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RES 2004-0908 - Early epreciation of loan principal balance for property at 3506 Meredith Circle • oWtHA, 8d 41s R F C t: '!E° Planning Department r !� � Omaha/Douglas Civic Center 1 :#N t t g MA 1' S�J 1819 Farnam Street,Suite 1100 r� ® {1� a, 014 ,3tt Omaha,Nebraska 68183-0002 0 �ro l« C1 (402)444-5200 *4TBD (402)444-5150 FEnik`5 G '` `'T� �, S +� Telefax(402)444-6140 City of Omaha Robert C.Peters Mike Fahey,Mayor Director July 20, 2004 Honorable President and Members of the City Council, Attached is a proposed Resolution allowing for the early depreciation of the principal of a deferred payment loan executed by Lonnell Samuels Bryant. The terms of the 1994 Deed of Trust securing this loan provided for the partial financing of the acquisition of property located at 3506 Meredith Circle, such financing consisting of a CDBG funded deferred loan in the original amount of$25,000.00. This financing was provided through the Homeownership Program. Mr. Bryant has been making nearly weekly trips to Kansas City, Missouri, to assist his sister in caring for his elderly father who is in very poor health. The situation has deteriorated to the point where Mr. Bryant needs to relocate to Kansas City to meet the needs of his father. The expenses involved in the relocation make it important that Mr. Bryant maximize the equity he will receive from the sale of his Meredith Circle property. He has made written request to the City for early depreciation of the deferred loan. The terms of the Deferred Loan Promissory Note allow for the loan principal to depreciate 50% after ten years from the date of the Note (December 20, 1994). While the ten-year period has not been fully satisfied, the particular circumstances of this case warrant early depreciation in the amount of $12,500.00. The depreciated balance due of$12,500.00 will be repaid at the time of sale from sale proceeds. The proposed Resolution would allow for the early depreciation of the City's interest in the property and repayment of a portion of the loan principal to facilitate the sale of the property and enable Mr. Bryant to move to Kansas City, Missouri, to attend to the needs of his father. Your favorable consideration of the Resolution is requested. Sincerely, Referred to City Council for Consideration: 6.2(t.0Y 6 -SD t y6 Robert C. Peters 46 Date Mayor's Office - Date Planning Director P:\PLN2\10909pjm.doc 1:11-eas:e return to : Patty Novacek, Planning Dept . 1819 Farnam St . , Rm 1111 . PROMISSORY NOTE 3506 Meredith Circle Project No. Holy Name Housing Corporat ion Place: Omaha, Douglas County, Nebraska Loan No. Ordinance No . 32554 Date: December 20 , 1994 FOR VALUE RECEIVED, the undersigned jointly and severally promise(s) to pay to the order of the CITY OF OMAHA (herein called "CITY"), acting by and through the Director of the Planning Department or its successors, the sum of Twenty-five thousand and 00/100 Dollars, ($ 25, 000 .00 ). The Principal on this Note is payable on the first day after the undersigned conveys, grants, mortgages, assigns or otherwise transfers their interest or a portion thereof in the property or improvements at 3506 Meredith Circle and legally described as: Lot 35, Monmouth Park 1st Replat , an Additon to the City of Omaha, as surveyed, platted and recorded in Dougla County , Nebraska. without the prior written consent of the said Director, and in lawful money of the United States at the • principal office of the City of Omaha, 1819 Farnam Street, Omaha, Nebraska, or at such other places as shall be designated by the City. The undersigned reserve(s) the right to prepay at any time all or any part of the principal amount of this Note without the payment of penalties or premiums. IN THE EVENT the undersigned shall fail to pay the interest on or principal amount of this Note when due, and if such failure be subsisting on the date the next installment payment under this Note be- comes due and payable, the unpaid principal amount of this Note, together with accrued interest and late charges, shall become due and payable, at the option of the CITY, without notice to the undersigned. Failure of the CITY to exercise such option shall not constitute a waiver of such default. No default shaii exist by reason of nonpayment of any required installment of principal and interest so long as the amount of the optional prepayments already made pursuant hereto equals or exceeds the amount of the required installments. If the interest on, and principal of, this Note are not paid during the calendar month which includes the due date, the undersigned shall pay to the CITY a late charge of 4% per calendar month, or fraction thereof, on/the amount past due and remaining unpaid. If this Note be re- duced to judgment, such judgment should bear the statutory interest rate on judgments, but not to exceed 9% per annum. IF• suit is instituted by the CITY to recover this Note, the undersigned agree(s) to pay all costs of such collection including reasonable attorneys' fees and court costs. THIS NOTE is secured by a second deed of trust duly filed for record in Douglas County, Nebraska. • • DEMAND, protest and notice of demand and protest are hereby waived, and the undersigned hereby waives, to the extent authorized by law, and all homestead and other exemption rights which otherwise would apply to the debt evidenced by this Note. IN WITNESS WHEREOF, this Note has been duly executed by the Undersigned, as of its date. 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Return to : Patty Npvacek, Planning Dept . 1819 Farnam St . , Rm 1111 1 + ACKNOWLEDGEMENT OF POWER OF SALE (To be signed prior to execution of Deed of Trust) TO: THE CITY OF OMAHA Property Address: 3506 Meredith Circle Legal Description: Lot 35, Monmouth Park 1st Replat, an Addition to the City of Omaha, as surveyed, platted and recorded in Douglas County, iaaa,'"t `a..k rt JAN 10 10 55 All 35 /?' ..AR .: ' r.+5" r., ..� STATE OF NEBRASKA) r . O i fi_+tl P G LUG-; . UOUGLA.Si ( Oi N ) , NE e {` COUNTY OF DOUGLAS) w u . The undersigned, being first duly sworn on oath, state as follows: 1. The undersigned are or will ' be the borrower (whether one or more) under a certain loan from the City of Omaha, and as security for such loan, the undersigned will execute and deliver a deed of trust covering the above- described property to Wadie Thomas (Trustee) . 2. The undersigned understand and acknowledge that such securing instrument is a Deed of Trust and not a Mortgage and that the power of sale contained in such Deed of Trust provides substantially different rights and obligations to the undersigned than a Mortgage in an event of default or breach of obligation. Dated: December 20 , 19 94 . `1OEMIEOi�p�'M Lonnell Samuels Bryant IOAM• la7_ Comm.EV.: • Subscribed and sworn to before me this 20th day of December 19 94 . L)dk fk. Notary Public My Commission expires �''% � 7% `�� Return to: Patty Novacek, Planning Dept .1819' Farnam, DEED OF TRUST, CONSTRUCTION SECURITY AGREEMENT Rm -1111 AND ASSIGNMENT OF RENTS THIS CONSTRUCTION SECURITY AGREEMENT(HEREINAFTER MAY BE REFERRED TO AS SECURITY AGREEMENT) SECURES AN OBLIGATION WHICH THE DEBTOR INCURRED FOR THE PURPOSES OF MAKING IMPROVEMENTS ON THE REAL PROPERTY DESCRIBED BELOW. THIS DEED OF TRUST,CONSTRUCTION SECURITY AGREEMENT AND ASSIGNMENT OF RENTS,made this 20 day of December Lonnell Samuels Bryant) O ,y1C .r )11) 1994 ,among 3506 Meredith Circle, Omaha, NE 68111 as Trustor, Wadie Thomas, Attorney-at-Law '; `' '? as Trustee,and 2505 North 24th Street, Omaha, NE 681.10 City of Omaha, a Municipal Corporation © L as Beneficiary: 1819 Farnam Street, Omaha, NE 68183 to WITNESSETH: LR That Trustor irrevocably grants,transfers and assigns to Trustee in trust,with power of sale,the following described Real Estate: • Lot 35, Monmouth. Park 1st Replat , an Addition to the City of Omaha, as surveyed, platted and recorded in Douglas County, Nebraska. - Ifft together with all interest which Trustor now has or may hereafter acquire in and to said Real Estate and in and to:(a)all easements and rights of way appurtenant thereto and all of the estate,right,title,interest,claim and demand whatsoever of Trustor in the Real Estate,either at law or in equity,now or hereafter acquired:(b)all structures,buildings and improvements of every kind and description now or at any time hereafter located or placed on the Real Estate(the"Improvements");(c)all machinery,appliances,apparatus,equipment and fixtures now or hereafter located in,upon or under the Real Estate or the Improvements,or any part thereof,and used or usable in connection with any present or future operation thereof,and all additions thereto and replacements therefore;(d)all articles of personal property and any additions to,substitutions for,changes in or replacements of the whole or any part thereof,including,without limitation,all furniture and furnishings,now or at any time hereafter affixed to,attached to,placed upon or used in any way in connection with the use,enjoyment,occupancy or operation of the Real Estate or the Improvements,or any portion thereof,and owned by the Trustor or in which Trustor now has or hereafter acquires an interest;(3)all of the rents,royalties,issues and profits of the Real Estate and the Improvements,or arising from the use or enjoyment of all or any portion thereof or from any lease,license,concession,occupancy agreement or other agreement pertaining thereto (the"Rents and Profits"),and all right,title and interest of Trustor in and to all leases,licenses and occupancy agreements of the Real Estate or of the improvements now or hereafter entered into and all right,title and interest of Trustor thereunder,including without limitation,cash or securities deposited thereunder to secure performance by tenants,lessees or licensees,as applicable,of their obligations thereunder;(f)all building materials and supplies now or hereafter placed on the Real Estate or in the Improvements;(g)all proceeds of the conversion,voluntary or involuntary,of any of the foregoing into cash or liquidated claims,including,without limitation,proceeds of insurance and condemnation awards;and(h)all other or greater rights and interests of every nature in the Real Estate and the Improvements and in the possession or use thereof and income therefrom,whether now owned or subsequently acquired by Trustor.The property so conveyed hereunder is hereinafter referred to as"such property". FOR THE PURPOSE OF SECURING: A. Payment of the principal sum of Twenty-five thousand and 00/100 Dollars($25 ,000 .00) evidenced by that certain promissory note dated of even date herewith(hereinafter referred to as the"Promissory Note")issued by Trustor in said amount and payable to the order of Beneficiary,together with interest thereon,late charges and prepayment bonuses according to the terms of the Promissory Note and all renewals,extensions and modifications thereof. B. Performance,discharge of and compliance with every obligation,convenant and agreement of Trustor incorporated by reference or contained herein or in any other security agreement or deed of trust at any time given to secure any indebtedness hereby secured,or any patheeof,inclu jig he Redevelopment Agreement with the City of Omaha dated January '7, 19924nd approved by City Council uruNo. :ii 4 C. Payment of all fees and charges of Beneficiary,whether or not set forth herein. D. Payment of future advances necessary to protect such property. E. Payment of future advances to be made at the option of Trustor and Beneficiary. TO PROTECT THE SECURITY OF THIS DEED OF TRUST,TRUSTOR COVENANTS: 1. Title:That it is lawfully seized and possessed of a good and indefeasible title and estate to such property in fee simple and will forever warrant and defend the title thereto against the claims and demands of all persons whosoever;that it will,at its expense,maintain and preserve the lien of this Deed of Trust as a second lien upon such property. C-25• - CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, on January 7, 1992, a Redevelopment Agreement between the City of Omaha and Holy Name Housing Corporation was approved by City Council Ordinance No. 32554 and executed by the Mayor of the City of Omaha to provide for the partial financing of home acquisition by eligible homebuyers under the Community Development Block Grant Program; and, WHEREAS, on December 20, 1994, Lonnell Samuels Bryant (hereinafter referred to as "Owner") executed a deferred payment loan Deed of Trust and Promissory Note in the amount of$25,000.00 to secure the financing of the acquisition of his property, located at 3506 Meredith Circle, such documents being recorded on January 10, 1995, with the Douglas County Register of Deeds in Book 4465 on Page 223; and, WHEREAS, the Owner is no longer able to remain in his home due to family obligations and he intends to sell the property to facilitate his relocation to another city; and, WHEREAS, the terms of the deferred payment loan, as modified by the Omaha City Council, on February 3, 1998, by Resolution No. 363, provide for the depreciation of the loan balance by fifty percent (50%) after a period of ten years from the date of the promissory note; and, WHEREAS, the Owner's loan is scheduled to depreciate on December 20, 2004; and, WHEREAS, the Owner requests that the City consent to an early depreciation by fifty percent (50%) of the principal balance of the deferred payment loan to facilitate the sale of the property and to prevent financial hardship; and, WHEREAS, it is in the best interests of the citizens of the City of Omaha's that this loan principal be depreciated prior to the scheduled date. • By Councilmember Adopted City Clerk Approved Mayor C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska PAGE 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT, as recommended by the Mayor, in consideration of the extenuating circumstances regarding the family situation of Mr. Lonnell Samuels Bryant, the City consents to the early depreciation of the original deferred loan principal balance, in the amount of $25,000.00, financing the acquisition of property located at 3506 Meredith Circle, by fifty percent (50%) to the amount of$12,500.00. The depreciated loan balance will be due upon the sale of this same property. P:\PLN2\10910pjm.doc APPROVE TO FORM: 6 1'1jJ CITY ATTORNEY DATE 11i/ - DVS By ifCouncilmember Adopted .� . . 2..0..2004 City Clerk Approved 4 .. . . ..7/4/ ayor • BCD v, CD O co 0 6 a 1�y • N ems-' co O r<-' O ,-- = 0 \o G- O n O O n ¢ = aq • p� - C_ o p �'. bd ,-I- 0 0 fil!� •� coCDQ.,, r— . r-' CD t.m n P CD 0 cD C NQ CD T )-h r-' .- fa,Z R cm r'n O CD CD co po O_ ... 0 CD CM? „,"' 71. 5 .3z>q.\ `\J Lap P' 0 O 0 CD CD 0 �•"C n AD r' • '-' CD r-' O 0 A> h vy C -t r1 CD CDCD `� 0 O . 1 0. '