RES 1997-1610 - Agmt with Newson/Dundis Partnership for rehabilitation of 2405-07 Evans St *ir /fifi£lzs
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QtAAHA,Nye i- C I kY i \' '� C Planning Department
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I. 97 r;1 i + v I •J Omaha,Nebraska 68183-0110
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° (402)444-5150
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Telefax(402)444-6140
City of Omaha
Hal Daub,Mayor
June 10, 1997
Honorable President
and Members of the City Council,
Attached is a proposed Resolution approving a Supplemental Agreement between the City of Omaha
and Newson/Dundis Partnership. This Agreement adopts all the terms and conditions of the
Redevelopment Agreement approved by the City Council on September 14, 1982,by Resolution No.
2381, with the exception of allowing for a loan assumption and extending the loan term by an
additional fifty months. The 1982 Redevelopment Agreement provided for the financing of the
rehabilitation of a six-unit rental property located at 2405-07 Evans Street, such financing consisting
of a repayable loan in the original amount of$180,000.00
The current owner, being seriously delinquent on the loan payments and unable to fulfill its
obligations to the City,has asked.the City's consent to the sale of the property and assumption of the
loan by a new buyer. This Supplemental Agreement is necessary as the terms of the original
Redevelopment Agreement prohibit assumption. In addition, the amount of the loan's principal
balance ($110,001.63) and a short time period (72 months) remaining in the loan term necessitate
an extension of the loan term(an additional 50 months)in order to make the payments feasible given
the income stream of the property. The current owner will receive no compensation as a result of
the sale. While adoption of this Resolution will result in the City forgiving $7,704.65 of the
$16,225.00 in past due interest to facilitate the sale, it will also result in the City receiving
$23,040.00 in cash at loan closing to be applied as follows: $12,001.63 toward principal and
$11,038.37 toward past due interest and expenses.
Approval of the proposed Supplemental Agreement would result in the protection of the City's
interest in the property.
Your favorable consideration of the Resolution is requested.
Sincerely, Referred to City Council for Consideration:
•
454Planning Director Date Mayor's Office/Title D to
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SUPPLEMENTAL AGREEMENT
This Supplemental Agreement is between the City of Omaha, a Municipal Corporation in
Douglas County, Nebraska(hereinafter referred to as "City") and the Newson/Dundis Partnership
(hereinafter referred to as the "Owner").
RECITALS:
WHEREAS, the City of Omaha is a municipal corporation located in Douglas County,
Nebraska, and is organized and existing under the laws of the State of Nebraska, and is authorized
and empowered to exercise all powers conferred by the State constitution,laws,Home Rule Charter
of the City of Omaha, 1956, as amended, and local ordinances, including, but not limited to, the
power to contract; and,
WHEREAS,on September 14, 1982,by Resolution No.2381,the City Council approved the
Redevelopment Agreement(hereinafter referred to as "Agreement")between the City of Omaha and
Newson/Dundis Partnership allowing for the transfer of ownership and partial financing of a multi-
unit residential rental property located at 2405-07 Evans Street; and,
WHEREAS,Newson/Dundis Partnership is no longer able to comply with the terms of that
Agreement and has asked the City to consent to the extension of the term of the loan, sale of the
property, and the assumption of the loan obligations by the buyer; and,
WHEREAS, it is in the best interests of the City of Omaha and the residents thereof that the
City enter into a Supplemental Agreement with the Newson/Dundis Partnership to consent to the sale
of the property, allow for the assumption of the loan, and extend the term of the loan; and,
WHEREAS, this Supplemental Agreement adopts all of the terms and conditions of the
original Agreement with the exception of those specified in this Supplemental Agreement.
IN CONSIDERATION OF THESE MUTUAL COVENANTS,Newson/Dundis Partnership
and the City of Omaha do hereby agree as follows:
A. Section 4.2 shall be deleted in its entirety and the following substituted in its place:
4 4
Section 4.2 The City's loan shall be made at an annual interest rate of three
(3%)percent for a term of two hundred ninety (290)months.
B. Section 4.5 shall be deleted in its entirety and the following substituted in its place:
Section 4.5 Payment of principal and interest are to be made in equal monthly
payments according to a twenty-four year amortization schedule, as
modified, to the city or its authorized loan servicing agent.
C. Section 4.6 shall be deleted in its entirety and the following substituted in its place:
Section 4.6 The City loan is assumable with the written consent of the Director,
and that such written consent also constitutes consent to the transfer
of ownership interest in the property to an eligible buyer.
IN WITNESS WHEREOF,the parties have executed this Supplemental Agreement as of the
date first written below:
ATTEST: CITY OF • AHA:
A . cip. Corporation
‘1" 60-$/,? 217
IT CLERK OF O AHA Date ""� '�% •ate
Al LEST: NEWSON/DUNDIS PARTNERSHIP
-712?ZiArce. >/27. f-97 By.
Date red Newson, Partner Date
Newson/Dundis Partnership
(Seller)
ATTEST:
By: ('�
of= I-
Date N. P. Dundis, Partner Date
Newson/Dundis Partnership
(Seller)
APPROV AS TO FORM:
AS S ANT CI ATTORNEY Date
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PLANNING DEPARTMENT
HOUSING AND COMMUNITY DEVELOPMENT DIVISION
LOAN ASSUMPTION AGREEMENT
THIS AGREEMENT, is between Newson/Dundis Partnership, Fred Newson and N. P.
Dundis partners, herein referred to as "Seller", and Rosalie D. Williams, herein referred to as
"Purchaser".
The parties recite and declare that:
1. Seller is obligated and liable for the payment to the City of Omaha, Planning Department,
Mortgagee, in care of Servicing Agent, Commercial Federal Mortgage Corporation, 4470
Farnam Street, Omaha,Nebraska 68131, or other such places as shall be designated by the
City of Omaha, of the debt evidenced by a promissory note in the original sum of One
Hundred Eighty Thousand and 00/100 Dollars($180,000.00),dated October 1, 1982,secured
by the mortgage filed in Mortgage Book 2523, Page 450, in the Office of the Douglas
County Register of Deeds, 1819 Farnam Street, Room H09, Omaha,Nebraska 68183.
The Principal Balance remaining on this account as of the 31 st day of May, 1997, is One
Hundred Ten Thousand and One and 63/100 Dollars ($110,001.63). The Mortgagee is now
the owner and holder of such promissory note and mortgage.
2. Seller is about to sell and convey to Purchaser the whole of the real property described in
such mortgage which is legally described as follows:
Lots 1 and 2 and the East 8.5 feet of Lot 3, Block-4, Redicks-Clark-
Addition, an Addition to the City of Omaha, as surveyed, platted and
recorded in Douglas County, Nebraska (commonly know as 2405-07
(Evans Street)
and both Seller and Purchaser have requested Mortgagee to approve such conveyance.
For the reasons set forth above and in consideration of the mutual covenants and promises
of the parties hereto, the Seller and Purchaser covenant and agree as follows:
Section 1. All installments of principal and interest provided by such promissory note to be paid
on or after the 1st day of June, 1992, are unpaid.
Section 2. Seller agrees to make a lump sum payment to the City in the amount of Two Thousand
Five Hundred Twelve and 50/100 Dollars ($2,512.50) upon assumption of this loan,
such amount to be applied toward costs incurred by the City.
Section 3. Purchaser agrees to make a lump sum payment to the City in the amount of Twelve
Thousand One and 63/100 Dollars ($12,001.63) upon assumption of this loan, such
amount to be applied toward the loan principal reducing it to a balance of$98,000.00.
This balance will continue to carry an annual interest rate of three percent (3%) as
stated in the above-referenced mortgage and promissory note, such principal and
interest, amortized over 120 months, beginning July 1, 1997,to be paid by Purchaser
^fit i;; t- FI
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• NEWSON/DUNDIS PARTNERSHIP
2 8-97
N. P. Dundis, Partner(Seller) Date
STATE OF NEBRASKA )
)ss
COUNTY OF DOUGLAS )
The above named Seller has acknowledged the execution of this Agreement as his voluntary
act and deed.
Dated ' / / � /99 7 /li5 �.�. . 42,2)
Notary P i�lic
—: GENERAL NOTARY-Sgte of Nebraska
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Rdsalie D. Williams, Purchaser Date
STATE OF NEBRASKA )
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COUNTY OF DOUGLAS )
�/ eh'�L.SEie
The above named has acknowledged the execution of this Agreement as her voluntary
act and deed.
Dated :`plc '
Notary Public
A GENERAL NOTARY•State of Nebrac4a
MARIAN R.TODD
ASSUMPTION APPROVED = ` My Comm.Exp.Feb.13,t998
Dated S'' '9 7 By: < -
Ass/stx.vr- /424.4,1/4v/xt4 /, etoh--
Title
Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,NE 68183
APPROVED AS TO FORM:
rd/7,74 d), (,)
ASSISTANT CITY ATTORNEY DATE
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ZSA• CITY OF OMAHA
LEGISLATIVE CHAMBER
•
Omaha,Nebr June 10 19 97
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: •
WHEREAS,on September 14, 1982, a Redevelopment Agreement between the City
of Omaha and Newson/Dundis Partnership was approved by the City Council by Resolution No.
2381; and,
WHEREAS, the Redevelopment Agreement provided for the financing of the
rehabilitation of property located at 2405-07 Evans Street,owned by Newson/Dundis Partnership.
This financing,in the amount of$180,000.00, is secured by an HCD Repayable Mortgage and Note;
and,
WHEREAS,the terms of the Redevelopment Agreement prohibit any assumption of
the loan; and, •
WHEREAS, the terms of the Redevelopment Agreement establish a loan term of
twenty(20 years; and,
WHEREAS, Newson/Dundis Partnership has requested that the City allow an
extension of the loan term, the assumption of its loan,and the transfer of the property; and,
WHEREAS,the City of Omaha's security interest in the property will be maintained
by this action; and,
WHEREAS,it is in the best interests of the City of Omaha and the residents thereof
that the City enter into a Supplemental Agreement with the Newson/Dundis Partnership to consent
to the sale of the property,allow for the assumption of the loan,and extend the term of the loan.
P I� Y� P
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
r
25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr June 10 19...97....
PAGE 2
THAT,as recommended by the Mayor,the attached Supplemental Agreement to the
Redevelopment Agreement approved by the Omaha City Council, on September 14, 1982, by
Resolution No.2381,consenting to the extension of the loan term to a total of two hundred ninety
(290)months,the sale by Newson/Dundis Partnership of its interest in the real property,commonly
known as 2405-07 Evans Street,to a new buyer,and the assumption of the City's loan by that buyer
be and hereby is approved.
APPROVED AS TO FORM:
(7.(Z))/7%#),—
ASSISTANT CITY ATTORNEY DATE
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By
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Adopted
0 997
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City Clerk
Approved. /,3/97
Mayor
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