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Home My WebLink About08- Development Department i DEN - LOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNETH J. HENDERSON SUBJECT: ROGER'S BINDERY- Executive Director CHRONOLOGY OF EVENTS DATE: October 27, 1993 -------------------------------------------------------------------------------------------------------------------------------------------- Synonsis of Previous Commission/Council/Committee Action(s): The Commission, over a period of some nine (9) years has taken numerous actions relating to Roger's Bindery. Most recently, the Commission on October 21, 1993 authorized staff to initiate judicial foreclosure proceedings. ------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Communi Development Commission) MOTION: That the Community Development Commission receive and file the attached staff report and Chronology of Events related to Roger's Bindery. Administrator KENNETH J. HENDE SON Executive Director --------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Kenneth J. Henderson Phone: 5081 Project Area(s): Ward(s): Supporting Data Attached: Staff Report; Chronology of Events FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A ------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: -------------------------------------------------------------------------------------------------------------------------- _ KJH:Iag:rgrchron.cdc COMMISSION MEETING AGENDA AV MEETING DATE: 11/01/1993 Agenda Item Number: _ DEVE OPMENT DEPARTMENT STAFF REPORT ---_---------------------------------------------------------------------------------------------------------------- Roper's Bindery Chronoloey of Events On September 20, 1993 in closed session and on October 21, 1993 in open session, the Community Development Commission considered certain actions in connection with the Agency's delinquent loan with Roger's Bindery. On October 21, 1993, after significant discussion, the Commission took action directing staff to initiate judicial foreclosure proceedings against Roger's Bindery. Elsewhere in this agenda packet is an item requesting the Commission to reconsider its action taken in connection with Roger's Bindery on October 21, 1993. As a result of this request, the Chairman of the Commission requested staff to develop and submit the attached chronology of events related to the Roger's Bindery transaction. Based upon the foregoing, staff recommends adoption of the form motion. �%*, KENNETH J. HE DERSON, Executive Director Development Department -------------------------------------------------------------------------------------------------------------------------- KJH:1ag:rgrchron.cdc COMMISSION MEETING AGENDA MEETING DATE: 11/01/1993 Agenda Item Number: A ROGER'S BINDEREY CHRONOLOGY OF EVENTS 08/18/83 RESOLUTION 4502 APPROVING $500,000 LOAN • Loan was for consolidation of Roger's operations into one (1) central location. • No interest • 5 Year Note • $4,000/month payment • Security: ALL CORPORATE ASSETS 10/26/83 LOAN AGREEMENT FOR $500,000 • Consolidate to one (1) central location • Relocating Business • 5 Year Note • No Interest 1st Year: $4,000/month payment (principal only) • 2nd-5th Year 10% Interest; $4,000/month payment (principal and interest) • Balloon payment due 60 months from date of Note (5-24-84) • Allowed for waiving of interest if negative cash flow existed • UCC-1 on ALL of Roger's assets • Signed by Roger and Jackie Imbriani 05/24/84 PROMISSORY NOTE FOR $500,000 LOAN • No Interest 1st Year: $4,000/month payment (principal only) • 2nd-5th Year 10% Interest; $4,000/month payment (principal and interest) • Provided for balloon payment; principal, interest, late charges (if appropriate) • Signed by Roger & Jackie Imbriani Page 1 of 6 ROGER'S BINDEREY CHRONOLOGY OF EVENTS 05/22/85 LETTER FROM ROGER'S BINDERY REGARDING: • Negative Cash Flow • Requesting Restructure of Loan • Requesting from 6/25/85 to 6/25/87 no payment required; no interest accrued • Balloon payment to remain the same date 06/14/85 LETTER FROM ROGER'S BINDERY REGARDING: • Negative Cash Flow • Requesting Loan Restructure • Requesting 2 Year Moratorium on principal and interest payments • Payments to resume in 4th Year 08/19/85 RESOLUTION 4789 FIRST AMENDMENT TO LOAN AGREEMENT 08/19/85 FIRST AMENDMENT TO LOAN AGREEMENT PROVIDED FOR: • No payments for one (Dear • No Interest to be accrued for one (1) year • After one (1) year, financial review required to determine if payments should be deferred for additional year • Payments to begin 8/19/86 if no additional deferral • Ten Percent (10%) interest, $4,000/month payment (principal and interest) • Balloon payment date remains the same • Signed by Roger & Jackie Imbriani 09/04/85 LETTER FROM ROGER'S BINDERY REQUESTING: • Subordination of Security Interest • Need to obtain financing from National Acceptance Corp 09/06/85 MEMORANDUM TO CITY ATTORNEY ON SUBORDINATION AGREEMENT Page 2 of 6 r WW ROGER'S BINDEREY CHRONOLOGY OF EVENTS 09/09/85 RESOLUTION 4796 APPROVING AGENCY SUBORDINATION • File New UCC-1 07/08/86 MEMORANDUM FROM EXECUTIVE DIRECTOR TO REDEVELOPMENT COMMITTEE • Summary of Loan & Amendment 07/15/86 MEMORANDUM FROM EXECUTIVE DIRECTOR TO REDEVELOPMENT COMMITTEE • Loan Restructuring 08/05/86 MEMORANDUM FROM EXECUTIVE DIRECTOR TO REDEVELOPMENT COMMITTEE • Financial review completed. 08/18/86 RESOLUTION 4619 APPROVED REGARDING SECOND AMENDMENT TO LOAN AGREEMENT • New Promissory Note 08/19/86 PROMISSORY NOTE SECURED BY SECURITY AGREEMENT • Amended Note is for $452,000 • 7% Interest • Deferred Payments Until 08/19/87 (1 Year) • $3500/monthly payment (principal and interest) • Balloon due date changed from 05/24/89 to 08/19/97 • Signed by Roger Imbriani Page 3 of 6 I��I >_ IIIfiiMli I YiMMYiXI.WiowiwRO ROGER'S BINDEREY CHRONOLOGY OF EVENTS 09/11/86 SECOND AMENDMENT TO LOAN AGREEMENT • Amended Note; $452,000 • Interest rate reduced from 10% to 7% • Deferred Payment Until 08/19/87 • Total Balance 08/19/87, $483,640.00 • $3750/Monthly Payment (principal and interest) • Balloon Payment 08/19/97 • Original Agreement/Note in effect except for amendments • Roger's Bindery to provide renewed financial statements prior to 9/90 • Signed by Roger Imbriani 05/21/88 RESOLUTION 5116 APPROVING SUBORDINATION • Agency to remain in 2nd position 03/16/90 LETTER FROM EXECUTIVE DIRECTOR TO COMMONWEALTH FINANCIAL CORPORATION (SUBORDINATED TO COMMONWEALTH) • Regarding Roger's Bindery delinquent on Loan Payments 11/08/90 LETTER FROM ROGER'S BINDERY REGARDING: • Cash Flow Problem • Requesting Reduction in Payments from $3750/month to $1875/month, starting November 1990 for twelve (12) months • Late Payments for September 1990 and October 1990 would be made up over the next six (6) months starting November 1990. Additional $1250/month 11/19/90 REQUEST DENIED BY COMMITTEE; ROGER'S CONTINUES PAYMENTS UNTIL FEBRUARY 1992 05/19/92 EDA LETTER TO ROGER'S BINDERY • Requesting Payment for February-May 1992 Page 4 of 6 ROGER'S BINDEREY CHRONOLOGY OF EVENTS 12/15/92 EDA LETTER TO ROGER'S BINDERY • Requesting payment for August-December 1992 01/15/93 EDA LETTER TO ROGER'S BINDERY (2nd Request) • Requesting Payment for August 1992 - January 1993 02/17/93 EDA LETTER TO ROGER'S BINDERY (FINAL NOTICE) • Requesting Payment for August 1992 - February 1993 02/24/93 LETTER FROM ROGER'S BINDERY • Requesting Moratorium on Loan Payments 03/15/93 MEMORANDUM TO EXECUTIVE DIRECTOR, EDA • Requesting Authorization to Request Demand Letter be sent by the City Attorney. Request Approved. 03/24/93 MEMORANDUM TO CITY ATTORNEY • Requesting that a demand letter be sent to Roger's Bindery 03/31/93 LETTER FROM CITY ATTORNEY'S TO ROGER'S BINDERY • Eight (8) months delinquent on payments • Payment due within 15 days (4-15) • $31,200 due and payable 04/07/93 MEETING BETWEEN EXECUTIVE DIRECTOR TO ROGER'S BINDERY CFO • Roger's wanted to meet with new Mayor and New Council members • Staff indicated process would continue Page 5 of 6 ROGER'S BINDEREY CHRONOLOGY OF EVENTS 04/30/93 STATUS FROM CITY ATTORNEY • Roger's Bindery has not responded to request 06/24/93 MEMORANDUM TO CITY ATTORNEY • Initiate Judicial Foreclosure 08/18/93 MEMORANDUM TO CITY ATTORNEY • Prepare to discuss Roger's Bindery, September 7, 1993 Community Development Commission meeting 09/20/93 COMMUNITY DEVELOPMENT COMMISSION CLOSED SESSION. REQUEST TO INITIATE FORECLOSURE DENIED. 09/30/93 MEETING BETWEEN MAYOR, COUNCIL, EDA STAFF AND ROGER'S BINDERY 10/21/93 COMMUNITY DEVELOPMENT COMMISSION APPROVAL TO INITIATE FORECLOSURE PROCEEDINGS Page 6 of 6