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