HomeMy WebLinkAbout09140RESOLUTION NO. 9140 A RESOLUTION APPROVING AMENDMENT NO. 1 TO AFFORDABLE HOUSING SUBDIVISION LOAN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND PREMIER HOMES, INC. AND PANNUNZIO, INC., AND AUTHORIZING THE PRESIDENT OF THE COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1 The Amendment No. 1 to Affordable Housing Subdivision Agreement dated October 23, 2000, between the City of Pueblo, a Municipal Corporation, and Premier Homes, Inc. and Pannunzio, Inc. (the "Amendment "), a copy of which is attached hereto and incorporated by reference, is hereby approved. SECTION 2 The President of the City Council is hereby authorized to execute said Amendment on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and attest same. SECTION 3 The President of the City Council is hereby further authorized to execute, for and on behalf of the City, all written instruments necessary to effectuate the intent of the Amendment. INTRODUCED: October 23, 2000 By Rich Gnlenda Councilperson ATTEST: City lerk APPR ED: 'I t, Pr Ment of the City Council F:\CITY\HOUSFNG\HOME\LAREDO\RESOLUTN.WPD -2- 6 llpn�qo Background Paper for Proposed Resolution AGENDA ITEM # DATE: October 23, 2000 DEPARTMENT: HOUSING & COMMUNITY DEVELOPMENT TITLE A RESOLUTION APPROVING AMENDMENT NO. 1 TO AFFORDABLE HOUSING SUBDIVISION LOAN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND PREMIER HOMES, INC., AND PANNUNZIO, INC., AND AUTHORIZING THE PRESIDENT OF THE COUNCIL TO EXECUTE SAME ISSUE This resolution will modify the Agreement and Note to extend, for a limited period, and for one time only, the deadline for repayment of the loan, which if not sooner paid, shall become due and payable in full on October 6, 2001. RECOMMENDATION The Department recommends approval of the extension. BACKGROUND On September 14,1998, the City Council approved an Affordable Housing Agreement with Premier Homes, Inc., by Resolution 8522. The HOME program loan approved was to be used for infrastructure costs (as described in Exhibit B of the Agreement) and for site development of a new subdivision known as Laredo at Lakeshore. The Project consists of 159 for -sale single - family homes. The terms of the Agreement under Paragraph 1, provided for the full repayment of the loan 728 days from the signing of the loan documents, which occurred on October 6, 1998. The loan is to be repaid on a per lot basis as the homes are sold. The Project needs the additional time to allow Ontario Street to be built -out and the houses sold. The developer is requesting an extension on the repayment period. FINANCIAL IMPACT The outstanding balance on the loan of $360,000 will be repaid in full by October 6, 2001. As collateral the City has a first lien position on lots on Ontario Street. Additionally, interest at 9% will accrue on any outstanding balance and be invoiced monthly to Premier Homes, Inc. AMENDMENT' NO. 1 TO AFFORDABLE HOUSING SUBDIVISION LOAN AGREEMENT THIS AMENDMENT NO. 1 to Affordable Housing Subdivision Loan Agreement is made and entered into this 23rd day of October, 2000, by and between the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City ") and Premier Homes, Inc., a Colorado corporation and Pannunzio, Inc., a Colorado Corporation (hereinafter collectively referred as to "Developer "). WHEREAS, City and Developer have heretofore entered into an Affordable Housing Subdivision Loan Agreement dated September 14, 1998 (hereinafter referred to as the "Agreement ") concerning a loan by City of Five Hundred Thousand Dollars ($500,000.00) to Developer to be used for the development of an affordable housing subdivision (the "Project "); and WHEREAS, Developer has not yet completed construction of affordable housing within the Project and has not repaid the full balance owed on the loan by the deadline set forth in the Agreement and a certain promissory note dated October 6, 1998 given by Developer in connection with the loan (the "Note "); and WHEREAS, City is willing to modify the Agreement and Note to extend, for a limited period, and for one time only, the deadline for repayment of the loan; NOW, THEREFORE, in consideration of the foregoing and the mutual terms and conditions set forth herein, the parties agree as follows: 1. The Agreement is amended by revising the last sentence of paragraph 1 thereof to read as follows: The terms of the Loan shall provide that if not sooner paid in full, the entire Loan shall become due and payable in full on October 6, 2001. 2. All references in the Agreement to the HOME Regulations at "24 CAR, Part 92" are corrected to read "24 CFR, Part 92." 3. The City and Developer shall modify paragraph 1(c) of the Note by execution of an allonge to extend the maturity of said Note as authorized in paragraph 1 of this Amendment No. 1. 4. Except as expressly modified by this Amendment No. 1, the Agreement shall remain in full force and effect. Except as expressly modified, any obligations remaining to be performed under the original Agreement by either party, including but not limited to those relating to the obligations to be performed by Developer, are not waived or excused in any manner, but shall be fully performed in accordance with the terms and conditions of the Agreement as it existed prior to this Amendment No. 1. IN WITNESS WHEREOF, Developer and City have executed this Amendment No. 1 To Affordable Housing Subdivision Loan Agreement as of the date first above written. PANNUNZIO, INC., A COLORADO CORPORATION ATTEST: N6 e &au rf I -)e_ JD0 rr� Title: B Name: Title: PREMIER HOMES, INC., A COLORADO CORPORATION ATTEST: y N me: /L Q u r O' Do i sLo Title: ATTEST: C� City C k By n. -& Name: N ,c Title: t'r s, A,-, CIT F PUEBLO, A icipal Cor r ion B �1 l v.J- l l It Pr eilentof the City Council [ SEAL ] P \CITY\HOUSING\HOME \LAREDO \AMND# L W PD -2 ALLONGE (Extension Agreement) THIS INSTRUMENT is executed this 23rd day of Octnher , 2000 and is intended to modify the terms of the attached Promissory Note dated October 6, 2000 (the "Note ") executed by Pannunzio, Inc., Premier Homes, Inc., Nick Pannunzio and Carol Pannunzio (collectively 'Borrowers ") as stated herein. Paragraph 1(c) of the Note is amended to read as follows: (c) If not sooner paid, the entire principal balance, plus accrued interest, shall become due and payable on October 6, 2001. 2. Except as set forth herein, the terms of the Note are not modified, nor shall the execution hereof by the undersigned holder of the Note constitute any waiver of any default by Borrowers, regardless of whether any such default is known or unknown to holder. HOLDER: CITY UEBLO, a M 'cipal Corporation B President of the City Council BORROWERS: PANNUNZIO, INC. B Title: PREMIER HOMES, INC. By Name: - t , ,) , c- v < Visry z. u Title: Fr-,-, , d .>- -j� Nick Pannunzio Carol Pannunzio