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TO: Mayor Richard C. Irvin
FROM: Jill N. Morgan, Planner
DATE: May 5, 2021
SUBJECT:
A Resolution Authorizing a Modification to the Deferred Preservation Loan with James P. Doherty, Owner, and Glenn and Alissa Doherty, Contract Purchaser, for the Property located at 247 West Park Avenue (Glenn and Alissa Doherty- 21-0343 - AU22/1-21.045-HP/GR - JM - Ward 6)
PURPOSE:
Exhibit “A” is a Mortgage Loan Modification Agreement modifying the Deferred Preservation Loan with James P. Doherty, Owner, and Glenn and Alissa Doherty, Contract Purchaser, for the Property located at 247 West Park Avenue that was approved by City Council through R10-321 on September 28, 2010.)
BACKGROUND:
On September 28, 2010, City Council approved R10-321 authorizing financial assistance under the Deferred Preservation Loan Program for the property located at 247 West Park Avenue. The Resolution included an Agreement outlining financial assistance in the amount of $20,000 at 0% interest with no need for repayment until such time the property transfer ownership, including the removal of names from the deed. The Agreement was between the City and James P. Doherty, Owner, and Glenn and Alissa Doherty, Contract Purchaser. As a security for the deferred loans, a mortgage (or lien) was recorded against the property signed by all three parties. James P. Doherty and Glenn and Alissa Doherty filed with the City of Aurora a request to modify and amend the Loan Documents to remove James P. Doherty from the Loan Documents and release James P. Doherty from any liability under the Loan Documents, as James P. Doherty is no longer an owner of the Property.
DISCUSSION:
Staff has reviewed the request and believes it is reasonable as the intent of the original Agreement was for Glenn and Alissa Doherty to purchase the property as seen through a Lease to Purchase Home Agreement attached to the Resolution.
POLICIES AND GUIDELINES:
The Staff’s Evaluation and Recommendation are based on the Deferred Preservation Loan Program.
RECOMMENDATIONS:
Staff would recommend APPROVAL of A Resolution Authorizing a Modification to the Deferred Preservation Loan with James P. Doherty, Owner, and Glenn and Alissa Doherty, Contract Purchaser, for the Property located at 247 West Park Avenue.
ATTACHMENTS:
Exhibit “A” Mortgage Loan Modification Agreement
cc:
Alderman Michael Saville, Chairperson
Alderman Sherman Jenkins, Vice Chairperson
Alderman Carl Franco, Member
Alderman Robert J. O'Connor, Member
Alderman Juany Garza, Member
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing a Modification to the Deferred Preservation Loan with James P. Doherty, Owner, and Glenn and Alissa Doherty, Contract Purchaser, for the Property located at 247 West Park Avenue
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS on September 28, 2010, the City of Aurora passed Resolution R10-321, authorizing financial assistance under the City of Aurora Deferred Preservation Loan Program for the property located at 247 West Park Avenue;
WHEREAS, attached to the Resolution was an Agreement between James P. Doherty, Owner, and Glenn and Alissa Doherty, Contract Purchaser, and the City of Aurora for financial assistance in the amount of $20,000 at 0% interest with no need for repayment until such time as the Owner(s) ceases to occupy the property or primary residence or said premises are sold or otherwise change ownership, and
WHEREAS, as security for the Original Agreement, James P. Doherty and Glenn and Alissa Doherty executed a Mortgage dated October 6, 2010 and recorded with the Kane County Recorder of Deeds on November 3, 2010 as document number 2010K074162; and
WHEREAS, James P. Doherty and Glenn and Alissa Doherty filed with the City of Aurora a request to modify and amend the Loan Documents to remove James P. Doherty from the Loan Documents and release James P. Doherty from any liability under the Loan Documents, as James P. Doherty is no longer an owner of the Property;
WHEREAS, the City has no objection to the modification as the original intent of the Agreement was for Glenn and Alissa Doherty to take ownership of the property; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Aurora, Illinois, finds as facts all of the preamble recitals of this Resolution and hereby authorizes the Mayor and City Clerk to execute the Mortgage Loan Modification Agreement attached hereto as Exhibit "A.”.