HomeMy WebLinkAboutRESOLUTIONS-2016-035-R-164/19/2016
35-R-16
Approving the Short Sale of 2424 Dempster Street
(f/k/a "Chicago's Home of Chicken & Waffles") to a New Buyer and
Actions Related Thereto
WHEREAS, in 2012, the City adopted Resolution 43-R-12 which
authorized the execution of a loan agreement with Signature Foods Solutions, Inc. d/b/a
Chicken and Waffles ("CW") in the amount of $200,000 to be disbursed from the City's
Economic Development Fund; and
WHEREAS, CW was to own and operate a restaurant at 2424 Dempster
Street (the "property"); and
WHEREAS, the City secured its interest in the loan agreement by way of
a second priority mortgage on the property; and
property; and
WHEREAS, CW closed this restaurant in May 2015; and
WHEREAS, CW is scheduled to close a sale with a new buyer for the
WHEREAS, the new buyer proposes to open a new restaurant at the
property establishing a new restaurant which will return the property to a productive and
desirable status; and
WHEREAS, CW owes the City $214,178.91 in loan principal, interest and
late payment fees; and
WHEREAS, CW provided to the City a HUD-1 Settlement Statement for
the proposed property sale which indicates it will pay the City $59,832.36 in settlement
35-R-16
charges in full and final settlement of the loan agreement and as a full and final payoff of
the City's second priority mortgage interest on the property; and
WHEREAS, the HUD-1 Settlement Statement indicated that CW will pay
in full the first priority mortgage on the property held by Evanston First Bank & Trust, as
well as pay in full property tax arrearages and penalties owed to Cook County and
monies owed to the Illinois Department of Revenue; and
WHEREAS, any action to be taken by the City relative to the proposed
closing on the property or loan forgiveness can only be authorized via Resolution.
NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EVANSTON, COOK COUNTY, ILLINOIS, THAT:
SECTION 1: The City Manager is hereby authorized to issue a payoff
letter to Signature Food Solutions, Inc. in the amount not to exceed fifty nine thousand
eight hundred thirty two dollars and thirty six cents ($59,832.36).
SECTION 2: The City hereby forgives and foregoes any action to collect
on the deficiency judgment on the mortgage and promissory note authorized by
Resolution 35-R-16, such $154,346.55 deficiency amount that is due and owing by
Signature Food Solutions, Inc. to the City.
SECTION 3: This Resolution 35-R-16 shall be in full force and effect from
and after its passage and approval in the manner provided by law.
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7Rodhet,'I,,jee,
Cify Clerk
Adopted: �� \ Ot 5 , 2016
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Eliz b th B. Tisdahl, Mayor
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