This record contains private information, which has been redacted from public viewing.
Record #: O2016-3325   
Type: Ordinance Status: Passed
Intro date: 4/13/2016 Current Controlling Legislative Body: Committee on Finance
Final action: 5/18/2016
Title: Restructuring of City loans for Senior Suites Chicago Corp.
Sponsors: Emanuel, Rahm
Topic: AGREEMENTS - Loan & Security
Attachments: 1. O2016-3325.pdf, 2. O2016-3325 (V1).pdf

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I.I I

 

ORDINANCE

 

WHEREAS, the City of Chicago (the "City"), a home rule unit of government under Section 6(a), Article VII of the 1970 Constitution of the State of Illinois, has heretofore found and does hereby find that there exists within the City a serious shortage of decent, safe and sanitary rental housing available to persons of low and moderate income; and

WHEREAS, the City has determined that the continuance of a shortage of affordable rental housing is harmful to the health, prosperity, economic stability and general welfare of the City; and

 

WHEREAS, pursuant to ordinances (each an "Ordinance") enacted by the City Council of the City (the "City Council") on the dates listed in Exhibit A hereto and published in the Journal of Proceedings of the City Council for such dates at the pages listed on Exhibit A hereto, the City has previously made certain loans (the "City Loans") in the original principal amounts listed in Exhibit A hereto to certain affiliates of Senior Suites Chicago Corporation, an Illinois corporation ("Senior Suites") (such affiliates of Senior Suites, the "Borrowers"), for the acquisition and/or construction of apartment buildings located at the addresses listed in Exhibit A hereto and of dwelling units contained therein for low- and moderate-income senior citizens (the "Projects"); and

 

WHEREAS, the City Loans are secured by the junior mortgages on the Projects listed in Exhibit A hereto (the "City Mortgages"); and

WHEREAS, the Department of Planning and Development ("DPD") has approved restructurings of the City Loans (the "Restructurings") in a manner which: (1) will not alter the principal amount of the City Loans, (2) will not alter the interest rates on the principal balances of the City Loans, (3) will alter the maturity dates of certain of the City Loans, (4) will alter the repayment terms of certain of the City Loans, and (5) will either (a) subordinate certain of the City Mortgages to any liens which will secure the new senior loan to Senior Suites and/or the Borrowers described in Exhibit B hereto (the "New Senior Loan"), or (b) consent to the repayment of the existing senior mortgages on certain of the Projects with the proceeds of the New Senior Loan without a concomitant acceleration of the maturity date of the applicable City Loans (items 1 through 5, collectively, the "Material Terms"); now, therefore,

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO AS FOLLOWS:

 

SECTION 1. The recitals above and the exhibits below are expressly incorporated in and made a part of this ordinance as though fully set forth herein.

 

SECTION 2. The Restructurings are hereby approved as described above. The Commissioner of DPD (the "Commissioner") or a designee of the Commissioner, are each hereby authorized, subject to approval by the Corporation Counsel, to negotiate any and all terms and provisions in connection with the Restructurings which do not substantially modify the Material Terms as described herein. The Commissioner, or a designee of the Commissioner, are each hereby authorized, subject to approval by the Corporation Counsel, to enter into and execute such agreements and instruments, and perform any and all acts as shall be necessary or advisable in connection with the implementation of the Restructurings. The Commissioner or a designee of the Commissioner are each hereby authorized, subject to approval by the Corporation Counsel, to enter into and execute such agreements and instruments, and perform any and all acts as shall be necessary or advisable, in connection with any future restructurings of the City Loans, which do not

 

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EXHIBIT A, THE CITY LOANS

 

Ordinance Date and Journal Pages

Borrower

Project Address

Original

Principal

Amount

Mortgage Recorded Date & Number

05/04/1994 Pages 49301 to 49304

Senior Suites Chicago Grand Limited Partnership

6037-45 West Grand

$3,656,563

07/06/1994 #94585945

08/03/1994 Pages 53961 to 53966

Senior Suites Chicago Gage Limited Partnership

3244 West 59th

$3,755,557

09/02/1994 #94777546

12/21/1994 .Pages 63447 to 63452

Senior Suites Chicago South Shore Limited Partnership

2345 East 67m

6711 South Oglesby

$4,834,718

03/09/1995 #95158683

07/13/1995 Pages 4290 to 4296

Senior Suites Chicago Central Station, Limited Partnership

1400-12 South Indiana

$5,095,137

08/29/1995 #95571180

05/14/1997 Pages 43710 to 43715

Senior Suite Chicago Ravenswood Manor, Limited Partnership

2800-14 West ' Montrose

$3,713,097

07/21/1997 #97524978

10/28/1997 Pages 54131 to 54135

Senior Suites Chicago Austin, Limited Partnership

335-37 North Menard 5721-37 West Corcoran

$3,987,785

12/22/1997 #97959796

12/02/1998 Pages 85690 to 85696

Senior Suites Chicago Garfield Ridge, Limited Partnership

5839-55 South Harlem

$3,514,109

12/31/1998 #08191650

09/29/1999 Pages 11388 to 11395

Senior Suites Chicago Washington Heights, Limited Partnership

840-52 West 103rd

$2,266,823

12/06/1999 #09134080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT B, THE NEW SENIOR LOAN

 

Amount:                     Not to exceed $6,700,000

Term:                     Not to exceed ten years

Source:                     Enterprise Mortgage Investments, LLC, a Maryland limited liability company

Interest:                     Not to exceed 6%

Security:                     First mortgage or mortgages on some or all of the Projects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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substantially modify the Material Terms.

 

SECTION 3. Notwithstanding anything to the contrary contained in the Municipal Code of Chicago (the "Municipal Code") or any other ordinance or mayoral executive order, no parties other than the Borrowers, any legal entities which are direct owners in excess of 7.5% of the Borrowers which have changed in connection with the Restructurings, arid all legal entities which constitute the direct or indirect controlling parties of the Borrowers (as determined by the Corporation Counsel), shall be required to provide to the City the document commonly known as the "Economic Disclosure Statement and Affidavit" (or any successor to such document) in connection with the Restructurings.

 

 

SECTION 4. To the extent that any ordinance, resolution, rule, order or provision of the Municipal Code, or part thereof, is in conflict with the provisions of this ordinance, the provisions of this ordinance shall control. If any section, paragraph, clause or provision of this ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this ordinance. Neither Section 2-45-110 nor Section 2-45-115 of the Municipal Code shall apply to the Projects in connection with the Restructurings!

 

SECTION 5. This ordinance shall be effective as of the date of its passage and approval.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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OFFICE  OF THE MAYOR

CITY OF CHICAGO

RAHM EMANUEL

MAYOR

 

 

April 13,2016

 

 

 

 

 

 

 

 

 

TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO

 

 

Ladies and Gentlemen:

 

At the request of the Commissioner of Planning and Development, I transmit herewith ordinance authorizing a restructuring of City loans for Senior Suites Chicago Corp.

 

Your favorable consideration of this ordinance will be appreciated.

Mayor

 

 

 

Very truly yours,