HomeMy WebLinkAbout1981-052 CRA
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6/29/81
RESOLUTION NO. 81-52
A RESOLUTION OF THE REDEVELOPMENT
COMMISSION OF THE CI"TY OF SANTA ANA
APPROVING A PERMANENT LOAN COMMITMENT
TO BROADWAY IMPROVEMENT COMPANY, INC.
FOR REHABILITATION OF PROPERTY AT
406 WEST FOURTH STREET
BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT
COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS:
A Permanent Loan Commitment to Broadway
Improvement Company, Inc., for the rehabilitation of
property located at 406 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 14th day of
1981, by the following vote:
July
AYES:
MEMBERS: Coil, Godinez, Hill, Jessee, Kane,
Nalle, Newcomb
MEMBERS: None
NOES:
ABSENT:
MEMBERS: None
ATTEST:
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Executive Director
APPROVED AS TO FORM:
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CITY OF SANTA ANA
COMMUNITY REDEVELOPMENT AGENCY,
20 CIVIC CENTER PLAZA. SANTA ANA. CAlifORNIA 92701
Broadway Improvement Company, Inc.
13139 Harbor Blvd.
Garden Grove, CA 92643
Re:
Permanent Loan Commitment
Commercial Rehabilitation Project
406 West Fourth Street
Dear Sir:
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 406 W. Fourth Street in the City
of Santa Ana, in accordance with that certain "Commercial
Rehabilitation participation Agreement (406 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 Broadway Improvement
Company, Inc.
2. The principal amount of the Permanent Loan shall
be Five Hundred Five Thousand Dollars ($505,aoO).
3. The Permanent Loan shall bear interest at the rate
of ten and 5/16 percent (10.3125%) per annum.
4. Principal and interest shall be payable in equal
monthly installments of $4701.00.
5. A guaranty of payment of all principal, interest
and charges due the Agency in connection with the Permanent
Loan shall be executed by Allan Fainbarg and David L.
Williams, jointly and severally, in a form provided by the
Agency.
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
EXHIBIT A
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Broadway Improvement Company, Inc.
Page 2.
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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 improvement shall be in
place which are adequate to provide an aggregate rental
income of at least $5876.25 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 12(b)
of the Participation Agreement... $ 8,476.00
2% Fee per Section 15 of the
Participation Agreement ........
10,100.00
TOTAL
$18,576.00
If and when escrow closes on the Permanent Loan, you will be
required to pay an additional 3% fee in the amount of
$15,150.00, in accordance with Section 15 of the
Participation Agreement.
8.
This commitment shall expire on August 23,1982.
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-
Very truly yours,
Rex Swanson
Executive Director
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EXHIBIT A
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Broadway Improvement ,Company, Inc.
Page 3.
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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.
BROADWAY IMPROVEMENT COMPANY, INC.
By
Allan Fainbarg, President
By
David L. Williams, Secretary
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EXmSfT A
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