FINAL REPORT - San Bernardino Superior Court

More documents

Recommendations

Info

Section 4: SCLA Hangar Development Table 4.2 SCLAA Loans to KND Affiliates as Provided by the City Manager Loan Date Loan Amount Terms Purpose Security July 27, 2006 $10,000,000 12 months; Interest only with a balloon payment Not specified Personal guaranty by Jeffrey Kinsell August 17, 2006 $12,200,000 12 months; Interest only with a balloon payment To pay CBS Aviation Development and its subcontractors Deed of trust in certain real property and personal guaranty by Jeffrey Kinsell December 30, 2007 $13,492,640 30 years; Interest only; Upon expiration of term entire outstanding unpaid balance forgiven Not specified Deed of trust in certain real property with assignment of rents December 30, 2007 $15,187,368 30 years; Interest only; Upon expiration of term entire outstanding unpaid balance forgiven Not specified Deed of trust in certain real property with assignment of rents December 30, 2007 $10,683,236 30 years; Interest only; Upon expiration of term entire outstanding unpaid balance forgiven Not specified Deed of trust in certain real property with assignment of rents December 30, 2007 $21,249,279 30 years; Interest only; Upon expiration of term entire outstanding unpaid balance forgiven Not specified Deed of trust in certain real property with assignment of rents $82,812,087 Total Amount Loaned According to documentation provided by the City Manager’s Office Source: Loan Documents provided by Victorville City Manager’s Office As noted in Table 4.2 above, the SCLAA provided a $10 million loan to KND Affiliates before the settlement agreement was even executed. This loan agreement was executed about two weeks 4-7 Harvey M. Rose Associates, LLC
Section 4: SCLA Hangar Development before the settlement agreement for a term of 12 months. The loan note is just over one page and was secured only by a two page personal guaranty by Jeffrey Kinsell. The loan agreement required interest only payments with a balloon payment due 13 months from the note start date, which was 90 days from the disbursement of funds. Within a week of the execution of the settlement agreement, KND Affiliates was provided a second, $12.2 million, 12 month loan for the purpose of paying CBS Aviation Development and its subcontractors. This loan was also secured by a personal guaranty of Jeffrey Kinsell, but unlike the first loan, it was secured by a deed of trust in certain real property. The promissory note and deed of trust do not describe the exact parcels that securitized the loan. Rather, this information is included in an exhibit that was not provided for this audit. In December 2007, about 17 months after the security agreement was executed, SCLAA provided KND Affiliates with four loans totaling about $61 million and ranging from $10.7 million to $21.3 million. Each loan was securitized by a deed of trust in certain real property with assignment in rents, presumably the four hangar facilities that were under development. However, unlike the other loans, these notes contain a provision that states: Upon the expiration of the Term, provided Payor is not or has not been in material breach or default of this Note, Payee shall forgive the entire outstanding unpaid principal balance due under this Note. Table 4.3 SCLAA Loans to KND Affiliates as Summarized by the City Attorney Loan Dates Loan Description Total Loan Amounts Not specified Not specified December 18, 2007 Four separate loan agreements for purposes of assisting KND in meeting its obligations under the settlement agreement. Additional loan for purposes of assisting KND in meeting its obligations under the settlement agreement. To complete KND’s obligations under the settlement agreement and develop improvements not budgeted for under settlement agreement, develop additional tenant improvements, and finance certain change orders. Total Amount Loaned as of December 18, 2007 According to SCLAA Board Staff Report: $47,977,880 Note: Total amount equaled $52,881,839 as of December 18, 2007 due to accrued interest. $2,000,000 $12,300,000 $67,181,839 Source: SCLAA Board staff report submitted by Authority Counsel on December 18, 2007 regarding resolution 07-009. 4-8 Harvey M. Rose Associates, LLC
Page 1 and 2:
FINAL REPORT COUNTY OF SAN BERNARDI
Page 3 and 4:
EDITORIAL COMMITTEE From left to ri
Page 5 and 6:
Honorable Ronald M. Christianson, P
Page 7 and 8:
2011-2012 GRAND JURY SAN BERNARDINO
Page 9 and 10:
TABLE OF CONTENTS 2011-2012 GRAND J
Page 11 and 12:
CITIES/SPECIAL DISTRICTS COMMITTEE
Page 13 and 14:
2011‐2012 San Bernardino County G
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
May 15, 2012 Ted Burgnon, Foreman a
Page 25 and 26:
Executive Summary Harvey M. Rose As
Page 27 and 28:
Executive Summary year to prevent b
Page 29 and 30:
Executive Summary never completed a
Page 31 and 32:
Executive Summary purposes that dir
Page 33 and 34:
Introduction Harvey M. Rose Associa
Page 35 and 36:
Introduction Victorville was establ
Page 37 and 38:
Introduction Exhibit 1 City of Vict
Page 39 and 40:
Introduction boundaries of the Vict
Page 41 and 42:
Introduction The SCLAA operated und
Page 43 and 44:
Section 1: Financial Condition In t
Page 45 and 46:
Section 1: Financial Condition Tabl
Page 47 and 48:
Section 1: Financial Condition Cash
Page 49 and 50:
Section 1: Financial Condition Char
Page 51 and 52:
Section 1: Financial Condition has
Page 53 and 54: Section 1: Financial Condition Char
Page 55 and 56: Section 1: Financial Condition City
Page 57 and 58: Section 1: Financial Condition Impa
Page 59 and 60: Section 1: Financial Condition Tabl
Page 61 and 62: Section 1: Financial Condition Reco
Page 63 and 64: Section 2: Inter-fund Loans and Use
Page 79 and 80: 3. Power Plant Developments Th
Page 81 and 82: Section 3: Power Plant Developments
Page 99 and 100: Section 4: SCLA Hangar Development
Page 103: Section 4: SCLA Hangar Development
Page 111 and 112: Section 5: SCLAA Bond Expenditures
Page 123 and 124: 2011-2012 San Bernardino County Gra
Page 125 and 126: COUNTY COMMITTEE Back row: Darrell
Page 127 and 128: 2011‐2012 San Bernardino County G
Page 141 and 142: HUMAN SERVICES COMMITTEE Back row:
Page 147 and 148: LAW AND JUSTICE COMMITTEE COUNTY OF
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
RESPONSE ACCOUNTABILITY COUNTY OF S
Page 213 and 214:
2011-2012 San Bernardino County Gra
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
show all

FINAL REPORT - San Bernardino Superior Court

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?