AMENDMENT 1
TO
DEFERRED PAYMENT AGREEMENT
Qualified Non-Residential Project
AND
PROMISSORY NOTE
Deferred Public Facility Fees
Qualified Non-Residential Project
FOR
HAMPTON INN BY HILTON HOTEL
(Permit #BP21-00268)
AMENDMENT 1 TO DEFERRED PAYMENT AGREEMENT
AND
PROMISSORY NOTE
This Amendment 1 to the Deferred Payment Agreement and Promissory Note for Public Facilities Fees (the “First Amendment”) is made as of __________ ____, 2022, by and between the City of Stockton, a municipal corporation (“City”) and Gill Hospitality, LLC, a California limited liability company and Sethi Holdings, LP, a California limited partnership (together, the “Owner” and “Borrower”), (collectively, the “Parties”) with reference to the following facts:
RECITALS
The Parties entered into that Deferred Payment Agreement for Qualified Non-Residential Project Ten-Year Program (the “Agreement”), dated June 14, 2021, contract number 422000017 NP, for the property located at 3651 Arch Road, Stockton, CA 95212 regarding Building Permit Number BP21-00268, pursuant to the City’s Public Facilities Fee Program.
Of even date therewith, the Parties entered into that Promissory Note for Deferred Public Facilities Fees (the “Note”), pursuant to which the Borrower promised to pay the City Five Hundred Fifty-Seven Thousand Five Hundred Eighty-Seven Dollars and Eighty Cents ($557,587.80). That Note being secured by a deed of trust recorded in the office of the County Recorder of the County of San Joaquin. Under the terms of the Note, the Borrower was to begin annual repayments as of July 15, 2022.
Subsequent to the execution of the Agreement and Note, Borrower has experienced supply chain issues for materials and timeline challenges with utility agencies, resulting in a delay of the project timeline as originally anticipated.
Due to the current economic situation, Borrower has requested to delay the first payment until the following year in order to allow time for project completion and revenue accumulation.
City has agreed to Borrower’s request to defer the first payment until the following year.
The Parties now desire to enter into this First Amendment to revise the repayment schedule of the Agreement and the Note.
WITH REFERENCE TO THE FACTS DESCRIBED ABOVE, the Parties agree as follows:
Amendment to the Agreement. The Agreement is hereby amended as follows:
Section 10 of the Agreement is amended to allow for the first payment, which became due July 15, 2022, to be deferred until July 15, 2023.
Amendment to the Note. The Note is hereby amended as follows:
The Note is amended to allow for the first payment, which became due on July 15, 2022, in the amount of $61,995.78, to be deferred until July 15, 2023. During deferral, interest shall continue to accrue on the unpaid principal balance in accordance with the Note. For the avoidance of doubt, both the first and second annual installments totaling $123,991.56, together with interest, shall be due on July 15, 2023.
Amendment to the Payment Schedule. The payment schedule in the Agreement and Note is hereby amended as follows:
The City, through the City Manager, shall have the authority to defer both the first and second installments, together with interest, to become due no later than December 31, 2023. Such a deferral is at City’s sole discretion and must be in writing.
No Further Amendments. Except as expressly modified by this First Amendment, all other provisions of the Agreement and the Note shall remain in full force and effect. In the event of any conflict between this First Amendment and the Agreement or the Note, the provisions of this First Amendment shall prevail.
California Law. This Amendment shall be governed by and construed in accordance with the laws of the State of California.
Counterparts. This First Amendment may be executed in counterparts, each of which shall be deemed to be an original.
AS OF THE DATE FIRST WRITTEN ABOVE, the Parties evidence their agreement to the terms of this First Amendment by signing below:
GILL HOSPITALITY,
A California limited liability company
________________________________
Jivtesh Gill, General Partner
SETHI HOLIDAYS,
A California limited partnership
________________________________
Gaurav Sethi, General Partner
CITY OF STOCKTON,
A California municipal corporation
_________________________________
Harry Black, City Manager
ATTEST:
_________________________________
Eliza R. Garza, City Clerk
APPROVED AS TO FORM:
_________________________________
Lori M. Asuncion, City Attorney
Deferred Payment Agreement Amendment
Gill Hospitality LLC & Sethi Holdings LP
2 Contract No. 422000017 NP
3651 Arch Road, BP21-00268
EXHIBIT 2
EXHIBIT 2