The URL can be used to link to this page

Home My WebLink AboutAmendment to Promissory Note with Parker Triska Restaurant Group Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Approve Amendment to Promissory Note with Parker Triska Restaurant Group, LLC, to defer payments for one year, for payment of Cash-in-Lieu of Parking. MEETING DATE: November 28, 2011 AGENDA ITEM TYPE: Consent RECOMMENDATION: Approve Amendment to Promissory Note with Parker Triska Restaurant Group, LLC, to defer payments for one year, for payment of Cash-in-Lieu of Parking. BACKGROUND: Mr. Aaron Parker of Parker Triska Restaurant Group, LLC, purchased Frank’s Catering business in downtown Bozeman. In purchasing the business, he assumed the promissory note that Frank Winker/Franks Catering had for payment of Cash-in-Lieu of Parking spaces. At the time Mr. Parker assumed the note, there was $20,489.07 outstanding. He has not made a payment on the note and has since asked that we allow him to defer payments for a year. We have confirmed with him that he would begin making payments in July 2012. This promissory note pre-dates our recent changes to Downtown Parking requirements, and is the last outstanding note we have for Cash-in-Lieu of Parking spaces. Mr. Parker has requested that we grant a “deferral” of payments, allowing him some time to operate this restaurant property before parking payments are made to the City. Because this note will likely be uncollectable if the business fails, we are in support of granting the short-term deferral. The Parking Manager is in favor of granting this deferral, as well. This item is before the City Commission, and not the Parking Commission, due to the fact that the Cash in Lieu of Parking promissory notes have originated and been administered by the Finance Department, under Bozeman Municipal Code section 38.25.040 (3); and, under Resolution No. 3283 dated 7/19/1999. Because the Parking Commission has not adopted a separate Resolution of terms for the loans, and because this is the last remaining outstanding note, we have brought it to the Commission’s agenda to grant the short-term deferral. Attached are the Promissory Notes mentioned. If the deferral is approved, we will prepare an amended Promissory Note for Mr. Parker’s signature, with the dates for payment advanced one year. Given the parking and business issues mentioned above, we are not suggesting that accrued interest be added to the note for the deferral period. UNRESOLVED ISSUES: None. 11 ALTERNATIVES: Do not grant the deferral. Defer payments for some time less than one year. Add accrued interested to the note for the deferral period. FISCAL EFFECTS: Deferral of payments will mean that cash will not be received for this note during this fiscal year. There are currently no specific projects or other funding obligations that the city has tied to the receipt of these payments. Attachments: Promissory Note, signed Frank Winker 1/16/2009 Promissory Note, signed Aaron Parker 7/18/2011 Email request from Mr. Aaron Parker Revised Payment Schedule Report compiled on: November 18, 2011 12 $20,489.07 CITY OF BOZEMAN Bozeman,Montana PROMISSORY NOTE July 18,2011 FOR VALUE RECEIVED,the undersigned promises to pay to the order ofthe City of Bozeman at 121 N Rouse Ave,Bozeman,MT 59715,or at such other place as is designated from time to time by the Holder of this note,the sum ofTWENTY THOUSAND FOUR HUNDRED EIGHTY-NINE AND 0711 OOTHS ($20,489.07),at the times and in the manner as follows: THREE HUNDRED TWO DOLLARS AND 8911 OOths on June 15,2011 and a like sum by the IS'"ofeach succeeding month on the declining principal balance until paid in full on November IS,2018.Each ofthe aforesaid payments shall be applied first to accrued interest on the entire outstanding balance at the rate ofeight percent (8%)per annum from the May 20,20 I I forward,and the remainder to principal.The Maker may make advance payments on principal at any time and in such amounts as maker may elect without penalty as to interest.Such prepayment shall be applied on principal in the inverse order of maturity,and shall not relieve the Maker trom paying the next succeeding installment or installments ofprincipal and interest due hereunder. Any sum payable hereunder not paid when due and payable shall bear simple interest at the rate of FOlllieen Percent (14%)per annum until paid. This note shall become due and payable in full,at the option ofthe Holder hereof,immediately upon default in payment of any installment of principal or interest payable hereunder,or any pmi thereof. Waiver by the Holder hereofofany default by the undersigned shall not constitute a waiver by the Holder ofa subsequent default.Failure by the Holder to exercise any right,power or privilege which it may have by reason ofa default by the undersigned shall not preclude the exercise ofsuch right,power of privilege,so long as such default remains uncured or if subsequent default occurs. The Maker agrees to pay all costs of collection,including a reasonable attorney's fee,which includes fee and costs of City Attorney,and hg:s:by_waives-deln nd,presentment for payment,protest, notice ofprotest,.~c of di~9n0r:---- Parker,Tri"{a Rest By: aron Parker 548 E Babcock St Bozeman,MT 59715 (406)595-5059 Street address:121 N.Rouse Ave. Mailing address:P.O.Box 1230 Bozeman,Montana 59771-1230 Phone'(406)582-2300 Fa"(406)582-2344 TDD,(406)582-230113 $25.000.00 CITY OF BOZEMAN Bozeman,Montana PROMISSORY NOTE January 16,2009 FOR VALUE RECEIVED,the undersigned promises to pay to the order of the City of Bozeman at 121 N.Rouse Ave.,Bozeman,MT 59715,or at such other place as is designated from time to time by the Holder of this note,the sum of TWENTY-FIVE THOUSAND DOLLARS ($25,000.00),at the times and in the manner as follows: THREE HUNDRED THREE DOLLARS AND 32/1 OOths on January 16,2009 and a like sum by the 15'"of each succeeding month on the declining principal balance until paid in full on November 15,2018.Each ofthe aforesaid payments shall be applied first to accrued interest on the entire outstanding balance at the rate ofeight percent (8%)per annum from the date hereot~and the remainder to principal.The Maker may make advance payments on principal at any time and in such amounts as maker may elect without penalty as to interest.Such prepayment shall be applied on principal in the inverse order ofmaturity,and shall not relieve the Maker from paying the next succeeding installment or installments ofprincipal and interest due hereunder. An)'sum payable hereunder not paid when due and payable shall bear simple interest at the rate of Fourteen Percent (14%)per annum until paid. This note shall become due and payable in full,at the option of the Holder hereof, immediately upon default in payment ofany installment ofprincipal or interest payable hereunder,or any part thereof. Waiver by the Holder hereof ofany default by the undersigned shall not constitute a waiver by the Holder of a subsequent default.Failure by the Holder to exercise any right, power or privilege which it may have by reason ofa default by the undersigned shall not preclude the cxercise of such right,power or privilege,so long as such default remains uncured or ifsubsequent default occurs. The Maker agrees to pay all costs ofcollection,including a reasonable attorney's fee, which includes fee and costs of City Attorney,and hereby waives demand.presentment for payment,protest,notice of protest.and notice of dishonor. !'rank C ISlam Catering Inc. Bv: Fran'JIlk er 548 E.Babcock St. Bozeman.1\1[1'59715 (406)585-1761 Street :lcldress:121 N.Roust.:Ave. !vlailing address:P.O.Box l230 Bozeman,Montana 59771-1230 Phone:(406)582·2300 Fax:(406)582·2344 TDD:(406)582·230t14 From: aaron parker [mailto:aparkeris@hotmail.com] Sent: Tuesday, November 01, 2011 2:08 PM To: Laurae Clark Subject: Parking space loan Hello- This email is in regards to my request to defer payments on a note out on parking spaces for Frank's restaurant. I am asking for a 1 year deferment on this note to help relieve the stress of impact fees, as well as the initial overhead that goes along with being the new owner of a distressed restaurant. I have confidence from experience in this industry that after 1 year I should be in better situation to start payment on this note. Thank you for your consideration in this matter. Kind Regards, Aaron Parker 15