HomeMy WebLinkAboutR16- Economic Development ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: Am B.Harris,Director SUBJECT: LOAN TO PURCHASE CAR
Business Recruitment,Retention& WASH AT 101 NORTH"E"
Revitalization STREET
DATE: January26, 1999 ORIOINAL
Synopsis of Previous Commission/Council/Committee Action(s):
On January 28, 1999,the Redevelopment Committee considered the proposal.
Recommended Motion(s):
(Community Development Commission)
MOTION A: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTIVE DIRECTOR OF THE ECONOMIC
DEVELOPMENT AGENCY TO EXECUTE A LOAN AGREEMENT
MOTION B: That the Community Development Commission authorize a loan agreement with Steven T. and
Kuan-Yih Wan.
Contact Person(s): Gary Van Osdel/Ann Harris Phone: 5081
Project Area(s): Central City North Ward(s): One(1)
Supporting Data Attached:® Staff Report❑ Resolution(s) 17 Agreements)/Contract(s) ❑ Map(s)O Ltr/Memo
FUNDING REQUIREMENTS: Amount: $200,000 Source: Community Reinvestment Fund
Budget Authority: Requested
SIGNATURE:4Mrge
OSDEL Hams,Director
ctor Bu s.Recruitment,Retention&Revital.
Commission/Council Notes:
------------------------------------------------------------------------------------------------------------------
GVO:ABH:lag:99-02-01 Car Wash COMMISSION MEETING AGENDA
MEETING DATE:02/01/11999
Agenda Item Number:
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
------------------------------------------------------------------------------------------------------------------
Loan to Purchase Car Wash at 101 North"E" Street
In 1995, the former Nissan Dealership location at 101 North"E" Street was converted into a car
wash. One of the owners suffered heart failure and was not there to oversee management,
consequently the business failed. The car wash is currently in foreclosure and has a SBA
guaranteed loan that needs to be paid off. The total price to purchase the property, including the
SBA loan, is $650,000.
The Agency has been approached by Steven T. and Kuan-Yih Wuo (Buyers)to provide a loan of
$200,000 at ten percent(10%) interest for a period of one year secured by a first deed of trust
to enable the buyer to consummate the purchase of the car wash. The buyer has made an offer of
$650,000 to purchase the property and business out of foreclosure. The current appraised value
of the property is $650,000. The buyer will make a$450,000 cash down payment leaving a
balance of$200,000 needed to close the deal.
The business will employ 15 full-time employees and 15 to 20 part-time employees.
Funding source has been identified as Community Reinvestment Funds (CRF). Currently, there
is a balance of$1,000,000 in the CRF. If this loan is approved,the balance remaining in the
CRF would be $800,000.
Based on the foregoing, it is requested that the Community Development Commission authorize
a loan agreement with Steven T. and Kuan-Yih Wuo.
nn . Harris, Director
Business Recruitment, Retention & Revitalization
------------------------------------------------------------------------------------------------------------------
GVO:ABH:lag:99-02-01 Car Wash COMMISSION MEETING AGENDA
MEETING DATE: 02/01/199�9r,,
Agenda Item Number: P �
1 RESOLUTION NO:
2
3 RESOLUTION OF THE COMMUNITY DEVELOPMENT
4 COMMISSION OF THE CITY OF SAN BERNARDINO
AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
5 ECONOMIC DEVELOPMENT AGENCY TO EXECUTE A
LOAN AGREEMENT
6
7 BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION
8 OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
9
10 SECTION 1. The Executive Director of the Economic Development Agency is
11 hereby authorized and directed to execute a Loan Agreement with Steven T. and Kuan-Yih Wuo,
12 a copy of which is attached hereto and marked as Exhibit"A" and incorporated herein by
13 reference as fully as though set forth at length.
14 SECTION 2. The authorization to execute the above referenced agreement is
15 rescinded if the parties to the agreement fail to execute it and return it to the Office of the City
16 Clerk within sixty (60) days following the effective date.
17
18
19
20
21
22
23
24
25
26
27
28
- 1 -
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
2 OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTIVE DIRECTOR OF THE ECONOMIC DEVELOPMENT
3 AGENCY TO EXECUTE A LOAN AGREEMENT
a
5 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
fi Community Development Commission of the City of San Bernardino at a
meeting thereof, held on day of 1999 by the
following vote, to wit:
e
9
COMMISSION MEMBERS: AYES NAYS ABSTAIN ABSENT
10
ESTRADA
11
LIEN
12
VACANT
13
SCHNETZ
14
DEVLIN
1s
16 ANDERSON
MILLER
17
19
19 Secretary
20
21 The foregoing resolution is hereby approved this day of
22
1999.
23
24 Judith Valles, Chairperson
Community Development Commission
25 Of the City of San Bernardino
26 Approved as to form and Legal Content:
27
28 By:
Agency Counsel
2 -
i
i
i
3
1 1 AGREEMENT
2
3 THIS AGREEMENT, made and entered into this day
4 of , 1999, by and between the REDEVELOPMENT AGENCY OF THE
5 CITY OF SAN BERNARDINO,A PUBLIC AGENCY ("Agency") and STEVEN T. AND
6 KUAN-YIN WUO, husband and wife ("Wuo"):
7
8 WITNESSETH:
9 WHEREAS, the parties hereto are parties to that certain promissory note dated
10 February , 1999, in the sum of Two hundred Thousand, ($200,000)with one balloon payment
11 due on February , 2000, at the rate often percent(10%) per annum.
12
13 WHEREAS, said promissory note provides for a final balloon payment of all outstanding
14 principal and interest one (1)year from the date the loan is funded by the Agency.
15
16 WHEREAS, said promissory note is secured by a first deed of trust securing the amount
17 of Two Hundred Thousand Dollars ($200,000), plus $20,000 interest, all dated as of February ,
18 1999, and recorded as instrument numbers AP#0134-381-27, official records of the County of
19 San Bernardino, payable in full one (1) year after the loan is funded by the Redevelopment
20 Agency.
21
22 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day
23 an date first above shown.
24
25
26
27
28
1 REDEVELOPMENT AGENCY OF THE
2 CITY OF SAN BERNARDINO
3
4 BY:
5 Gary Van Osdel, Executive Director
6
7 BY:
8 Steven T. Wuo, Husband
9
10 BY:
11 Kuan Yih Wuo, Wife
12
13 Approved as to form
14 and legal content:
15
16 By.
17 Agency Counsel
19
19
20
21
22
23
24
25 ABH/vnh/Wuo.agr
26
27
28
. 1
2 CITY OF SAN BERNARDINO
3 REDEVELOPMENT AGENCY
4
5 "Exhibit B"
6
7 This deed of trust secures a promissory note dated February , 1999, in the amount of
8 TWO HUNDRED TWENTY THOUSAND AND 00/100 DOLLARS ($220,000). Said
9 promissory note shall become immediately due and payable in the amount of the unpaid
10 principal with interest upon transfer of title, whether such transfer be voluntary, involuntary, by
11 operation of law, or as a result of the death of the undersigned, or upon the occurrence of any
12 event which causes a reduction in the priority which the deed of trust securing this instrument
13 enjoys as of the date of its recordation.
14
15
16 Steven T. Wuo
Date
17
18
19 Kuan Yin Wuo Date
20
21
22 (Witness) Date
23
24
25
26
27
28