HomeMy WebLinkAboutPR 16039: PLEASURE ISLAND COMMISSION LOAN TO FUND MARINA Memorandum
City of Port Arthur, Texas
Finance Department
To: Steve Fitzgibbons, City Manager ., n 71
From: Rebecca Underhill, Assistant City Mana mirfi tration
Date: August 26, 2010
Subject: Proposed Resolution 16039
Presented for City Council consideration and approval is PR 16039 which authorizes a loan of $1.7
million to the Pleasure Island Commission in order to complete the building of the Marina to a capacity of
150 slips, which will be secured by Marina Revenue.
This loan will be funded through General Fund, fund balance. Ten annual payment of $211,565 will begin
in two years, giving the Commission time to complete construction and fill the slips. The loan will bear
3.5% interest. The terms of the loan require that the first $211,565 of annual Marina Revenue be
committed to the City of Port Arthur to secure the annual loan payment.
P. R. NO. 16039
JJA: 8/26/10
RESOLUTION NO.
A RESOLUTION AUTHORIZING A $1,700,000 LOAN TO
THE PLEASURE ISLAND COMMISSION TO FUND THE
MARINA
WHEREAS, the Pleasure Island Commission is working to rebuild the Marina after the destruction
from Hurricane Ike; and
WHEREAS, after FEMA reimbursements, the project requires an additional $1,700,000 in funding
and;
WHEREAS, the Pleasure Island Commission has requested that the City loan them the funds; and
WHEREAS, the ancillary benefits herein will promote the development of Pleasure Island; and
WHEREAS, the loan will be secured and repaid from the proceeds of the income of the Marina.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the City Council of the City of Port Arthur, Texas hereby approves a loan to
the Pleasure Island Commission in the amount of $1,700,000 to be repaid at 3.5% interest per the
promissory note attached hereto as Exhibit "A ".
Section 3. That a copy of this Resolution be spread upon the Minutes of the City Council.
READ, ADOPTED, AND APPROVED, this day of September, 2010, AD, at a Regular
Meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: Mayor:
Councilmembers:
NOES:
Mayor
ATTEST:
Sherri Bellard, Acting City Secretary
APPROVED AS TO FORM:
Val Tizeno, City Attorney
APPROVED FOR ADMINISTRATION:
Steve Fitzgibbons, City Manager
2 ef,g,-2(
Rebecca Underhill, Assistant City Manager /Administration
APPROVED AS TO AVAILABILITY OF FUNDS
Deborah H. Echols, Finance Director
s /finance/resolutions/pleasure island loan on Marina
APPROVED AS TO FORM:
CITY A TORN
EXHIBIT "A"
PROMISSORY NOTE
EFFECTIVE DATE: October 1, 2010
MAKER: Pleasure Island Commission
MAKER'S MAILING ADDRESS: Pleasure Island Commission
520 Pleasure Pier Boulevard
Port Arthur, Texas 77640
PAYEE: CITY OF PORT ARTHUR
PLACE FOR PAYMENT: P. O. Box 1089
Port Arthur, Texas 77641 -1089
PRINCIPAL AMOUNT: $1,700,000
ANNUAL INTEREST RATE ON UNPAID PRINCIPAL FROM DATE:
In accordance with Exhibit "A" attached to this note
MATURITY DATE: October 1, 2021
TERMS OF PAYMENT:
Maker promises to pay to the order of Payee the principal amount plus interest at the rate stated in
Exhibit "A -1 ", and with annual payments as delineated in Exhibit "A -2 ", both of which are
attached hereto. All unpaid amounts are due by the maturity date. After maturity, Maker
promises to pay any unpaid principal balance plus interest at the rate shown on Exhibit "A -1"
attached hereto.
PREPAYMENT:
Maker may prepay all or any part of the principal of this note before maturity without penalty and
interest shall immediately cease to accrue on any amount so prepaid.
Prepayments shall be applied to installments on principal in the inverse order of maturity so that
they will pay the last maturing principal installments first, and these prepayments will not reduce
the amount or time of payment of the remaining installments.
SECURITY FOR PAYMENT:
All Marina Revenues of the Pleasure Island Commission.
S /FINANCE /PROMISSORY NOTE
DEFAULT:
Default shall be deemed to have occurred upon the occasion of any of the following:
1. When any installment or payment of principal or interest of this note is not paid when due.
2. Default under the terms of any security agreement given by Maker as security for the payment
of this note.
3. The insolvency of Maker.
4. The commencement of any proceeding, procedure or remedy and enforcement of a judgment
against Maker with respect to any property.
5. If any governmental authority or any court at the instance thereof assumes control over the
affairs or operation of Maker or is appointed to take possession of the property of Maker or if
any order or attachment or garnishment is issued and made against any property of the Maker
or any other liable party.
6. If Maker is dissolved, wound up, liquidated or otherwise terminated or a party to any merger
or consolidation without the written consent of Payee.
7. If Maker sells substantially all or an integral portion of its assets without the prior written
consent of Payee.
8. If any representative of maker makes false statements or representations in this agreement.
9. If Maker is dissolved.
10. If maker permits the impairment of any of the Property by loss, theft, damage, levy and
execution, or destruction, unless it is promptly replaced with security of like kind and quality
or restored to its former condition.
Notwithstanding any other provision of this note, in the event of a default, before exercising any
of Payee's remedies under this note or any deed of trust with vendor's lien securing it, Payee will
first give Maker written notice of default and Maker will have ten days after notice is given in
which to cure default. If the default is not cured within ten days after notice, Maker waives all
demand for payment, presentation for payment, notice of intention to accelerate maturity, notice of
acceleration of maturity, protest, and notice of protest, to the extent permitted by law.
REMEDY UPON DEFAULT:
Upon default as above defined, this note becomes and will be due and payable forthwith without
demand, notice of default, notice of intent to accelerate the maturity of this note, notice of
acceleration of this note, notice of non - payment, presentment, protest or notice of dishonor all of
which are expressly waived by Maker. Failure of Payee to exercise this option upon default does
not waive the right to exercise it in the event or any subsequent default.
REMEDIES:
All remedies provided for in this note, the Deed of Trust, and any other loan document are
cumulative of each other in all other remedies existing in law or in equity. Payee shall have the
5 /FINANCE /PROMISSORY NOTE
right to avail itself of all such other remedies as may not or hereafter exist at law or in equity for
the collection of the indebtedness.
PAYEES ACCEPTANCE:
From time to time, any payment under this note that is past due or less than the payment in full of
all amounts due and payable will not constitute a waiver of or impair or extinguish the rights of
Payee to accelerate the maturity of the note or to exercise any other power or authority that may be
available to protect its rights hereunder nor will it constitute a waiver of the requirement of
punctual payment and performance, nor will it constitute a notation in any respect.
JURISDICTION AND VENUE:
Maker submits to jurisdiction in the State of Texas and venue in Jefferson County, Texas for the
enforcement of any and all obligation under this note or any security agreement executed
concurrent herewith as security for payment of the note.
OBLIGATIONS:
If this note is not paid at maturity whether by acceleration or otherwise and is placed in the hands
of any attorney for collection, or suit is filed hereon, or proceedings are had in probate,
bankruptcy, receivership, reorganization, arrangement or other legal proceedings for collection
thereof, Maker and each other liable party agree to pay Payee its collection costs, including court
costs and a reasonable amount for attorney's fees.
ENTIRE AGREEMENT:
This note and the other loan documents herein identified set forth the entire agreement of the
parties. There are no oral conditions, representation, inducement agreements or commitments
affecting this note, the other Loan Documents, and other loans or advances that Payee has made or
may make to Maker. Payee has made no oral commitments or agreements to advance monies or
make additional loans to Maker. No extension or variation in the terms of payment of this note,
and no release of liability and /or collateral securing this note, and no satisfaction of this note in
whole or in part in exchange for collateral or otherwise, is binding on Payee unless Maker is
signing this note and other Loan Documents of its own free will and accord, without threat or
duress, and without reliance on any statement, inducement, agreement, or representation of any
kind or nature whatsoever that is not expressly set out in this note and the other Loan Documents.
Interest on the debt evidenced by this note shall not exceed the maximum amount of nonusurious interest
that may be contracted for, taken, reserved, charged, or received under law; any interest in excess of that
maximum amount shall be credited on the principal of the debt or, if that has been paid, refunded. On any
acceleration or required or permitted prepayment, any such debt or, if the principal of the debt has been
paid, refunded. This provision overrides other provisions in this and all other instruments concerning the
debt.
S /FINANCE /PROMISSORY NOTE
This note binds and inures to the benefit of Maker and Payee and their respective legal representatives,
successors and assign; provided, however, that Maker may not assign this note or any loan funds, or
assign or delegate any of its rights or obligations, without the prior written consent of Payee in each
instance.
This note will be construed under the laws of the State of Texas, without regard to choice -of -law rules of
any jurisdiction.
MISCELLANEOUS:
Time is of the essence in the payment of this note.
When the context requires, singular nouns and pronouns include the plural.
FINAL AGREEMENT: THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
PLEASURE ISLAND COMMISSION
By
Chairman
ACCEPTED AND APPROVED ON THE DAY OF SEPTEMBER, 2010.
GRANTEE:
CITY OF PORT ARTHUR
By
City Manager, Steve Fitzgibbons
S /FINANCE /PROMISSORY NOTE
ACKNOWLEDGEMENT
THE STATE OF TEXAS:
COUNTY OF JEFFERSON:
BEFORE ME, THE UNDERSIGNED Notary Public, on this day
personally appeared , known to me to be the person whose
name is described to the foregoing instrument, and acknowledged to me that he
executed the same as the act and deed of the Pleasure Island Commission of Port
Arthur, for the purposes and considerations therein expressed, and the capacities
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day
of September, 2010.
Notary Public, State of Texas
S /FINANCE /PROMISSORY NOTE
i
Exhibit "A -1
The sum of One Million Seven Hundred Thousand ($1,700,000) dollars to be paid to the City of Port
Arthur by the Pleasure Island Commission of Port Arthur, a Texas non - profit corporation, in the following
manner:
1. The sum of $211,564.69 Dollars per year to be credited as payment of principal and interest
per the attached Exhibit "A -2" for a period of ten (10) years with the first payment to be
made on or before October 1, 2012 and a like payment to be due and payable on the same
day of each month thereafter for a period of ten (10) years of said payment obligation.
2. All Marina Revenue of the Pleasure Island Commission will be pledged as security of this
Note, with the first funds received designated to the City of Port Arthur to meet the annual
obligation. When the annual payment has been satisfied, the remaining funds will be
available for Pleasure Island operations.
3. All past due principal and accrued but unpaid interest will bear interest at the rate of ten
(10)% per annum.
Pleasure Island Commission
City of Port Arthur
EXHIBIT i °A -2"
08/25/2010 3:31:04 PM Page 1
Compound Period • Annual
Nominal Annual Rate : 3.500 %
CASH FLOW DATA
Event Date Amount Number Period End Date
1 Loan 10/01/2010 1,700,000.00 1
2 Payment 10/01/2012 211,564.69 10 Annual 10/01/2021
AMORTIZATION SCHEDULE - Normal Amortization
Date Payment Interest Principal Balance
Loan 10/01/2010 1,700,000.00
2010 Totals 0.00 0.00 0.00
1 10/01/2012 211, 564.69 121, 082.50 90, 482.19 1, 609, 517.81
2012 Totals 211,564.69 121,082.50 90,482.19
2 10/01/2013 211, 564.69 56, 333.12 155, 231.57 1, 454, 286.24
2013 Totals 211,564.69 56,333.12 155,231.57
3 10/01/2014 211, 564.69 50, 900.02 160, 664.67 1, 293, 621.57
2014 Totals 211,564.69 50,900.02 160,664.67
4 10/01/2015 211,564.69 45,276.75 166,287.94 1,127,333.63
2015 Totals 211,564.69 45,276.75 166,287.94
5 10/01/2016 211,564.69 39,456.68 172,108.01 955,225.62
2016 Totals 211,564.69 39,456.68 172,108.01
6 10/01/2017 211, 564.69 33,432.90 178,131.79 777, 093.83
2017 Totals 211,564.69 33,432.90 178,131.79
7 10/01/2018 211,564.69 27,198.28 184,366.41 592,727.42
2018 Totals 211,564.69 27,198.28 184,366.41
8 10/01/2019 211,564.69 20,745.46 190,819.23 401,908.19
2019 Totals 211,564.69 20,745.46 190,819.23
9 10/01/2020 211,564.69 14,066.79 197,497.90 204,410.29
2020 Totals 211,564.69 14,066.79 197,497.90
10 10/01/2021 211,564.69 7,154.40 204,410.29 0.00
2021 Totals 211,564.69 7,154.40 204,410.29
Grand Totals 2,115,646.90 415,646.90 1,700,000.00