HomeMy WebLinkAboutResolution - 5508 - Subordination Agreement - David W Messick - 1604 38Th Street - 06_12_1997RESOLUTION NO. 5508
Item 11219
June 12J997
RESOLUTION
WHEREAS, the City of Lubbock recognizes the need for high quality private homes for the
elderly; and
WHEREAS, the City of Lubbock desires to assist private individuals and businesses in the
creation of new and higher paying jobs; and
WHEREAS, David Wayne Messick, a Lubbock businessman, agrees to develop a sixteen
unit private care unit for the elderly that will employ ten full-time workers; and
WHEREAS, granting a Subordination Agreement between the City of Lubbock and David
Wayne Messick will serve a public purpose by assisting David Wayne Messick to obtain fmancing
to develop a home for the elderly and create permanent new jobs; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of Lubbock BE and is hereby authorized and directed to execute for and
on behalf of the City of Lubbock a Subordination Agreement and all related documents with David
Wayne Messick. Said agreement is attached hereto, and incorporated in this Resolution as if fully
set forth herein and shall be included in the minutes of the City Council.
Passed by the City Council this 12thday of June , 1997.
ATTEST:
/"U�' &Hj-&
Kayt e Darnell, City Secretary
APPROVED AS TO CONTENT
� G
Doug Go ian, Managing Director
Health & V.6mmunity Services
APPROVED AS TO FORM:
-.� A
William de Haas, Assistant City Attorney
Resolution No.
Item #28
June 12, 1997
RETURN TO: CD/Housing Dept.
P. 0. Box 2000
Lubbock, TX 79457
ATTN: Phyllis Brown
SUBORDINATION AGREEMENT
THE STATE OF TEXAS 4
COUNTY OF LUBBOCK 4
This Interim Subordination Agreement is made as of June 12, 1997, by and
between DAVID WAYNE MESSICK, City of Lubbock, County of Lubbock, State of Texas,
referred to herein as Grantor, and CITY OF LUBBOCK COMMUNITY
DEVELOPMENT/HOUSING DEPARTMENT, County of Lubbock, State of Texas, referred to
herein as Holder.
The parties recite and declare that:
a. Grantor is the owner of a tract of land located in Lubbock County, Texas, described
as follows:
1604 38th Street, more particularly described as Lots 1, 2, 3 and 8
of the Paris Addition, an addition to the City of Lubbock, Lubbock
County, Texas, according to the plat thereof recorded In Volume
663, Page 278, Deed Records, Lubbock County, Texas.
b. The property is subject to a lien and encumbrance represented by a Deed of Trust
executed by David Wayne Messick on May 24, 1995, in favor of the Holder, said
Deed of trust being recorded in Volume 4869, Page 109 of the Real Property
Records of Lubbock County, Texas.
C. The Deed of Trust was given as security for a promissory note in the face amount
of ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00), executed
on May 24, 1995, by Grantor in favor of Holder on which note the sum of ONE
HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) remains unpaid.
d. Grantor desires to obtain a loan in the amount of SEVENTY THOUSAND AND
NO/100 DOLLARS ($70,000.00) from WHISPERWOOD BANK, referred to herein as
Lender, which loan is for the development of a senior citizen retirement complex at
4613 66th Street. However, Lender requires that the loan be secured by said
collateral located at 1604 38th Street by a Deed of Trust that will be a first lien and
encumbrance on said property and that any and all other liens and encumbrances be
subordinated to it.
e. Holder is willing, for a period of twelve months commencing on June 12, 1997, to
subordinate the lien of the Deed of Trust which it owns and holds insofar as it
encumbers the property up to a maximum amount of Seventy Thousand and
NO/100 Dollars ($70,000.00) to the lien of the Deed of Trust made or to be made in
favor of Lender in order that Grantor may obtain the loan from Lender.
For the reasons set forth above, and in consideration of the premises and other good
and valuable considerations, the receipt and sufficiency of which are acknowledged herein,
Holder declares and acknowledges that he waives, relinquishes, and subordinates the
priority and superiority of his lien created by the Deed of Trust above referred and agrees
that the lien or lease so subordinated shall be and remain inferior and subordinate up to a
maximum of Seventy Thousand and NO/100 Dollars ($70,000.00) for a period of twelve
months commencing June 12, 1997.
For and in the consideration of the covenants and agreements contained herein,
Grantor does hereby ratify the Deed of Trust and acknowledges that the Deed of Trust
constitutes a valid and subsisting lien upon the Property, and further agrees to satisfactorily
do and perform all of the covenants and agreements contained in the Deed of Trust.
This agreement shall inure to the benefit of Lender, its successors and assigns, and
shall be binding on Holder and Grantor, its successors and assigns.
EXECUTED and DELIVERED this the 121, day of ._ �u. 1997.
HOLDER: GRANTOR:
CITY OF LUBBOCK
DY SITN, MAYOR DAVID WAYNE SSICK
ATTEST:
haytaretary
Darnell
City
APPROVED AS TO CONTENT:
Doug Go man, anaging Director of
Health ommunity Services
STATE OF TEXAS §
COUNTY OF LUBBOCK §
APPROVED AS TO FORM:
William de Haas
Assistant City Attorney
This instrument was acknowledged before me on the CZy- day of V
1997, by
.*. KATHERINE EGGER
'o Notary Public, State of Texas '
My commission Expires 10-6-97 Notary Public in and for the State
of Texas
Agr 1/Sub-Agr
G:Sub-Agr
Subordination Agreement - David Messick - Page2