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HomeMy WebLinkAbout9848 - Terrace Apartments at Balboa Bay Club3. is 0 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 L - 4 0 • 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 -2- I IS • is 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 ($2,850,000.00). BE IT FURTHER RESOLVED that this approval is sub- ject to the same terms and conditions as contained in Resolution No. 7586 and Consent to Assignment dated December 15, 1971. BE IT FURTHER RESOLVED that the City Attorney is authorized to execute any consent. required by said trans- action, provided that said transaction is consistent with this resolution. ADOPTED this. 28th day of July , 1980. ayo ATTEST: City Clerk AAFSRTWIED AS ORK39id@$ -. ._ . ....... . _._ CITY aT or N HRC /kv JUL 3 11980 7/24/80 DATE, ._.... ...._ - ------ ........_.......... -3-