HomeMy WebLinkAboutDoc 592 - Amend Note - La Pine Ind Saleco,. TES
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Deschutes County Board of Commissioner :;
1300 NW Wall St., Suite 200, Bend, OR 97701 -1960
(541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.orr;
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of October 14, 2009
Please see directions for completing this document on the next page.
DATE: October 1, 2009
FROM: Teresa Rozic Property & Facilities 385 -1414
TITLE OF AGENDA ITEM:
Consideration of Board Signature of Document 2009 -592, an Amendment to Note.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
In 2001 Deschutes County sold land in the La Pine Industrial Site to Michael Shields. Mr. Shields paid
a 20% down payment in cash and the County financed the balance, secured by a Note and Trust De, .d.
Mr. Shields contacted staff in March of this year and proposed a payment plan because he was late with
payments.
At their work session April 6, 2009, the Board of County Commissioners directed staff to offer
temporary relief to borrowers who were impacted by the slow economy. Mr. Shields made some
payments but ultimately requested a change in terms which would lower the monthly payment. At iheir
work session September 21, 2009, the Board directed staff to amend the terms of the Shields note.
FISCAL IMPLICATIONS:
By offering amended terms, the County avoids foreclosing on the original note. The new principal
amount includes the balance of the original principal owed, interest and penalties. The County will
receive full payment for the amount owed. The balance of the Shields loan will be $37,979.94,
amortized over sixty (60) months, with a monthly payment of $788.40.
RECOMMENDATION & ACTION REQUESTED:
Staff recommends signature of Document 2009 -592.
ATTENDANCE: Teresa Rozic
DISTRIBUTION OF DOCUMENTS:
Original to Teresa Rozic.
DESCHUTES COUNTY DOCUMENT SUMMARY
(NOTE: This form is required to be submitted with ALL contracts and other agreements, regardless of whether the document is to be
on a Board agenda or can be signed by the County Administrator or Department Director. If the document is to be on a Board
agenda, the Agenda Request Form is also required. If this form is not included with the document, the document will be returned to
the Department. Please submit documents to the Board Secretary for tracking purposes, and not directly to Legal Counsel, the
County Administrator or the Commissioners. In addition to submitting this form with your documents, please submit this form
electronically to the Board Secretary.)
Date:
October 1, 2009
Please complete all sections above the Official Review line.
Contractor /Supplier /Consultant Name:
Contractor Contact:
Department:
Property & Facilities
Michael R. Shields
Contractor Phone #:
Type of Document: Amendment to Promissory Note
Goods and/or Services: N/A
541- 536 -1587
Background & History: In 2001 Deschutes County sold land in the La Pine Industrial
Site to Michael Shields. Mr. Shields paid a 20% down payment in cash and the County
financed the balance, secured by a Note and Trust Deed. Mr. Shields contacted staff in
March of this year and proposed a payment plan because he was late with payments.
At their work session April 6, 2009, the Board of County Commissioners directed staff to
offer temporary relief to borrowers who were impacted by the slow economy. Mr.
Shields made some payments but ultimately requested a change in terms which would
lower the monthly payment. At their work session September 21, 2009, the Board
directed staff to amend the terms of the Shields note. The balance of the Shields loan
will be $37,979.94, amortized over sixty (60) months, with a monthly payment of
$788.40.
Agreement Starting Date:
October 1, 2009
Annual Value or Total Payment:
$37,979.94
Ending Date:
N/A I1 Insurance Certificate Received (check box)
Insurance Expiration Date:
October 1, 2014
Check all that apply:
❑ RFP, Solicitation or Bid Process
❑ Informal quotes ( <$150K)
® Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37)
N /A Funding Source: (Included in current budget? ❑ Yes
If No, has budget amendment been submitted? Yes
Is this a Grant Agreement providing revenue to the County?
No
No
Yes ® No
1 0/7/2009
Special conditions attached to this grant:
Deadlines for reporting to the grantor:
If a new FTE will be hired with grant funds, confirm that Personnel has been notified that
it is a grant- funded position so that this will be noted in the offer letter: ❑ Yes ❑ No
Contact information for the person responsible for grant compliance: Name:
Phone #:
Departmental Contact and Title: Teresa Rozic, Property Specialist
Phone #: 385 -1414
Department Director Approval: S G�'zn -2 l l l (i 0'92
p pp
Signature Date
Distribution of Document: Original to Teresa Rozic.
Official Review:
County Signature Required (check one): ❑ BOCC ❑ Department Director (if <$25K)
❑ Administrator (if >$25K but <$150K; if >$150K, BOCC Order No. )
Legal Review Date
Document Number
10/7/2009
REVIEWED
LEGAL COUNSEL
AMENDMENT TO PROMISSORY NOTE
Michael R. Shields ( "Promisor ") and Deschutes County ( "Promisee ") agree to
amend the terms of the Promissory Note (the "Note ") entered into by and between
Promisor and Promisee on April 2, 2001, a copy of which is attached hereto as Exhibit
"A" and is incorporated herein by reference, as follows:
1. The Note currently provides for a "... principal sum of one hundred twenty -three
thousand six hundred eighty and no /100 dollars ($123,680.00) ". The parties
agree that this provision is amended to "... principal sum of thirty -seven
thousand nine hundred seventy -nine and 94/100 dollars ($37,979.94)."
2. The Note currently provides for "... one hundred twenty (120) monthly
installments of one thousand five hundred sixty -six and 73/100 dollars
($1,566.73)." The parties agree that this provision is amended to "... sixty (60)
monthly installments of seven hundred eighty -eight and 40/100 dollars
($788.40)."
3. The Note currently provides for a maturity date of April 3, 2011. The parties
agree that this date is changed to October 1, 2014.
4. The parties agree that the effective date of this amendment is October 1, 2009
and that the first monthly payment under the amended terms is due November
1, 2009.
Except as specifically modified by this amendment, all terms and provisions of
the Note shall remain in full force and effect.
PROMISOR: PROMISEE: DESCHUTES COUNTY
Michael R. Shields Tammy Baney, Chair
Dennis R. Luke, Vice -Chair
Alan Unger, Commissioner
DATED: DATED:
Document 2009 -592 Page 1 of 1
DESCHUTES COUNTY
PROMISSORY NOTE
DATE: APRIL 2, 2001
PROMISOR: Michael R. Shields
PO Box 504
LaPine OR 97739
PROMISEE: Deschutes County
1130 NW Harriman
Bend, Oregon 97701
FOR VALUE RECEIVED, Promisor promises to pay to Promisee, at Promisee's order, the principal sum
of one hundred twenty -three thousand six hundred eighty and no /100 dollars ($123,680.00), together with
interest on the unpaid balance from the date of this note, at the rate of nine percent (9.0 %) per annum,
Principal and interest shall be payable in one hundred twenty (120) monthly installments of one thousand
five hundred sixty -six and 73/100 dollars ($1,566.73). The first installment shall be made or
MAY 3 , , 2001, with a like payment due on the 3rd day of each month thereafter until
APRIL 3 , , 2011, at which time the entire unpaid principal balance together with accrued interest .
if any, shall be due and payable.
Borrower:
Principal:
Interest Rate:
Term:
Monthly Payment:
Due Date:
Late Charge:
Maturity Date:
Payment checks to:
1. Acceleration.
Michael R. Shields
$123,680.00
9% per year
10 years
$1,566.73
3rd day of each month, beginning MAY 3rd , 2001.
5% of monthly payment ($78.34) if not received within
10 days of due date
APRIL 3rd, , 2011
Deschutes County Treasurer
1130 NW Harriman
Bend, Oregon 97701
If any monthly installment under this Note is not paid when due and remains unpaid after a date
specified by a notice to Promisor, the entire principal amount outstanding and accrued interes
thereon shall at once become due and payable at the option of Promisee. The date specified shall no.
be less than thirty (30) days from the date such notice is mailed. Promisee may exercise his option to
accelerate during any default by Promisor regardless of any prior forbearance.
2. Disputes.
With respect to any dispute relating to this agreement, or in the event that a suit, action, arbitratior ,
or other proceeding of any nature whatsoever, including, without limitation, any proceeding uncle
the U.S. Bankruptcy Code and involving issues peculiar to federal bankruptcy law, or any actio
Promissory Note Page 1 of 2
(Revised 6/9S )
seeking a declaration of rights, is instituted to interpret or enforce this agreement or any provision of
this agreement, the prevailing party shall be entitled to recover from the losing party its reasonable
attorneys' fees and all other fees, costs, and expenses actually incurred and reasonably necessary ir .
connection therewith, as determined by the judge or arbitrator at trial or other proceeding, or on an,
appeal or review, in addition to all other amounts provided by law.
3. Late Charge.
Promisor shall pay to Promisee a late charge of five percent (5 %) of any monthly installment not
received by Promisee within ten (10) days after the installment is due.
4. Application of Payments.
Payment of any installment shall be first applied to late charges, then accrued interest to the date o ?'
receipt thereof, and the balance, if any, to principal. The undersigned may also prepay this Note in
full or in part without penalty, but any such prepayment shall be first applied to late fees, accrued
interest, and the balance, if any, to principal. However, any pre - payment shall not excuse regularly
monthly payment except with prior written approval of Deschutes County.
5. Waivers.
Presentment, notice of dishonor, and protest are hereby waived by all makers, sureties, guarantors,
and endorsers hereof. This note shall be the joint and several obligation of all makers, sureties,
guarantors and endorsers, and shall be binding upon them and their successors and assigns.
6. Notices.
Any notice to Promisor provided for in this Note shall be given by mailing such notice by certified
mail addressed to Promisor at the property address stated, or to such other address as Promisor may
designate by notice to Promisee. Any notice to Promisee shall be given by mailing such notice by
certified mail, return receipt requested, to Promisee at the address stated in the first paragraph of thi s
Note, or at such other address as may have been designated by notice to Promisor.
Under Oregon Law (Chapter 9.67 OR laws 1989), most agreements, promises; and commitments made
by us after October 3, 1989 concerning loans and other credit extensions which are not for personal,
family, or household purposes or secured solely by the Borrower's residence, must be in writing, express'
consideration, and be signed by us to be enforceable.
The indebtedness evidenced by this Note is secured by: Trust Deed APRIL 2 , 2001
PROMISOR: MICHAEL R. SHIELDS
By:
Michael R. Shields
4/2/0i
ate
Promissory Note Page 2 of 2 (Revised 6/9 ))