HomeMy WebLinkAboutR05-Economic Development Agency
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DEVELOPMDr DEPARDum-.r OF THE
CITY OF SAW BDIWIDlBO
REODEST FOR C<MIISSIOIl/COtJIIICIL ACTION
From: KENNETH J. HENDERSON
Executive Director
Subject:
BAmION MOTORS
IIrSTALUIKBT BOTE
Date: March I, 1991
Synopsis of Previous Commission/Council/Committee Action:
On April 20, 1987, the Community Development Commission authorized the purchase
of the property at 250 South "E" Street, San Bernardino, California.
Recommended Motion:
(Community Develo~ent Commission)
THAT THE COIMtJIIIITY DEVELOPMDr COMMISSIOIl AOTHORIZB THE CHAIJlMAI( AND SECRETARY TO
EXECUTE A IIEW PROMISSORY BOTE IIf THE AIIOOIrT OF $850,000.00, IN EXCHAlfGB FOR THE
ORIGlRAL PROMISSORY BOTE DATED APRIL 20, 1987, III COBDCTIOIl WITH THE PROPERTY
LOCATED AT 250 SOOTH "B" STREET, SAW BDIWIDlBO, CALlFORlfIA.
N5lUU5l:11 ~~, Bzecutive Director
Development Departlllent
Contact Person: Ken Henderson/Sue Morales
Phone: 5065/5081
Project Area: CC
Ward(s): 3
Supporting Data Attached: Staff Reoort
FUNDING REQUIREMENTS:
Amount: $N/ A
Source:
N/A
Budget Authority: N/A
Commission/Council Ilotes:
SMM:kak:3659H:
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Agenda Item No.
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DBVBLOPIIKIIr DBPAicou1n:
STAFF REPORT
Baraon Motors Installment Rote
On April 20, 1987, the Department purchased the former Roger Harmon Motors dealership
located at 250 S. "E" Street, in the amount of $1,200,000.00. The Department paid
$350,000.00 cash to the Harmons, and executed a Promissory Note to the family trust,
Trust Services of America (TSA), for the remaining $850,000.00.
As a part of restructuring the trust, Trust Services of America has requested an
amendment of the Promissory Note, substituting five (5) persons each with a one/fifth
(1/5) interest, in place of the trust. The terms and conditions of the original note
remain unaffected by this transaction. Upon execution of this Promissory Note, the
original Promissory Note issued on April 20, 1987 will be physically exchanged with
the new note at the offices of the City Clerk of San Bernardino.
Staff recommends adoption of the form motion.
r.JUUVi"J:~OR' Executive Director
Development Departlllent
KJH:SMM:kak:3659H
CO!RISSIOR MElTING
Meeting Date: 3-11-91
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UNITED STATES OF AMERICA
STATE OF CALIFORNIA
CITY OF SAN BERNARDINO
REDEVELoPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
PROMISSORY NOTE
No. R-1
$850,000.00
MATURITY DATE
INTEREST RATE
n
July 9, 1994
REGISTERED OWNER
Marilyn L. Fitzqerald as to an undivided one-fifth interest, Marcia
A. Haninqer as to an undivided one-fifth interest, Bernardine E.
Deason as to an undivided one-fifth interest, John A. Harmon as to
an undivided one-fifth interest and Roqer Harmon as to an undivided
one-fifth interest.
PRINCIPAL AMOUNT
EIGHT HUNDRED FIFTY THOOSAND DOLLARs
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
(hereinafter sometimes called the "Aqency"), a pUblic body,
corporate and pOlitic, duly orqanized and existinq under the laws
of the State of California, for value received, hereby promises to
pay (but solely out of the funds hereinafter aentioned) to the
Reqistered OWner above named or reqistered assiqns (herein
sometimes referred to as "reqistered owner"), sUbject to the riqht
of prior redemption hereinafter mentioned, the Principal Amount
shown above, on the Maturity Date shown above, and to pay such
reqistered owner on the applicable interest payment date, by check
or draft mailed to him, as his name and address appear on the Bond
Reqister to be maintained by the Reqistrar at the close of business
on the fifteenth (15th) day precedinq the applicable interest
payment date, interest on such prinCipal sum from the interest
payment date next precedinq the date hereof (unless (i) it is dated
as of an interest payment date, in which event it shall bear
interest from such interest payment date, or (ii) it is dated prior
to the first interest payment date, in which event it shall bear
interest from July 8, 1987, or (Hi) it is dated between the
sixteenth (16th) day of the month immediately precedinq an interest
payment date and such interest payment date, in which event it
shall bear interest from such interest payment date) until the
principal hereof shall have been paid or provided for in accordance
with the Resolution hereinafter referred to, at the Interest Rate
above set forth, interest payable quarterly on January 1, April 1,
July 1, and October 1 in each year commencing on October 1, 1987.
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Both principal and inter.st are payable in lawful aoney of the
Unit.d States of America, and (except for interest which 1s payable
by JDailed ch.ck or draft as stated above) are payable at the office
of the Treasurer of the City of San Bernardino, california, Fiscal
Agent for the Ag.ncy, in San Bernardino, California.
Should int.rest not b. so paid, it shall thereafter b.ar
like int.rest as the principal, but such unpaid interest .0
compound.d shall not exceed an amount equal to simple inter.st on
the unpaid principal at the maximum rate permitted by law. Should
d.fault be JDade in the payment of any installm.nt of interest when
du., th.n the whole sum of principal and inter..t shall become
imm.diat.ly due and payabl. at the option of the register.d own.r
of this Note. Should suit be comm.nc.d to collect this Not. or any
portion thereof, such sum a. the Court .ay deem reasonable shall be
added her.to a. attorneys' f....
This Not. and the interest h.reon are not a d.bt of the
City of San Bernardino, the Stat. of California or any of its
political Subdivisions, and neith.r said City, said State nor any
of its political SUbdivisions is liable hereon, nor in any event
shall this Note or said inter.st be payable out of any funds or
properties other than the tax-increm.nt revenues of the Agency as
set forth in the R.solution hereinafter aention.d. This Not. do.s
not constitut. an ind.btedness within the .eaning of any
constitutional or statutory debt limitation or restriction.
N.ither the members of the Ag.ncy nor any persons executing this
Not. are liable personally on this Not. by reason of its issuance.
This Note is issu.d pursuant to and in full conformity
with the Constitution and laws of the State of California and
particularly the Community Redevelopm.nt Law, Part 1 of Division 24
(commencing with Section 33000) of the Health and Safety Code of
the State of California for the purpose of acquisition of certain
r.al property located in the Central City South Redevelopment
Project, and is authorized by and issued Pursuant to R.solution
No. 5011, adopted by the Agency on April 20, 1987, copies of which
ar. on file with the Secretary of the Agency, the Registrar and the
Fiscal Agent (said ResOlution No. 5011 being herein referr.d to as
the "Resolution"). By the acceptance of this Note the registered
owner hereof consent. to all of the terms, conditions and
provisions of said Resolution. In the .anner provided in the
Resolution, .aid Resolution and the rights and obligations of the
Agency and of the Noteholder may (with certain exceptions as stated
in .aid Re.Olution) be modified or amended without the consent of
the Noteholder if the modification or amendment is for the purpose
of maintaining the exemption from federal incom. taxes of interest
on the Note or of curing ambiguiti.s, d.f.cts, etc.
This Note be prepaid in whole or in part at the option of
the Agency on any interest payment date without penalty.
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Notice of call and red_ption prior to ..turity 8hall be
qiven by first class .ail to the reqbtered owner of thb Note not
more than sixty (60) days nor less than thirty (30) clays prior to
the redemption date.
This Note is issued in fUlly registered form and is non-
negotiable. Subject to compliance with applicable State of
California and federal securities laws, this Note is transferable
by the registered OWner hereof, in person or by his attorney duly
authorized in writing, at the office of the City Clerk of the City
of San Bernardino, Registrar and Transfer Agent for the Agency, in
the City of San Bernardino, California, but only in the manner,
subject to the limitations and upon payment of the charges provided
in the Resolution, upon surrender and cancellation of this Note.
Upon such transfer a new Note for the same aggregate principal
amount will be issued to the transferee in exchange therefor. No
exchange or transfer shall be made between the fifteenth (15th) day
preceding any interest payment date and such interest payment date.
The Agency, the Registrar, and the Fiscal Agent may treat
the registered owner hereof as the absolute owner hereof for all
purposes, and the Agency, the Reqistrar, and the Fiscal Agent shall
not be affected by any notice to the contrary.
This Note shall not be entitled to any benefit under the
Resolution, or become valid or Obligatory for any purpose, until
the certificate of authentication hereon endorsed shall have been
signed by the Registrar.
It is hereby recited, certified and declared that any and
all acts, conditions and things required to exist, to happen and to
be performed precedent to and in the issuance of this Note exist,
have happened and have been performed in due time, form and manner
as required by the Constitution and laws of the State of
California.
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CERTIFICATE OF AUTHENTICATION AND REGISTRATION
Thia 18 the Note described in the within-aentioned
aesolution, which has been registered on , 19_.
CITY CLERK,
City of San Bernardino,
as Transfer Agent and Registrar
By:
Authorized Officer
IN WITNESS WHEREOF, the aedevelopment Agency of the City
of San Bernardino has caused this Note to be signed on its behalf
by the facsimile signatures of its Chairman and its Secretary and
the seal of said Agency to be imprinted hereon, all as of the
day of .
Chairman of the aedevelopment Agency
of the City of San Bernardino
[SEAL]
~~~,Uorm:
Secretary of the aedevelopment Agency
of the City of San Bernardino
ASSIGNMENT
For value received
sells, assigns and transfers unto
the Within-mentioned Note and hereby 1rrevocably
appoints
transfer the same on the books of the
power of substitution in the premises.
hereby
constitutes and
, attorney, to
Transfer Agent with full
Dated:
NOTE:
The signature to this assignment must correspond with the
name as written on the face of the within Note in every
partiCUlar, without alteration or enlargement or any
change whatsoever.
IBEOOOOJIDOC1!95
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