|
Status of F &C- Residence at the COR two Notes from the City
<br />NOTE #1 (TIF Loan) — Balance owing of $1,300,000 ($120,000 of original $1,420,000 paid at closing)
<br />Per Development Agreement Under Article VII Note #1 Section 7.7: "If Borrower repays $2,000,000 or
<br />more the outstanding amounts due under Note #2 (Bond) on or before the date 12 months after the
<br />date of the first disbursement of proceeds of Note #2 the HRA shall forgive $250,000 of the principal
<br />amount of Note #1, such forgiveness to be effective as of the date Borrower has prepaid at least $2M of
<br />the amount due under Note #2." As stated under Note #2 below: $500,000 was applied to accrued
<br />interest and principal and the date of the first disbursement from Loan #2 was July 16, 2012. Thus,
<br />the ending date for obtaining the $250,000 in principal forgiveness for Note #1 would be July 16, 2013,
<br />at which time an additional $1,500,000 needs to be paid to the city.
<br />NOTE #2 (Bond) - Balance owing of $6,450,448 ($6,916,000- $91,000 advanced back to HRA for issuance
<br />costs & $374,552 paid towards principal on 11/1/12 net of accrued interest per calculation below). F &C
<br />is to pay simple interest on the original issue amount of $6,825,000 at the rate of 6.27% per annum for
<br />18 months from July 16, 2012 to January 16, 2014. If at January 16, 2014 the city does not receive
<br />$2,500,000 ($3,000,000 - $500,000 11 -1 -12 paydown) the interest rate increases to 8.27% per annum.
<br />The 8.27% rate stays in effect until the earlier of F &C prepaying a total of $3M or the maturity date of
<br />the debt. If $3M or more is received prior to the maturity date, the interest rate is reduced to 6.27%
<br />from the date the total $3M is received. The entire outstanding principal balance and all accrued,
<br />unpaid interest under Note #2 are due and payable in full upon the earlier of June 1, 2015, or sale of
<br />the development property.
<br />Section 8.5 Prepayments: Borrower may prepay Note #2, in whole or in part, at any time and, if in
<br />part, from time to time, during the term of Note #2. All payments shall be applied first to the
<br />payment of accrued, unpaid late charges, then to accrued, unpaid interest, if any, with the balance, if
<br />any, applied to the reduction of principal.
<br />Application of $500,000 prepayment on November 1, 2012 (Council accepted terms on 10- 30 -12)
<br />Principal of Note #2: $6,825,000
<br />Interest Rate: 6.27%
<br />Interest Rate term: 107 Days (July 12, 2012 — October 31, 2012)
<br />Accrued Interest: $125,448
<br />Amount applied to principal reduction: $374,552
<br />Net Principal balance of Note #2: $6,450,448 ($6,825,000 - $374,552)
<br />Accrued interest Owing to Date: From October 31, 2012 — July 16, 2013
<br />Principal Balance: $6,450,448
<br />Interest Rate: 6.27%
<br />Interest Rate Term: 258 Days
<br />Accrued Interest: $285,882
<br />
|