HomeMy WebLinkAbout1988-07 CRA
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RESOLUTION NO. 88-07
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
202-210 NORTH MAIN STREET
WHEREAS, The Community Redevelopment Agency of the City of Santa
Ana made a loan of Forty-nine Thousand Three Hundred Twenty-Two Dollars
($49,322.00) to Builders Exchange Associates, a California limited
partnership, to provide partial funding for the rehabilitation of an office
building located at 202-210 North Main Street in the City of Santa Ana; and
WHEREAS, the obligation to repay said loan is evidenced by a
promissory note dated February 21, 1986 (hereinafter the "1986 Note") by which
Builders Exchange Associates, a California limited partnership, undertook to
pay the principal sum of Forty-Nine Thousand Three Hundred Twenty-Two Dollars
($49,322.00) with interest thereon from the date of said note on unpaid
principal at the rate of ten and 5/16 percent (10.3125%) per annum, to the
Agency on or before February 8, 1987, and
WHEREAS, the said 1986 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 "1986 Trust Deed") and
WHEREAS, Builders Exchange Associates, a California limited
partnership, now requests the refinancing of the above said 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
1986 Note and reconvey the Agency's interest under the 1986 Trust Deed,
subject to the following terms and conditions:
(a) Builders Exchange Associates, a California Limited
Partnership, shall deliver to the Agency Nine Thousand Six Hundred Twenty Nine
Dollars and Seventy Cents ($9,629.70) representing the accrued interest on the
1986 Note through December 31,1987.
(b) Builders Exchange Associates, a California limited
partnership, shall duly execute and deliver to the Agency, through escrow, a
new promissory note in the principal amount of Forty Nine Thousand Three
Hundred Twenty Two Dollars ($49,322.00) (hereinafter, the "New Note").
(c) The New Note shall bear interest at the rate of ten and 5/16
percent (10.3125%) per annum.
(d) The New Note shall be secured by that deed of trust dated
February 21, 1986 in the principal amount of $49,322.00 that was recorded on
January 15, 1987 as instrument #87-02551 in official records of Orange County,
California.
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(e) The lien of the Agency's Trust Deed shall be subordinate only
to the liens of trust deeds securing an indebtedness of not more than Seven
Hundred Twelve Thousand Dollars ($712,000.00) held by Wells Fargo Bank and Two
Hundred Fifty Thousand Dollars ($250,000.00) held by Mercury Savings, and to
such other minor liens as the Executive Director may determine to be
acceptable.
(f) The lien of the Agency's Trust Deed shall be subordinated to a
new trust deed, not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00)
to build out tenant improvements for the first floor and mezzanine of the
subject property located at 202-210 North Main Street.
(g) 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
above described refinancing, including, but not limited to the signing of all
appropriate documents, 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 ~ day of
MARCH
, 1988, by the following
vote:
AYES:
MEMBERS: Acosta, Griset, Hart, May, McGuigan,
Pulido & Young
MEMBERS: None
MEMBERS: None
NOES:
ABSENT:
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DANIEL H. YOU
ATTEST:
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Cynth a J. Nel
Executive Director and
Recording Secretary
APPROVED AS TO FORM:
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