HomeMy WebLinkAboutExhibit 9PARROT JUNGLE SECTION 108 LOAN
TERM SHEET
1. City will assume 80% of the outstanding principal and future interest under the Section 108
Loan commencing August, 2007.
2. Pursuant to a Note Modification Agreement, Parrot Jungle shall not be required to make any
payments under its note in favor of the County (the "PJ Loan") from August 2006 through
and including the payment due in August 2011 (the "Deferral Period). All payments due to
HUD during the Deferral Period, totaling approximately, $17,277,000 (the "Deferred
Amount") shall be made by the City and the County, with the City being responsible for
80% of such payments. A schedule of payments is attached.
3. The Note Modification Agreement will require Parrot Jungle to pay the Deferred Amount to
the City and the County in 10 annual installments, commencing on the maturity date of the
PJ Loan, and provided the PJ Loan has been fully paid. The Deferred Amount shall bear
interest at the rate of 5% from the maturity date of the PJ Loan until paid and shall be
secured by the same collateral securing the PJ Loan. .
4. In August 2006 the County made a loan to Parrot Jungle in the amount of $4,702,000. This
loan represents all amount due by Parrot Jungle to the County under the PJ Loan (and paid
by the County to HUD) through February, 2006. The County also made a loan/grant to
Parrot Jungle, in the amount of $2.5 million, $1 million of which the County requires to be
repaid. The County has agreed not to accept payment of these loans until after the PJ Loan
has been paid in full.
5. The County has agreed to cure/waive all existing defaults of Parrot Jungle under the PJ
Loan, except for the payment of $2 million toward the Zoo Aviary, which the County has
agreed to defer until 2020. The County has further agreed to recommend a waiver of this
obligation if the PJ Loan and the $4,702,000 loan described in paragraph 4 above, are fully
paid by the year 2011.
6. Upon HUD's approval of the transaction (evidenced by HUD's execution of the Pledge and
Assumption Agreement) the County shall have no recourse against the. City if the City fails
to remit to the County 80% of payments due by the County to HUD. Instead, the City's
obligations shall be enforced by HUD by a reduction of the City's CDBG allocation.
7. Parrot Jungle's obligations shall be further secured by a key man life insurance on Bern
Levine and a Guarantee from Bern Levine in favor of the City and the County in proportion
to each party's prorata share responsibility under the Section 108 loan.
8. The City will specifically waive satisfaction of 2 of the conditions precedent to the City's
assumption of the Section 108 under the JPA (that the PJ loan must be current and that all PJ
loan documents be assigned to the City).
ors:Document 82512
1
Payment
Date
Total
Payment
80 Percent
(City)
20 Percent
(County)
August 1, 2006
$1,665,914
$1,332,731
$333,183
February 1, 2007
889,177
711,341
177,835
August 1, 2007
1,889,177
1,511,341
377,835
February 1, 2008
853,077
682,461
170,615
August 1, 2008
2,103,077
1,682,461
420,615
February 1, 2009
807,964
646,371
161,593
August 1, 2009
2,307,964
1,846,371
461,593
February 1, 2010
753,979
603,183
150,796
August 1, 2010
2,698,979
2,159,183
539,796
February 1, 2011
681,547
545,238
136,309
August 1, 2011
2,626,547
2,101,238
525,309
TOTAL
$17,277,403
$13,821,922
$3,455,481