HomeMy WebLinkAboutLandmark Apartments
Augusta Richmond GA
DOCUMENT NAME: l0.rOr('{lX\<:: A\X1~
DOCUMENT TYPE:OeeO
YEAR: C\l
BOX NUMBER: ,G\
FILENUMBER:\~15
NUMBER OF PAGES: \0
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AUGUSTA-RICHMOND COUNTY COMMISSION
LARRY E. SCONYERS
Mayor
ROOM 801 MUNICIPAL BLDG. (11)
AUGUSTA, GEORGIA 30911
Bus. (706) 821-2488
Fax No. (706) 722-5984
LEE BEARD
ULMER BRIDGES
JERRY BRIGHAM
HENRY H. BRIGHAM
Wll.LIAM B. KUHLKE. JR
WM. "Wll.LIE" H. MAYS. ill
J. B. POWELL
MOSES TODD
ROB ZElTERBERG
CHARi.ES R. OLNER, P E. CPA
Administrator
FREDDIE L. HANDY
Mayor Pro Tern
March 19, 1997
JAMES B. WALL
Anomey
Ms. Lena Bonner
Clerk, Commission
8th Floor, Municipal Bldg.
Augusta, GA 30911
Reply to:
P.O. BOX 2125
Augusta. GA. 30903
RE: Landmark Apartments
Dear Lena:
I enclose herewith the Amendment to Security Deed Note
and the Guarantee Agreement, in connection with the refinancing by
Mark Development Company, Inc. on the above referenced apartments.
Please place the original of these documents in the permanent
records of the City which was approved by the Commission on
February 18, 1997.
By carbon copy of this letter, I am forwarding copies of
these instruments to Keven Mack and Butch McKie, for their files.
Thanking you and with best personal regards, I am
v:y ;;J~
es B. Wall
JBW/sjp
Enclosures
cc: Keven Mack
A. B. "Butch" McKie
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JAMES C. FOLK
KILPATRICK & F(lLK
246 DAVIS RD. .(:::U~TE C
j\tJAJo~TINEZ, GA :::)Cl~~i07'
AMENDMENT TO SECURITY DEED NOTE
WHEREAS, Mark Development Company, Inc. executed a Security Deed Note
dated April 11, 1984 in the original principal amount of$500,000.00 in certain community
development block grant funds in favor of The City Council of Augusta, Georgia; and
WHEREAS, The US, Department of Housing & Urban Development requires
certain modifications to said original note pursuant to a refinancing of said project, said refinance
being from Mark Development Company, Inc., a Georgia corporation in favor of Reilly Mortgage
Group, Inc" a District of Columbia corporation as of March 7th, 1997.
WHEREAS, it being in the mutual interest of Mark Development Company, Inc.
and Augusta-Richmond County Commission (successor by consolidation to The City Council of
Augusta, Georgia) as holder of said note to amend the terms of the note;
NOW, THEREFORE, the terms of said note are amended by adding the paragraph
as paragraph number 11, to-wit:
11.
Notwithstanding anything to the contrary in the original note, so long as the
Secretary of Housing and Urban Development or his/her successors or assigns, are the insurers or
holders of the first mortgage on Landmark Apartments, Project No. 061-11123-PM, payments
due under this note shall be payable only from surplus cash of said project, as the term surplus
cash is defined in the Regulatory Agreement dated March 7th, 1997 betweenHUD and Mark
Development Company, Inc, The restriction on payment imposed by this paragraph shall not
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caused by the failure of the maker to pay the indebtedness evidenced by this
Said Security Deed Note shall otherwise remain in full force and effect.
As of this 7th day of March, 1997.
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N otary Pubh~"of ~ (\<:~..._"~( ~ ~.....
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Signed, sealed and delivered
this 1Q day of March, 1997
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JJe/t~~d, ~~~
Notary Public ' \.J
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MARK DEVELOPl\.1ENT COMPANY, INC.,
a Georgia corporation
BY:
AUGUSTA-RICHMOND COUNTY
COMMISSION (Successor by consolidation to
The City Council of Augusta, Georgia)
GUARAN'YBE AGREEMh"NT
THIS GUARAN'Ft:E AGREEMENT made and entered into as of March 10,
1997, by and between ASHBY R. KROUSE Ill, of Augusta, Georgia, ("Guarantor"),
MARK DE.VELOPMENT CCMPANY, INC., a coIpOration organized and existing under
the laws of the State of Georgia, ("Developer"), and AUGUSTA-RICHMJND COUNTY
COMMISSION, (successor by consolidation to The City Council of Augusta, Georgia,
("City");
WHEREAS, THE City and the Developer entered into an agreement whereby
the City loaned the Developer Five Hundred Thousand ($500.000.00) Dollars
in Urban Developnent Action Grant funds received fran the United States Department
of Housing and Urban Developnent; and
WHEREAS, as a condition of the aforesaid UDAG loan, the Developer
has and must agree and insure that a minimum of 3.7 acres of land located
on 13th Street, South of the John C. Calhoun Expressway between the City's
central business district and the medical center complex be acquired, and
that there be constructed thereof one hundred and four (104) apartment units
comprising approximately eighty-eight thousand, four hundred (88,400) square
foot of building gross area; and after completion of the aforesaid project,
that the Five Hundred Thousand ($500,000.00) Dollar loan be repaid to the
City according to the terms and conditions of a Security Deed Note of even
date herewith; and
WHEREAS, the United States Department of Housing and Urban Developnent
requires that completion of the project as aforesaid and IBpayment of the
loan be guaranteed by Guarantor herein and the City and Developer have additionally/agreed that the aforesaid loan should not be made unless guaranteed by Guarantor;
and
WHEREAS, Guarantor stands to benefit in his capacity as
Shareholder of Developer fran Developer's procuring the aforesaid
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10:1n ahd coinpletiotl uf the nbove project ,in<\ GU<lr,lntor Idshes
to assure coinpletioil of the ,I [ores;11<1 proJect and n'!,;!)'lIll.:nt of
the a[ores:1id loan;
[or ;1nd in consiJcr;1tion of the mutual
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NOli j TlIEREFORE.
:111<1 the benefits floh'ing to :tnl! from the Cil~', the
Developer :1nd Guarantor by the cxtclision of the UD!\C 10:1n hereby
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contemplated, by the consO'uction of the project abovc-referenced,
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and by repayment of the afores<1iJ UDI\G loan,
all n 5 .; ,1n t c III pIa t e J
by the UDAG ;:t~:t-eell\ent <JnJ the City-Developer ,\greeJ1lent, copi.es
of, I~hich arc attached hereto :Iml by this reference inLOrpC\!-ate.l
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the Guarantor does hereby coven:lIlt "nJ ngree "ith the
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LOAN HEP,\Y~IENT GU'\RA~TEE
Section 1.
The Guar:lntor hereby ;ibsolutely ,In<1 unconditionally
Ii guarantees to the City the full ;lnJ prompt p:1yment (in ;Iceor-
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I~ ll3nce ",'ith th8 terms and provisions of the Security'Deed ~ote
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:! betl-ieen the City 3nd the Developer, <:1 copy of I~hich is <:1ttachc.1
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hereto nnJ by this reference 'incorpor:1teJ herein) of :111 UD,\G
loan rep:lyments I~hen a 11<1 as the S:lmc shall become du.: ;'lI1d p;ty-
;1ble, \~hethel' :1t
the ~t:1ted maturity thereof, or by :lccelc;l::1til1n
or othendse.
The Guaralltor also :lbsolutcly and uncl1nJition:1lly
gll:lr:tntees the pUYllIcnt to the Cit)' of 3hy and all expcnses it
il\;1y incur in collecting the SUIIIS due Ullller the ;1fon'~aid Secllrit)'
Deed Note.,
inc1u<ling, but not limited to, attorney's fees in ;111
[lmount equal to Fifteeil percent (lS%) of the outstan.li,ng indebteJ.:
n e s 5 llue ;, t .;m y p;J ~ tic U la r t i 111 e ,
1ft he C it Y s h;111 \':1 i, I t I)
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ceive any required payments as and when such p3yments sh~ll
1",,-nll1(' ,llle. the GUclrantor shull
immediately make sll.;h p:\YIII<'lIts
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contingent upon any rittempt to collect from the Devel0per or
to i'cali::e upon ariy of the properties pleJgeU by tlK' Lkveloi1er
to secure the reqUired repayment.
This guarantee skIll remain
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full force and effect. Idthollt respect to future ch:lnges and
conditions, including change
ili laH, until the princip:tl and
all other amollnts p<1yable by the Developer to the Cit~. under
t.he terms of the attached Securit)' Deed Note shall h:I\'e been
paid 61' prdvided for.
Every default
in payment of the princi-
pal or interest of the said Security Deed :<lote shall
g i \'1::
l' i se
to :i separ:lte cause of :Iction hereunder an,1 sepur<1tl'
suit,; may
be brought hereWlder <1S each cause of action ari,;es.
The
Guarantor does hereby Iwive:
1.
Notice of ;Iny action taken or omit.ted in rclL1I1ce
hereon <1ntl of :Iny def:lult by the GuarantOl'
in t he p:1 r :\lL' n tor
any of the foregoing sums;
2. Any presentment, denwnd, notice or protL',;t uC
ii any
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kind; :1I1d
3.
Any other ;tct or thing, or omission or dL'l;IY
in :Iny malll\el'
or
to
t h i n g.. 'v hie h III i g h t
to do any 0 t he r :I c t
or
any extent vary the risk of
thL' GU:Hantor or h'hich 1!li:~ht other-
,vise operate :15 a di5charg..: of the CUilrantlH.
NATURE OF OBLIGATION
Sectiun II.
^ 11 b b I l g:t t i on s 0 f t lie (j u:t l' (In tor un del' t hi,;
~,u:lI'an tee
shall be absolute an,I'lInconJitiun:tl and continuing :llhl ,;}wll
re ma in
in full force ilnd effect until the entire principal
of and all other :JIllOUllt$ payable by the Ueveloper to the Cit)'
pursuant to the term~ of the ;tttached Security Deed N0te $h<1\1
have been P'! ill in fu.ll.
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City of August<l, G~orgia' and as described in'the Cit~'/Developer
Agreement,
Spec{frcall~,thb Guara~to( do~~
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hereby gU:\f~in-te'c'-
that the Developer shall acquire
at a miliimum, 3.7 aCl'es of land.
located on 13th Street, South of the Jolm C. Ca1ho!ll1 E:qHeSS\{ay
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the me,lical ccnter complex and shall construct thercon one
h~ndred and four (104)
apartment units compl-ising approximatel)'
eighty-eight thousand, 'four hundred (88,400) squ<lre fect of
building gross area.
The aforesaid property acquisiUon shall
be mJde on or before ~Iarch 28,1984, and completion of the
apartment unit construction shall be on or before October 20,
1984, or such other date as lOa)' hereafter be agreed to b)' the
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United St<ltcs Department of 1I0using and Urban Developmcnt, the
:: Cit)' Council of Augusta, Georgia, and Hark Developmcllt Compan)',
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Inc. The Guarantor absolutely and unconditionally gU:lrantees
acquisition of the property and completion of the ap:II'tment con-
struction on the time tables us aforesaid.
In the e \','n t t h:! t
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the Dc\'eloper shall default under an)' of his obligatiuns for
acquisition of the property or completion of the apartment
construction OJ:' the said time tables, Guarantor hereby agrees to
take an)' and all such steps, including infusion of ad,litional
monies, to insure that the project is completed.
Section IV.
CONSENT TO JURISDICTION
The Guarantor hereby agrees without power of revocation
that an)' civil suitor cause of action brought against him as
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;1 a result of any of the obligations W1der this guarantee may be
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prought ag<linst hi,o in any court of com[)ctent jurisJiction,
Federal or State, and the Guarantor hereby specificall)' arrees
;]nd consents to personal jurisJiction and venue over such action
Section V.
PHOCEEDI NGS D I I~ECtLY i\Gt\ I :\:;1 GlL\llANTOH
lI'henever any default in the obligatiolis of the
,: Agreement, has occurred anel is continuing, the City 11I;1}' pro-
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ceed hereunder :lnd shall have the right to proceed first and
directly 3gainst the ,Gu<lrahtor under this gU3rantee hithout
proceeding ag:linst or exhausting ~lIiy other remedies I:hlch it
may huve unde'r the Security Deed Note or City/Develope'r Agreement
il and wrthout resorting to any other sc~uritY,held br iL.
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Section VI,
NO RENEbY EXCLUSIVE
No remedy herein conferred upon or reserved to the
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intended to
be exclusive of any other available rcmeuy or remeJil.':i. but
e:lch remedy skill be cumulutive Gnd shall bein udell! iOIl to
every other remedy given under this gUi1l'~lntee or noh' or here-
G f tel' e xis tin g <I t 1:1 Iv 0 r in e qui t )' ,
No delny or ollli,;~lon to
exercise any right or power accruing upon the default, 0lllisS10n
or failure of performance hereunder or under the Sccurity Deed
f\;ote or City/Developel' Agreement shall impair ~In}' such right
or pOlver or sh311 be construed to be a waiver thereof. but ~\ny
II such right and power may be exercised frolll tilile to
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often ;\5 lOGY be deemed expedient,
Section VII.'
ATTORNEY'S FEES AND EXPENSES
The GU:Jrantor hereby agrees to pay all cost,.:. e:X[1cllsc:s
and fees including all rca,son3ble attorney's fees hhich nl<lY be
incurreu by the City i.n enforcing or attempting to enforce thi,5
gUGrnntce following nny event of default hereunder 01' under the
'C"~,,,-;h; np",1 Notf' or City/Develorcr Agrcement refer!'.:,l to ~ib()I'e.
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so \o/aived and shall not be deemed to \.:Iive :lny othcr hl'cilc'h herc-
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unJer. ~o w3ivcr, amendment, release ,)rmodifica'tiull ot" tills"
guarantee shall be established by conduct, custom or course of
dealing, but solely by an instrument in hTiting duly executed
!I by the pani" heeeto.
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SectIon IX.
EffECT! VE DATE
The obligation of the Guarantor hereunder shall
arise
absolutely and unconditionally upon the execution hereof.
Section X.
GOVERN [NG LA\~
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This guarantee anJ the rights an,l obligations of the
governed, construed and
intci'p,'cted
hereto shall be
according to the laws of the State of Georgia,
Section Xl.
ENT! RE AGREE~IENT; COUKTU(P ARTS
This guarantee constitutes the entire agreclllcnt of
:1 gU3rantee
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:lnd supercedes all prior agreements,
botll hTi.ttcn
and oral, between the parties hereto \>lith respect to the subject
matter hereof.
Section XII.
SE VERAB [ LI TY
If uny provision of this guarantee shall be held or
fact, ,be invalid,
inoper:ltive or 0nen-
deemed to be
or
s ha 1 I, i n
forceable
3S applied in any particular Case ih any jurisdiction
or jurisdictions or in all jurisdictions or in
all
c;lses because
it conflicts \o/ith any other provisions hereof or an}' constitu-
tion 01' s:ate statute or rule of public policy or for any other
reason,
such circumstances shall
not have thc effect 1)[ rendering
any other provision 01' provisions herein cont:lined
invalid, in-
operative 01' unellforce,lble to any extent whatever.
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Sectioll XIII.
IIEADINGS
The headings of the vadou:;; articles :Jnd
sections
of
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Section XIV.
HEIRS AND ASSIGNS
This guarantee shall be binding upon the undersigned Guarantor
and his respective heirs, successors and assigns and shall inure
to the benefit of and shall be enforecable by the City and its successors
and assigns.
IN WI~8SS WHEREOF, the Guarantor, the Developer and the City
have executed this guarantee the day and date first above written.
BY, ~R~.7ir--
~ i ' Secretary-Treasurer
BY:
INC.
Attest:
AUGU A-RICI-HlND COUNTY Ca1MISSION
as Succes "or by Consolidation
to Tte i Coun '1 of Augusta, Georgia
BY:
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