1996-1217_CAPPELLO, W / A_Unsecured Promissory NoteC LJ
$251,441.09 December 17,1996
UNSECURED PROMISSORY NOTE
FOR VALUE RECEIVED, the San Juan Capistrano Community Redevelopment
Agency ( "Maker") a public body, corporate and politic, promises to pay to Walter Cappello and
Antoinetta Cappello, husband and wife, (collectively, "Holder") at 33741 Calle Miramar, San Juan
Capistrano, California, 92675, or other place designated in writing by the Holder, the principal sum
of Two Hundred Fifty One Thousand Four Hundred Forty One Dollars and Nine Cents
($251,441.09) together with interest thereon as follows:
Commencing the date hereof until October 14, 1998, simple interest at a rate of Four and
Seventy One -Hundredths percent (4.70%) per annum shall accrue on the principal amount
outstanding hereunder. Thereafter, commencing October 15, 1998 and every three years thereafter
( the "Rate Adjustment Date") until this note is paid in full, the interest rate payable hereunder shall
be adjusted to a rate per annum equal to 80% of the average yield of The Bond Buyer 20 -Bond
Index, as listed in The Bond Buyer as of the June 15 next preceding the Rate Adjustment Date (if
The Bond Buyer is not published on such date, the next succeeding date on which The Bond Buyer
is published). Interest hereunder shall be payable quarterly on the 14th day of January, April, July
and October, commencing January 14, 1997.
In the event on any relevant date The Bond Buyer 20 -Bond Index is no longer published,
the interest rate from and after any Rate Adjustment Date shall equal 80% of the yield of the Merrill
Lynch General Obligation Bond Index as announced and in effect by Merrill Lynch on the 15th day
of September next preceding such Rate Adjustment Date.
Commencing October 15, 1997 and every year thereafter (the "Note Payment Date") until
this note is paid in full, principal of $25,000.00 shall be due and payable. The final note payment
of $26,441.09 shall be due and payable on October 14, 2006.
In the event any additional payment are made by maker in payment of this note, such
payments shall be applied first to the interest then accrued and due on the unpaid principal balance
under this note, and the remainder of any such payment shall be applied to the reduction of the
unpaid principal.
Neither this note nor any term hereof may be waived, amended, discharged, modified,
changed or terminated orally; nor shall any waiver of any provision hereof be effective except by
an instrument in writing signed by the Maker and the Holder hereof. No delay of omission on the
part of the Holder hereof in exercising any right hereunder shall operate as a waiver of such right or
of any right under this note.
If any term of this note be invalid of unenforceable, the remainder of this note, other than
that which is held invalid or unenforceable, shall not be affected thereby, and each remaining term
Attachment B
if J
of this note shall be valid and be in force to the fullest extent permitted by law.
Whenever used herein, the "Maker" and "Holder" shall be deemed to include their
respective heirs, personal representatives, successors and assigns.
This note shall be construed according to and governed by the laws of the State of California and the
parties hereto agree to submit to the jurisdiction of the courts of the State of California in the event
any litigation arises concerning the terms of this note.
IN WITNESS WHEREOF, Maker has executed this note as of the date first above written.
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY
W awn
Wyatt H an ,ChairmDate
Approved as to form:
121
Ric and K. Denhalter, Agency Counsel ate
Attest:
Cheryl Johns , ikWncy Secretary Date
Attachment B
$325,100.00 October 11986
UNSECURED PROMISSORY NOTE
FOR VALUE RECEIVED, the San Juan Capistrano Community
Redevelopment Agency ("Maker") a public body, corporate nd
politic, promises to pay to Walter Cappello and Antoni tta
Cappello, husband and wife, (collectively, "Holder")
at 30281 Malaspina Road , San Juan Capistrano California
92675 or other place esignated in writing b Holder, the
principal sum of Three Hundred Twenty -Five Thousa d One Hundred
Dollars ($325,100.00) together with interest the eon as follows:
Commencing the date hereof until October 1 , 1989, simple
interest at the rate of seven percent (76)
per annum shall
accrue on the principal amount outstandin a eunder.
Thereafter, commencing October 15, 1989 nd ry three years
thereafter (the "Rate Adjustment Date' unti t is note is paid
in full, the interest rate payable reunder sha 1 be adjusted
to a rate per annum equal to 80$ of he aver e yield of The
Bond Buyer 20 -Bond Index, as liste i The Bo Buyer as of
the June 15 next preceding the Rat dj stment Date (or if The
Bond Buyer is not published on su h da e, the next succeeding
date on which The Bond Buyer is p li he Interest
hereunder shall be payable quarter o the 14th day of July,
October, January and April, commencin anuary 14, 1987.
In the event on any relevant dat The Bond Buyer 20 -Bond
Index is no longer pub fished, th i Brest rate from and after
any Rate Adjustment e shall e a 80% of the yield of the
Merrill Lynch Genera ligation B nd Index as announced and in
effect by Merrill Lyn n the h day of September next
preceding such Rate A ' ment te.
The fullp in ipal b lance f this note and accrued
interest thereo hall be due anod payable October 15, 1996. In
addition, Hold#r ma ui a Maker to pay sinking fund
installments 'n an amount equal to one third of the original
principal am unt hereof on the day before any Rate Adjustment
Date, by d ivering written notice of such election to Maker
not later _an the June 20 next preceding such Rate Adjustment
Date. A notice to Maker hereunder shall be delivered to the
offices £Maker at 32400 Paseo Adelante, San Juan Capistrano,
Califor is 92675, Attn: Executive Director.
I the event any payments are made by Maker in payment of
this ote, such payments shall be applied first to the interest
theaccrued and due on the unpaid principal balance under this
not and the remainder of any such payment shall be applied to
th reduction of the unpaid principal.
�u 0J i 011A cd— for n0,w t )ofie 15SUCOL
FOR VALUE RECEIVED, the undersigned, do hereby transfer, sell, and
assign to Farmers & Merchants Bank of Long Beach, a California
Corporation, the within note with recourse, together with all right
accured or to accrue under this note, and do hereby guarantee the
payment of this note and waive presentment, demand, protest and/
notice of protest.
Walter Capp to An oniet a ,ap o
FOR VALUE RECEIVED, the undersigned hereby assigns al rights, title and
inerest in this note to Walter Cappeollo and Antoine�fto Cappello,
without recourse. /
Farmers & Merchants Bank of Long Beach
Neither this note nor any term hereof may be waived,
amended, discharged, modified, changed, or terminated ora ly;
nor shall any waiver of any provision hereof be effectiv
except by an instrument in writing signed by the Maker and the
Holder hereof. No delay or omission on the part of the Holder
hereof in exercising any right hereunder shall oper a as a
waiver of such right or of any other right under t s note.
If any term of this note be invalid or unenf rceable, the
remainder of this note, other than that which 1# held invalid
or unenforceable, shall not be affected thereby, and each
remaining term of this note shall be valid an be in force to
the fullest extent permitted by law.
Whenever used herein, the words ' aker" and Holder" shall
be deemed to include their respectiv heirs per onal
representatives, successors and assig
This note shall be construed ccordito and governed by
the laws of the State of Californi and t e parties hereto
agree to submit to the jurisdiction f the courts of the State
of California in the ven an litiga the
arises concerning the
terms of this note.
IN WITNESS WHEREO , ker has executed this note as of
the date first above i en.
CAPISTRANO COMMUNITY
MENT AGENCY
L. Hausdorfer,
2200k/2299/03 -2-
"Maker"
0
MEMORANDUM
TO: Cynthia Pendleton, Finance Officer
FROM: Cheryl Johnson, Agency Secretary
DATE: January 8, 1997
SUBJECT: Cappello Promissory Note
0
As requested, attached is the signed Original Unsecured Promissory Note approved by
the Board of Directors of the CRA and by the City Council on December 17,1997.
0
DECEMBER 17, 1996
REGULAR MEETING OF THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
BOARD OF DIRECTORS
The Regular Meeting of the Board of Directors of the City of San Juan Capistrano Redevelopment
Agency was called to order by Chairman Hart at 7:18 p.m. in the City Council Chamber.
ROLL CALL: PRESENT: Wyatt Hart, Chairman
John Greiner, Vice Chairman
Collene Campbell, Director
Gil Jones, Director
David M. Swerdlin, Director
ABSENT: None
STAFF PRESENT: George Scarborough, Executive Director; Thomas Tomlinson, Deputy Director;
Richard K. Denhalter, Agency Counsel/City Attorney; Jennifer Murray, Assistant City Manager;
Cynthia L. Pendleton, Finance Officer; Cheryl Johnson, Agency Secretary; William Huber, Engineer-
ing and Building Director; Joe Arranaga, Public Lands and Facilities Director; Al King, Jr.,
Community Services Director, Lt. Paul Sullivan, Chief of Police Services; Nancy Bernardi, Recording
Secretary.
1. JOINT PUBLIC HEARING WITH THE CITY COUNCIL - ROLLOVER OF
UNSECURED PROMISSORY NOTE (WALTER AND ANTOINETTA
CAPPELLO) (600.40)
Director Jones indicated that due to a potential conflict of interest relating to the proximity
of his business/residence to the proposed project, he would abstain in this matter.
Proposal:
Consideration of a request by Walter and Antoinetta Cappello for the Community
Redevelopment Agency to issue a new ten-year Unsecured Promissory Note to replace the
original Note issued on October 1, 1986, in the amount of $325.100. The new Note would
be in the amount of $251,441.09, with the same variable rate of interest as the original Note.
The Agency would make annual $25,000 principal payments every October 15th beginning
October 15, 1997, with the final payment of $26,441.09 due October 15, 2006. The original
Note was issued for the purchase of property between River Street and the former Solag
Disposal site parallel to Trabuco Creek.
CRA Minutes -1- 12/17/96
0 0
Applicants:
Walter and Antoinetta Cappello, 31631 Aguacate Road, San Juan Capistrano, CA 92675
Written Communication:
Report dated December 17, 1996, from the Finance Officer, recommending that a new
Unsecured Promissory Note be issued to replace the original Note at the same variable rate
of interest, with the Agency to make annual principal payments over the ten-year period.
Ms. Pendleton made an oral presentation.
Public Hearing:
Notice having been given as required by law, Mayor Swerdlin opened the Public Hearing, and
there being no response, closed the hearing with the right to reopen at any time.
Adoption of Resolution A roving the Issuance of a New Unsecured Promissory Note:
It was moved by Director Hart, seconded by Director Campbell, that the following Resolution
be adopted:
'7_Y•]7liltrtl'•3`ilL�Z : •, • • • /l► • • •
gg
• •' • �� : I• :► • �I
CAPPELLO - A RESOLUTION OF THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY APPROVING THE
EXECUTION OF A REPLACEMENT UNSECURED PROMISSORY
NOTE IN FAVOR OF WALTER AND ANTOINETTA CAPPELLO
The motion carried by the following vote:
AYES: Directors Campbell, Greiner, Swerdlin, and Chairman Hart
NOES: None
ABSTAIN: Director Jones
ABSENT: None
The Agency Chairman was authorized to execute the Note on behalf of the Agency.
It was ved by Director Campb ,seconded by Director Jones, that t staff recommendations be
acc ed for the following ite listed on the Consent Calendar. The otion carried by the following
CRA Minutes -2- 12/17/96
•
0
AGENDA ITEM December 17, 1996
TO: George Scarborough Executive Director
Community Redevelopment Agency
FROM: Cynthia L. Pendleton, Finance Officer
Community Redevelopment Agency
SUBJECT: Joint Public Hearing for Consideration of Rollover of Unsecured Promissory Note
(Walter and Antoinette Cappello)
RECOMMENDATION:
By Motion,
1. Adopt the attached resolution approving issuance of the Unsecured Promissory Note replacing
the original note which came due on October 15, 1996; and
2. Authorize and direct the Chairman of the Agency to execute the Replacement Note.
SITUATION:
A. Summary and Recommendation - October 1, 1986, the Community Redevelopment Agency
issued an unsecured promissory note (Attachment C) for $325,100.00 for the purchase of property
between River Street and the SOLAG site, parallel to Trabuco Creek. The owners of the property
were Walter and Antoinetta Cappello. The purpose of this acquisition was the temporary extension
of Paseo Adelanto to the SOLAG site allowing their vehicles to access Del Obispo directly rather
than use Los Rios Street, as well as for the development of the ultimate circulation element for the
Historic District. In February 1992, the Agency authorized a $75,000.00 payment to the Cappello's
bringing the note balance to $251,441.09 after adjusting for accrued interest. The Cappello's have
requested in writing (Attachment D) that the unsecured promissory note be extended another ten
years at the same variable rate of interest and that the Agency make annual principal payments over
the next ten years. Based on these terms, Agency staff has analyzed this request and recommends
the Agency Board of Directors adopt the attached resolution (Attachment A) approving the issuance
of an Unsecured Promissory Note (Attachment B) in favor of Walter and Antoinetta Cappello and
authorize and direct the Chairman to execute the Replacement Note.
FOR CITY COUXCIL AC`:
AGENDA ITEM -2- December 17, 1996
B. Background -As discussed, the original note for the acquisition totaled $325,100.00. The terms
of the note were as follows:
Interest Rate: 7.00% initially, with rate adjustments on October 15 every third year beginning
October 15, 1989. Interest to be calculated at 80% of the 20 Bond Buyer rate as
published on the June 15 preceding each "Rate Adjustment Date". Interest to be paid
quarterly.
Term: Ten Years with the entire principal balance due on October 15, 1996
On February 4, 1992, the Agency Board of Directors approved a payment of $75,000.00 to the
Cappello's. Based on the terms of the note, this payment was first applied to interest due and the
balance to principal. Based on the interest calculation at that time, the amount applied to principal
was $73,658.91 resulting in a principal amount due of $251,441.09. This amount was due on
October 15, 1996.
The following is a summary the interest rates paid during the term of the note:
During the term of this Note, the Agency average rate of investment has exceeded its interest cost
for the note. This has resulted in the Agency making a small gain on its funds relating to this note
over the past ten years.
On October 22, 1996, the Agency received a written request from the Cappello's requesting an
extension of their note for ten years at a fixed rate of 5.5% with annual principal payments during
that ten year period. An extension of ten years with annual principal payments would be beneficial
to the Agency's current cash flow. However, a fixed rate of interest is not acceptable. Based on the
Agency's experience over the last ten years with the variable rate, staff recommends the existing rate
of interest be maintained at 80% of the 20 Bond Buyer Index adjusted every third year. Staff has
contacted the Cappello's and they are agreement on the variable rate of interest being recommended
by staff.
Agency Average
Date
Rate
Investment Rate
October 1, 1986-1989
7.00%
8.68%
October 1, 1989-1992
5.50%
7.84%
October 1, 1992-1995
5.17%
4.68%
October 1, 1995 -present
4.70%
5.37%
During the term of this Note, the Agency average rate of investment has exceeded its interest cost
for the note. This has resulted in the Agency making a small gain on its funds relating to this note
over the past ten years.
On October 22, 1996, the Agency received a written request from the Cappello's requesting an
extension of their note for ten years at a fixed rate of 5.5% with annual principal payments during
that ten year period. An extension of ten years with annual principal payments would be beneficial
to the Agency's current cash flow. However, a fixed rate of interest is not acceptable. Based on the
Agency's experience over the last ten years with the variable rate, staff recommends the existing rate
of interest be maintained at 80% of the 20 Bond Buyer Index adjusted every third year. Staff has
contacted the Cappello's and they are agreement on the variable rate of interest being recommended
by staff.
AGENDA ITEM -3- December 17, 1996
The initial rate of this note would be 4.70% until October 1, 1998. Rate adjustment dates would then
be October 15, 2001 and October 15, 2004. $25,000 principal payments would be made every
October 15th beginning October 15, 1997 with the final payment of $26,441.09 being made on
October 15, 2006.
COMMISSIONBOARD REVIEW AND RECOMMENDATIONS:
Not Applicable
��i►�Q���l�11��11 '_� i1�I.�
The Replacement Note would provide for the same interest rate and annual principal payments over
the term of the note. The new terms would decrease the Agency's debt service costs for fiscal year
1996/97 by approximately $245,000. Future interest costs should be offset by earnings on the
unpaid principal balance.
NOTIFICATION:
Notice of this public hearing was published in the Capistrano Valley News on December 5, 1996 and
December 12, 1996 as required.
Walter and Antoinetta Cappello
33741 Calle Miramar
San Juan Capistrano, CA 92675
ALTERNATE ACTIONS:
1. By Motion,
a. Adopt the attached resolution approving issuance of the Unsecured Promissory Note replacing
the original note which came due on October 15, 1996; and
b. Authorize and direct the Chairman of the Agency to execute the Replacement Note.
2. Do not adopt the resolution approving issuance of the Replacement Note.
Request further information from staff.
AGENDA ITEM
RECOMMENDATION:
By Motion,
IEI
Adopt the attached resolution approving issuance of the
the original note which came due on October 15, 1996;
2. Authorize and direct the Chairman of the Agency to ex
Respecttfful"ly" Sub d,
(Cy�ia LOufPenle
ton
ficFince er.
GL
Attachment A - Resolution approving the replacement promissory note
Attachment B - Unsecured Promissory Note
Attachment C - Original Note
Attachment D - Request for Rollover dated October 22, 1996
RESOLUTION NO. CRA 96-12-17-1
a 31MI
A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, APPROVING THE EXECUTION OF A NEW
UNSECURED PROMISSORY NOTE TO REPLACE THE EXISTING NOTE IN
FAVOR OF WALTER AND ANTOINETTA CAPPELLO
WHEREAS, the Community Redevelopment Agency of the City of San Juan
Capistrano (the "Agency") previously issued an unsecured Promissory Note to Walter and Antoinetta
Cappello in the amount of $325,100.00; and,
WHEREAS, the Original Note was issued by the Agency pursuant to a Real Estate
Purchase Agreement dated August 7, 1986 (the "Agreement"), with Walter and Antoinetta Cappello
("Cappello"), pursuant to which Cappello sold and the Agency purchased certain real property
described therein; and,
WHEREAS, on February 4, 1992, the Agency paid $75,000 toward the outstanding
balance of the Original Note, leaving a balance due of $251,441.09 after the payment of accrued
interest; and,
WHEREAS, the Agency desires to extend the Original Note payment date by ten
years by issuing a new unsecured Promissory Note (the "Replacement Note"), dated as of
October 15, 1996, in an amount totaling $251,441.09; and,
WHEREAS, the Agency has duly considered the foregoing and believes that it is in
the best interests of the Agency and the health, safety and welfare of the residents of the City of San
Juan Capistrano, and in accordance with the public purposes and provisions of applicable state and
local law requirements.
NOW, THEREFORE, BE IT RESOLVED, that the San Juan Capistrano
Community Redevelopment Agency Board of Directors, City of San Juan Capistrano, California,
does hereby find, determine, and order as follows:
SECTION 1.
The Agency hereby approves the Replacement Note and authorizes and directs the
Chairman to execute and the Agency Secretary to attest, the Replacement Note and all documents
referenced in the Replacement Note necessary to effectuate the provisions of the Agreement and the
Replacement Note.
-1-
0 0
SECTION 2.
This Resolution shall become effective after its adoption.
PASSED, APPROVED, AND ADOPTED this 17th day of
December 1996.
WYA HART, CHAIRMAN
ATTEST:
AGENCY S$ ARY
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, Agency Secretary of the San Juan Capistrano Community
Redevelopment Agency, DO HEREBY CERTIFY that the foregoing is a true and correct copy of
Resolution No. CRA 96-12-17-1 adopted by the San Juan Capistrano Community
Redevelopment Agency Board of Directors at a regular meeting thereof held on the 17th day
of December , 1996, by the following vote:
AYES: Directors Greiner, Swerdlin, Campbell and
Chairman Hart
NOES: None
ABSTAIN: Director Jones
ABSENT: None
(SEAL)
CHERYL JO SON, AGENCY SECRETARY
$325,100.00 October 1 1986
UNSECURED PROMISSORY NOTE
FOR VALUE RECEIVED, the San Juan Capistrano Community
Redevelopment Agency ("Maker") a public body, corporate and
politic, promises to pay to Walter Cappello and Antonietta
Cappello, husband and wife, (collectively, "Holder")
at 30281 Malaspina Road , San Juan Capistrano, California
92675 , or other place esignated in writing by Holder, the
principal sum of Three Hundred Twenty -Five Thousand One Hundred
Dollars ($325,100.00) together with interest thereon as follows:
Commencing the date hereof until October 14, 1989, simple
interest at the rate of seven percent (78) per annum shall
accrue on the principal amount outstanding hereunder.
Thereafter, commencing October 15, 1989 and every three years
thereafter (the "Rate Adjustment Date") until this note is paid
in full, the interest rate payable hereunder shall be adjusted
to a rate per annum equal to 80% of the average yield of The
Bond Buyer 20 -Bond Index, as listed in The Bond Buyer as of
the June 15 next preceding the Rate Adjustment Date (or if The
Bond Buyer is not published on such date, the next succeeding
date on which The Bond Buyer is published). Interest
hereunder shall be payable quarterly on the 14th day of July,
October, January and April, commencing January 14, 1987.
In the event on any relevant date The Bond Buyer 20 -Bond
Index is no longer published, the interest rate from and after
any Rate Adjustment Date shall equal 808 of the yield of the
Merrill Lynch General Obligation Bond Index as announced and in
effect by Merrill Lynch on the 15th day of September next
preceding such Rate Adjustment Date.
The full principal balance of this note and accrued
interest thereon shall be due and payable October 15, 1996. In
addition, Holder may require Maker to pay sinking fund
installments in an amount equal to one third of the original
principal amount hereof on the day before any Rate Adjustment
Date, by delivering written notice of such election to Maker
not later than the June 20 next preceding such Rate Adjustment
Date. Any notice to Maker hereunder shall be delivered to the
offices of Maker at 32400 Paseo Adelante, San Juan Capistrano,
California 92675, Attn: Executive Director.
In the event any payments are made by Maker in payment of
this note, such payments shall be applied first to the interest
then accrued and due on the unpaid principal balance under this
note, and the remainder of any such payment shall be applied to
the reduction of the unpaid principal.
ATTACII,IENT C
0
Neither this note nor any term hereof may be waived,
amended, discharged, modified, changed, or terminated orally,
nor shall any waiver of any provision hereof be effective
except by an instrument in writing signed by the Maker and the
Holder hereof. No delay or omission on the part of the Holder
hereof in exercising any right hereunder shall operate as a
waiver of such right or of any other right under this note.
If any term of this note be invalid or unenforceable, the
remainder of this note, other than that which is held invalid
or unenforceable, shall not be affected thereby, and each
remaining term of this note shall be valid and be in force to
the fullest extent permitted by law.
Whenever used herein, the words "Maker" and "Holder" shall
be deemed to include their respective heirs, personal
representatives, successors and assigns.
This note shall be construed according to and governed by
the laws of the State of California and the parties hereto
agree to submit to the jurisdiction of the courts of the State
of California in the event any litigation arises concerning the
terms of this note.
IN WITNESS WHEREOF, Maker has executed this note as of
the date first above written.
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY
L. Hausdorfer,
ATTEST:
Mary Ann novrr, Agency Secretary
2200k/2299/03 -2-
"Maker"
0
WALTER CAPPELLO
31631 AGUACATE ROAD
SAN JUAN CAPISTRANO, CA 92675
October 22, 1996
Ms. Cindy Pendleton
Director of Finance
City of San Juan Capistrano
32400 Paseo Adelanto, CA 92675
Re: Unsecured Promissory Note
Principal balance of $250,000
Dear Ms. Pendleton:
Confirming our conversation of Friday, October 18, 1996, Mrs.
Cappello and I wish to have the principal and interest of our loan
to the San Juan Capistrano Redevelopment Agency paid in monthly
installments over the next 120 months. The basic concept of the
Unsecured Promissory Note would remain the same except that:
1. The interest would be at a fixed rate of 5 1/2% per
annum; and
2. The Holder would be Walter and Antonietta Cappello,
Trustees of the Walter Cappello Family Trust.
Please submit our request to the Directors of the Agency and
let us know their decision.
sincerely,
Walter Cappello
Guyk1 1
L
AFFIDAVIT OF PUBLICATION
STATE OF CALIFORNIA
COUNTY OF ORANGE
1 am a citizen of the United States and a resident of
the County aforesaid. I am over the age of eighteen
years, and not a party to or interested in the above
entitled matter. I am the principal clerk of the
Capistrano Valley News, a newspaper that has
been adjudged to be a newspaper of general
circulation by the Superior Court of the County of
Orange, State of California, on June 7, 1984, Case
No. A-122949 in and for the City of San Juan
Capistrano, County of Orange, State of California;
that the notice, of which the annexed is a true
printed copy has been published in each regular and
entire issue of said newspaper and not in any
supplement thereof on the following dates, to wit:
DECEMBER 5, 12, 1996
I declare under penalty of perjury that the foregoing
is true and correct.
Executed at lake Forest, Orange County,
California, on
Date DECEMBER 12 19 96
Synatute
Capistrano Valley News
22481 Aspan
Lake Forest, CA 92630
(714)768-3631
•
Space below for Fil EInA Stamp Only.
DEC 16 1 38 PM '96
CITY :;LcqY
CFr1w-;MCNT
Cis' Uf r,N
JUAN
Proof of Publication of
PUBLIC NOTICE'
WMF OF Xwff Pvkt a wmo
CRrF1MWIfIIIIIIIIIINQ4uO the
MaWIA991Ctr
Co�tSiciERAT18N OFA Rtiligu igN Agn; ts�
E%ECYf10N Of A W4WW t W 10111111ME1tfEMNOM
(WALIER AM ANigNEM CANEtdOI
The Community Redevelopment' my car-
rently has o note outttandlnnpg wtIIC 'matutea'
an October 16, 1996. The CoppM10'I mucic to -
quested this. note be extetadea another fen.
years with the some rate of interest ta0% of the
20 -Bond Buyer Inert to be adjusted every three
years) and principal poymems to be mgae
annually during the ten-year-perlod.
Those desiring to be heard In favor of, or In
opposition to, this Ifem will W given an oppoJ-
tumlN to do. so aurino such heannp or. orlor to
R7
For further information you may canto L. Pepol$}pn of the Department of Adminls-
frative ServiC�'4 b! 443-6301.
_,L -CHERYL JOHNSON. CITY CLERK
Published: Capistrano Valley News
December 5. 12. 1996 #3J56
NOTICE OF TRANSMITTAL - LEGAL PUBLICATIONS
TO: CAPISTRANO VALLEY NEWS
Don Vradenburg, Legal Publications
FOR PUBLICATION ON: THURSDAY, DECEMBER 5, 1996
THURSDAY, DECEMBER 12, 1996
DOCUMENT TO BE PUBLISHED: NOTICE OF JOINT PUBLIC HEARING -
CONSIDERATION OF A RESOLUTION
APPROVING EXECUTION OF A PROMISSORY
NOTE EXTENSION (WALTER AND
ANTOINETTA CAPPELLO)
PROOF OF PUBLICATION
AUTHORIZED BY:
Please send to:
City Clerk's Division, City Hall
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
(714)493-1171
DATE: November 26, 1996
Date of Public Hearing
Date notice published
Date affidavit received
-12/17/96
- 12/05/96
-12/12/96
-1A)i1196 alrnea--
Date notice posted in
designated posting places (3) - 12/05/96
Date notice posted on property - N/A
Date of mailing notice to
interested parties - 12/05/96
Date notice transmitted to
City Manager's Office - 12/26/96
Account No. 20621744110
0
NOTICE OF JOINT
PUBLIC HEARING
CITY OF SAN JUAN CAPISTRANO and the
COMMUNITY REDEVELOPMENT AGENCY
CONSIDERATION OF A RESOLUTION APPROVING EXECUTION
OF A PROMISSORY NOTE EXTENSION (WALTER AND ANTOINETTA CAPPELLO)
NOTICE IS HEREBY GIVEN, that on the 17th day of December, 1996, at 7:00 P.M. in the City
Council Chamber, 32400 Paseo Adelanto, San Juan Capistrano, California, the City Council of the
City of San Juan Capistrano and the San Juan Capistrano Community Redevelopment Agency will
hold a joint public hearing pursuant to the California Community Redevelopment Law (Health &
Safety Code Section 33000 et seq) to consider a resolution approving execution of a promissory note
extension for Walter and Antoinetta Cappello.
The Community Redevelopment Agency currently has a note outstanding which matured on
October 15, 1996. The Cappello's have requested this note be extended another ten years with the
same rate of interest (80% of the 20 -Bond Buyer Index to be adjusted every three years) and principal
payments to be made annually during the ten -year -period.
Those desiring to be heard in favor of, or in opposition to, this item will be given an opportunity to
do so during such hearing or, prior to the meeting, by writing to the City Council at 32400 Paseo
Adelanto, San Juan Capistrano, California 92675, Attention: City Clerk. Government Code Section
54957.5 stipulates that writings distributed to the legislative body by any person are public records
and shall be made available without delay. If you bring written information to the City Council
meeting for distribution to the City Council at such meeting, please provide additional copies for
distribution to the audience.
For further information you may contact Cynthia L. Pendleton of the Department of Administrative
Services at 443-6301.
CHERYL JOUNSOV CITY CLERK
FOR OFFICE USE ONLY:
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF SAN JUAN CAPISTRANO
!0I[$) g M
I, CHERYL JOHNSON, declare that I am the duly appointed and qualified City Clerk
of the City of San Juan Capistrano; that on December 5, 1996, I caused the above Notice to be
posted in three (3) public places in the City of San Juan Capistrano, to wit:
City Hall;
Old Fire Station Recreation Complex;
Orange County Public Library
AND, that on December 5, 1996 and December 12, 1996, the above Notice was published in the
Capistrano Valley News newspaper.
I declare under penalty of perjury that the foregoing is true and correct.
City of San Juan Capistrano, California
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FARMERS & MERCHANTS BANK
31873 Del Obispo • San Juan Capistrano • CA • 92675
714 • 488-8550
STRONG • ('OFSERl: 1771E • iRIENDIA
October 17, 1996
George Scarborogh, Executive Director
San Juan Capistrano Community
Redvelopment Agency
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Re: Walter & Antoinetta Cappello
Letter of Assignment
Dear Mr. Scarborogh:
Please be advised that the Assignment referred to in the attached letter is hereby
released.
Farmers & Merchants Bank no longer has an interest in the referenced note.
Sincerely,
Farmers & Merchants Bank
Senior Vice President
JEK/jw
114f a 191 OCT 21 1996
i !
RII�/I/ I
FARMERS & MERCHANTS BANK
31873 Del Obispo • San Juan Capistrano • CA • 92675
714 . 951 . A"
November 10, 1995 STRONG • CONSERVATIVE • FRIENDLY
George Scarborogh, Executive Director..
San Juan Capistrano Community
Redevelopment Agency
32400 Paseo Adelanto
San -Juan Capistrano, CA 92675
Re: Walter & Antoinetta Cappello
Dear Mr. Scarborogh:
The above referenced individuals hold a note from the Redevelopment Agency
dated October 1, 1996 in the original amount of $325,100. Current amount
of note is $251,441.09 (copy of note attached). Note matures October 15,
1996.
The Cappello's have requested that we take an Assignment of this note to
support an extension of credit.
Farmers & Merchants Bank is willing to extend this credit providing the
Redevelopment Agency will acknowledge and accept this Assignment and agree
to disburse any principal payments directly to Farmers & Merchants Bank.
If the above Assignment is acceptable to you, please sign and return the
original of this Letter of Assignment.
Sincerely,
Fa"gre"erchants Bank Acknowledged:
4. E. Kinney 1 Udyu V 044 Azy—
Senior Vice6�ident Walter Cappd1lo
JEK/jw &&
Antoinetta Cappel o
Acknowledged and Accepted:
Attest: S Juan C istrano Commmnity
e to t Agency
Agency Secretaryi Director
November 10, 1995
��\/I
BANK
FARMERS & MERCHANTS BANK
31873 Del Obispo • San Juan Capistrano • CA • 92675
714. 953 • 4000
STRO.A'G - CO3A'S7 /?1-1771'F • FRIL.AN7 i
George Scarborogh, Executive Director
San Juan Capistrano Community
Redevelopment Agency
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Re: Walter & Antoinetto Cappello
Dear Mr. Scarborogh:
The above referenced individuals hold a note from the Redevelopment Agency
dated October 1, 1996 in the original amount of $325,100. Current amount
of note is $251,441.09 (copy of note attached). Note matures October 15,
1996.
The Cappello's have requested that we take an Assignment of this note to
support an extension of credit.
Farmers & Merchants Bank is willing to extend this credit providing the
Redevelopment Agency will acknowledge and accept this Assignment and agree
to disburse any principal payments directly to Farmers & Merchants Bank.
If the above Assignment is acceptable to you, please sign and return the
original of this Letter of Assignment.
Sincerely,
is Bank
Acknowledged:
. E. Kinne
Senior Vi a =sident Walterapp oC
JEK/ jw j gA
Antotnetta Ca to
Acknowledged and Accepted:
Attest: S Juan Capistrano Community
R d v opine Agency
Agency S cretary UD ctor
I i,
CALIFORNIA ALL•PURPO&CKNOWLEDGMENT •
State of California
County of
On Novernber 20, 1995 before me,
DATE
personally appeared James C. Kinl
Jill Wilyard
NAME, TITLE OF OFFICER - E.G., 'JANE DOE, NOTARY PUBLIC"
NAME(S) OF SIGNER(S)
personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are
subscribed to the within instrument and ac-
knowledged to me that he/she/they executed
the same in his/her/their authorized
capacity(ies), and that by his/her/their
��
signature(s) on the instrument the person(s),
M**' &A 06 or the entity upon behalf of which the
jec oci 1e.person(s) acted, executed the instrument.
CaM^•
WITNESS my hand and official seal.
O Pl
Na 590 -
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER
❑ INDIVIDUAL
CORPORATE OFFICER
SVP
TITLE(S)
❑ PARTNER(S) ❑ LIMITED
❑ GENERAL
❑ ATTORNEY-IN-FACT
❑ TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR
❑ OTHER:
SIGNER IS REPRESENTING:
NAME OF PER$ON(S) OR ENTITY(IES)
Farmers & Merchants Bank
DESCRIPTION OF ATTACHED DOCUMENT
F & M Letter'of Assignment
TITLE OR TYPE OF DOCUMENT
NUMBER OF PAGES
November 10, 1995
DATE OF DOCUMENT
Walter Cappello & AntoinettaCappello
San Juan Cpaistrano Corrm Redevolpment
SIGNER(S) OTHER THAN NAMED ABOVE
Agency
01993 NATIONAL NOTARY ASSOCIATION • 8236 Remmet Ave., P.O. Boz 71 B4 • Canoga Park, CA 913097184
� r
T
CALIFORNIA ALL-PURPOSACKNOWLEDGMENT
State of California
E
ounty of Orange
l
November �1995 before me, Jill Wtlyard
DATE NAME. TITLE OF OFFICER - E.G.. "JANE DOE. NOTARY PUBLIC"
Enally appeared Walter Cappello and Antoinetta Cappello
NAME(S) OF SIGNER(S)
personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are
subscribed to the within instrument and ac-
knowledged to me that he/she/they executed
the same in his/her/their authorized
capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s),
JILLWILVARD Z or the entity upon behalf of which the
COMM, I4240 GO mftwv �*i CCI person(s) acted, executed the instrument.
ORANGE COUNTY
'��!mtvcomm.ExpWOOCT16J991111
WITNESS my hand and official seal.
QTS
No 5907
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER
ki INDIVIDUAL
❑ CORPORATE OFFICER
TITLE(S)
❑ PARTNER(S) ❑ LIMITED
❑ GENERAL
❑ ATTORNEY-IN-FACT
❑ TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR
❑ OTHER:
SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)
DESCRIPTION OF ATTACHED DOCUMENT
F & M Letter of Assignment
TITLE OR TYPE OF DOCUMENT
one
NUMBER OF PAGES
November 10, 1995
DATE OF DOCUMENT
J. E. Kinney, SVP
San Juan Cap Comm Redevelopment
_
Agency
SIGNER(S) OTHER THAN NAMED ABOVE
01993 NATIONAL NOTARY ASSOCIATION • 8236 Remmet Ave., P.O. Box 7184 - Canoga Park, CA 91309-7184
$325,100.00 October 1 1986
UNSECURED PROMISSORY NOTE
FOR VALUE RECEIVED, the San Juan Capistrano Community
Redevelopment Agency ("Maker") a public body, corporate and
politic, promises to pay to Walter Cappello and Antonietta
Cappello, husband and wife, (collectively, "Holder")
at 30281 Malaspina Road , San Juan Capistrano, California
92675 , or other p ace designated in writing by Holder, the
principal sum of Three Hundred Twenty -Five Thousand One Hundred
Dollars ($325,100.00) together with interest thereon as follows:
Commencing the date hereof until October 14, 1989, simple
interest at the rate of seven percent (7%) per annum shall
accrue on the principal amount outstanding hereunder.
Thereafter, commencing October 15, 1989 and every three years
thereafter (the "Rate Adjustment Date") until this note is paid
in full, the interest rate payable hereunder shall be adjusted
to a rate per annum equal to 80% of the average yield of The
Bond Buyer 20 -Bond Index, as listed in The Bond Buyer as of
the June 15 next preceding the Rate Adjustment Date (or if The
Bond Buyer is not published on such date, the next succeeding
date on which The Bond Buyer is published). Interest
hereunder shall be payable quarterly on the 14th day of July,
October, January and April, commencing January 14, 1987.
In the event on any relevant date The Bond Buyer 20 -Bond
Index is no longer published, the interest rate from and after
any Rate Adjustment Date shall equal 80% of the yield of the
Merrill Lynch General Obligation Bond Index as announced and in
effect by Merrill Lynch on the 15th day of September next
preceding such Rate Adjustment Date.
The full principal balance of this note and accrued
interest thereon shall be due and payable October 15, 1996. In
addition, Holder may require Maker to pay sinking fund
installments in an amount equal to one third of the original
principal amount hereof on the day before any Rate Adjustment
Date, by delivering written notice of such election to Maker
not later than the June 20 next preceding such Rate Adjustment
Date. Any notice to Maker hereunder shall be delivered to the
offices of Maker at 32400 Paseo Adelante, San Juan Capistrano,
California 92675, Attn: Executive Director.
In the event any payments are made by Maker in payment of
this note, such payments shall be applied first to the interest
then accrued and due on the unpaid principal balance under this
note, and the remainder of any such payment shall be applied to
the reduction of the unpaid principal.
FOR VALUE RECEIVED, the undersigned, do hereby transfer, sell, and
assign to Farmers & Merchants Bank of Long Beach, a California
Corporation, the within note with recourse, together with all rights
accured or to accrue under this note, and do hereby guarantee the
payment of this note and waive presentment, demand, protest and
notice of protest.
I'), /W / / Ij1';lL
Neither this note nor any term hereof may be waived,
amended, discharged, modified, changed, or terminated orally;
nor shall any waiver of any provision hereof be effective
except by an instrument in writing signed by the Maker and the
Holder hereof. No delay or omission on the part of the Holder
hereof in exercising any right hereunder shall operate as a
waiver of such right or of any other right under this note.
If any term of this note be invalid or unenforceable, the
remainder of this note, other than that which is held invalid
or unenforceable, shall not be affected thereby, and each
remaining term of this note shall be valid and be in force to
the fullest extent permitted by law.
Whenever used herein, the words "Maker" and "Holder" shall
be deemed to include their respective heirs, personal
representatives, successors and assigns.
This note shall be construed according to and governed by
the laws of the State of California and the parties hereto
agree to submit to the jurisdiction of the courts of the State
of California in the event any litigation arises concerning the
terms of this note.
IN WITNESS WHEREOF, Maker has executed this note as of
the date first above written.
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY
L. Hausdorfer,
ATTEST:
7
Mary Ann H nover, Agency Secr•-,tary
2200k/2299/03 -2-
"Maker"
0
LJ
REAL ESTATE PURCHASE AGREEMENT
This Real Estate Purchase Agreement is executed this 7th day
of August , 1986, by and between the SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY, a public corporate politic, hereinafter
referred to as "Buyer" and WALTER CAPPELLO and ANTOINETTA CAPPELLO,
hereinafter referred to as "Seller".
WITNESSETH:
1. Purchase Price/Description of Property.
Seller agrees to sell and Buyer agrees to buy that certain real property
described as Assessor's Parcel Number 649-191-01 (Lot 6, Block 2 of San Juan Capistrano
Townsite, County of Orange, State of California) and Assessor's Parcel Number 121-160-
21 (A portion of Lot 55, Tract 103, County of Orange, State of California), in the City of
San Juan Capistrano, County of Orange, State of California, for the purchase price of
THREE HUNDRED TWENTY FIVE THOUSAND ONE HUNDRED DOLLARS
($325,100.00).
The entire purchase price shall be financed by an unsecured promissory
note by Buyer, payable to Seller, the terms of which are set forth in Exhibit A, attached
and incorporated herein by reference.
2. Marketable Title.
Title is to be free and clear of liens, encumbrances, easements,
restrictions and rights and conditions of record known to Seller, other than the existing
tenancies presently on the land. Seller shall furnish to Buyer, at Buyer's expense, a
standard California title association policy insuring title to Buyer subject only to liens,
encumbrances, easements, restrictions, rights and conditions of record as set forth
1
9
above. If Seller fails to deliver fee title as herein provided, Buyer, at its option, may
terminate this agreement.
Buyer shall approve the tenancies on the land as a condition precedent
to purchase.
3. Prorations.
Property taxes, premiums on insurance acceptable to Buyer, rents and
interest shall be prorated as of the date of recordation of deed. The amount of any bond
or assessment which is a lien shall be paid by Seller. Seller shall pay any cost of revenue
stamps on deed.
4. Possession.
Possession shall be delivered to Buyer upon close of escrow.
5. Escrow.
Escrow instructions signed by Buyer and Seller shall be delivered to the
escrowholder within 10 calendar days of the Seller's acceptance hereof and shall provide
for closing within 30 calendar days from opening of escrow, subject to written extensions
by Buyer and Seller. Unless otherwise designatged in the escrow instructions to Buyer,
title shall vest as follows: The San Juan Capistrano Community Redevelopment Agency.
6. Condition of Property/Seller's Obligations.
Seller shall, during the escrow period, work with Buyer on a
cooperative basis to clean up various junk and debris presently on the property.
7. Risk of Loss.
Risk of loss of the property shall be borne by Seller until title is
conveyed to Buyer. This agreement may be renegotiated if improvements on the
property are destroyed or materially damaged prior to transfer of title, at Buyer's option.
S. Existing Leaseholds
Seller shall deliver copies of existing leases and rental agreements
(including any outstanding notices sent to tenants), plus income and expense statements
2
to Buyer within five calendar days of acceptance of this offer. Should any of the
tenancies on the land be oral tenancies, Seller shall certify which of the tenancies are
month to month tenancies. Buyer shall have seven calendar days upon receipt of said
documents to inspect and approve all such documents. Buyer shall further have the right
to inspect all rental units and/or rental areas within five calendar days of acceptance.
During the pendency of this transaction, Seller agrees that no changes in said leases and
tenancies shall be made nor any new rental agreements entered into without prior
consent of Buyer. Seller shall transfer to Buyer at the close of escrow all of tenants'
deposits.
9. Default.
In any action on this agreement, involving a dispute between Buyer and
Seller, the prevailing Buyer or Seller shall be entitled to reasonable attorney fees and
costs.
10. Entire Agreement.
This agreement contains the entire agreement of the parties and any
agreement or representation reflecting the property or the duties of the Buyer and
Seller in relation thereto not expressly set forth herein are null and void. Each party
allso, in addition to acknowledging receipt of a copy hereof, acknowledges that they have
thoroughly read and understand each of the provisions contained herein prior to signing
this document.
11. Time of Essence.
Time is of the essence to this agreement.
Executed at San Juan Capistrano, California.
Ap r�d asto Form:h
Age cy Counsel
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY
By
u r Gary L. Hausdorfer, hairman
ATTES .
3
Mary Ann Hover, Agency Secretary
i
ACCEPTANCE
•
The undersigned Seller accepts the foregoing offer and agrees to sell the
property therein under the terms and conditions set forth.
Dated: z , sT �, /�j�(o
Walter Capp o, Seller
Antoinetta Cappello, Sel er'
4