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HomeMy WebLinkAbout024945 - General - Contract - Cornerstone Assistance NetworkCITY SECETARCON RACT NO Y o_ AMENDMENT TO CITY SECRETARY CONTRACT NO. 21388 STATE OF TEXAS COUNTY OF TARRANT THIS contract amendment is made and entered into by and between the City of Fort Worth ("City"), acting by and through Libby Watson, its duly authorized Assistant City Manager, and Cornerstone Assistance Network ("Contractor"), by and through Mike Doyle, its duly authorized Executive Director. Contractor's business address is 6924 Glenview Drive, Fort Worth, Texas 76180. WHEREAS, the City and Contractor have entered into a Loan Agreement under that certain contract identified as City Secretary Contract No. 21388 for a $100,000.00 loan to Contractor to rehabilitate a facility for homeless men. Such loan to be repaid over a ten year period at 2% interest, with ten equal payments of $11,133.00. The first payment, due December 1, 1996. The full loan term is through November 30, 2005. WHEREAS, it is the mutual desire of the parties to amend the loan payment terms in said City Secretary Contract No. 21388. NOW, THEREFORE, the City and Contractor agree as follows: 1. Section 2 of Contract No. 21388 is hereby amended to read as follows: The Loan will be evidenced by Borrower's promissory note on form satisfactory to CITY payable to the order of CITY in a principal amount not to exceed $100,000.00 bearing interest from date until maturity at the rate of two percent (2.0%) per annum, payable monthly by Borrower for $1,015.84 per month through November 30, 2005. The first said monthly installment shall be due and payable on the 1Sday of April, 1999 and one of such installments shall be due and payable the ls` day of each month thereafter until the full amount of the principal of this note and the interest thereon have been fully paid and discharged. 2. All other terms, provisions, conditions, covenants and recitals of said City Secretary Contract No. 21388 which are not expressly amended herein shall remain in full force and effect. -1- [ouM ©©1I C6TY SEC -RC Q�� IN WITNESS WHEREOF, the parties hereto have executed three amendment in Fort Worth, Tarrant County, Texas, this l zf day of A.D. 19g. ATTEST: City Secretary APPROVED AS TO FORM AND LEGALITY: Asst. City Attorney c- /'7-3 7 Contract Authorization Date CITY OF FORT By: // „—V7, VL LibbyWatson Assistant City Manager copies of this contract t,v►1.�, CORNERSTONE ASSISTANCE NETWORK, INC. B Y Mike Doyle, cutive Director -2- FIRST AMENDMENT TO SECOND LIEN PROMISSORY NOTE $100,000 FortWorth, Texas June 7 , 1999 WHEREAS, on October 9, 1995, Cornerstone Assistance Network ("Maker") executed a Promissory Note (the "Note") to pay to the order of the City of Fort Worth ("Payee") a renovation loan (the Loan) in the principal amount of $100,000.00 and interest. The Note which is secured by a Deed of Trust recorded in Volume 13408 Page 0413 of the Deed Records of Tarrant County, Texas; WHEREAS, Maker and Payee mutually agree to amend the loan payment terms identified in the Note. NOW, THEREFORE , the Note is amended to read as follows: 1. The Loan evidenced by the Note in the principal amount not to exceed $100,000.00 bearing interest from December 1, 1996 until maturity at the rate of two percent (2.0%) per annum, payable monthly by Maker for $1,015.84 per month through November 30, 2005. The first said monthly installment shall be due and payable on the 1S` day of April, 1999 and one of such installments shall be due and -payable -the 1" day of each month thereafter until the full amount of the principal of this Note and the interest thereon have been fully paid and discharged. 2. All other terms, provisions, conditions, covenants and recitals of the Note which are not expressly amended herein shall remain in full force and effect. CORNERSTONE ASSISTANCE NETWORK, INC. a Texas non-profit corporation By1k% AU :� Name Title STATE OF TEXAS § COUNTY OF TARRANT § Before Me, the undersigned, a Notary Public in and for said State, on this day personally appeared Mike Doyle, the representative of Cornerstone Assistance Network, a Texas non-profit corporation, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 1 day of 1999. STEPHANIE LEWIS *: MY COMMISSION EXPIRES sar.....� December 31, 2000 Nliand1urme tat Texas City of Fort Worth, Texas "agor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 4/6/99 **C-17367 05CORNER 1 of 2 SUBJECT AMENDMENT OF LOAN PAYMENT PROVISIONS IN THE CONTRACT BETWEEN THE CITY AND CORNERSTONE ASSISTANCE NETWORK RECOMMENDATION: It is recommended that the City Council approve an amendment to the contract between the City of Fort Worth and the Cornerstone Assistance Network ("CAN") allowing for monthly payments, rather than one annual payment. DISCUSSION: On August 1, 1995, the Safety and Community Development Committee approved a loan/grant application for $150,000.00 in HOME Investment Partnership Program funds to CAN to rehabilitate a facility for a Section 8 Moderate Rehabilitation Single Room Occupancy for the homeless, and recommended that the City Manager execute a contract with CAN in an amount not to exceed $150,000.00. On August 15, 1995, the City Council approved a grant of $50,000.00 and a loan of $100,000.00 for CAN. A contract of $100,000.00 for the loan agreement was executed on October 5, 1995. The loan agreement terms are 2% interest over a 10 -year period, with 10 equal payments of $11,133.00. The first payment, due December 1, 1996, was paid on time and in full. The contract term is through November 30, 2005. Mike Doyle, Executive Director of CAN, approached the City in November 1997 requesting temporary consideration to make the second year's payment of $11,133.00, due December 1, 1997, in twelve equal payments of $927.75 over the 12 -month period. Mr. Doyle made his request based on the financial hardship CAN experienced in 1997 due to an $18,000.00 plumbing bill they incurred. Mr. Doyle's request was granted, and all 12 payments were made in full between December 1997, and November 1998. In December 1998, Mr. Doyle again approached the City and submitted a letter requesting the same consideration of making monthly payments. He stated that CAN was still recovering from the financial hardship of the previous year's plumbing bill, as well as having suffered vacancy loss due to building damage and repair. He further stated that the losses experienced were difficult to recover from since it is a HUD fixed -rent project with no other revenue source. He respectfully requested that the contract repayment terms be restructured on a monthly basis until the contract is paid in full in November 2005. While this matter is being negotiated, Mr. Doyle has continued to make monthly payments on behalf of CAN at $927.75, so as not to fall into arrears. If the restructuring of the contract terms is approved, the revised monthly payments are estimated to be $1,016.00 through November 30, 2005. The CAN transitional facility is located in COUNCIL DISTRICT 9. The Safety and Community Development Committee approved this recommendation at its March 11, 1999 meeting. City of Fort Worth, Texas qv"Vor and Council Communication