ORDINANCE NO.______, SERIES 2021
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AN ORDINANCE APPROVING A PARTIAL FORGIVENESS OF A LOAN TO WOODSMILL PARTNERS, LTD. PURSUANT TO LOUISVILLE METRO CODE OF ORDINANCES ("LMCO") SECTION 39.131(B).
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SPONSORED BY: COUNCIL MEMBER SHANKLIN
WHEREAS, Louisville/Jefferson County Metro Government, by and through its Office of Develop Louisville, Office of Housing, FKA Department of Family Services, Housing & Community Development Division FKA Louisville Metro Housing and Community Development ("Metro Government" or "Metro") entered an agreement dated December 23, 2008 ("Loan Amendment") (attached hereto as Exhibit "A") with Woodsmill Partners, LTD, a Kentucky Limited Partnership (hereinafter "Woodsmill"); and
WHEREAS, Woodsmill's indebtedness to Metro is evidenced by two promissory notes, one dated August 10, 2004, originally signed by Millswood Partners, LTD, in the original principal amount of $687,500, which note is secured by a Mortgage recorded in Mortgage Book 8860, Pages 426 in the Office of The County Clerk of Jefferson County, Kentucky; and a second promissory note dated August 10, 2004, in the original principal amount of $562,500, which note is secured by a Mortgage recorded in Mortgage Book 8860, Page 417, also in the Office aforesaid. These promissory notes were modified on May 31, 2005, in which modification Woodsmill Partners, LTD made a combined interest and principal payment, bringing the total indebtedness owed under both notes to $1,000,000. Most recently, both loans were modified by a Third Modification of Note, Mortgage, Assignment of Rents and Leases and Regulatory Agreement dated May 28, 2021, which extended the maturity date of the aforementioned Notes and Mortgages from June 1, 2021, until September 1, 2021; and
WHEREAS, according to the Loan Amendment the Parties agreed that Woodsmill is obligated to pay a monthly assignment of funds to Metro, conduct a yearly audit of the Woodsmill-Millwood Project, as referenced in...
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