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- Redevelopment Agency · City of,San Bernardino-
~Nllnh"D""" Fanflloar. SIll.......... c.ur-I. 92418.
(714)~1 PAX (714) 888-lN13
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NOVEMBER 1. 1990
ROGER'S BINDERY
SynoDsls of PrevIous CommIssIon/COuncIl/CommIttee ActIon:
8/18/83 ResolutIon 4502 adopted. authorIzIng loan to Roger's BIndery In the
amount of $500.000 to retaIn theIr busIness In San BernardIno by
consolidatIng and relocating to the.Southeast Industrial Par~.
8/19/85 ResolutIon 4789 authorIzed First Amendment to Loan Agreement
approving a one-year moratorrum of payments wIth Interest beIng
forgIven during thIs one-year perIod of time. .
9/9/85 Resolution 4796 to substitute NatIonal ~cceptance Co. from Crocker
Bank as first lIen holder of a security Interest In certaIn
equIpment.
5/31/88 Resolution 5116 authorized executIon of a UCC-2. .Reflnanclng Change
Form whereby Commonwealth FinancIal Corp. replaced Nitlonal
Acceptance/U.S. Bancorp.
Recommended MotIon:
(COMMUNITY DEVELOPMENT COMMISSION)
That the CommunIty Development CommIssion declare Roger's Bindery In
default of the Loan Agreement and authorize the demand of full and
complete payment.of -the Note Secured by SecurIty Agreement by and
between the Redevelopment Agency of the City of San Bernardino and
Roger's BIndery Inc.' ..
Respectfully SubmItted.
Executive DIrector
Supporting data attached: Yes
FUNDING REQUIREMENTS: NIA
Hard: 1
Project: SEIP
CommIssIon Notes:
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Agenda of: .11-19-90
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Item No.
KJH:ND:~ak:3349H
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STAFF REPORT
Per Note dated August 19, 1986, Roger's BIndery Is obHgated to remIt
$3,750.00 a month to the Agency as repayment 'of a $452,000.00 loan. Roger's
Is currently four months delInquent. and It Is requested that the CommunIty
Development CommIssIon authorIze collectIon of all outstandIng monIes owed to
the Agency. .
BACKGROUND
In August, 19B3, the Agency approved a loan of $500,000.00 to Roger's BIndery
to consoltdate thetr varIous offIces under one roof.' As securtty for the
loan, the Agency assumed second posttton on a note from the prImary lender, tn
addltton to the machInery and equIpment.
The orlgtnal loan was structured as follows:
Term:
Year 1:
Years 2-5:
'5 Year Promtssory Note
No Interest (1983)
lot Interest (1984-1988)
The loan agreement also provtded that a portIon or all of the Interest durIng
year 2~5 would be waIved If Roger's Blndery's flnanctal statements IndIcated a
negathe cash flow. A subsequent audtt in 1985 tndtcated that a negathe cash
flow exIsted, and an amendment to the Agreement allowed a one year moratorIum
on payments wtth all Interest forgtven. In 1986, a second amendment to the
Agreement was approved, whereby the loan was restructured to lower the
tnterest.rate from lot to 71, and tncreased the term of the note to 10 years.
Stnce 1987, Roger's BIndery has rematned2-3 months deltnquent In payment.
Letters have been wrItten on a monthly basis requesttng the account be brought
current and stngle payments have been remttted, leavtng the account 1-2 months
past due. On October 15, 1990, a certtfted letter was maIled to Mr. Roger
Imbrlanl notIfyIng hIm that $15,000.00 was.due by October 19,1990 (4 months x
$3,750.00). To date, no funds have been recehed, and accordtng to the term'
of the Note;
"If any payment ts ten or more days late, payee shall have the optIon
to declare the entIre prlnctpal balance, wtth tnterest, forthwIth due
and payable."
Staff recommends adoptIon of the form motIon whIch demands full and complete
payment of the Note In the amount of $459,197.79, effectIve tmmedlately.'
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KJH:ND:kak:3349H