HomeMy WebLinkAboutReso. 1988-061 - Authorizing assumption and subordination of the redding hotel loan by gary j. rowe and mary l. rowe, dba first market street investors 411RESOLUTION NO. g.t/
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AUTHORIZING
ASSUMPTION AND SUBORDINATION OF THE REDDING HOTEL LOAN BY GARY J. ROWE
AND MARY L. ROWE, DBA FIRST MARKET STREET INVESTORS.
WHEREAS, on July 21, 1987, the City Council of the City of Redding
approved the Agreement between the City of Redding and Gary J. Rowe and Mary
L. Rowe for Consent to Assumption and Modification of Note and Deed of Trust
on the Redding Hotel and authorized the City Manager to sign the Agreement;
and
WHEREAS, Gary J. Rowe and Mary L. Rowe, now doing business as First
Market Street Investors, have requested to assume the existing note and the
Deed of Trust on the Redding Hotel; and
WHEREAS, Gary J. Rowe and Mary L. Rowe have requested that the City of
Redding subordinate the Redding Hotel loan to a new first deed of trust in the
amount of $220,000; and
WHEREAS, The City Council has determined that there is reasonable cause
for subordination and assumption of the loan;
NOW, THEREFORE, BE IT RESOLVED as follows: (1) that the City Council of
the City of Redding hereby approves the subordination and assumption of the
Redding Hotel loan with the condition that the term of the loan shall be
accelerated with the current balance amortized over fifty-two months at 10
percent interest; that the loan shall be secured as the second deed of trust
on the property; and that approximately $104,500 be held in escrow for repairs
to be carried out by the owners; and that the owners agree to make all housing
accommodations available to lower income or moderate income tenants, or to
elderly tenants, for the term of the City loan. "Lower income" and "moderate
income" are defined in accordance with Section 3(b)(2) of the U. S. Housing
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Act of 1937 and standards developed by the U. S. Department of Housing and
Urban Development. "Elderly" shall be defined as 60 years of age or older;
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(2) that the City Attorney's office shall prepare all documents necessary to
carry out the subordination and assumption agreements and modification of loan
documents; and (3) that the City Manager of the City of Redding is hereby
authorized and directed to sign all necessary documents on behalf of the City
of Redding.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at
a regular meeting of the City Council of the City of Redding on the 16th day
of February , 1988, and was duly adopted at said meeting by the following
vote:
AYES: COUNCIL MEMBERS: Carter , Fulton , Gard , Johannessen , & Dahl
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None 1
MIKE DA'i LJ Mayor
City of Redding
ATTEST:
ETHEL A.
�SClerk
FORM APPROVED:
RA ALL A. HAYS, City ttorney
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