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RAEVELOPIIENT AGENCY.Q.QUI!ST ~COMMISSION/COUNcIL ~CTION
From: Glenda Saul, Executive Director
o _,.It: Redevelopment Agency
Date: July l8, 1986
Subjec:t: LOAN AGREEMENT-- DORJIL ESTATES
Synopsis of Previous Commiaion/Council lCtion:
6/20/83
11/8/84
4/2l/86
5/l9/86
Resolution No. 4474 authorizing OPA with Dorjil, Ltd.
Resolution No. 4676 authorizing First Amendment to OPA
Resolution No. 487l authorizing Second Amendment to OPA.
Resolution No. 487l authorizing Second Amendment to OPA
and repealing Resolution No. 487l.
Recommended motion:
(COMMDNITY DEVELOPMENT COMMISSION)
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MOVE TO ADOPT RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A LOAN AGREEMENT BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND DORJIL LTD., -NORTHWEST
REDEVELOPMENT PROJECT AREA.
(MAYOR AND COMMON COUNCIL)
MOTION AUTHORIZING CITY ADMINISTRATOR TO NEGOTIATE TERMS OF SALE WITH THE
REDEVELOPMENT AGENCY FOR THE PURCHASE OF 59 1/4 SEWER CAPACITY RIGHTS BY DORJIL LTD.
Contact person:
M~~~/
/ S.
. Ignature
r.l.n". qAt11
FUNDING REQUIREMENTS:
Amount: $
1~3fQnt;
Phone: 383.5081
Ward: 6
Projec:t: W, R7.
Date: 11117 "J lClRfi
Supporting data lIttached:
YF.~
No adverse Impact on City:
(:5Cil Notes:
l254G/JW
Agenda Item No.~S.-~
clCr OF SAN BERNARDQO - REQuQsT FOR COUNCIL A&t\ON
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75.0264
STAFF REPORT
The Dorjil Estates project will require 59 1/4 Sewer Capacity Rights for Phase II
of their residential development. The rights are available from office of City
Administrator at a cost of 12,260 for one right. The total cost will be
h33,905.00.
RedeVelopment Agency Staff is proposing to lend the funds for the purchase of
Sewer Capacity Rights so that the project may continue without interruption. The
loan could be structured as follows:
YEAR
MONnY PAYMENT
TOTAL PAYMENTS/YEAR
1 - 5
(l986-l99l)
6-l5
h,770.00
$2l,240.00
Terms
l. Interest of lO% to start in sixth year, payable monthly.
2.
Loan of $133,905 amortized over lO years, starting in year 6.
3. Monthly payments as set out in above schedule to be paid in
installments of approzimately $l,770.00.
Benefits
1. Owner/Developer has use of Sewer capacity rights.
2. Owner to make monthly payments in years 6 - l5.
3. Value at completion of project eztimated at $4,9l0,000. Projected
net taz increment $34,370 per year (4,9l0,000 z .01 z .70).
4. Agency is already receiving taz increment from Phase I, 36 units,
which were completed in 1984 and are assessed at approzimately
$l,636,630 - Net taz increment of $ll,4S6 per year (l,636,630 z
.Ol z .70).
Agency Obligations
l. Loan Developer $l33,905 for 15 years, with repayment to begin in
year 6.
, cIA OF SAN BERNARD'" - REQU.Qr FOR COUNCIL ACfPoN
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75-0264
STAFF REPORT
Developer Obligations
1. Obtain 59 l/4 sewer capacity rights from Office of City
Administrator.
2. Start monthly payments of approximately $l,770 in year 6 of the
loan (l992).
3. Complete development of Phase II of project and have it placaed on
assessors tax rolls not later than May I, 1987.
4. Execute loan agreement for $133,905.
Below is a summary of the Dorjil Project:
Location:
19th and California
Phase I:
36 multifamily units
completed 1984
tl,636,OOO 85/86 tax roll
Phase II:
79 multifamily units
RHCP-California Rental Housing
Construction Program
financing obtained 6/86
Start: 8-l-86
Complete: 5-l-86
Estimated Value: $4,9l0,OOO
GS:SL:la:l254G
2.08.05.579
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
2 CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF
A LOAN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OP THE CITY OF
3 SAN BERNARDINO AND DORJIL, LTD. - (NORTHWES'l' REDEVELOPMENT PROJECT
4 AREA).
5 BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Chairman and Secretary of the Community
7 Development Commission of the City of San Bernardino are hereby
8 authorized and directed to execute on behalf of the Redevelopment
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Agency of the City of San Bernardino a Loan Agreement between said
10 Agency and the Dorjil, Ltd., relating to a development in the
11 Northwest Redevelopment Project Area, with such non-substantive
12 changes to said Agreement as may be approved by the Chairman and
13 Agency Counsel. A copy of said Agreement is attached hereto as
0 14 Exhibit .1" and incorporated herein by this reference as though
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fully set forth at length.
16 Dated:
17 Approved as to form:
18 AGENCY COUNSEL
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20 By
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vote, to wit:
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The foregoing resolution was duly adopted by the following
AYES:
Members
NAYS:
ABSENT or
ABSTAIN:
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LOAN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO AND DORJIL, LTD.
THIS AGREEMENT, effective as of
, is
4 entered into by and between the REDEVELOPMENT AGENCY OF THE CITY
5 OF SAN BERNARDINO, a public body corporate and politic, organized
6 and existing under the laws of the State of California,
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hereinafter "Agency", and DORJIL, LTD., a California limited
partnership, hereinafter .Dorjil".
RECITALS.
This agreement is made and entered into with
reference to the following matters:
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1. The parties hereto have previously entered into a
12 Property OWner's Participation Agreement with two amendments,
13 relating to multi-family housing in the Northwest Redevelopment
14 Project Area.
15 2. Dorjil desires to borrow from the Agency the sum of
16 $133,905 to be used for purchase of required sewer capacity
17 rights from the City of San Bernardino.
18 3. Agency is willing to provide a loan on the conditions
19 specified herein.
20 NOW THEREFORE, in consideration of the covenants and
2] conditions specified herein, the parties do mutually agree as
22 follows:
23 SECTION 1. Agency agrees to loan $133,905, forthwith, for
24 the purchase of the required sewer capacity rights from the City
25 of San Bernardino. Payment shall be made by Agency in the form
26 of payment by Agency directly to the City of San Bernardino, for
c:> 27 Dorjil's credit, at the time Dorjil is ready to take out its
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SECTION 2. The loan shall bear interest at a rate of ten
(lOt) percent, however, no interest or principle shall accrue or
be payable in the first five (5) years of the loan. Dorjil shall
pay the sum of One Thousand Seven Hundred Seventy and no/1008
Dollars ($1,770.00) commencing on the first day of August, 1991,
and on or before the first day of each month thereafter until the
entire principle amount, with interest, is paid in full. Dorjil
shall have the right to prepay the entire amount owing at any
time without prepayment penalty. If any payment is more than ten
(10) days late, Agency may, at its option, declare the entire
principle sum, with interest, forthwith due and payable
SECTION 3. The proceeds of the loan shall be used solely
for the purchase of sewer capacity rights required for
construction of Dorjil's multi-family housing project.
SECTION 4. Dorjil shall execute a promissory note in form
approved by Agency Counsel providing fo~ repayment of the entire
amount loaned, which shall cover the terms specified in Section
3.
SECTION 5. Any default under this Loan Agreement shall
20 constitute a default in the Property Owner's Participation
21 Agreement, and any default in the Property Owner's Participation
22 Agreement shall likewise be a default in this Loan Agreement. In
23 the event of any such default, the default provisions of the
24 Property Owner's Participation Agreement shall immediately take
25 effect, and the Agency shall have the right to declare this loan
26 and its supporting promissory note to be due and payable in full,
27 forthwith.
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14 agreement effective as of the day and year first written above.
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16 REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
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SECTION 6. Written notice between the parties as provided
for in this Loan Agreement, or in the Property Owner's
Participation Agreement, shall be provided by one party to the
other party by registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:
AGENCY:
DORJIL:
Dorjil, Ltd.
c/o DukeS-Dukes and Associates
1875 W. Highland Avenue
San Bernardino, CA 92411
Redevelopment Agency of the
City of San Bernardino
300 North .0. Street, Rm. 320
San Bernardino, CA 92418
Notices shall be sent to the addressee provided above, unless
notice of any other address is subsequently served in accordance
with this provision. Such notices shall be effective upon the
12 date of mailing.
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IN WITNESS WHEREOF, the parties hereto have executed this
DORJIL, LTD.,
A Limited Partnership
18 By By
19 Chairman General Partner
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2] By
Secretary
22 Approved as to form:
23 AGENCY COUNSEL
24 BY~'~
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26 Allen R. Briggs
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PROMISSORY NOTE
$133,905
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San Bernardino, CA
July _, 1986
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For good and valuable consideration, the receipt of which is
hereby acknowledged, DORJIL, LTD., a California Limited
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Partnership, promises to pay to the order of the REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO, at San Bernardino,
California, the sum of One Hundred Thirty-three Thousand Nine
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Hundred Five ($133,905) DOllars, together with interest at the
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rate of ten percent (lOt) per annum, payable as follows:
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No payments of principle or interest need be made on this
loan during its first five (5) years nor shall interest accrue
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during the first five (5) years: however, commencing August 1,
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nO/100s ($1,770.00) DOllars, or more, each month.
If any payment
is ten or more days late, Payee shall have the option to declare
the entire principle balance~ with interest, forthwith due and
20 payable. DORJIL, LTD. shall have the right to prepay all, or any
21 part, of the outstanding balance, at any time, without prepayment
22 penalty.
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24 note to be executed by its duly authorized general partner.
In witness whereof, DORJIL, LTD., has caused this promissory
25 DORJIL, LTD.
26 By
0 27 A General Partner
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