HomeMy WebLinkAbout027309 RES - 06/19/2007Page 1 of 3
RESOLUTION
AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO
EXECUTE THE SECOND AMENDMENT TO THE CONTRACT
BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION AND RANDY FARRAR, DBA
MIRAMAR HOMES, FOR AFFORDABLE HOUSING PROGRAM
AGREEMENT, TO EXTEND THE TERM OF THE PROGRAM
AGREEMENT AND AMEND THE SERVICES TO PROVIDE THAT
THE LOAN OF FUNDS MAY BE FORGIVEN.
WHEREAS, the Corpus Christi Business and Job Development Corporation, the
-3ity of Corpus Christi. and Randy Farrar, DBA Miramar Homes, executed an
agreement for the purpose of utilizing 4A sales tax funds to accomplish the
affordable housing project described in the Agreement and in the Miramar
proposal, a project suitable for the promotion and development of affordable
housing project for a term of twelve months from the date of the execution of the
,ontract.
WHEREAS. the parties t : the agreement desire to execute this Second
Amendment ro revise the term provision of the agreement to extend the
:agreement for an :additional twelve (12) months, amend the services to be
provided by Miramar to provide for the forgiving of the loan amount upon
:)ccupation of the home as the principal residence for five years.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. The City Council of the City of Corpus Christi, Texas, approves the
First Amendment tc the Affordable Housing Program Agreement between the
Oorpus Christi Business and Job Development Corporation and Randy Farrar,
DBA Miramar Homes, to extend the term of the agreement for an additional
twelve month perioc and amend the services to provide for the forgiving of the
oar amount upon Iccupation or the home as the principal residence for five
\fears
SECTION 2. The City Manager or his Designee, is authorized to execute the
First Amendment to the Affordable Housing Program Agreement with Randy
Farrar DBA Miramar- Homes a copy of which is attached as Exhibit "A".
ATTEST: CIT
Armando Chapa
Ay Secretary
F CORPUS CHRISTI
ry Gar ett
Mayor
0,709
7 09
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APPROVED AS TO FORM June 14. 2007
aryV�'Smith
Assistant City Attorney
For the City Attornev
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corpus Christ! Texas
OtJ tr 2007
The above resolution was passed by the following vote:
LA.
Henry Garrett
Melody Coope
Larry Elizondo Sr
Mike Hummell
Bili KeIIy
risciIIa G Leal
John E. Marez
Nelda Martinez
Michael McCutchor,
0 2 7 3 9
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SECOND AMENDMENT
TO THE
AFFORDABLE HOUSING
PROGRAM AGREEMENT WITH
RANDY FARRAR, DBA MIRAMAR HOMES
This second amendment ("Second Amendment') to the Affordable Housing Program
Agreement ("Program Agreement") is made by and between the Corpus Christi
Business and Job Development Corporation ("Corporation"), the City of Corpus Christi
(• City"and Randy Farrar, dba Miramar Homes ("Mirama().
WHEREAS, the Corporation City and Miramar executed an agreement ("Agreement")
for the purpose of utilizing 4A sales tax funds to accomplish the affordable housing
proiect described in the Agreement and in the Miramar proposal;
WHEREAS, the term of the Agreement was stated as twelve months from the date of
execution of the contract and was amended to extend the term of the agreement to
twenty-four months from the date of execution of the contract;
WHEREAS, the parties to the Agreement desire to execute this Second Amendment to
revise the term provisions of the Agreement to extend the term for and additional twelve
months:
WHEREAS, the original Agreement provided that the Corporation would retain a second
mortgage lien on the property to secure the repayment of the loan funded by this
Affordable Housing Program Agreement;
WHEREAS, the parties desire to allow the loans funded by this Affordable Housing
Program Agreement to be forgivable
NOW, THEREFORE, the parties to the Agreement agree to amend the Agreement as
follows
Section 1. Section 3 of the Agreement entitled "Term" is amended to read as follows:
"SECTION 3. Term.
The term of this Program Agreement extends twenty-four thirty-six (2436)
months from the date the last party executes this document. ("Effective
Date"'
Section 2. Section 5 of the Agreement entitled "Services to be Provided by Miramar"
is amended to read as follows
"SECTION 5. Services to be Provided by Miramar.
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E xnibi
Eligible homeowner ("Homeowner") shall receive a forgivable loan of
$15000 to $20.000 of the funds provided under this Program Agreement
to buy -down the mortgage and closing costs of a home described in this
section The mortgage buy -down funds shall be repaid to Corporation
vapor sale or transfer of home Miramar shall require Homeowners who
receive the buy -down funds provided under this Program Agreement to
execute the Real Estate note and Deed of Trust attached as Exhibits A
ano B to secure repayment to Corporation of the buy -down funds.
Miramar shall file the original executed documents in the official public
records al Nueces County. After recording, Miramar must ensure that the
original executed and filed documents are returned to the Corporation.
The loan shall be forgivable as follows: twenty percent (20%) of the loan
is forgiven for each full year the home is occupied as the Homeowner's
principal residence and homestead so that the entire loan is forgiven after
five_years
Section 3. Section 6 of the Agreement entitled "Loan of Funds" is amended to read
as follows
`SECTION 6. Loan of Funds
d. Miramar shall secure for the Corporation the recapture of all loans
provided to Homeowner under this Program Agreement by having each
Homeowner execute a note secured by a deed of trust that represents a second
mortgage lien or: the property Recapture shall occur upon the earlier of the
following events, if not forgiven as provided in Section 5.b. above: i. Sale of
home; ii Homeowner no longer occupies the home as primary residence; or iii.
F=oreclosure of home
Section 4. By execution of this second Amendment, the parties agree to be bound by
the amended term provision AH other provisions, obligations, and conditions of the
Agreement not changed by this Second Amendment remain the same and in full force
and effect.
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EXECUTED IN DUPLICATE, each of which is considered an original, on this the
:Jay of 2007
CORPUS CHRISTI BUSINESS &
JOB DEVELOPMENT CORPORATION
Signature
Printed name
Date:
STATE OF TEXAS
COMITY OF NUECES
Title
ACKNOWLEDGMENT
KNOW ALL BY THESE PRESENTS:
This instrument was acknowledged before me on , 2007,
by as the (title)
of the Corpus Christi Business and Job Development Corporation, a Texas nonprofit
corporation, on behalf of the corporation.
seal) NOTARY PUBLIC. State of Texas
ATTEST CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
Date:
APPROVED AS TO FORM:
Gary W Smith
Assistant City Attorney
for the City Attorney
George K. Noe
City Manager
Date:
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RANGY FARRAR, dba Miramar Homes
Signature
Printed name
Date:
STATE OF TEXAS
§
COUNTY OF NUECES §
Title
ACKNOWLEDGMENT
KNOW ALL BY THESE PRESENTS:
This instrument was acknowledged before me on , 2007,
by Randy Farrar
NOTARY PUBLIC. State of Texas
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EXHIBIT A
REAL ESTATE NOTE
Date:
Maker
Makers Address
Payee CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION
0/0 City of Corpus Christi, Economic Development Office, P. O. Box 9277,
Corpus Christi Nueces County. Texas. 78469
Principal Amount
Annual interest Rate on unpaid prncipai from date of funding: Zero percent (0%)
Terms of payment This Real Estate Note shall be due and payable upon the earliest of the
following events_pnor to forgiveness Sale or transfer of the property described in this Note;
Maker ceases to occupy fhe property as principal residence or foreclosure of home. The term
`principal residence means a dwelling which. depending on all of the facts and circumstances,
including the good faith intent of the occupant. is occupied primarily for residential purposes by
the owner This Real Estate Note shall be forgiven at the rate of twenty percent (20%) on each
anniversary of this Note so that it is entirely forgiven on the fifth anniversary hereof, unless
sooner due as set forth above
Security for Payment Deed of Trijst between Maker and Payee covering the following property:
Maker promises to pay =j the order of Payee at the place for payment and according to the
terms or payment the principal amount plus interest at the rates stated above.
On default in the payment of any part of the principal, when due. or failure to comply with any or
the agreements and conditions it any and all instruments given to secure this note including,
without limitation any default under the terms and provisions of the Real Estate Note, this Note
shall at the option of the holder hereof at once mature the whole of this note, without notice at
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the election of Payee. Maker and each surety. endorser. and guarantor waive all demands for
payment presentations for payment notices of intention to accelerate maturity, protests, and
notices of protest
Ira the event this note is placed into the hands of an attorney for collection, or if collected through
Probate -)r Bankruptcy c:roceedings. Then an additional ten percent (10%) on the amount of
principal and interest then owing hereon. shall be added to the same as reasonable and
necessary attorney`s fees in addition to court costs
Each Maker is responsible for the entire amount of this note.
The makers and all endorsers sureties and guarantors of this note hereby severally waive
presentment for payment, notice of non-payment notice of intent to accelerate, notice of
acceleration, protest and diligence in bringing suit, against any party hereto, and consent that
the time of payment of th+s note 4 r any cart thereof. may be extended without notice.
MAKERS
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EXHIBIT B
DEED OF TRUST
Date:
Grantor
Grantor's Mailing Address (including county):
{ orpus r'hristi. Nueces t aunty. 1 Cva> 78_i
Trustee Mary KaN, Fischet, City At -t rne' 201 leopard Street. Corpus Christi, Texas 78401
Beneficiary: Corpus 'hrisr Business and Job Development Corporation
Beneficiary's Mailing Address (including county)
P ? Bo', '4277
i orous Christi. Nueces C oiinty. 1 X -846ki
Note(s): that note of eveH date herewith executed by Maker payable to the order of Beneficiary and
des:ribed rs follov,
Date:
Amount:
Maker
Payee:
C�)rpus Christi Business and Job Development Corporation
Final Maturity Date: Due upon earliest of following events, unless sooner forgiven: (1) sale
,r transfer property, ori, t irantor(s) cease to occupy property as principal residence.
terms of Payment: As therein pp ided
Property (including any improvements)
Prior Lien(s)(including recording information)
Fur value received and to secure pa 'nem of the note. Grantor conveys the property to Trustee in trust.
Grantor warrants and agree,. to defend the title to the property. If Grantor performs all the covenants and
the note according to its terms_ this deed of trust shall have no further effect, and Beneficiary shall
release it at Grantor's expen,e.
GRANTOR'S OBLIGATION~
t irantor agrees to
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keep the property in good repair and condition:
pry all taxes and assessments on the property when due.
preserve the lien's priority as it is established in this deed of trust;
maintain. in a form acceptable to Beneficiary. an insurance policy that;
,:overs all improvements 1i)r their full insurable value as determined when the policy is
slued and renewed unless 1?enefieiary approves a small amount in writing.;
,.!omtarns an 80°%a coinsurance clause:
pro' ides fire and extended ,overage. including windstorm coverage;
protects Beneficiary ,.ith a standard mortgage clause:
pron ides feud insurance at any time the property is in a flood hazard area; and
.:ontains such other coverage as Beneficiary may reasonably require;
.:amply al all times with the : equirentents of the 80% coinsurance clause;
:deliver the 'nsurane e policy to Beneficiary and deliver renewals to Beneficiary at least ten days
heft re expiration.
keep any buildings _occupied as required b\ the insurance policy; and
'1 this is not it first =ten. pay X11 prior lien notes that Grantor is personally liable to pay and abide
by all prior hen arstrument,,
p 1'rincipal residence requ cement: t iramor agrees To occupy the property described herein as Grantor's
principal residence v1s used herein "principal residence'" means a home which, depending upon all of
the `acr> and circumstance, = including the good faith of the occupant) is occupied primarily for residential
purpose's by Granton The ertn does not include a home used as an investment property or a recreational
home home Nchich ased primarily in a trade or business as evidenced by the use of more than
fifteen percent 115°:, of the total floor space in a trade or business) Grantor agrees to submit annual
reeertifieat ion, in a tirrrn prescribed h' Beneficiary_ to the Beneficiary to evidence Grantor's occupancy in
ate >rdance with the pros n- 'ns here( t Grantor further agrees to notify Beneficiary immediately if at any
tants the property ceases te He used a= Grantor's principal residence_
Due in Sale Requirement. if (rranteir ;.;onveys or e:ontracts to convey the property, or any interest
trtereirr r a party or parties not appearing in this instrument without the written consent of Beneficiary,
then Beneficiar'. rt ,ts ele.tion exec. isec at an, time after such event without notice to Grantor, may
declare he entire indebtedmsss secured he►ch\ at once due and payable.
BENEFICIARY'S RIGHTS
Beneficiary may appoint ;n critine a substitute tr successor trustee, succeeding to all rights and
responsibdities of f'-ustee
It the proceeds of the not.. are used to par- any. debt secured by prior liens, Beneficiary is
subrogated to all Of The rights and lien of tle holders of any debt so paid.
BeneficiarG may apply any proceeds received under the insurance policy either to reduce the note
t_t repair or replace damaged or destroyed improvements covered by the policy.
►f Grantor fails le perform any of Grantor's obligations_ Beneficiary may perform those
c blrgations and be reimbursed by Grantor demand at the place where the note is payable for any sums
so paid. including attorney „ fees. plus interest on those sums from the dates of payment at the rate stated
in the note for matured, unpaid amounts. ` he sum to be reimbursed shall be secured by this deed of trust.
1 Grantor defaults +n the nes=e or tails to perform any of Grantor's obligations or if default occurs
prior lien note other instrument. Beneficiary may
declare the €tnpaid principal balance and earned interest on the note immediately due;
request =Ftestee to airech sc this lien. in which case Beneficiary or Beneficiary's agent
shall gree notice ;,t he h ree'osure ,ale as provided by the Texas Property Code as then amended;
rid
purchase ;,e proper -v at at: r'. foreclosure sale by offering the highest bid and then have
l bide red te°d or he note
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6 110antor coneys or cr ntracts convey the property covered hereby, or any interest in the property
c<.,kered hereby. including a leasehold interest. to .1 party or parties not appearing in this instrument
\\unnout the written c:onsenn thereto ,f Beneficiary. then Beneficiary. at its election exercised any time
after sue:h event and witho+rt notice o t irantor. mai declare the entire indebtedness secured hereby at
.uric,.• do mid payztllie
Trustee's Duties
1' requested by Beneficiary o loree -se this lien. Trustee ,hall:
either personally or by agent give matice of the foreclosure sale as required by the Texas Property
t r,de a then amended:
;ell and convey al
binding grantor. subject to
Fri im the proceeds
.: Ypenses
I:c nefl(
h e to unpaid
anamounits required by 1:1,‘ to be paid before payment to Grantor; and
,rantor my halal ce_
or part en the property tc the highest bidder for cash with a general warranty
;prior lien, and to other exceptions to conveyance and warranty; and
i the sale pay.. in this order:
foreclosure, including a commission to Trustee of 5% of the bid;
r.try. the full amount of principle, interest, attorney's fees, and other charges
General Provisions.
f any of the property is said under this deed of trust: Grantor shall immediately surrender
possession= to the purchaser If t irantor fails to do so. Grantor shall become a tenant at sufferance of the
purchaser. subject o an action for foie ible detainer.
Recitals in any -trustee's deed cony eying the property will be presumed to be true.
Proceedings under t} tis deed ,ftrust filing suit for foreclosure_ or pursuing any other remedy will
no t .:onstitute an election of remedie,
this lien shall remain superior to liens later created even if the time of payment of all or part of
the note is extended or part If the property is released.
f any portion of !1fe note cannot ae lawfully secured by this deed of trust, payments shall be
applied first to discharge that portion
6 a _;rantor assigns to Beneficial all sums payable to or received by Grantor from condemnation of
ali r�r part of the property. t'om private sale m lieu of condemnation, and from damages caused by public
ycorks or construcrron ,m or near the property After deducting any expenses incurred, including
attorney s fees, Beneficiary may release any remaining sums to Grantor or apply such sums to reduce the
note Beneficiary shall nor he liable 'or (allure to collect or to exercise diligence in collecting any such
s�.tn
-antor assigns to BeneficiarY absolutely. not only" as collateral, all present and future rent and
other income and reeeipts bona the proper!, Leases are not assigned Grantor warrants the validity and
ent-nrceab:lity of the assignment, tirantor may as Beneficiary's licensee collect rent and other income and
receipts as long as Grantor s not in default ander the note or this deed of trust. Grantor will apply all rent
and other !ncomc and receipts to pay,prem Ff the note and performance of this deed of trust, but if the rent
and other income and receipts exceed the amount duc under the note and deed of trust, Grantor may retain
the .;xc(ss. If t rranroi demults un pLo, meat of the note or performance of this deed of trust, Beneficiary
may terminate I rainor's i,,nse lied then as Grantor's agent may rent the property if it is vacant
and collecr all rent and othe- income nd receipts. Beneficiary neither has nor assumes any obligations as
less )r landlord aith respect to an, occupant of the property. Beneficiary may exercise Beneficiary's
rights and remedies Linde, his paragraph •without taking possession of the property. Beneficiary' shall
atop v all rent and .nrher ,n, -)me and receipts collected under this paragraph first to expenses incurred in
e e cisnrie Beneficiary's rights and re:rnedics and then to (irantor's obligations under the note and this deed
Lust =n the order .ietcrn. ned hi I one,is iary. Beneficiary is not required to act under this paragraph,
ara:f act;fn.- under this para. aph doe,. 101 ,onve an' nf Beneficiary's other rights or remedies. If Grantor
L.
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beeome:• voluntar' or in'<oluntary ?ankrupt, Beneficiary's filing a proof of claim in bankruptcy will be
tantamount to the appointment °f a receiver under Texas law.
interest OF the debt secure by this deed if trust shall not exceed the maximum amount of
nonasunous interest that may he et titractcd for, taken. reserved. charged, or received under law; any
interest in excess ill' hat maximum mount shall be credited on the principal of the debt or, if that has
been pard. refunded On at:v acceleration it required or permitted prepayment, any such excess shall be
�an��ele� automatically as l' the acciierat tm or prepayment or, if already paid, credited on the principal
ne debt or.. i' thk pr urnipai tit he debt has been paid. refunded. This provision overrides other
irr: isi<<rr in this and all other instruments concerning the debt,
n the event the priiperty described herein i., subject to prior liens in favor of third parties, any
default trader any pror lien nstrumerrn shall be a default hereunder.
l r. \\ hen the context requires. singular nouns and pronouns include the plural.
He term nolle includes all sums secured by this deed of trust.
Fins deed > trust shall bind !nitre to the benefit of, and be exercised by successors in interest of
alltrarte
t ' bile note :secured hereby e :dente, funds advanced for a portion of the purchase price of the
pr,7pertz described above and is additionally secured by a vendor's lien on same.
)on the sale_ rens_ or change of ownership of the herein described property for any reasons or by
any mean or upon the death of the Makers of the Real Estate Note(s) secured hereby, the entire principal
and appropriate interest of ;he Real Estate Notes) shall immediately become due and payable without
nott;,e presentment of arc: kind including., without limitations, notice of intent to accelerate and notice
A icceleratior.. ` he 1-. yi,:cutrs e Director of the Corpus Christi Business and Job Development
_trporatitat may :yaiye this requirement upon the written request of the Makers of the Real Estate Note(s)
or their ikars, or successors and assijins. Should the property no longer become the primary residence or
Ad there be a i,,hange use. the entre principal and appropriate interest shall immediately become
due and payable without n }' ice .,r pr.isentment of ant kind including, without limitations, notice of intent
aacelcrute and notice <,f r .celerati, ,
\Vhands 200A.D.
"Jane:
Name:
STATE OF TEXAS
COUNTA OF NUF(°ES
1 instrument was acknowledged before me on the day of , 2007, by
Notary Public. Stale of Texiis
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STATE OF TEXAS
COUNTY OF NL`ECES
lestument :‘a, acklokiedged heiore me on the day of , 2007, by
:Nolan P,ablic_ State of 1 ,_'xa
AFTER RECORDING RETIIRN TO:
Corpus Christi Business and Joh Development Corporation
City of Corpus ( `hristr Economic Development Office
I° O. Box 9277
( orpus Christi. I exas 7 469
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State of Texas
County of Nueces
PUBLISHER'S AFFIDAVIT
} CITY OF CORPUS CHRISTI
} ss: Ad # 5607283
PO #
Before me, the undersigned, a Notary Public, this day personally came Sandra
Orum, who being first duly sworn, according to law, says that she is Legal
Sales Representative of the Comus Christi Caller -Times, a daily newspaper
published at Corpus Christi in said City and State, generally circulated in
Aransas, Bee, Brooks, Duval, Jim Hogg, Jim Wells, Karnes, Kenedy, Kleberg,
Live Oak, Nueces, Refugio, San Patricio, Victoria and Webb Counties, and that
the publication of, NOTICE F PASSAGE OF ORDINANCE ON which the
annexed is a true copy, was inserted in the Corpus Christi C ler- "imes and on
the World Wide Web on the Caller -Times es Interactive on the 5TH da s) of
NOVEMBER, 200 6.
129.64
t4titi14*
`' =: MICHELLEJOYCE A RERA
,, Y COMMISSION EXPIRES
!Arch 10, 2008
()A,tenFLI
Legal Sales Representative
TWO (2 ) Time(s)
Subscribed and sworn to me on the date of
Notary Public, Nueces County, Texas
Michelle Cabrera
Print or Type Name of Notary Public
My r commission expires on March 19_,2008.
November 5, 200 • Sunday .
NOTICE OF pAssA E:.
E ORDINANCE ON.--.
FIRST READING .
Authorizing the City..,
. Manager : or his --
designee to execute
fourteen -year six--._
month . Manna Space ;
Rental Contract with --
Yachting Center of.:
Corpus Christi; LL for -
the use of Slip Spaces..
No. 54 = 65 of Peoples -
street .. T -Head, fort.
operation of Yachting..
Center, Sailing School,'*
Charter Boats and
related activities, and:.
including construction- ri
of utility and boat:slip.
improvements; for:
monthly slip. fee rental,;
• payments of $6.85 per*
linear foot of dock'
space, s-ubject to:
annual rate changes..
This 'ordinance was,
passed and approved..
by the City Council of;
the City of Corpus,
Christi on first reading .
on October 31, 2006.
is/Armando Chapa
City Secretary
City of Corpus Christi