HomeMy WebLinkAbout9848 - Terrace Apartments at Balboa Bay Club3.
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RESOLUTION NO. 9848
A RESOLUTION OF THE CI'T`Y COUNCIL OF THE CITY
OF NEWPORT BEACH APPROVING A REFINANCING OF
THE REDUCED PRINCIPAL OF THE DEED OF TRUST
IN FAVOR OF THE FIRST NATIONAL BANK OF CHICAGO
ON THE TERRACE APARTMENTS AT THE BALBOA BAY
CLUB
WHEREAS, the City of Newport Beach has entered
into lease dated March 24, 1948, with the Balboa Bay Club,
Inc., a California corporation, which lease has since been
amended by instruments dated April 10, 1950, September 29,
1952, and March 28, 1960, covering the premises in the City
of Newport Beach; and
WHEREAS, on December 13, 1971, the City Council
adopted Resolution No. 7586 authorizing the conveyance of
the Balboa Bay Club's leasehold estate to U. S. Financial
Corporation in an amount not to exceed Thirteen Million
Two Hundred Thousand Dollars ($13,200,000.00) for the pur-
pose of refinancing the Balboa Bay Club; and
WHEREAS, pursuant to said approval, the Balboa
Bay Club assigned a certain portion of the leasehold estate,
known as the Terrace Apartments, to U. S. Financial Corpora-
tion to secure a loan in the amount of Six Million Six Hundred
Fifty Thousand Dollars ($6,650,000.00); and
WHEREAS, said loan in favor of U. S. Financial
Corporation was in the form of a wraparound financing on the
Terrace Apartments portion of the Balboa Bay Club, the pri-
mary loan on the Terrace Apartments being in favor of Union
Bank; and
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WHEREAS, said loan in favor of U. S. Financial
Corporation was funded 50% by City Bank of Beverly Hills
and 50% by U. S. Financial Corporation; and
WHEREAS, U. S. Financial Corporation has changed
its name to Independent Mortgage Trust; and
WHEREAS, the portion of said loan in favor of
Independent Mortgage Trust has been assumed by First National
Bank of Chicago; and
WHEREAS, the City Council adopted Resolution No.
8915 on October 26, 1976, on the proposed sale of the
Terrace Apartments to Oppenheimer Industries; and
and
WHEREAS, said proposed sale has been consummated;
WHEREAS, the present financing on the Terrace
Apartments portion of the Balboa Bay Club is such that Union
Bank is the primary lendor with a wraparound financing orig-
inally in favor of U. S. Financial Corporation, with the loan
in favor of Oppenheimer Industries as a loan junior to said
prior loans; and
WHEREAS, the First National Bank of Chicago
desires to refinance said loan originally in favor of.U. S.
Financial Corporation in the amount not to exceed Two Million
Eight Hundred Fifty Thousand Dollars ($2,850,000.00), which
amount is the reduced principal on said loan; and
WHEREAS, said loan will be in the form of a second
deed of trust and City Bank of Beverly Hills will no longer
be a lendor on said loan; and
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WHEREAS, it appears to be in the best interest of
the City of Newport Beach to approve said transaction,
NOW, THEREFORE, BE IT RESOLVED that the City
Council of the City of Newport Beach hereby approves a
refinancing of an existing loan in favor of the First
National Bank of Chicago in an amount not to exceed Two
Million Eight Hundred Fifty Thousand Dollars ($2,850,000.00).
BE IT FURTHER RESOLVED that this approval is sub-
ject to the same terms and conditions as contained in
Resolution No. 7586 and Consent to Assignment dated
December 15, 1971.
BE IT FURTHER RESOLVED that the City Attorney is
authorized to execute any consent. required by said trans-
action, provided that said transaction is consistent with
this resolution.
ADOPTED this. 28th day of July , 1980.
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ATTEST:
City Clerk
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CITY aT or N HRC /kv
JUL 3 11980 7/24/80
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