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HomeMy WebLinkAbout1.0 Extension Request 11.25.2019Jerry Rusch From: Bob Graham <bgraham@blackridge.us> Sent: Monday, November 25, 2019 2:38 PM To: Jerry Rusch <rmss@sopris.net> (rmss@sopris.net) Subject: High Mesa RV Park Letter to Patrick Waller Attachments: High Mesa Loan Term Sheet 11-22-2019.PDF; 2019.07.19.R.GRAHAM.ACCEPTANCE.5M.250.REV15.docx Mr. Patrick Waller Re: High Mesa RV Park Plans b .o a EXHIBIT Patrick, we have had some issues with the financing on the park after we did the LOC in the spring. We had arranged the financing for the park with a company in the Denver area in late fall of 2018 for funding during February of 2019. This led to the filing of the LOC with the county from Mid First Bank in Denver. The financing company had some issues and unfortunately did not close the financing as planned and has since stopped operating. (As we understand it, they had a case of embezzlement.) With this in mind we began the search for back up financing to support the construction in March. We were able to obtain financing from Key Resource Financial Board LLC in July with an anticipated dosing in September. (See attached approval document.) Key Resource had originated the financing from Europe. Just prior to the closing they ran into some legal issues with the debt insurance due to the separation of Britain form the European Union. (Referred to in the press as Brexit.) They then informed us they would have to reorganize the debt insurance to solve their issue. This took them until October. In November they recommitted to the closing with a term sheet dated 11/22. (See attached.) We are awaiting the closing documents which are scheduled for this week but may be next week as I may have to the closing personally in Texas. Assuming they close by 12/6 we have been in touch with Mid First Bank in Denver and they are telling us they will have the Letter of Credit to the county in two weeks or less which is the 20th. With this in hand Jerry Rusch will be able to pull the permit and we will begin construction. The closing of the financing has been complicated by all these changes and problems. We are very much wanting to complete this project and apologize for all the delays. Our intention is to start construction immeadiately after the permit is pulled and expedite the completion of the park during 2020. I plan to be present at the Commissioners meeting on the 16th and we should be in process by that time. Bob Graham Manager High Mesa Partners LLC 408-391-7473 This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message. If you are the intended recipient, please be advised that the content of this message is subject to access, review and disclosure by the sender's Email System Administrator, 1 KEY RESOURCE FINANCIAL BOARD LLC CONSORTIUM LOAN PROGRAM November 26, 2019 Mr. Robert Graham, Principal High Mesa Partners LLC 400 Panamint Road Reno, NV 89521 Re: PRE -QUALIFICATION APPROVAL, CONSORTIUM LOAN PROGRAM TRANSACTION ID: 19 -0717 -RG -250K -5M-01 LOAN AMOUNT: $ 5,000,000.00 US DOLLARS ESCROW FEES REQUIRED: $ 250,000.00 US DOLLARS LOAN TYPE: 15 YEAR (180 MONTHS), FIXED PAYMENTS: APPROX. $35,744.13 MONTHLY INTEREST: 3.50% APR GRACE PERIOD: UP TO 12 MONTHS, PRE -APPROVED, LOAN ARREARS PRE -PAYMENT PENALTY: NONE SECURED: SURETY BOND BY LENDER FOR CONTRACT; NON-RECOURSE Dear Mr. Graham: Congratulations! Your group has applied, has passed compliance, and has been conditionally approved for a loan and terms in the amount stated above. The following conditions will be applied to the loan in accordance with Key Resource's program outline, subject to closing procedures and satisfaction of Escrow and related Fees as included on the following page(s). We are grateful you have Key Resource Financial Board us as your private lender. We are excited at the prospect of serving your funding and project enhancement needs. ESCROWED FEES DISCLOSURE Escrow Fees (Surety Policy Issue, Closing and Legal Fees): $250,000.00 US Dollars. Transfer of required fees to the following Escrow Account initiates the funding process with lender and provides a closing date. Should you choose to cancel acceptance of this offer prior to closing, Escrow Fees, Tess administrative fees of $5,500.00 are fully refundable within 72 hours of request. Page 1 of 2 KEY RESOURCE FINANCIAL BOARD LLC CONSORTIUM LOAN PROGRAM Once we have your countersignature and receive your transfer of Fees, you will be scheduled and contracted for closing. No additional funds will be required from you to close this loan. Funds will not move from account until closing day disbursement as agreed. This date will be at discretion of the lender, but a date on or before 60 days from Escrow Deposit confirmation. As always, should you have questions, please contact us at your earliest convenience. Kindest Regards, Submitted for and on behalf of Accepted for and on behalf of KEY RESOURCE FINANCIAL BOARD LLC ROBERT GRAHAM, HIGH MESA PARTNERS LLC Signed: _4 Signed: Name: Kevin Cook Name: Mr. Robert Graham Position: Executive Vice President - Operations Position: Principal Date: 11/26/19 Date: / / Receiving Account for Escrow of Loan Fees: Bank: Chase Bank, 112 W. Austin, Marshall TX 75670 Account Name: KEY RESOURCE FINANCIAL BOARD LLC ABA Routing Number: Account Number: SWIFT: Bank Officer: 021000021 232519105 CHASUS33 Elizabeth Acuna Bank Officer Email: elizabeth.I.acuna@chase.com Bank Officer Phone: 903-938-7788 Beneficiary KEY RESOURCE FINANCIAL BOARD LLC, Paymaster for HIGH MESA PARTNERS LLC Page 2 of 2 Term Sheet This document provides the borrower with a written summary of the Private investment Funding terms Mr. Robert Graham Mr. Robert Graham - Principal High Mesa Partners LLC 400 Panament Road Reno, NV. 89521 $5,000,000 Private Investment Funding / Loan Request Amount Interest for usage of The Investment funding is set at 3.50% interest per year The Term is for 15 years (180 months) of Payments which are to start with the beginning of the first day of the next Month up on closing and funding: Fully Amortized at $35,744.13 per month Escrowed $250,000.00 Fees are as follows: $5,500 Closing Fees, Documentation, Administrative $20,000 Commission Fees $10,000 Loan Servicing Fees Total Fees: $35,500 Total Balance $214,500.00 will be applied to payments at end of the Investment term: SUMMARY: Investment Term is for 180 months @ $35,744.13 per month which will = $6,433,943.40 less the balance of escrow which is to be applied at end of the Investment Term. This brings the total at the end of the 1120 months Investment Term to $6,219,443.40. Note: by signing Mr. +ben Graham accepts the terms presented. Signature: Date: 01,1 7, c2:0(1