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Home My WebLink AboutContracts & Agreements_6-1999_CCv0001.pdf 101wrSsociates COMMERCIAL REAL ESTATE SERVIETS January 25, 1999 Ms. Bonnie Johnson, Finance Director CITY OF REDLANDS 35 Cajon Street Redlands, CA 92373 RE: Request for Assumption Dr. Manly R. Hyde 746 E. Citrus,Redlands, California Dear Ms. Johnson: The purpose of this letter is to reaffirm our understanding and request for the City of Redlands (the Lender) to consider extending the terms of their note and deed of trust that secures the above referenced property to(THE NEW Buyer)of the subject property, Mr. Jose Herrera. For clarification,and your convenience, I have structured this letter request into sections as follows: I. Background 11. Objectives 111. Major Factors IV. Timing&Actions V. Exhibits Background: The subject property under this assumption is located at 746 East Citrus which is the existing collateral, and is known as the historic Redlands Trolley Barn. The site contains a 6,500 square foot barn constructed in the early 1900s and purchased by the Redlands Street Railway Company. The barn was used as a facility to store and maintain the trolley cars, The barn's primary use would be to continue as a maintenance,repair and storage facility. The property today is vacant and is designated as a historical landmark by the City of Redlands. Dr. Manly R. Hyde (the borrower), had purchased the property in 1994 as an investment opportunity as a future antique mall or themed restaurant. Dr. Hyde has decided to sell the property since moving to Glendale, California. The property was originally sold to Dr. Hyde in 1994 by the Redevelopment Agency and secured financing from the City of Redlands. Objectives: Lee & Associates, a commercial real estate company, represents the Seller of this property who is also the Borrower securing the note and deed of trust. As his real estate agent, we have sold the property and have entered into a sale escrow agreement with the Buyer) Mr. Jose Herrera, who we Lee&Assoclales-OnTOriO. inc, AMemberof the Lee&Assoc taP9sGro1jPof Como-antes 3535 inland P-mr-im Boulevard OnhJ,rio, A 91764 1 Office: 909'980-777 -%-— 1 - 1 / Fax: Q09/944-8250 Ms. Bonnie Johnson.Finance Director January 25, 1999 Page 2 also represent. The sale of the property is subject to an assumption by Mr. Jose Herrera on the existing note and deed of trust securing the property. We are requesting written consent from you as the Lender of this note for the transfer of the obli-ation from Dr. Hyde to the new Buyer with revisions to take title as follows: I. New Borrower Jose Herrera 2. Existing Loan Balance: $206,000 3. Pay Down of Loan: < 26,000> 4. New Principal Balance $180.000 5. Terms Due: 3 years 6. Amortization: 25 years 7. First Payment Due: June 1, 1999 8. Fixed Interest Rate: 8% 9. Monthly Principal & Interest: $1,389.26 10. Prepayment Penalties: None 11. Loan Assumption Fees: None 12. Collateral/Secured Real Estate Deed of Trust to Inland Brookside Services, Inc. 13. Repayment Current Note: As Agreed 14. Lender City of Redlands * Assumption balance request Major Factors: The primary source of repayment will come from the (Buyer's) ability to pay from sufficient net operating income and cash flow derived from his auto specialty repair shop in Riverside, California, and its current proposed operation here in Redlands, California. Mr. Herrera. the Buye , is the sole proprietor/owner of Discount Auto & Tire Service, a complete auto repair and tire service, open seven (7) days per week. The company has been in operation since 1990. We are in the process of obtaining an application for a new (SBA) loan to pay off the loan balance to the City of Redlands, California. Financial Qualifications: Name: Jose Herrera Address: 3596 Van Buren Ave., Riverside, CA Date of Statement: January 14, 1999 Type: Personal Assets: $774,139.00 Liabilities: $331,000.00 Net Worth: $463J39.00 Income: $35,000.00 annually Tax Return: 19971040 Length of Business Operation: 9 years Cash Down Payment: $38,000.00 L6W Mt.dates COMMERCIAL REAL EST-ATE SERVfCES f I-P Ms. Bonnie Johnson, Finance Director January 25, 1999 Page 3 Mr. Herrera, the Buyer, is in the process of complying with the Planning Department requirements for landscaping improvements to the property and conforming to the permitted use of the property. They will require of the Buyer an additional outlay of cash, which he has agreed to do for tenant improvements and retrofit of the property, Timing& Action: We understand that this request for the assumption of the note requires the City Manager's recommendation and the City Council members' consent through the City Council Open Calendar Meeting. We would appreciate your assistance in placing this request on'the calendar date agenda for Tuesday,January 19, 1999 for approval and acceptance. Exhibits: A. Borrower's Financial Information B. Copy of Note (Manly R. Hyde) C. Copy of Escrow Instructions for Purchase of Real Thank you for your consideration to this request. If you require additional information and feel that Lee & Associates as agent needs to be present at the council meeting, please advise me at vour earliest opportunity. Sincerely, LEE & ASSOCIATES—ONTARIO, INC. EL OKUABISTY Vice President MK.js Enclosure APPROVED& ACCEPTED ATTEST: CITY OV REDLANDS Geni A. S. Banda or--rie Poyz Its: Mayor Pro Tern Its City Clerk Date: February 2, 1999 Lee & ' Associates COMMERCIAL REAL ESTATE SERVtcEs f Ms. Bonnie Johnson,Finance Director January 25, 1999 Page 3 Mr. Herrera, the Buyer, is in the process of complying with the Planning Department requirements for landscaping improvements to the property and conforming to the permitted use of the property. They will require of the Buyer an additional outlay of cash, which he has agreed to do for tenant improvements and retrofit of the property. Timing,&Action: We understand that this request for the assumption of the note requires the City Manager's recommendation and the City Council members' consent through the City Council Open Calendar Meeting. We would appreciate your assistance in placing this request on the calendar date agenda for Tuesday, January 19, 1999 for approval and acceptance. Exhibits: A. Borrower's Financial Information B. Copy of Note (Manly R. Hyde) C. Copy of Escrow Instructions for Purchase of Real Thank you for your consideration to this request. If you require additional information and feel that Lee & Associates as agent needs to be present at the council meeting, please advise me at your earliest opportunity. Sincerely, LEE& ASSOCIATES—ONTARIO, INC. EL KUBISTY Vice President MK-js Enclosure APPROVED&ACCEPTED ATTEST: CITY OF REDLANDS By: 61VI-t By: ( Genf A. S. Banda 56—frio Povzer `-Zer Its: Mayor Pro Tent Its: Cit Clerk Cleri Date: February 2, 1999 "Lee L Assmiates COMMERCIAL REAL ESTATE SERWCES f lntel'19991iles'letter_�m sliohiuoti-4(,e,cimt,5,dnc 01/26/1999 Page 1 Jose Herrera Compound Period .......: Monthly Nominal Annual Rate ... : 8.000 % Effective Annual Rate .. : 8.300 % Periodic Rate .............. : 0.6667 % Daily Rate .................. : 0.02192 % CASH FLOW DATA Event Start Date Amount Number Period End Date 1 Loan 02/01/1999 205,462.00 1 2 Payment 02/01/1999 22,350.00 1 Fixed Payment (+ Interest) 3 Payment 03/01/1999 Interest Only 3 Monthly 05/01/1999 4 Payment 06/01/1999 1,389.26 33 Monthly 02/01/2002 5 Payment 03/01/2002 178,094.34 1 AMORTIZATION SCHEDULE - Normal Amortization Date Payment Interest Principal Balance Loan 02/01/1999 205,462.00 1 02/01/1999 22,350.00 0.00 22,350.00 183,112.00 2 03/01/1999 1,220.75 1,220.75 0.00 183,112.00 3 04/01/1999 1,220.75 1,220.75 0.00 183,112.00 4 05/01/1999 1,220.75 1,220.75 0.00 183,112.00 5 06/01/1999 1,389.26 1,220.75 168.51 182,943.49 6 07/01/1999 1,389.26 1,219.62 169.64 182,773.85 7 08/01/1999 1,389.26 1,218.49 170.77 182,603.08 8 09/01/1999 1,389.26 1,217.35 171.91 182,431.17 9 10/01/1999 1,389.26 1,216.21 173.05 182,258.12 10 11/01/1999 1,389.26 1,215.05 174.21 182,083.91 11 12/01/1999 1,389.26 1,213.89 175.37 181,908.54 1999 Totals 35,737.07 12,183.61 23,553.46 12 01/01/2000 1,389.26 1,212.72 176.54 181,732.00 13 02101/2000 1,389.26 1,211.55 177.71 181,554.29 14 03/01/2000 1,389.26 1,210.36 178.90 181,375.39 15 04/01/2000 1,389.26 1,209.17 180.09 181,195.30 16 05/01/2000 1,389,26 1,207.97 181.29 181,014.01 17 06/01/2000 1,389.26 1,206.76 182.50 180,831.51 18 07/01/2000 1,389.26 1,205.54 183.72 180,647.79 19 08/01/2000 1,38926 1,204.32 184.94 180,462.85 20 09/01/2000 1,389.26 1,203.09 186.17 180,276.68 21 10/01/2000 1,389.26 1,201.84 187.42 180,089.26 22 11/01/2000 1,389.26 1,200.60 188.66 179,900.60 23 12/01/2000 1,389.26 1,199.34 189.92 179,710.68 2000 Totals 16,671.12 14,473.26 2,197.86 01/26/1999 Page 2 's Jcase Herrera ----------- _ Gate Payment Interest Principal Balance_----- ----- ----- - - .. ---- 24` 9119112001 1,389.26 1,198.97 191.19 179,519.49 25 02/01/2001 11389.26 1,196.89 192.461 179,327.93 26 03/0112001 1,339.25 1,195.51 193.75 179,133.28 27 04101/2001 1389.26 1,194.22 195.94 178,938.24 28 05/01/2001 1;389.26 1,192.92 196.34 178,741.99 29 06/01/2001 1,389.26 1,191.61 197.65 178,544.25 39 07101/2001 1,389.26 1,199.39 198.96 178,345.29 1 08101/2001 1,389.26 1;188.97' 299.29 178,145,09 32 99/91/299' 1,389.261 1,187.613 291.613 177,943.37 33 10/01/2001 1,389.261 1;1861.29 292.97 177,740.40 34 11/01/2001 1,389.261 1,184.94 294.32 177,536.08 35 12/9112991 1,389.261 1,183.57 295.619 177,339.39 2991 Totals 16,671.12 14,290.83 2,380.29 6 01/0112002 13389.261 1,182.29 297.06 177,123,33 7 02/0112002 1,389.26 1,180.82 208.44 176,914.89 38' 03/01/2002 178 09434 1,179.45 1761;914.89 0.00 2002 Total 180;872.86 3,542.47 177,339.39 Grand Totals 249,952.17 44,499.17 205,462.00