the same date on the abovesaid real property, duly recorded in
the records of Orange County (hereinafter, the "1983 Trust Deed")¡
and
WHEREAS, Barristers Building, Ltd., now requests the
refinancing of the abovesaid loan and the Agency agrees to such
refinancing on the terms and conditions hereinafter set forth¡
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AS FOLLOWS:
1. The Executive Director of the Agency is authorized to
cancel the 1983 Note and reconvey the Agency's interest under the
1983 Trust Deed, subject to the following terms and conditions:
(a) Barristers Building, Ltd. shall duly execute and
deliver to the Agency, through escrow, a new promissory note in
the principal amount of Three Hundred Twenty-Five Thousand Dollars
($325,000.00) (hereinafter, the "New Note") and a new deed of trust,
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RESOLUTION NO. 85- 13
PAGE TWO
securing the same with the subject property (hereinafter the
"New Deed of Trust").
(b) The New Note shall bear interest at the rate of
ten percent (10%) per annum.
(c) The New Note shall provide that all profit received
by the borrower from the rental of space in the subject property
shall be paid to the Agency on an annual basis until the New Note
is paid in full¡ provided, however, that in the event that such
profit is insufficient in any given payment year to pay interest
due for that year, the amount of the deficiency for that year
shall be waived and forgiven by the Agency¡
(d) The New Note shall provide for adequate financial
reports from the borrower to determine that payments are made as
required.
(e) The lien of the New Trust Deed shall be subordinate
only to the lien of a trust deed securing an indebtedness to the
Bank of America of not more than Two Million Dollars ($2,000,000.),
and to such other minor liens as the Executive Director may deter-
mine to be acceptable.
(f) The borrower shall provide satisfactory evidence
of title to the subject property, subject only to such easements
or other encumbrances as the Executive Director may determine
to be acceptable.
BE IT FURTHER RESOLVED that the Executive Director is
authorized to take such actions on behalf of the Agency as are
appropriate to carry out the abovedescribed refinancing, includ-
ing, but not limited to the signing of all appropriate documents,
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RESOLUTION NO. 85-13
PAGE THREE
the establishment of a loan escrow, and execution of agreements
with the borrower, including joint escrow instructions, and in
so doing to impose such requirements as he deems appropriate
for the protection of the Agency's interest.
ADOPTED this 19th day of
by the following vote:
March
,1985,
AYES:
MEMBERS Acosta, Griset, Hart, Johnson,
Luxembourger, McGuigan and Young
MEMBERS None
NOES:
ABSENT:
MEMBE RS None
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Daniel E. Griset
Chairman
ATTEST:
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Executive Director and
Recording Secretary
APPROVED AS TO FORM:
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Agency Lega ounsel
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