HomeMy WebLinkAboutTC Res 2003-03-19
'-/ ~.
I~
r
I ,-...
f--
.'-'"
,.
RESOLUTION NO. 06-2003
A RESOLUTION OF THE TOWN COUNCn.. OF THE
TOWN OF TffiURON APPROVING THE REFINANCE OF
THE TOWN'S EXISTING BRADLEY HOUSE LOAN TO
THE MARIN COUNTY HOUSING AUTHORITY
WHEREAS, the Town currently holds a 1992 note from the Marin County Housing
Authority ("Authority") in the principal amount of $300,000 (three hundred thousand dollars, which
was financed for the improvement of a low income development known as the "Bradley House" and
which is secured by a deed of trust recorded against the Bradley House ("Original Note"); and
WHEREAS, the outstanding balance on the Original Note is $183,552 (one hundred eighty-
three thousand, five hundred and fifty-two dollars); the current rate of interest is approximately 9 % and
the current maturation date is December 1, 2009; and
WHEREAS, the Authority has advised the Town that it intends to repay the Original Note in
advance ofits maturation date, so as to take advantage of the low interest rates currently available; and
WHEREAS, the Town currently receives only 2.01 interest on its cash investments in the Local
Agency Investment Fund ("LAIF'') and therefore is willing to refinance the Original Note on the terms
set forth in Exhibit A to this Resolution, which is attached hereto and incorporated herein by reference;
and
WHEREAS, the Authority has likewise agreed to refinance the Original Note on the terms set
forth in Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the TownofTiburon that
the Town agrees to refinance the Original Note on the terms set forth in Exhibit A and to accept a
deed of trust on the Bradley House as security for the new loan. The Town Manager is authorized to
execute any documents that may be necessary or appropriate to complete this transaction, subject to
the approval of the Town Attorney, including, without limitation, a certificate of acceptance
accepting a security interest in the Bradley House.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town ofTiburon
on March 19, 2003 by the following vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
Berger, Fredericks, Gram, Slavitz
None
Thompson
-;
leer
~
r--
\
A~
0Ayt1
DIANE CRANE IACO I, TOWN CLERK
-
"1" ~
Town ~f TIbwon . 1505 liburon Boulevard. liburon, CA. 94920 . P. 415.435.7373 F. 415.435.2438 . www.tiburon.org
~
March 10,2003
Mr. Maurice M. Wolohan
Director, Housing Rehabilitation & Development
Marin Housing Authority
4020 Civic Center Drive
San Rafael, CA 94903-4173
Re: Refinance of Bradley House Note
Dear Maurice:
Thank you for your offer to the Town of Tiburon to refinance the
outstanding note with the Town of Tiburon for the Bradley House. I
understand that the Housing Authority wishes to benefit from the decrease
in interest rates. However, after consulting with the Town Council's
I"'"' Finance Committee, I propose the following as a more equitable
arrangement:
The Town would like to secure its financial position with regards to its
future investments and offers a floating rate of interest, starting at 5.25%
per annum, fully amortized. This interest rate would be the minimum rate
charged. We would adjust this rate in the future as needed to maintain the
interest rate at a minimum of 2 points above the Local Agency Investment
Fund (LAIF) rate, computed monthly. Presently, the LAIF rate is 2.01 %.
Principal Balance:
Current Rate:
Proposed Re-Fi Date:
Accrued Interest:
Principal and Interest:
Proposed Re-Fi Amount:
Proposed Interest Rate:
$179,563.00 (as of 12/31/02)
9.010% per annum in "Year 12" (2003)
April 1, 2003
$3,989 (from 1/01/03 to 4/01/03)
$183,552 (as of 4/01/03)
$183,552
5.25% per annum, adjustable, fully amortized
(2 points above LAIF)
81 months
April 1 , 2003
December 1, 2009
$2,696.16
$34,837.07
$218,389.07
"
Term:
First Payment:
Final Payment:
Monthly Payments:
Total Interest Paid:
Total of Payments:
.I1HJ'BIT NO
"
.'
,..,.
t'--.
,......,
-'
Maurice M. Wolohan
March 10, 2003
Page 2 of 2
The Marin Housing Authority would bear all expenses associated with the
refinance (appraisal, title insurance, escrow costs and so forth) and would
prepare all documents related to the refinance.
Please note that this is a conditional offer, in that if the Marin Housing
Authority agrees to accept the offer, I will need to obtain the approval of
the full Town Council. I believe that this is a fair arrangement and that
they will approve it.
Please feel free to contact me should you have any questions.
Si cer Iy,
Enclosure
cc: Administrative Services Director
-