HomeMy WebLinkAboutDoc 614 - Note - Four Winds Foundation01 ESC
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❑
Deschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701 -1960
(541) 388 -6570 - Fax (541) 385 -3202 -
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of October 28, 2009
Please see directions for completing this document on the next page.
DATE: October 16, 2009
FROM: Teresa Rozic Property & Facilities 385 -1414
TITLE OF AGENDA ITEM:
Consideration of Board Signature of Document 2009 -614, an Amendment to Promissory Note.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
In 2002, Deschutes County sold property located at 71140 NW Lower Bridge Way, Terrebonne to Four
Winds Foundation (FWF). The buyer paid a 20% down payment in cash and the County financed the
balance for 20 years, secured by a Note and Trust Deed. A member of the FWF board of directors
contacted staff in August of this year and asked for a temporary reduction in the mortgage payments.
Staff reviewed their financial statements and confirmed the nonprofit organization's income is
significantly less than the last two years.
At their work session April 16, 2009, the Board of County Commissioners directed staff to offer
temporary relief to borrowers who were impacted by the slow economy. At their work session 01 ;tober
14, 2009, the Board directed staff to amend the terms of the FWF note to reflect interest only paynents
for twelve months; to add the principal to the balance of the loan; and to amortize the balance ove r the
remaining term of the loan. The balance of the FWF loan is $74,917.11 (original loan amount w s
$95,000). The interest only payment will be $524.42 and then increase to $855.85 for the remainler of
the loan. The final installment is due February 15, 2022.
FISCAL IMPLICATIONS:
The County will receive full payment for the amount owed by the original due date.
RECOMMENDATION & ACTION REQUESTED:
Staff recommends signature of Document 2009 -614.
ATTENDANCE: Teresa Rozic
DISTRIBUTION OF DOCUMENTS:
Original to Teresa Rozic to obtain signature by Four Winds Foundation.
503.351.5840,
Property & Facilities'
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:
10/16/2009
Please complete at sections above the Official Review line.
Department:
Contractor /Supplier /Consultant Name:
Contractor Contact: Phiamma Elias]
Four Winds Foundation
Type of Document: Amendment to Promissory Note
Goods and /or Services: N/A
Contractor Phone #:
Background & History: In 2002, Deschutes County sold property located at 71140
NW Lower Bridge Way, Terrebonne to Four Winds Foundation (FWF). The buyer paid
a 20% down payment in cash and the County financed the balance for 20 years,
secured by a Note and Trust Deed. A member of the FWF board of directors contacted
staff in August of this year and asked for a temporary reduction in the mortgage
payments. Staff reviewed their financial statements and confirmed the nonprofit
organization's income is significantly Ness than the last two years.
At their work session April 16, 2009, the Board of County Commissioners directed staff
to offer temporary relief to borrowers who were impacted by the slow economy. At their
work session October 14, 2009, the Board directed staff to amend the terms of the FWF
note to reflect interest only payments for twelve months; to add the principal to the
balance of the loan; and to amortize the balance over the remaining term of the loan.
The balance of the FWF loan is $74,917.11 (original loan amount was $95,000). The
interest only payment will be $524.42 and then increase to $855.85 for the remainder of
the loan. The final installment is due February 15, 2022. There is no change in the total
amount of funds the County will collect over ther term of this loan.
Agreement Starting Date: 10/15/2009
Annual Value or Total Payment: [74,917.11
Ending Date:
N/A ❑ Insurance Certificate Received (check box)
02/15/20221
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
No
10/16/2 )09
If No, has budget amendment been submitted? I Yes
No
Is this a Grant Agreement providing revenue to the County? C Yes ® No
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: 7 Yes No
Contact information for the person responsible for grant compliance: Name:
Phone #:
Departmental Contact and Title: Teresa Rozic Phone #: 385 -1414
Department Director Approval:
t-Le / 10 //LOU'
Signature Date
Distribution of Document: Original to Teresa Rozic to obtain FWF signature.
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
10/16/: 009
REVIEWED
LEGAL COUNSEL
AMENDMENT TO PROMISSORY NOTE
Four Wind Foundation ( "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 February 15, 2002, attached as Exhibit "A," and
incorporated herein by reference.
1. The parties agree that the effective date of this amendment is October 15, 2009
and that the first monthly payment under the amended terms is due November
15, 2009.
2. The monthly payment for the twelve months beginning November 15, 2009 and
ending October 15, 2010 will be Five Hundred Twenty -Four and 42/100 Dollars
($524.42).
3. The monthly payment beginning November 15, 2010 and continuing for the
remainder of the term of the Note will be Eight Hundred Fifty -Five and 85/100
Dollars ($855.85).
Except as specifically modified by this amendment, all terms and provisions of
the Note shall remain in full force and effect.
PROMISOR: FOUR WIND FOUNDATION PROMISEE: DESCHUTES COUNT)
By: Sweet Medicine Nation Tammy Baney, Chair
Executive Director
DATED:
Dennis R. Luke, Vice -Chair
Alan Unger, Commissioner
DATED:
Document 2009 -614 Page 1 of 1
DESCHUTES COUNTY
PROMISSORY NOTE
DATE: February 15 , 2002
PROMISOR: Four Wind Foundation, an Oregon non - profit corporation
PMB 333 2660 NE Hwy 20, Ste 610
Bend, OR 97701
PROMISEE: Deschutes County
1130 NW Harriman
Bend, Oregon 97701
FOR VALUE RECEIVED, Promisor promises to pay to Promisee, at Promisee's order, the principal sura
of Ninety Five Thousand and no /100 dollars ($95,000.00), together with interest on the unpaid balance
from the date of this note, at the rate of 8.4% per annum. Principal and interest shall be payable in two
hundred forty (240) monthly installments of Eight Hundred Eighteen and 43/100 dollars ($818.43). T1e
first installment shall be made on 3/15/02 /02 , with a like payment due on the 15th thy
of each month thereafter until 2/1 5/?? , 2022, 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:
SS #/Employer ID:
Payment checks to:
1. Acceleration.
Four Wind Foundation
$95,000.00
8.4% per year
Twenty (20) years
$818.43
15th day of each month, beginning MMrrh 15- , 2002.
5% of monthly payment if not received within
10 days of due date ($40.92)
February 15 ,2022
Deschutes County Finance Department
Deschutes Services Building
1340 N.W. Wall Street
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 ini Brest
thereon shall at once become due and payable at the option of Promisee. The date specified shall
not be less than thirty (30) days from the date such notice is mailed. Promisee may exerci: e 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, arbit ation,
or other proceeding of any nature whatsoever, including, without limitation, any proceeding under
the U.S. Bankruptcy Code and involving issues peculiar to federal bankruptcy law, or any action
seeking a declaration of rights, is instituted to interpret or enforce this agreement or any prc vision
of this agreement, the prevailing party shall be entitled to recover from the losing pa -ty its
Promissory Note: Sweet Medicine Nation
(01/: 2/2002)
reasonable attorneys' fees and all other fees, costs, and expenses actually incurred and reasonably
necessary in connection therewith, as determined by the judge or arbitrator at trial or other
proceeding, or on any 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 of
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, accrue;l
interest, and the balance, if any, to principal. However, any pre - payment shall not excuse regular] y
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, guarantor s,
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 certif ed
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 no's ice
by certified mail, return receipt requested, to Promisee at the address stated in the first paragr iph
of this 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: A Deed of Trust dated Q
PROMISOR: FOUR WIND FOUNDATION
By: Sweet M dicine Nation 7 Date
Title: Executive Director
attachment
Promissory Note: Sweet Medicine Nation (01 /: 2/2002)