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HomeMy WebLinkAboutResolution - 2003-R0069 - Loan Agreement - JJ's Sparkle Shop - 02/13/2003Resolution No. 2003-R0069 February 13, 2003 Item No. 47 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Loan Agreement, by and between the City of Lubbock and Mr. Johnny James d.b.a. JJ's Sparkle Shop, from the Economic Development Funds Program and all related documents. 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 13th ATTEST: Re ecca Garza, City Secretary APPROVED AS TO CONTENT: Nancy Ha Comm ity Develop 4enDirector APPROVED AS TO FORM: day of February ,2003. M C c UGAL, MAYOR ml/ccdoc/L.oan Agreement -B's Sparkle.res January 31, 2003 8esolutlon No. 2003-8001 February 13, 2003 Item No. 47 ECONOMIC DEVELOPMENT FUNDS PROGRAM REAL ESTATE LIEN FIRST PROMISSORY NOTE Date: Maker: JOHNNY JAMES D/B/A JJ'S SPARKLE SHOP Maker's Mailing Address (including county): (business) (home) 1707 E. 5`h Street 314 Beech Avenue Lubbock, Lubbock County Lubbock, Lubbock County Texas 79403 Texas 79403 Payee: THE CITY OF LUBBOCK, TEXAS, a Texas municipal corporation Place for Payment: City of Lubbock Community Development Department P. O. Box 2000 Lubbock, Texas 79457 Principal Amount: $35,000.00 Annual Interest Rate: Three per cent (3%) per annum Terms of Payment: Interest and principal shall be paid on the first day of each month in installments in the amount of TWO -HUNDRED FORTY ONE AND 70/100 DOLLARS ($241.70) each, commencing on the first day of April, 2003, with the final installment of TWO HUNDRED FORTY ONE AND 70/100 DOLLARS ($241.70) due on April 1, 2018, unless a different amount or day is endorsed on this Note by LENDER. All payments on this Note shall be applied first to the interest due on this Note, and then to the principal due on this Note, and any remaining amount shall be applied to late charges, if any. Except as provided• below, all monthly installment payments on this Note shall be credited as of the due day thereof without adjustment of interest because paid either before or after due date. SECURITY FOR PAYMENT: This Note is secured by a ECONOMIC DEVELOPMENT FUNDS PROGRAM DEED OF TRUST signed this date from MAKER, JOHNNY JAMES D/B/A JJ'S SPARKLE SHOP, to TODD STEELMAN, Trustee, that conveys the following real property: 1707 E. 5`h Street, which is more particularly described as East One Hundred Feet (E. 100') of Lot Five (5), Block D of the Mackenzie Terrace Addition to the City of Lubbock, Lubbock County, Texas according to the map, plat, and/or dedication deed thereof recorded in Volume 992, Page 381, of the Deed Records of Lubbock County, Texas. MAKER promises to pay to the order of PAYEE, City of Lubbock, Texas, at the place for payment and according to the terms of payment the principal amount plus interest at the rates stated above. All unpaid amounts shall be due by the final scheduled payment, except as otherwise noted herein. MAKER may prepay at any time all or any part of the principal amount due on this Note without the payment of penalties or premiums, provided that MAKER is not in default under this Note, and the payment is identifiable as a prepayment of principal. In the event of a prepayment, PAYEE shall notify MAKER of the new date and amount of the final payment due under this Note. If any monthly installment of interest and principal, or any part of such installment, remains unpaid for a period of fifteen (15) days from its due date, MAKER hereby agrees to pay to the PAYEE a late charge of Fifteen and No/100 Dollars ($15.00). PAYEE shall not be obligated to accept any monthly payment made after its due date, unless that monthly payment shall be accompanied by the full amount of the late charges assessed by PAYEE as provided in this Note; however, in the event that a late monthly payment is accepted, that payment shall first be applied to late charges. If MAKER defaults in the payment of this Note or in the performance of any obligation in any instrument securing or collateral to it, and the default continues after PAYEE gives MAKER notice of the default and the time within which it must be cured, as may be required by law or by written agreement, then PAYEE may declare the unpaid principal balance and earned interest on this Note immediately due. MAKER and each surety, endorser, and guarantor waive all demands for payment, notices of intention to accelerate maturity, notices of acceleration of maturity, protests, and notices of protest, to the extent permitted by law. It is hereby specially agreed that if this Note or any instrument securing or collateral to it is placed in the hands of an attorney for collection, or if collected by suit or enforced through probate, bankruptcy, or any other judicial proceedings, the undersigned MAKER agrees to pay all cost of collection and enforcement including ten percent (10%) additional on the principal then due hereon as reasonable attorney's fees. Interest on the debt evidenced by this Note shall not exceed the maximum amount of non - usurious interest that may be contracted for, taken, reserved, charged, or received under law; any interest in excess of that maximum amount shall be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess shall be canceled automatically as of the acceleration or prepayment or if already paid, credited on the principal of the debt, or if the principal of the debt has been paid, refunded. This provision overrides other provisions in this and all other instruments concerning the debt. Maker hereby agrees to abide by any federal, state, and local law regarding the use of and reporting requirements for the monies lent to Maker pursuant to this Note, including but not limited to the Community Development Block Grant Regulations located at 24 CFR Part 570. Maker shall create within 12 months from the date of execution of this Agreement 1 new job(s) within Maker's business located at 5125-30 Street, Lubbock, Texas 79410. This/these job(s) shall be full time employment as that term is defined by the Federal Fair Labor Standards Act. Further, Maker shall use its best efforts to maintain said jobs during the term of this Agreement. Secured Party shall monitor any and all jobs created pursuant to this Agreement and all requirements contained herein for a period of 36 months. Maker shall make any and all jobs created pursuant to this Agreement available to persons that are defined as "low to moderate income" as that term is defined pursuant to the Community Development Block Grant regulations located at 24 CFR Part 570. Maker shall give said low to moderate income persons "first consideration" for any and all positions created pursuant to this Agreement. Maker will have provided "first consideration" if Maker can demonstrate that it has complied with the following: (1) Maker must use a hiring practice that under usual circumstances would result in over 51 % of low to moderate income persons interviewed for applicable jobs being hired; (2) the business must seriously consider a sufficient number of low to moderate income job applicants to give reasonable opportunity to fill the position with such a person; and (3) the distance from residence and availability of transportation to the job site must be reasonable before a particular low to moderate income person may be considered a serious applicant for the job. Advertising job(s) created pursuant to this Agreement. Maker shall take all necessary steps to appropriately advertise the availability of any and all jobs created pursuant to this Agreement. Maker shall have appropriately advertised said jobs if it does the following: (1) place advertisements for the opening in the Lubbock Avalanche -Journal; and (2) place ad in at least 2 of the local weekly newspapers Records to be maintained by Maker. (I) For job creation where job is held by low to moderate income person: (a) A listing by job title of the specific jobs to be created; (b) A listing by job title of the jobs filled; (c) The name and income status of the person who filled each position, and (d) The full-time equivalency status of the jobs. REAL ESTATE LIEN FIRST PROMISSORY NOTE/ ECONOMIC DEVELOPMENT FUNDS PROGRAM --- PAGE 2 (2) For job creation where job is made available to low to moderate income person: (a) The title and description of the jobs made available, and the full-time equivalency status of the job at that time; (b) The prerequisites for the job; special skills or education required for the job, if any; and the business commitment to provide needed training for such jobs (and the training that the business provided to the low to moderate income person hired, if applicable); and (c) How first consideration was given to low to moderate income persons for the job, such as: (i) The name(s) of the person(s) interviewed for the job; (ii) The date of the interview(s); and (iii) The income status of the person(s) interviewed MAKER shall complete the form entitled "Micro -Enterprise and ED Fund Programs Use of Funds Report" and return said form to PAYEE on or before July 31, 2003.. Each MAKER is responsible for all obligations represented by this Note. When the context requires, singular nouns and pronouns include the plural. IN WITNESS WHEREOF, this Note has been duly executed by the undersigned MAKER, as of the date shown above. ZMc LUBBOCK: AL, MAYOR ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: APPROVED AS TO FORM: A Assi a Co ttomey JOHNNY JAM REAL ESTATE LIEN FIRST PROMISSORY NOTE/ ECONOMIC DEVELOPMENT FUNDS PROGRAM -- PAGE 3