HomeMy WebLinkAboutStaff Report 5.A (PCDC) 09/15/2003CITY OF PETALUMA, CALIFORNIA ' --
Petaluma Community Development Commission
AGENDA BILL
Agenda Title:
Discussion and Action Adopting a Resolution Approving the
Termination of the Owner Participation Agreement by and Between
the PCDC and the LOK Petaluma Marina Hotel Company, LLC,
and Approving Ternis for the Repayment of the currently
outstanding PCDC Loan for the LOK Petaluma Marina Hotel by
WG Investments, LLC, and Authorizing the Executive Director to
Enter into Appropriate Agreements to Implement the Terms of the
Loan Repayment and OPA Termination, in a Form Acceptable to
PCDC Legal Counsel
Meetine Date: September 15, 2003
Meetine Time: X 3:00 PM
Cateeory (check one): ❑ Consent Calendar ❑ Public Hearing x New Business
Department: Director: -(w Contact Person: Phone Number:
Redevelopment Paul Marangella Paul Marangella 778-4581
Cost of Proposal: Minus -$2.750 million (Savings) Account Number: Loan—Fund 902
Amount Budeeted: $2.750 million Name of Fund: PCD Project Area
Attachments to Aeenda Packet Item:
1. Resolution Terminating OPA and Approving Loan Repayment Tenns
2. Loan Repayment Tenn Sheet
3. Notice of Default and Election to Sell Under Deed of Trust
4. Owner Participation Agreement by and Between the PCDC and the LOK Petaluma Marina Hotel
Company, LLC
Summary Statement:
On May 4, 2001, after over eighteen months of negotiations, the Petaluma Community Development
Commission (PCDC) entered into an Owner Participation Agreement (OPA) with the LOK Petaluma
Marina Hotel Company, LLC (LOK Hotel). The intent of the OPA was to implement the provisions of the
PCDC's Redevelopment Plan by providing financial assistance to the LOK Hotel so that a parking lot
could be constructed, ensuring the development of a three star/four diamond, four story, 183 room Sheraton
Hotel at the Petaluma Marina. To date, the PCDC has loaned $750,000 for the construction of the parking
lot and loaned to LOK $139,234 of the $2,000,000 Tax Increment Loan, for a total accrued loan of
$889,234.
On September 2, 2003, the PCDC received word that the LOK Hotel is in foreclosure and obtained a
"Notice of Default and Election to Sell Under Deed of Trust." WG Investments, LLC, the holder of the
first deed of trust on the LOK Hotel, contacted PCDC staff and advised that while (1) the property was in
foreclosure, and (2) there would be insufficient proceeds from the foreclosure sale to repay any portion of
the currently outstanding PCDC loan, and (3) the OPA could be assumed by WG Investments,
necessitating the continued PCDC loan of an additional $1.861 million, that WG Investments, nevertheless,
would be willing to repay the PCDC's loans to date provided the PCDC agrees to terminate the OPA.
Tennination of the OPA would relieve WG of its continuing obligations under the OPA and would also
relieve PCDC of the obligation to disburse an additional $1.861 million of tax increment loan proceeds. In
effect, WG Investments has agreed to create a loan repayment method by which the PCDC is repaid the
$889,234 in loans to date and eliminate the Tax Increment Loan of $1.861 Million that PCDC would
otherwise be obligated to male in the future. A term sheet for the repayment method is found in
Attaclunent 2.
Srinimmy Statement continued
Therefore, the purpose of this item is to adopt a resolution approving the: l.) termination of the Owner
Participation Agreement by and Between the PCDC and the LOK Petaluma Marina Hotel Company, LLC.,
and 2.) terms for the repayment of the existing outstanding PCDC loan for LOK Petaluma Marina Hotel
by WG Investments, LLC., and 3.) authorizing the Executive Director to enter into appropriate agreements
to implement the terms of the loan repayment and OPA termination, in a form acceptable to the PCDC
legal counsel.
Recommended Citv Council Action/Sueeested Motion:
It is recommended that the PCDC adopt the attached resolution.
Reviewed by Finance Director:
Date:
03
Todav's Date:
September 4, 2003
Reviewed by City Attornev:
Date:
Revision # and Date Revised:
ADDroved VN/"ty Manaeer:
,1YIt 1��[/' Date:
File Code:
NO
CITY OF PETALUMA, CALIFORNIA
Petaluma Community Development Commission
SEPTEMBER 15, 2003
AGENDA REPORT
FOR
DISCUSSION AND ACTION ADOPTING A RESOLUTION APPROVING THE
TERMINATION OF THE OWNER PARTICIPATION AGREEMENT BY AND
BETWEEN THE PCDC AND THE LOK PETALUMA MARINA HOTEL COMPANY,
LLC, AND APPROVING TERMS FOR THE REPAYMENT OF THE EXISTING
OUTSTANDING PCDC LOAN FOR THE LOK PETALUMA MARINA HOTEL BY
WG INVESTMENTS, LLC, AND AUTHORIZING THE EXECUTIVE DIRECTOR TO
ENTER INTO APPROPRIATE AGREEMENTS TO IMPLEMENT THE TERMS OF
THE LOAN REPAYMENT AND OPA TERMINATION, IN A FORM ACCEPTABLE
TO PCDC LEGAL COUNSEL
1. ExECUTIVE SUMMARY:
On May 4, 2001, after over eighteen months of negotiations, the Petaluma Community Development
Commission (PCDC) entered into an Owner Participation Agreement (OPA) with the LOK Petaluma
Marina Hotel Company, LLC (LOK Hotel). The intent of the OPA was to implement the provisions of
the PCDC's Redevelopment Plan by providing financial assistance to the LOK Hotel so that a parking
lot could be constructed, ensuring the development of a three star/four diamond, four story, 183 room
Sheraton Hotel at the Petaluma Marina. To date, the PCDC has loaned $750,000 for the construction of
the parking lot and loaned to LOK $139,234 of the $2,000,000 Tax Increment Loan, for a total accrued
loan of $889,234.
On September 2, 2003, the PCDC received word that the LOK Hotel is in foreclosure and obtained a
"Notice of Default and Election to Sell Under Deed of Trust." WG Investments, LLC, the holder of the
first deed of trust on the LOK Hotel, contacted PCDC staff and advised that while (1) the property was
in foreclosure, and (2) there would be insufficient proceeds from the foreclosure sale to repay any
portion of the currently outstanding PCDC loan, and (3) the OPA could be assumed by WG
Investments, necessitating the continued PCDC loan of an additional $1.861 million, that WG,
nevertheless, would be willing to repay the PCDC's loans to date provided the PCDC agrees to
tenninate the OPA. Termination of the OPA would relieve WG of its continuing obligations under the
OPA and would also relieve PCDC of the obligation to disburse an additional $1.861 million of tax
increment loan proceeds. In effect, WG Investments has agreed to create a loan repayment method by
which the PCDC is repaid the $889,234 in loans to date and eliminate the Tax Increment Loan of $1.861
Million that PCDC would otherwise be obligated to make in the future. A tern sheet for the repayment
method is found in Attachment 2.
Therefore, the purpose of this item is to adopt a resolution approving the: 1.) termination of the Owner
Participation Agreement by and Between the PCDC and the LOK Petaluma Marina Hotel Company,
LLC., and 2.) terms for the repayment of the existing outstanding PCDC loan for LOK Petaluma
Marina Hotel by WG Investments, LLC., and 3.) authorizing the Executive Director to enter into
appropriate agreements to implement the terms of the loan repayment and OPA termination, in a forni
acceptable to the PCDC legal counsel.
2.
4.
6.
BACKGROUND:
Under the terms of the Agreement, the PCDC loaned $750,000 to assist with the construction of a 184 -
space parking lot. According to the agreement, LOK was to repay the loan in forty equal installments
beginning the sixth year of Hotel operation. In addition, the OPA provides for a $2.0 million Tax
Increment Loan. The loan provides that, for the first five years of Hotel operation, an amount equivalent
to 2/3 of the Transient Occupancy Taxes received by the City attributable to the LOK Hotel is loaned to
LOK to a maximum of $2.0 million. The repayment of the Tax Increment Loan occurs in the eleventh
year of the Hotel's operation. Interest accrues at 3% for the first ten years and increases in year eleven
to 5.87%. To date, the PCDC has loaned $750,000 for the construction of the panting lot and paid LOK
$139,234 of the $2,000,000 Tax Increment Loan, for a total accrued loan of $889,234.
While the foreclosure of the LOK Petaluma Marina Hotel is regrettable, it is important to note that the
PCDC did achieve its objective of having a high quality hotel built the Petaluma Marina. The terms for
the repayment of the outstanding loan is found in Attachment 2.
ALTERNATIVES:
A. Approve Termination of OPA and Repayment of PCDC Loan: Under this option WG
Investments would assume the obligation to repay PCDC the outstanding $889,234 loaned to date
and PCDC would be relieved of the obligation to make an additional loan of $1.861 million that
could not be repaid.
B. Continue OPA and Continue to Provide A Tax Increment Loan of $1.861 Million: Under this
option the PCDC would insist on keeping the OPA in place. The foreclosure process would
continue and this would result in the loss of $889,234 as there would be insufficient proceeds for a
foreclosure sale to repay the PCDC second trust deed loan. In addition, WG Investments, as
foreclosing lender, would have the ability to assume the rights and obligations of LOK Hotel under
the OPA and would then be entitled to receive an additional $1.861 million tax increment loan from
PCDC in the future.
FINANCIAL IMPACTS:
A tennination of the OPA with the LOK Marina Hotel Company, LLC. would save the PCDC $2.750
million as follows:
• $ 750,000 Construction Loan Repaid by WG Investments, LLC
• $ 139,234 Tax Increment Loan Disbursed to Date Repaid by WG Investments LLC.
• $1,860,766 PCDC relieved of obligation to disburse balance of Tax Increment Loan
$2,750,000 Total Loan Repayment and Cost Avoidance to PCDC
CONCLUSION:
LOK Petaluma Marina Hotel Company, LLC is in foreclosure. Under a foreclosure scenario, not only
does the existing $889,234 PCDC loan get wiped out, but the PCDC is obligated to continue loaning the
successor $1.861 million. WG Investments is willing to relieve the PCDC from making any further
loans to the project and to repay the PCDC the $889,234 the project has been lent to date, as outlined in
the attached term sheet, on the condition that PCDC agree to terminate the OPA. By agreeing to this
approach, the PCDC saves $2.750 million.
OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION:
The PCDC would terminate a Tax Increment Loan by October 2003, thereby saving $1.861 million.
9
RECOMMENDATION:
It is recommended that the PCDC adopt the attached resolution:
1.) Approving the termination of the Owner Participation Agreement by and Between the
PCDC and the LOK Petaluma Marina Hotel Company, LLC., and
2.) Approving the terms for the repayment of the existing outstanding PCDC loan for LOK
Petaluma Marina Hotel by WG Investments, LLC, and
3.) Authorizing the Executive Director to enter into appropriate agreements to implement the
terms of the loan repayment and OPA termination, in a form acceptable to the PCDC
legal counsel.
Attachment I
RESOLUTION # 2003-
PETALUMA COMMUNITY DEVELOPMENT COMMISSION
APPROVING THE TERMINATION OF THE OWNER PARTICIPATION
AGREEMENT BY AND BETWEEN THE PCDC AND THE LOK PETALUMA
MARINA HOTEL COMPANY, LLC, AND APPROVING TERMS FOR THE
REPAYMENT OF THE EXISTING OUTSTANDING PCDC LOAN FOR THE LOK
PETALUMA MARINA HOTEL BY WG INVESTMENTS, LLC, AND AUTHORIZING
THE EXECUTIVE DIRECTOR TO ENTER INTO APPROPRIATE AGREEMENTS
TO IMPLEMENT THE TERMS OF THE LOAN REPAYMENT AND OPA
TERMINATION, IN A FORM ACCEPTABLE TO PCDC LEGAL
WHEREAS, on May 4, 2001, the Petaluma Community Development Commission (PCDC) entered into an
Owner Participation Agreement (OPA) with the LOK Petaluma Marina Hotel Company, LLC (I,OIC). with the
intention of implementing the provisions of the PCDC's Redevelopment Plan by providing financial assistance
to LOK; and
WHEREAS, a three star/four diamond, four story, 183 room Sheraton Hotel was constructed at the Petaluma
Marina; and
WHEREAS, under the terns of the OPA, the PCDC loaned $750,000 to assist with the constniction of a 184 -
space parking lot and an additional $2.0 million Tax Increment Loan to be disbursed monthly according an
amount equivalent to 2/3 of the Transient Occupancy Taxes received by the City attributable to the LOK Hotel;
and
WHEREAS, to date, the PCDC has loaned $899,234 and is obligated to disburse an additional $1.861 million
in the future; and
WHEREAS, on September 2, 2003, the PCDC received word that the LOK Hotel is in foreclosure and obtained
a "Notice of Default and Election to Sell Under Deed of Trust;" and
WHEREAS, WG Investments, LLC, the holder of the first deed of trust on the LOK Hotel, contacted PCDC
staff and advised that while (l) the property was in foreclosure, and (2) there would be insufficient proceeds
from the foreclosure sale to repay any portion of the currently outstanding PCDC loan, and (3) the OPA could
be assumed by WG Investments, necessitating the continued PCDC loan of an additional $1.861 million, that
WG Investments, nevertheless, would be willing to repay the PCDC's loans to date provided the PCDC agrees
to terminate the OPA. Termination of the OPA would relieve WG of its continuing obligations under the OPA
and would also relieve PCDC of the obligation to disburse an additional $1.861 million of tax increment loan
proceeds. hi effect, WG Investments has agreed to create a loan repayment method by which the PCDC is
repaid the $899,234 in loans to date and eliminate the Tax Increment Loan of $1.861 Million that PCDC would
otherwise be obligated to make in the fixture; and
LO
WHEREAS, WG Investments desires to assume LOK Hotel's obligation to repay the existing outstanding
$899,234 PCDC loan and forego the right to receive a Tax Increment Loan of $1.861 Million in the future, in
exchange for PCDC agreement to tenninate the OPA; and
WHEREAS, Exhibit I contains the proposed terms for the repayment of $899,234 in PCDC loans; and
WHEREAS, the PCDC desires to minimize the amount of PCDC fiords lost as a result of foreclosure;
NOW, THEREFORE, BE IT RESOLVED that the Petaluma Comrnunity Development Commission hereby:
1. Approves the termination of the Owner Participation Agreement by and Between the PCDC and the
LOK Petaluma Marina Hotel Company, LLC., and
2. Approves the terms for the repayment of the existing outstanding PCDC loan for LOK Petaluma Marina
Hotel by WG Investments, LLC, and
3. Authorizes the Executive Director to enter into appropriate agreements to implement the terms of the
loan repayment and OPA termination, in a form acceptable to the PCDC legal counsel.
Adopted this 15th day of September, 2003 by the following vote:
Commissioner Aye No Absent
Glass
Canevaro
Harris
Healy
Moynihan
O'Brien
Torliatt
David Glass, Chairperson
ATTEST:
Gayle Petersen, Recording Secretary
1+' Exhibit I
<r
Term Sheet
Petaluma Community Development Commission Subordinated Loan
A. Promissory Note from WG hivestments, LLC, a California limited liability company ("WG") to
City of Petaluma Community Development Commission (the "Note")
1. Note Interest - no interest for 10 years, interest accrues at 5.87% per annum beginning
October 2013
2. Note Repayment — 15 -year amortization with quarterly payments (unless property is sold)
beginning the later of
a. October, 2013; or
b. The first month in which room revenues for the previous 12 months equal or
exceed $6 million. Once repayment commences it will continue even if the annual room
revenues drop back below $6 million
C. See Section D if property is sold.
B. Note will be secured by a new deed of trust according to the terms listed below. PCDC will
need to obtain lenders policy of title in the full amount of the loan insuring the priority of the
PCDC deed of trust subject only to lien for current property taxes and assessments, easements
and other exceptions reasonable acceptable to PCDC's legal counsel. The new deed of trust will
be recorded immediately following WG's taking title to the property through foreclosure deed in
lieu of foreclosure or other means. During the interim period between the date of OPA
termination and the date of recordation of the new deed of trust, WG's obligations under the
Note will have to be secured with collateral reasonably acceptable to PCDC and PCDC's
security interest in the collateral must be evidenced and perfected by documentation reasonably
acceptable to CDC's legal counsel.
C. The PCDC deed of trust will be subordinated to all future financings by unrelated third party
lenders ("Future Financings") as follows:
1. The PCDC will subordinate its deed of trust to the deed(s) of trust securing all Future
Financings up to $17 million; and
2. If the Future Financing equals or exceeds $17 million but is less than $19 million, then
the PCDC deed of trust will be subordinated to the Future Financing, provided 1/3 of the total
principal and interest balance of the Note is repaid from the proceeds of the Future Financing, or
from other WG sources, through the escrow established for the Future Financing; and
3. If the Future Financing equals or exceeds $19 million but is less than $21 million, then
the PCDC deed of trust will be subordinated to the Future Financing, provided 2/3 of the total
principal and interest balance of the Note is repaid from the proceeds of the Future Financing, or
from other WG sources, through the escrow established for the Future Financing;
4. If the Future Financing equals or exceeds $21 million, then the entire principal and
interest balance of the Note shall be repaid from the proceeds of the Future Financing, or from
other WG sources, through the escrow established for the Future Financing and the PCDC shall
reconvey its deed of trust.
D. If the property is sold by WG in an arms length sale to an unrelated third party, the Note will be
repaid as follows:
Sale below $18 million - none of the Note will be repaid;
2. Sale at or above $18 million and below $20 million — 1/3 of the outstanding principal and
interest balance of the Note will be repaid from the proceeds of the sale, or from other WG
sources, through escrow established for the sale;
3. Sale at or above $20 million and below $22 million — 2/3 of the outstanding principal and
interest balance of the Note will be repaid from the proceeds of the sale, or from other WG
sources, through escrow established for the sale;
4. Sale at or above $22 million - the entire outstanding principal and interest balance of the
Note will be repaid from the proceeds of the sale, or from other WG sources, through escrow
established for the sale.
E. Note will replace OPA. OPA will be terminated effective upon full execution of the Note
together with such interim security instruments and documents securing WG's repayment
obligations under the Note, all in a form reasonably acceptable to PCDC's legal counsel as set
forth in Paragraph B above.
I
m
Term Sheet
Petaluma Community Development Commission Subordinated Loan e
A. Promissory Note from WG Investments, LLC, a California limited liability company ("WG") to
City of Petaluma Community Development Commission (the "Note")
1. Note Interest - no interest for 10 years, interest accrues at 5.87% per annum beginning
October 2013
2. Note Repayment — 15 -year amortization with quarterly payments (unless property is sold)
beginning the later of:
a. October, 2013; or
b. The first month in which room revenues for the previous 12 months equal or
exceed $6 million. Once repayment continences it will continue even if the annual room
revenues drop back below $6 million
C. See Section D if property is sold.
B. Note will be secured by a new deed of trust according to the terns listed below. PCDC will
need to obtain lenders policy of title in the full amount of the loan insuring the priority of the
PCDC deed of host subject only to lien for current property taxes and assessments, easements
and other exceptions reasonable acceptable to PCDC's legal counsel. The new deed of trust will
be recorded immediately following WG's taking title to the property through foreclosure deed in
lieu of foreclosure or other means. During the interim period between the date of OPA
termination and the date of recordation of the new deed of trust, WG's obligations under the
Note will have to be secured with collateral reasonably acceptable to PCDC and PCDC's
security interest in the collateral must be evidenced and perfected by documentation reasonably
acceptable to CDC's legal counsel.
C. The PCDC deed of trust will be subordinated to all future financings by unrelated third party
lenders ("Future Financings") as follows:
1. The PCDC will subordinate its deed of trust to the deed(s) of trust securing all Future
Financings up to $17 million; and
2. If the Future Financing equals or exceeds $17 million but is less than $19 million, then
the PCDC deed of trust will be subordinated to the Future Financing, provided 1/3 of the total
principal and interest balance of the Note is repaid from the proceeds of the Future Financing, or
from other WG sources, through the escrow established for the Future Financing; and
3. If the Future Financing equals or exceeds $19 million but is less than $21 million, then
the PCDC deed of host will be subordinated to the Future Financing, provided 2/3 of the total
principal and interest balance of the Note is repaid from the proceeds of the Future Financing, or
from other WG sources, through the escrow established for the Future Financing;
4. If the Future Financing equals or exceeds $21 million, then the entire principal and
interest balance of the Note shall be repaid from the proceeds of the Future Financing, or from
other WG sources, through the escrow established for the Future Financing and the PCDC shall
reconvey its deed of trust.
D. If the property is sold by WG in an arms length sale to an unrelated third party, the Note will be
repaid as follows:
Sale below $18 million - none of the Note will be repaid;
2. Sale at or above $18 million and below $20 million — 1/3 of the outstanding principal and
interest balance of the Note will be repaid from the proceeds of the sale, or from other WG
sources, through escrow established for the sale;
3. Sale at or above $20 million and below $22 million — 2/3 of the outstanding principal and
interest balance of the Note will be repaid from the proceeds of the sale, or from other WG
sources, through escrow established for the sale;
4. Sale at or above $22 million - the entire outstanding principal and interest balance of the
Note will be repaid from the proceeds of the sale, or from other WG sources, through escrow
established for the sale.
E. Note will replace OPA. OPA will be terminated effective upon full execution of the Note
together with such interim security instruments and documents securing WG's repayment
obligations under the Note, all in a form reasonably acceptable to PCDC's legal counsel as set
forth in Paragraph B above.
� �• 1••� �
13
SGp_p3-P003 Well 03;14 P4 FOG1 I_AW 8RQ
WG Investments, Lf.0
CIO Fricdemmtia O'Brien
Goldberg a& Zoriau LLP
420 Aviation Boulevard, Suitt 201
Santa Koen, CA 91403
W(; Investments, LLC
CIO Friedemana O'Brien
Goldberg & Zerlan LLP
420 Aviation Boulevard, Suite 201
Santa (toss, CA 95403
FAX NO, 707 50 shin tl PIP
I
FOR IECORDFIVS USE ONLY
NOTICE OF DEFAULT .ANT) ELLCTION TO SELL
UNDER DEED OF TRUST
IF YOUR IsR#JrEkTY IS IN FORECLOSURE BECAUSE YOU ARE
BERND IhdYOUR PAYMENTS. IT MAY BE SOLD WITHOUT ANY
COURT ACTIOM and you may have the legal right to bring you: account is good
standing by paying nil your past due payments plus permitted costs and expenses within
the time perutitte l by taw for rciustatemcttt of your account, which is normally We (5)
business days prior to the date set for the sale of your property. No sale date mar he set
until throe (3) months from the date thio notice or default may bo recorded (which date of
recordation appears on this notice).
This amount is $22,300,M4.89 as of August 29, 2043, and will increase until your
account becomes current.
i
While your property is in foreclosure, you still must pay other obligations (Such as
insurance and taxes) required by your note and deed of trust or mrmgage. If you fail to
make tbrare psyments on the loan, pay taxes on the property, provide insurance on the
property, or pay other obligations as required in the nolo and dead of trust or mortgagc,
the beneficiary or mortgagee may insist that you do so in order to reinstate yours account
4scalvsd i8o-03-Eoo3 oz:IBum From -To? 543 401D
To -Tom Ditdiall d Rape: page sot
I
SFp_13_?003 WFD 13_14 On -Merz !.AN SRR FAX NO. 707 543 4911
i
in good standing, in addition, the hencriciary or mortgagoc may require as a condi to
rcinstatcmcnt that you provide reliable written ovidumr that you paid all sonieel' liens,
ptnperty tuxes, and hazard insurance premiums.
Upon your written request, the beneficiary or mortgagee will give yon a written
itemization of the entire amount you must Puy. You may nor have to pay thef entire
unpaid pi ration of your account, even though Hall payment was demandcd, but you must
pay alt amounts in default at the time payment is trade. However, you ant} your
beneficiary or mortgagee may mutually agrcc in writing prior to the time the notice of
sale is posted (which may not be earlier than the end of the three-month period stated
abuve) to, among other things, (1) provide additional lima in which to cure the default by
transfbr of deo property or otherwise; or (2) establish a schedule of payments in order to
core your defhull; or both (1) and (2).
I
rcllowing the expiration of the time period referred to in the first paragraph lof chis
notium unl=6 tho obligation being foreclosed upon or a scparatc written agreement
between you and youcreditor permits a longer period, you have only the legal xighl m
stop the sate of ymir property by paying the aatiro amount demanded by your creditul.
To find out the amount you must pay, nr in arrainge for payment to stop the foratelosure,
or if your property is in foreclosure fbr any other reason, contact:
WG D".STMFNTS, LLC
c/o Friedematm O'Brien Goldberg & Zarim, LLP
420 Aviation Rlvd., Suite 201
Santa Ross, CA 95403
Atm_ Steven M. Goldberg, Esq.
I
If you have any questions, you should wntact a lawyer or the governmental Agency
which may have insured your ban.
I
Notwithstanding the fart that your property is in foreclosure, you may offer yourjproperty,
fat sale, provided the sale is concluded prior to the conclusion of the forcrhraureJ
1. 113: a ! 4+ 1 A
a ` I: ,
NOTICE 1S HEREBY GIVEN TKAT under the deed of trust ttaccutcd ;.sy LOK
wrALIIMA MARINA HOTEL COMPANY, LLC, as trustor, to ril.t3 REPUBLIC
TITLE, as truatee, and WG INVESTMENTS, LLC, as bmcfioinry, recorded on October
2, 2001, document on. 2001133595, in me 001cia1 Records of Sonomgi County,
California, and the addendum to the deed of oust executed by LOK PETALUMA
MAMA HOTEL COMPANY, LLC, as trustor, to OLD REPUBLIC TITLE
COMPANY, as tnraree, and WO INVESTMENTS, LLC, as benefielary, recorded on
May 24, 2002, document nn, 2002081256 in the Official Records of Sonoma County,
California, a breach of the abligaion seared by the deed of trust and its addendum has
fteao fired
5ea-03-2003 a2:lapm Fiam-tOT W 4910
Ta -Tam enlaced! d Reba: Page 003
P, 03
15
SF.p-O3-?103 'AFb !13;10 PH FOG7 !.AW SRO
Fax NO, 707 513 4a1O
occurred. The nature of the hreach is nunpaytncnt of the. full amount of interes� on
September 30, 2002, October 31,200, November 30, 2002, December 31, 2002, January
31. 2003, February 26, 2003, Marob 31, 2003, April 30, 2003, May 31, 2003, JuneI 30,
2003, Snd July 31, 2003 each sum duo and owing under that certain Prornixxnry Netc
dated September 20, 2001, as amended on May 22, 2002, modified by that ce sin
Forbearance Agreement dated September 1, 2002, and modified by that Second
Forbearance Agrctrmont dated March 21, 2003, by and between WG INVESTMENTS,
1.11' as Leader and LOR PBTALUMA MARINA HOTEL COMPANY. LL4q as
Harrower. As a consequence ursald default, the beneficiary elects to sell or cause to be
sold the trust property to satisfy the obligation.
4
ReelvtU Sea -03.2009 02:10.1.1 Ffvm TOT 549 4910
WG INVESTMENTS, LLC
it California limired liability company
Dantdd UreCO3 ger
To-Tmu srldsall a Re59. 'dso 00a