HomeMy WebLinkAboutR15-Economic Development Agency
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DBVBLOPMBIIT DBPARTMBIIT
OF TJIII: CITY OF SAlI BBRlWmIBO
IlJI:OUBST FOR COIMISSIOB/COlIIICIL ACTIOIl
From:
KEl'lNETII J. HENDERSON
Executive Director
Subject:
SIW.L BUSIIUSS LOAlI
COLLArBRAL SUBSTITU-
TIOIl
Date:
December 16, 1991
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SvnoDsis of Previous eo..issionlCouncil/CnmMittee Actiones):
On July 16, 1990, the Community Development Commission authorized and
directed the execution of a small business loan agreement between the
City of San Bernardino and T & A Meats and Provisions to be secured in
part, by a Deed of Trust on 9466 Laurel Avenue, Fontana, California.
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Rec~Pnded Motiones):
eC-itv Develol1lllPnt COIBission)
That the COlIDDUDity Development Commission authorize the Development
Department staff to facilitate the substitution of the residence
located at 18265 Tullock Street, Bloomington, California for the
residence located at 9466 Laurel Avenue, Fontana, California as
collateral, in part, for the small business loan agreement between the
City of San Bernardino and T & A Meats and Provisions.
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Administrator
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Contact Person(s): Ken Henderson/Doris Daniels
Phone:
384-5081
Project Area(s):
Ward(s):
Supporting Data Attached:
Staff ReDort
FUNDING REQUIREMENTS:
Amount: * None
Source:
None
Budget Authority:
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C-issionlCouncil lIotes:
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KJH:DAD:AJM:tnt:0082V
COMMISSIOIf IIBB1'IlIG AGBIIDA
Meeting Date: 12/16/91
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STAFF RBPORT
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S..ll Busfnpss Loan Collateral Substitution
At a meeting of the Mayor and Common Council held on July 16, 1991, the
Community Development Commission adopted Item 20, Resolution Number
90-291. This resolution of the City of San Bernardino authorized and
directed the execution of a small business loan agreement between the
City of San Bernardino and T & A Meat and Provisions.
The company is structured as a partnership with Mr. Thomas Ralph
Fernandez and Mr. Arthur Sanchez as equal partners. At the time of the
loan, Mr. Fernandez and Mr. Sanchez agreed to apply equal amounts of
equity in their respective single-family residences to collateralize the
loan of $50,000.00. Mr. Fernandez utilized his residence at 9466 Laurel
Avenue, Fontana, California to cover his obligation of twenty-five
thousand dollars ($25,000.00). Mr. Fernandez has notified staff of his
intention to sell the property at 9466 Laurel Avenue and is offering his
property located at 18265 Tullock Street, Bloomington, California to
secure the City's interests. The property at 18265 Tullock Street has
been appraised at $105,000.00 with an existing mortgage balance of
approximately $18,000.00, leaving an estimated equity of $87,000.00.
The City of San Bernardino would be assuming a second trust deed position
for the amount of twenty-five thousand dollars ($25,000.00) on his
property at 18265 Tullock Street and will be reconveying the existing
lien of twenty-five thousand dollars ($25,000.00) against the property at
9466 Laurel Avenue.
Mr. Fernandez has agreed to pay all costs incurred and they are estimated
as follow:
1. Title Insurance Policy
2. Appraisal
3. Reconveyance
$350.00
$ 75.00
S 75.00
Total:
i500.00
Based upon the foregoing, staff recommends adoption of the form motion.
J.
Developaent D
. Executive Director
taent
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KJB:DAD:AJM:tnt:0082V
COIIIIISSIOlf IIDTIIIG AGBlOll
lIeetfDa Date: 12/16/91
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