HomeMy WebLinkAboutNC Comprehensive Report (Finance) (49)CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(4) Contracts, Notes and Loans Receivable
As of June 30, 2012, the Contracts, Notes and Loans Receivable consisted of the
following:
Primary Government:
Copper Hills Apartments, LP $ 7,817,352
Plaza Manor 502,313
Miles of Cars 124,601
Total $ 8,444.266
Successor Agency:
Copper Hills Apartments, LP $ 83,123
Miles of Cars 653,903
Total $ 737,026
Plaza Manor — CDC of the City of National City entered into a loan agreement with
Plaza Manor Preservation, LP on December 18, 2001 in the amount of $500,000 with 3%
compound interest per annum and shall end on April 15, 2032. The borrower has
acquired a property located in the City of National City with aid of the said loan and with
the intention to operate a 372 unit project as a very low and low income housing project.
Funding sources for this loan were HOME (48%) and Low & Moderate Income Housing
Funds (52%).
Miles of Cars — CDC of the City of National City entered into Freeway Sign
Rehabilitation Loan Agreement with the Mile of Cars Association, a nonprofit, mutual
benefit corporation on July 8, 2010 for the amount of $660,000 with 2% interest per
annum with a term of 20 years from the date of initial disbursement. The loan requires
quarterly payments of principal and interest. The purpose of the loan was to rehabilitate
existing freeway signage equipment and improvements.
Plaza City — CDC of the City of National City entered into a Loan Agreement with Plaza
City Apartments, LP on November 1, 2005 in the amount of $2,700,000 with 3% interest
per annum for 55 years. It was amended per Resolution No. 2006-202 dated September
19, 2006 which increased the loan amount by $722,000 for a total of $3,422,000. This
loan will be used by the borrower to pay the balance of the purchase price and additional
costs relating to the acquisition, demolition and development of certain real property
located at 1535 Plaza Blvd., National City, CA. As of June 30, 2012, an allowance has
been established for the entire amount of the note outstanding as collection of this note is
not expected at this time.
Copper Hills Apartments, LP — CDC Residual Receipts Note dated February 19, 1999
disclosed a loan of $2,400,000 with 3% interest per annum for 55 years, funded by
HOME and Low & Moderate Income Housing Funds. A second and junior to the CDC
Residual Receipts Note was made on June 3, 1999 for $4,400,000, referred to as CDC
Rehabilitation Note with 3% interest per annum for 55 years and funded by Low &
Moderate Income Housing Fund. These loans were made to acquire, develop, rehabilitate
and operate the multi -family apartments located at "Q" Avenue in National City, Ca.
This project will contain 134 apartment dwelling units following rehabilitation and
renovation.
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