RESOLUTION 19-020 FIRSTBANK REFINANCE FOR ROSE TERRACE DEVELOPMENT PARTNERSHIP I AND II.DOCX

RESOLUTION 19-020
FIRSTBANK REFINANCE FOR ROSE TERRACE DEVELOPMENT PARTNERSHIP I & II
WHEREAS, on December 21, 2012 Rose Terrace Development Partnership, LLC entered into a
mortgage payable for $2,619,600 at an annual rate of 6% effective January 1, 2018 and a maturity
date of October 1, 2022;
WHEREAS, on December 14, 2001 Rose Terrace Development Partnership, LLC entered into a note
payable to HAMC for $3,000,000 at an annual rate of 6%;
WHEREAS, on February 6, 2004 Rose Terrace Development II, LLC entered into a note payable to
Mutual of Omaha at a rate of 5.5%, current balance of $343,181 and maturity date of February
2020;
WHEREAS, FirstBank has provided a Letter of Loan Interest to Rose Terrace Development
Partnership I & II to refinance the existing debt at a quoted rate of 4.35%, subject to change until
locked, in the loan amount of the lesser of 70% of the as-is appraised value with market rents, or
80% of the as-is appraised value with restricted rents, estimated to range between $6,600,000 to
8,500,000;
WHEREAS, it is intended a portion of the loan proceeds in excess of paying off existing Rose
Terrace debt will be reinvested in improvements to the property and shall not exceed $1,100,000.
NOW THEREFORE:
BE IT RESOLVED, the Board of Commissioners hereby adopts Resolution 19-020 and approves
entering into the Loan Agreement between FirstBank and Rose Terrace Development Partnership
I & II in an amount not to exceed $8,500,000 for the purpose of satisfying existing debt with
FirstBank, Mutual of Omaha, and HAMC, and reinvesting no more than $1,100,000 in
improvements to Rose Terrace Development I & II.
BE IT FURTHER RESOLVED, the Executive Director of the Housing Authority of Maricopa County is
authorized to sign the Bank Term Sheet to start the loan process. Once loan documents are
finalized such documents as are necessary to effectuate and administer the loan will require
approval of the Board of Commissioners (BOC).
Dated this _____________ day of _______________________________________, 2019.
Housing Authority of Maricopa County
ATTEST:
Chairman, Board of Commissioners
Gloria Munoz, Clerk of the Board
Approved As To Form
Attorney for Housing Authority