HomeMy WebLinkAboutAGENDA REPORT 1997 1001 CC REG ITEM 09C� tip. 37
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CITY OF MOORPARK Crry OF MOORPAR& CAuFORNM
AGENDA REPORT City C uncil Meeting
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TO: The Honorable City Council
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FROM: Donald P. Reynolds Jr., Administrative Services Manage
BY '
DATE: September 25, 1997
SUBJECT: Consider Loan Repayment Schedule for the Moorpark
Boys and Girls Club
Attached is a copy of the Promissory Note from the Boys and Girls Club to the City of Moorpark.
This Promissory Note, dated November 30, 1994, amended their previous loan of $50,000 to a
loan of $82,000. Deferred interest of $7,500 is attributable to the $50,000 loan. Interest of
$4,533.33 is attributable to the $32,000, over a two year and ten month period (from December 1,
1994, to September 30, 1997). The total interest due is $12,033.33, when added to the $82,000,
equals a total promissory note of $94,033.33, (attached).
Due and payable on September 30, 1996 was a portion of principal ($50,000) and three years of
interest ($7,500) on that amount. On October 2, 1996, the City Council approved the extension of
this payment over a three year period with the following schedule of payments:
September 30, 1996 $7,500 interest paid receipt #1531
September 30, 1997 $2,500 interest
September 30, 1998 $52,500 principal and interest
Also due and payable on September 30, 1997 was a portion of principal ($32,000) and interest
($4,533.33). The interest has been calculated based on ten months at 5% ($1,333.33) plus two full
years of interest ($3,200). Combining interest and the principal amount, the second portion of
this loan equals $36,533.33.
The Boys and Girls Club is requesting an extension of the required payment due on September 30,
1997 of $39,033.33 ($2,500 + $4,533.33 +32,000 = $39,033.33). Specifically, they are requesting
an extension for one more year for both principal amounts due on the original loan of $50,000 and
the second loan of $32,000. The Club has paid the interest due as of September 30, 1997, for both
principal amounts totaling $7,033.33.
Staff originally prepared a four year deferred interest payment plan for Council's consideration.
Subsequent to this, the Boys and Girls Club requested consideration of a five year payment
deferral plan. Tables illustrating both options are presented below.
The Budget and Finance Committee, (Mayor Hunter and Councilmember Wozniak), are scheduled
to review the status of this arrangement prior to the October 1 Council meeting. Staff
recommends forwarding this request to the City Council on October 1 ,1997, with the
recommendation to accept interest payments bringing the interest current on two principal
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amounts of $50,000 and $32,000 which leaves a combined principal of $82,000 loaned to the
Boys and Girls Club at 5% simple interest accruing from September 30, 1997, and consider
accepting either a four year payment plan, or a five year payment plan as shown below for
repayment of the $82,000 principal amount, to be secured by a new promissory note:
FOUR YEAR PAYMENT PLAN
PRINCIPAL
AMOUNT
REMAINING
PRINCIPAL
INTEREST
AMOUNT
DUE
DATE DUE
$20,500.00
$61,500.00
$4,100.00
$24,600.00
SEPT. 30, 1998
$20,500.00
$41,000.00
$3,075.00
$23,575.00
SEPT. 30, 1999
$20,500.00
$20,500.00
$2,050.00
$22,550.00
SEPT. 30, 2000
$20,500.00
$0.00
$1,025.00
$21,525.00
SEPT. 30, 2001
$82,000.00
$0.00
$10,250.00
$92,250.00
SEPT. 30, 2002
FIVE YEAR PAYMENT PLAN
PRINCIPAL
DUE
REMAINING
PRINCIPAL
INTEREST
DUE
AMOUNT DUE
DATE DUE
$16,400.00
$65,600.00
$4,100.00
$20,500.00
SEPT. 30, 1998
$16,400.00
$49,200.00
$3,280.00
$19,680.00
SEPT. 30, 1999
$16,400.00
$32,800.00
$2,460.00
$18,860.00
SEPT. 30, 2000
$16,400.00
$16,400.00
$1,640.00
$18,040.00
SEPT. 30, 2001
$16,400.00
$0.00
$820.00
$17,220.00
SEPT. 30, 2002
$82,000.00
$12,300.00
$93,300.00
Recommendation
That the City Council, consider pending recommendation from the Budget and Finance
Committee, and select either the five year or four year payment plan as deemed appropriate with
payments beginning September 30, 1998, and accept the payment of interest equal to $7,033.33,
for 1997, and authorize staff to execute the related promissory note securing the balance due in
principal and interest.
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PROMISSORY NOTE
$82,000.00 Principal
$12,033.33 Interest
$94,033.33 Total Note
Moorpark, California
November 30, 1994
FOR VALUE RECEIVED, the undersigned Moorpark Boys and
Girls Club, a California non - profit organization, ( "Borrower ")
hereby promises to pay as herein stated to the City of Moorpark
( "City "), or order, at its principal place of business at 799
Moorpark Avenue, Moorpark, California or at any other place
designated by the holder hereof, the principal of Eighty -two
Thousand Dollars ($82,000) and interest on the unpaid principal
amount of said sum is herein provided of Twelve Thousand, Thirty -
three Dollars and Thirty -three Cents ($12,033.33) for a total
payment of Ninety -four Thousand, Thirty -three Dollars and Thirty -
three Cents ($94,033.33).
Borrower promises to pay interest on the outstanding
balance due hereunder this Note at the simple rate of interest
per annum calculated on the basis of a 365 day year, at the
average annual rate of interest of five percent (5%.) The
principal of Fifty Thousand Dollars ($50,000) and interest of
Seven Thousand, Five Hundred Dollars ($7,500) shall be due and
payable.on September 30, 1996. The principal of Thirty -two
Thousand Dollars ($32,000) and inte st of Four Thousand, Five
Hundred Thirty -three Cents ($4,5w.) shall be due and payable
on September 30, 1997. In the event any interest payment or
principal payment is not paid within ten (10) days of the due
date, the amount of unpaid interest or principal shall bear
interest at the maximum legal rate from the date it was due,
provided that the unpaid interest of principal so compounded
shall not be less than the interest then due on the outstanding
principal and further provided that the interest rate so
compounded shall not exceed the maximum interest rate permitted
by law.
All unpaid principal, together with any unpaid
interest, shall be all due and payable upon the earlier of (i)
September 30, 1996, or September 30, 1997 as specified above,
(ii) the sale, transfer or conveyance, whether voluntarily or
involuntarily, by operation of law or otherwise, of any portion
of the Property, except when the sale, transfer or conveyance of
the Property or any portion thereof is to City; (iii) the sale,
transferor conveyance, whether voluntarily or involuntarily, by
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operation of law or otherwise, or any land that is included
within any development agreement approved by the City.
Borrower shall have the right to prepay all or any
portion of the indebtedness, without penalty or premium.
This Note shall be governed and interpreted under the
laws of the State of California.
This Promissory Note is based upon City Council's
approval on November 2, 1994, of the Boys and Girls Club loan
request. It incorporates both a Thirty -two Thousand Dollar loan
request and an outstanding Fifty Thousand Dollar building loan.
This Promissory Note in all material respects comports to the
letter received by Board of Director President, Tony Litton,
dated November 30, 1994 and all the terms thereof.
Should the indebtedness represented by this Note or any
part thereof be collected at law or in equity or through any
bankruptcy including, without limitation, any action for relief
from the automatic stay of any bankruptcy proceeding,
receivership, probate or other court proceedings or by any
judicial or nonjudicial foreclosure proceeding, or if this Note
is placed with attorneys for collection after default, Borrower
agrees to pay, in addition to the principal and interest due and
payable hereon, reasonable attorneys' fees and collection costs
and expenses.
Date: November 30, 1994
Moorpark Boys and Girls Club
By: (Z:�/- t,
Tony nton, Board of
Director, President
C: \VPDOCS \RH\PROMSSS.BOY
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