HomeMy WebLinkAbout09308RESOLUTION NO. 9308
A RESOLUTION APPROVING A MODIFICATION AGREEMENT
DATED MAY 29, 2001 BETWEEN THE CITY OF PUEBLO AND
PANNUNZIO INC., PREMIER HOMES, INC., NICK PANNUNZIO
AND CAROL PANNUNZIO RELATING TO THE DEVELOP-
MENT OF THE LAREDO AT LAKESHORE SUBDIVISION, A
SPECIAL AREA PLAN, AND AUTHORIZING THE PRESIDENT
OF THE CITY COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Modification Agreement dated May 29, 2001 between the City of Pueblo and Pannunzio,
Inc., Premier Homes, Inc., Nick Pannunzio and Carol Pannunzio relating to the development of the
Laredo at Lakeshore Subdivision, a Special Area Plan, a copy of which is attached hereto, having
been approved as to form by the City Attorney, is hereby approved.
SECTION 2
The President of the City Council is authorized to execute and deliver the Modification
Agreement in the name of the City.
INTRODUCED: May 29, 2001
By:
APPROVED:
of the City Council
ATTESTED BY:
City Clerk
MODIFICATION AGREEMENT
THIS MODIFICATION AGREEMENT entered into as of May 29, 2001 between the City
of Pueblo, a municipal corporation (the "City ") and Pannunzio, Inc., Premier Homes, Inc., Nick
Pannunzio and Carol Pannunzio (herein, collectively the "Developer "). WITNESSETH:
WHEREAS, City and Developer executed various documents with respect to the
development of the Laredo at Lakeshore Subdivision, a Special Area Plan (the "Subdivision ") to -wit:
an Affordable Housing Subdivision Loan Agreement dated September 14, 1998 (the "Loan
Agreement "), Promissory Note dated October 6, 1998 (the "Promissory Note "), and Deed of Trust
dated October 6, 1998 recorded October 7, 1998 as Instrument No. 1242267 (the "City's Deed of
Trust ") (the Loan Agreement, Promissory Note and City's Deed of Trust and all amendments,
modifications and extensions thereof entered into prior to the date hereof are herein collectively
referred to herein as the "Documents "), and
WHEREAS, City contends that Developer sold certain lots in the Subdivision and failed to
pay to City the amounts required for each lot sold pursuant to paragraph 1(b) of the Promissory Note
and paragraph 21 of the Loan Agreement, and is now in default under the Documents, and
WHEREAS, Developer disputes City's contention and denies that it is in default under the
Documents, and
WHEREAS, City and Developer are desirous of resolving such dispute upon the terms and
conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained
herein, City and Developer agree as follows:
Definitions:
(a) "City Lot" means a lot within the Subdivision upon which City's Deed of
Trust is a first deed of trust lien.
(b) " Minnequa Lot" means a lot within the Subdivision upon which City's Deed
of Trust is a second deed of trust lien, second only to the deed of trust lien of Minnequa Bank of
Pueblo.
2. Developer will pay or cause to be paid to City, $12,000.00 for each City Lot sold
notwithstanding the date of the sale of a City Lot. Such payment is to be made upon the date of
closing for the sale of each City Lot. Upon City's receipt of the $12,000 for each City Lot sold, City
will release such lot from City's Deed of Trust lien.
3. City will cause to be released City's Deed of Trust lien on all Minnequa Lots sold
prior to May 29, 2001, and on each Minnequa Lot on which a construction loan is made thereafter
upon Developer submitting satisfactory evidence to City that a construction loan on such Minnequa
Lot has been made.
4. Developer shall pay to City $20,000.00 per month to be applied to the principal
balance of the Promissory Note commencing June 15, 2001 and on the 15th day of each month
thereafter. In addition, Developer shall continue to pay to City on the first day of each month interest
at the rate of 9.0% per annum on the outstanding principal balance of the Promissory Note until the
principal balance of the Promissory Note is paid in full. If Developer defaults in any payment
required under this Modification Agreement, such default shall constitute a default under the
Promissory Note and City's Deed of Trust. The principal balance of the Promissory Note and all
accrued interest are due and payable in full on or before October 6, 2001.
5. Each party releases and discharges the other from all claims, demands and liabilities
resulting from, or arising, directly or indirectly, out of the alleged default of Developer or City not
releasing City's Deed of Trust lien on Minnequa Lots sold prior to May 29, 2001.
6. Neither this Modification Agreement nor any provision hereof shall be or be
construed to be a waiver of any other default by Developer under the Documents whether currently
existing or occurring after the date hereof.
7. The Documents shall remain in full force and effect according to their terms except
as same may be modified or amended by this Modification Agreement.
8. This Modification Agreement shall be construed in accordance with the laws of the
State of Colorado and shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors and approved assigns.
Executed in Pueblo, Colorado, the day and year first above written.
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PREMIER HOMES, INC. PUEB O A MUTIIPAL CORP / ORATION
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By
President
Council
Nick Pannunzio
Carol Pannunzio
Approved as to form:
City Attorney
PANNUNZIO, INC.
By i ? __,, .,.
President \
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