HomeMy WebLinkAboutRES 02-018 RESOLUTION NO. 02-018
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Council of the City of Beaumont approves Amendment No. 1 to the City's Loan
Agreementwith Crockett Street Development, Ltd. The amended Agreement is substantially
in the form attached hereto as Exhibit "A".
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of
January, 2002.
- Guy N. Goodson, Mayor Pro Tern -
AMENDMENT NO. 1
TO
LOAN AGREEMENT
(Crockett Street Project)
This Amendment No. 1 to Loan Agreement (the Amendment No. 1) is made by and between
THE CITY OF BEAUMONT, TEXAS, a Home Rule City incorporated pursuant to the general laws of
the State of Texas (hereinafter referred to as "Lender" or "City"), and CROCKETT STREET
DEVELOPMENT, LTD. (hereinafter referred to as "Borrower"), whereby the City and Borrower
hereby agree to amend that certain Loan Agreement dated November 23, 1999 (the "Loan
Agreement") previously entered into between the City and the Borrower. The Loan Agreement was
executed by the parties in connection with a $3,000,000 loan made by the City to the Borrower to
help finance a portion of the Borrower's costs of development of commercial property located on
Crockett Street in Beaumont, Texas, commonly known as "Crockett Street Development Project"
(hereinafter referred to as "Project"). The Loan Agreement provides that the City's loan will be
secured by a second lien deed of trust on the Project, subordinate only to a first lien deed of trust
granted in favor of Community Bank & Trust, SSB, in the amount of $1,000,000 (the "Senior Loan").
The Borrower has requested that the City agree to amend the Loan Agreement to allow the Borrower
to increase the amount of the Senior Loan to $3,500,000. Pursuant to such request, and for other
good and valuable consideration, the City and the Borrower agree to amend the Loan Agreement as
follows:
1. The second sentence of Paragraph 4 of the Loan Agreement is amended to read as
follows:
`The lien will be a second lien subordinate and junior to a first and senior lien
(the "Senior Lien') granted by Borrower in favor of Community Bank & Trust, SSB
(the "Senior Lender's to secure a loan being made by Senior Lender to Borrower in an
amount not to exceed THREE MILLION FIVE HUNDRED THOUSAND DOLLARS
($3,500,000.00) (the "SeniorLoan'g.
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EXHIBIT "A"
2. Paragraph 6L of the Loan Agreement is amended to read as follows:
"L. Senior Loan. Not incur any debt or indebtedness to the Senior Lender in
excess of THREE MILLION FIVE HUNDRED THOUSAND DOLLARS
($3,500,000.00), and timely perform and discharge the payment of the Senior
Loan and the performance of all obligations in connection therewith. Borrower
further agrees to promptly advise Lender in writing of any notice of default or
similar notice received from Senior Lender. Borrower shall not incur any other
senior debt."
3. Except as otherwise herein amended, all other terms and provisions of the Loan
Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly
executed as of the day of January, 2002.
CROCKETT STREET DEVELOPMENT, LTD. THE CITY OF BEAUMONT, TEXAS
(Borrower) (Lender)
By: Beaumont Crockett Street Management, Inc.
Its: General Partner
By: By:
Name:. Tom Flanagan Name: Stephen J. Bonczek
Title: President Title: City Manager
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