CDC - 2008-32 - Promissory Note in the Amount of $3,055,000RESOLUTION NO. CDC2008-32
RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION AUTHORIZING THE EXECUTION OF A PROMMISSORY NOTE
IN THE AMOUNT OF $3,055,000 TO THE CITY OF ROSEMEAD, CALIFORNIA
WHEREAS, On June 10, 2008 the Rosemead Community Development
Commission (RCDC) voted to approve the Fiscal 2008-09 budget, and
WHEREAS, Subsequent to approving the FY 2008-09 budget the need to
purchase a parcel of real property known as 3520 Ivar Avenue, Rosemead,
California 91770 (the "Property") arose, and
and
WHEREAS, RCDC does not have sufficient cash to pay for the Property,
WHEREAS, RCDC will execute an interest bearing loan from the City,
secured with a Promissory Note to pay for the Property, and
WHEREAS, On or about December 5, 2008 the $3,055,000 will be
transferred from the City's checking account to the RCDC checking account.
NOW THEREFORE, BE IT RESOLVED, that the Commission does
authorize the execution of a Promissory Note dated on or about December 5,
2008 to the City in the in the amount of $3,055,000 at an interest rate of 4.00%
per annum for a term of 20 years.
PASSED AND ADOPTED, by the Rosemead Community Development
Commission, County of Los Angeles, of the State of California on October 28,
2008.
U !:f"fiRRCVED AS TO FORM:
JOH TRAN, CHAIRMAN
ATTEST: CITY )TTORNEY
I15L10~ d
GLORIA MOLLEDA, COMMISSION SECRETARY
E
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PROMISSORYNOTE
$3,055,000
Date: December 1 $ 2008
For value received, the undersigned Rosemead Community Development Commission (RCDC)
(the "Borrower"), at 8838 East Valley Boulevard, Rosemead, California 91770, promises to pay
to the order of the City of Rosemead, (the "Lender"), at 8838 East Valley Boulevard, Rosemead,
California 91770, (or at such place as the Lender may designate in writing) the sum of $3,055,000
with interest from December1a, 2008, on the unpaid principal at the rate of 4.00% per annum.
The accrued interest only shall be payable in annual installments of $122,200 beginning
December18 2009, and continuing until Decemberl_8 2028, (the "Due Date"), at which time the
remaining principal and interest shall be due in full. If the real property known as 3520 Ivar
Avenue, Rosemead, California 91770 (the "Property"), to be purchased with the proceeds of this
note, is sold by RCDC at any time prior to the Due Date the remaining principal and interest shall
be due in full on the close of escrow.
THE BORROWER UNDERSTANDS THAT THE PAYMENT OF THE ABOVE
INSTALLMENT PAYMENTS MAY NOT FULLY AMORTIZE THE PRINCIPAL BALANCE
OF THE NOTE, AND THEREFORE, A BALLOON PAYMENT MAY BE DUE ON THE DUE
DATE OR THE CLOSE OF ESCROW OF THE SALE OF PROPERTY, WHICHERVER
OCCURS FIRST.
All Payments on this Note shall be applied first in payment of accrued interest and any remainder
in payment of principal.
This Note shall be construed in accordance with the laws of the State of California.
Signed this 18 day of December, 2008, at 8838 East Valley Boulevard, Rosemead,
California 91770.
Borrower:
Rosemead Community Development Commission
" John T , Chairperson
C71
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CITY OF ROSEMEAD
Loan Repayment Schedule
Outstanding
Principal
4.00%
Principal Interest
Payments Payments
Total
Payments
12/5/2008
$ 3,055,000
- .
2009
3,055,000
- 122,200
122,200
2010
3,055,000
- 122,200
122,200
2011
3,055,000
- 122,200
122,200
2012
3,055,000
- 122,200
122,200
2013
3,055,000
- 122,200
122,200
2014
3,055,000
- 122,200
122,200
2015
3,055,000
- 122,200
122,200
2016
3,055,000
- 122,200
122,200
2017
3,055,000
- 122,200
122,200
2018
3,055,000
- 122,200
122,200
2019
3,055,000
- 122,200
122,200
2020
3,055,000
- 122,200
122,200
2021
3,055,000
- 122,200
122,200
2022
3,055,000
- 122,200
122,200
2023
3,055,000
- 122,200
122,200
2024
3,055,000
- 122,200
122,200
2025
3,055,000
- 122,200
122,200
2026
3,055,000
- 122,200
122,200
2027
3,055,000
- 122,200
122,200
2028
3,055,000
3,055,000 122,200
3,177,200
$ 3,055,000 $ 2,444,000 $ 5,499,000
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD
•
I, Gloria Molleda, Commission Secretary of the City of Rosemead, do hereby certify that
the foregoing Resolution No: 2008-32:
RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION AUTHORIZING THE EXECUTION OF A
PROMMISSORY NOTE IN THE AMOUNT OF $3,055,000 TO THE CITY
OF ROSEMEAD, CALIFORNIA
was duly and regularly approved by the Community Development Commission on the
28`n of October of 2008, by the following vote to wit:
Yes: Low, Nunez, Tran
No: Clark Taylor
Abstain: None
Absent: None
oria Molleda
Commission Secretary
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