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gene revels loan agreementCOUNTY USE - 19 Tax Ye ra e Locator Information County Code: Tax Unit: Land Use Code: 1989 TAX YEAR, SALINE COUNTY, KANSAS TANGIBLE PERSONAL PROPERTY AD VALOREM TAX RETURN (Taxpayer_ CITY OF SALINA Name) REVELS, INC. Address)_ 300 WEST ASH SALINA, KS 67401 1 WRfnGaOlnl `---.—._.. Owner Location of Property Address Sec. Twp./Range %C' Corp. Ind. Telephone Number City/Twp. Code: -- - - . _ NOTICE: ... ._ i Parcel ID No. ."'-'------'-'---"---'--'" - K.S.A. 70303: Every person who owns or holds tangible personal property shall list said property for assessment. Property held, and taxable to others. shall be listed with the appraiser in the name of the owner thereof on Schedule 7. K.S.A. 79-306: Filing Deadline: ndividoals on or before March l; Corporations on or before April t. ...... K.S.A. 741622: Penalty for late Filing: Within 15 days, 104e; within 16 to 30 days, 20%; 31 to 45 Gays. 30%; 05 days to :60 days. 40%; more than 60 days. 50%. K.S.A. 791457: Extension of time for filing: The county appraiser may extend the filing deadline 11 taxpayer requests extension of time in venting stating adequate reasons for the request and if request is received by the - ---'^ a----' D�TE APPR ISED B /y county appraiaeron or before the filing deaohna. AFFIRMATION: Please check one and sign below. - "- -- - -- -- - - ` -❑ I DO HEREBY AFFIRM that this summary and "- I DO HEREBY AFFIRM that I did not own or ---the attached schedules contain a full and true --❑ control any property subject to personal pro- --list of all personal property owned or held by --' •--- perty taxation'on the first day of January. - ------- me subject to personal property taxation under -_.F _— -- - ___.-._. -_the laws of the State of Kansas.____. Owner — - - -- --- Date _'_ i . .- By: Other_ _ _ _ .. . _ Title SUMMARY-,..-._---_-_- .. ..... .... ...__.-.....-.. ._. _ SCHEDULE DESCRIPTION-- "-APPRAISED ASSESSED - -- - - PENALTY . __ - TOTAL TAXABLEVALUE .VALUE _VALUE _ SCHEDULE 1 (Class 2A) MOBILE HOMES USED FOR RESIDENTIAL HOUSING -12°/q ` SCHEDULE 2 (Class 2B) MINERAL LEASEHOLD INTEREST. 1 r. Royalty.___ I._.__._.�---.-- 2 -Working Int. 3=ltemEquip_._-'-"-" 4•Sub-Total SCHEDULE 4 (Class 2D) MOTOR VEHICLES 30% _- z..----- . ...._... _ SCHEDULE 5 (Class 2E) i .___.. . __..• ___ _._ _ _ _ COMMERCIAL-& INDUSTRIAL MACHINERYSt EQUIPMENT 20% SCHEDULE 6(Class2F)- I, ALL OTHER PERSONAL PROPERTY ' ---- __.... j --- --° - . ___�30% GRAND TOTALS THIS RETURN Our Local Office Is Located At: 1529 EAST IRON AVE SALINA SCS 67401 Policy No. 870 331 392 A Due Date March 16, 1989 New Premium Payable $1742.50 - CITY OF SALINA 300 WEST ASH ST SALINA ICS 67401 Name of Insured D EUGENE REVELS Dear Policyowner am MeItu AND AFFILIATED COM'PA t MET LIFE Br/Dist A41 Agency 767 Telephone No. 913-827-8757 February 15, 1989 Your policy provides for yearly renewals before the final date that is shown on page 3 of your policy. The premium for the renewal terms will be set by Metropolitan each year. In no case will the adjusted premium exceed the maximum renewal premium as determined from the table on page 4 of your policy. Your new premium and its due date are shown above. While your policy is in force with all due premiums paid, it may be converted, without evidence of insurability, at any time before the policy anniversary at age 60 or the end of the fifth policy year, If later. The new policy may be on any fife plan (not a term plan) for an amount up to the full face amount of the term policy. This letter is not a notice of premium due. It is merely to remind you of the conditions of your policy. If you have any questions about your policy or require the services of your Metropolitan representative, please contact our local office at the address shown above. They will be happy to serve you. Sincerely _ C Manager r 0 m -, Rcn w -ri r7 0 7 zb 3 ri C, m c to For questions or service, call your local sales office or call 1-800-MET-UFE (1-800838-5433). 2810BB.F11M 40100 03381 410-851 Wsbem Bell one I Eel? Tele. Co. .e State 200 _j FWM saw Ow. 4es) Southwestem Bell Tele. Ca. 501 E Pawnee Suite 200 Wichita, Kansas 67211 SW80798 TRANSFER OF SERVICE AGREEMENT (9-86) I hereby release the use of telephone number_ �seinone s signature 5/ ate eitherbbilled orassume aunbill d, fncludinges icharges foron the ewhitenpage direer fl. adver;z n ar white page (fine num Directory advertising includes advertising associated with the telephone number in the white pages of the current issue of the directory as - well as for subsequent issues as described in an application for white page advertis�irig signed the present customer. New oust r s signature Please return form to: Southwestern Bell 501 E. Pawnee, Suite 200 Wichita, Kansas 67211 TO: Dennis M. Kissinger, City Manager Roy Dodark, City Planner Robert K. Biles, Finance Director FROM: Frank R. Weinhold, Director of General Services SUBJECT: Revels/Carrousel/Big John's Building Date: January 23, 1989 The Revels building uses a wet fire sprinkling system which means the building must have some heat to keep the pipes from freezing. Since the City took responsibility of the building on January 13, 1989 three of the nine furances were not operating. The Building Division has either repaired or had the furnace repaired for a cost of $88.45. This was charged to the contingency fund 18 - 404. There were also a couple of water pipes leaking. However, the water was shut off to these pipes to stop the leaks. One garbage disposal leaks, however, this should not cause the City any problems. The wind during the morning hours of January 21 caused the alarm system to go off four times. An electrician was called to repair this discrepancy. It is believed the Profession Alarm Systems will pay this bill. At the present, the Building Division makes a walk through inspection of the building once a week. During working hours, Profession Alarm Systems knows to call the General Service office and the Police at night for any disturbances. 129 South 8th P.O. Box 380 Salina, KS 67402-0380 CITY ATTORNEY GREG A. BENGTSON (913) 823-6325 January 24, 1988 Jacqueline Shiever City Clerk P.O. Box 736 Salina, Kansas 67402-0736 Re: Revels, Inc. Dear Jackie: Enclosed for safe keeping with your office are the w originals of the following documents which have now been recorded with the Saline County Register of Deeds: U- U- C> (1). Quitclaim Deed from Revels, Inc. to the City u3 of Salina for the Carousel building and surrounding real estate dated January 12, 1989. Uj i. (2). Estoppel Affidavit by Eugene Revels as >-.President of Revels, Inc. dated January 12, 1989. F—. `-3 Thank you. Sincerely, CITY OF SALINA, KANSAS r g A. Bengtson C t Attorney GAB/dg Enclosures cc: Dennis Kissinger, City Manager Roy Dudark, Director of Planning and Community Development MEMBER ... LEAGUE OFKANSAS MUNICIPALITIES • NATIONAL LEAGUE OF CITIES c� r� 00 E M o= LU Ln 4- N a m 00 CITY ATTORNEY GREG A. BENGTSON (913) 823-6325 January 24, 1988 Jacqueline Shiever City Clerk P.O. Box 736 Salina, Kansas 67402-0736 Re: Revels, Inc. Dear Jackie: Enclosed for safe keeping with your office are the w originals of the following documents which have now been recorded with the Saline County Register of Deeds: U- U- C> (1). Quitclaim Deed from Revels, Inc. to the City u3 of Salina for the Carousel building and surrounding real estate dated January 12, 1989. Uj i. (2). Estoppel Affidavit by Eugene Revels as >-.President of Revels, Inc. dated January 12, 1989. F—. `-3 Thank you. Sincerely, CITY OF SALINA, KANSAS r g A. Bengtson C t Attorney GAB/dg Enclosures cc: Dennis Kissinger, City Manager Roy Dudark, Director of Planning and Community Development MEMBER ... LEAGUE OFKANSAS MUNICIPALITIES • NATIONAL LEAGUE OF CITIES D�06 Duck -y Page ®o ITCLAIM DEED REVELS, INC., a Kansas corporation, quitclaims to the CITY OF SALINA, KANSAS, a municipal corporation, all the following described real estate in the County of Saline and the State of Kansas, to wit: All of Lots One (1), Two (2), Three (3), and Twelve (12) in Block One (1) in the West- port Exchange Addition to the City of Salina, Saline County, Kansas, for the sum of One Dollar ($1.00) and other valuable considerations. This deed of conveyance shall not merge with that mortgage by Revels, Inc. to the City of Salina, Kansas, dated January 6, 1987, and duly recorded in the office of the Register of Deeds in Book 390 of Mortgages, pages 511-514, given to secure a certain promissory note dated January 6, 1987, in the principal sum of $400,000. This deed of conveyance shall also not restrict the right of the Grantee to institute foreclosure or other appropriate proceedings if the Grantee desires, but the conveyance by said deed shall be and is hereby intended and understood to be an absolute conveyance and an unconditional sale, with full extinguishment of Grantor's equity of redemption, and with full release of all Grantor's rights, title, and interest of every character in and to said property • ,.^� ,SSE CO,} ••<. STATE OF KANSAS SS,Dated COUNTY OF SALINE 11 FILED FOR RECORD IN MY OFFIC&) ON JAN 1 9 1989 AT �a O'CLOCKAM. AN ULY RECORDED VO T PAGED EG. OF DEEDS this 12th day of January , 1989,M s °° a TI tllo}ereo In 'L^Ta�oejf,4t� �eQ�i{,t� Iq! cT4)Ctti9a, lLfa._ge��pp-• REVELS, INC, my of a,C.FS }� 6...6 D. luff w : }t,OpiAit Dbt1 •_ By STATE OF KANSAS, SALINE COUNTY, o On this 12th day ofJanuary , 1989, before me, the undersigned, a notary public in and for the county and state aforesaid, personally appeared Eugene Revels, President of Revels, Inc., known tome to be the person who executed the within instrument on behalf of said corporation and acknowledged to me that he executed the same for the purposes therein stated. NhMDt ExR �B. .1991 .(.i,.. / OW -m. &n,� Notary Public Misc. Book PaSe n e ESTOPPEL AFFIDAVIT STATE OF KANSAS ) ) ss: SALINE COUNTY ) THIS AFFIDAVIT made this 12th day of January . 1989 on behalf of Revels, Inc. (hereinafter referred to as "Grantor"), by its president, Eugene Revels, who, after being duly sworn, states: That Grantor agreed to assume the obligations of a certain promissory note dated January 6, 1987, in the principal sum of $400,000 and secured by a mortgage dated January 6, 1987, and duly recorded in the office of the Register of Deeds of Saline County, Kansas, in Book 390 of Mortgages, pages 511-514, covering the real estate located at 621 Westport Boulevard, Salina, Kansas, and more particularly described as follows: All of Lots One (1), Two (2), Three (3) and Twelve (12) in Block One (1) in the Westport Exchange Addition to the City of Salina, Saline County, Kansas. The Grantor has defaulted,in the payments due on said note upon which the principal amount of $400,000, plus interest from October 1, 1988, is at present due and payable and is unable to meet the obligations of said note and mortgage according to the terms thereof. The Grantor made, executed, and delivered that certain deed to the City of Salina, Kansas, a municipal corporation, hereinafter referred to as "Grantee," dated the 12th day of January, 1989, conveying the above described property. The Grantor hereby acknowledges, agrees, and certifies that the aforesaid deed was an absolute conveyance of all the Grantor's rights, title, and interest in and to said real estate, together with all buildings thereon and appurtenances thereunto belonging,and appertaining, releasing all dower and homestead rights in and to said real estate, and also conveyed, transferred and assigned the Grantor's right of possession, rentals, equity of redemption and right of redemption in and to said premises. Said deed was given voluntarily by the Grantor to the Grantee, in good faith on the part of the Grantor and Grantee, without any fraud, misrepresentation, duress or undue influence whatsoever, or any misunderstanding on the part of the Grantor or Grantee and was not given as a Misc. Book / � Page.=(. preference against any creditors of said Grantor. Said Grantee has not assumed any liability or responsibility for any indebtedness against said property. Said deed of conveyance shall not merge with said mortgage and shall not restrict the right of the Grantee to institute foreclosure or other appropriate proceedings if the Grantee desires, but the conveyance by said deed shall be and is hereby intended and understood to be an absolute conveyance and an unconditional sale, with full extinguishment of Grantor's equity of redemption, and with full release of all Grantor's rights, title, and interest of every character in and to said property. This affidavit has been made for the protection and benefit of the aforesaid Grantee in said deed, its successors and assigns, and all other parties hereafter dealing with or who may acquire an interest in the property described therein, and shall bind Revels, Inc., its successors and assigns. Revels, Inc. By Eugen Revels, esident STATE OF KANSAS, SALINE COUNTY, ss: On this 12th day of January , 1989, before me, the undersigned, a notary public in and for the county and state aforesaid, personally appeared Eugene Revels, President of Revels, Inc., known to me to be the person who executed the within Estoppel Affidavit on behalf of said corporation and acknowledged to me that he executed the same for the purposes therein stated. SHEILA M. CARPENTER Stade of Kansas MYANt UR Aug.14,1991 STATE OF KANSAS 55. COUNTY OF SALINE FILED FOR RECORD IN MY OFF CE ON JAN 1 9 1989 AT /0,aaOTLOCKAMAN DULYpRECORDED 0/ n / VO - EG. OF DEEDS 4-0/ - - l9t U 6eF .elm ...:,y. - �.. , y. .. y ...4•. y1Nt .K? F7c'-i :.. .: t.�„ J 1t�. .rSG' 2 . O . •9 w, 4T Y O U O e . FMED 3 O F O Vo. ue ij O + 2!� Ail 11 3 HUE .. CI Y OF S,«JU,; KS m I m go° CITY CLERV& OFFICE . ... cr •_ m " W w Ecr .. .. PA a Aj C7 .. Aon=� o, o U s - .9 Li It w` s WM s�<Ys m U d 2N!- r b V E o CD N ✓; a f' Lr '��'mcaa- N w . V E WOWy m d S'O (y JZFL M W2lA. cmc$m A ZE' ti e 7.732 s�2!� w C7LC.Trt_I ww w 3.4 - E m � d kU m `n QN(yQ ... oz UM-00I OEl_Y �� a ...:,y. - �.. , y. .. y ...4•. y1Nt .K? F7c'-i :.. .: t.�„ J 1t�. .rSG' 2 COMMERCIAL PROPERTY RETURN CouNTYCHP+ \ ..SALINE toif, 7 Talcs. No. ` 9 3 1 9,Z!57 Z ?/ f (Doing Business As) Location of properly if different: , (Street Addrose) '- --"'_. jgjy) Location: Sec. Twp. ring. INSTRUCTIONS. Complete each section as It pertains to you. Filing Deadline (K.S.A. 79=306) INDIVIDUALS BEFORE MARCH 1 CORPORATIONS APRIL 1 MERCHANTS APRIL 15 Penalty for late filing or failure to file up to 15 days - 10%; 95 to 30 days 20%; 30 to 45 days - 30%;.45 to 60 days - 40%; 61 days to 1 year - 50%; over 1 year - 100% CHECK CLASSIFICATION OF PROPERTY ASSESSED ON THIS STATEMENT 1 ❑ Fanning or Ranching Alum/Steel 2 ❑ Non -Business 'ersn 3 ❑ Merchandising Service 9 ❑ Service Station 4 O Manufacturing 10 ❑ Elevator 5. ❑ Professional 11 ❑ Bank, S & L or Insurance Co. 6 ❑ Contractor :. 1200ther Business 1 ❑ Organization, 13 ❑ Cable T.V. 8 ❑ Bonded Warehouse. Accessories • Document No. IV0►^naAtT, Tax Unit Namdv (P.C. Adress); _. (CIIY) (State) � (Zip) DO NOT PLACE ANY INFORMATION IN THE RED OLOCKED SECTION - APPRAISER USE ONLY. Is property located within rho corporate limits of a city? 1. Yes ❑ 2. Nr APPRAISER'S SUMMARY PropertyType ' M.W. a.J. , Trailers Alum/Steel , Mobile flames, ate. 'ersn 51h Wheel?. : Accessories Leased LandockVehicles Truck Bolles Make Year T FUmensions; mensions Alum/Steel S-00 Machinery S Equipment .Axles Re u. S-09 Rested or Leased Equipment Accessories S•10 Construction Equipment Trucks - HD Make 8.11 Merchants Inventory Model S-12 Manufacturers Inventory CC or Trae. S-13 Other c f 8.14 Bonded Warehouse Wheel Powers Tool Trucks -'LO . ' Make. Pehal - . .J,9 ab ` . a 0 Total: Rated Tons Wheel Base S-05 Grain Total Bushels Tax_ SPACE 3 FOR VEHICLES LISTED ON THE SCHEDULES BELOW: Insert dne"l a Information rationed In the columns, one one Per VISION. SCHEDULE 1 — TRUCKS. TRAILERS Trailers Make: Year i No. Slaps Alum/Steel Rated Tans Axles 51h Wheel?. : Accessories DO NOT Truck Bolles Make Year T FUmensions; mensions Alum/Steel Hated Tons .Axles Re u. Hoists, etc. Accessories WRITE IN Trucks - HD Make Year Model E or Cony CC or Trae. Brake T Slee r Size "Gas a Dsl Wheel Powers THIS Trucks -'LO . ' Make. Year Model ab style Bed Size Rated Tons Wheel Base Gas or Dal Wheel Power SPACE 3 it addilMnM Inn are headed Mach Supplement 2 . 3 CO.Cab Over HCO-Me" Cab Over NCO. Non Cab over, TEL. Telescopic. TC.Tmk Camper, TDO.Teleseo k: Cab Over. CM.Ch9. Mtd. 3 IY 4 6 7 e 9 11 Additional lines are needed ;Ulach Supplement. SCHEDULE 2 — BUSES NOBILE HOMES NON•HIChVAY VEHICLES' - Buses - Make Year Model Chs. Make Typet A/C? Gas or Off LID? Rated Seats DO NOT Mobile Homes A Make Year'. Model Length Width Add. LN. Arms F/P S C/P Bow/Bav Win Patio S Porch ' WRITE IN No -Hwy. Vhcls.a buy Make Year Model Cos. Make Model No. Dears Gas, Oil Elea. HP or CC Dimensions THIS SPACE 3 5 6 II additional Ilan are needed altach Supplement. 1 School, Transit. Intercity. etc. 2 Autos, Cycles. Motor Homes, etc. SCHEDULE a — CAMPERS Caroling Trailers Make Year Model Lentil Wldlh No. Slaps F-Oul Site weight Cost New DO NOT Trawl Trailers Make Year Model Length Wlmh No. Sleeps Sall-Cont'd? I 51h Wheel? Weight WRITE IN Track Campers Make Year Model Length Werth No. SaRmSSell-Cont'd? C. Desi no .Cost New .' THIS SPACE 1 2 • 3 it addilMnM Inn are headed Mach Supplement 3 CO.Cab Over HCO-Me" Cab Over NCO. Non Cab over, TEL. Telescopic. TC.Tmk Camper, TDO.Teleseo k: Cab Over. CM.Ch9. Mtd. PV -LA -4 Special (P) Lockwood Co., Inc.. Atchison, Kansas s n I M0 SALIM" Me AS TA Va SM6 r ,1, cis; KANSAS DEPAiMW''Fb*T9EVENUE DIVISION OF TAXATION e� mm�� z� RIFF THE*?�"f� O� S, TO THE SHERIFF OF SALINE Spy GREETINGS: REG. NO. 14-2110 0014 AMOUNT DUE.: $11,545.73 COUNTY WHEREAS, pursuant to the provisions of the Kansas Statutes Annotated, the Director has determined that Euene Revel 621 Westport Salina, KS 67401 currently owes delinquent SALES d/b/a, Revel's Inc. 1700 East Iron Salina, KS 67401 taxes, interest, and/or penalties of $ 11j545.73 , due for the periods August 1987. P&I; September 1987 and P&I thru January 1988 and PERI which is now due and unpaid, even though demand therefore has been made. NOW, THEREFORE, under the authority vested by law in the Director of Taxation YOU ARE HEREBY COMMANDED to levy upon and sell the goods and chattels of the above tax- payer; and if these are not available, to levy upon and sell the real estate and any interest therein of said taxpayer, sufficient to make payment of the amount stated above and any additional penalty, interest, fees or costs provided by law; YOU ARE FURTHER COMMANDED to file this warrant within five. (5) days after you receive it with the Clerk of the District Court of your County, and within ninety (90) days to make return hereof to the Director with your certificate showing the:.manner of execution. IN WITNESS WHEREOF, I have set my hand and affixed the official seal of the Director of Taxation hereto, this 21st Sdgy of Ks^gess fou M+th11t M State �t +th the cby a veto AS"SA '�n he~ a 46 COO 0 eM1t tatreal" aars er (SEAL) Apri l , 1988 UlEwt—or—of Taxation John R: Luttjohann NOTE TO SHERIFF: No law exempting any goods, chattels, land or tenements from forced sales under execution shall apply to a levy and sale under this warrant. Date received by the Sheriff: Date filed in the Office of the Clerk of the District Court: (Ref. Income/K.S.A. 79-3235, Withholding/K.S.A. 79-32,107.) JRL:AKA:bll FS/c38 (Rev. 6/84) Sales and Use/K.S.A. 79-3617, :and n^�FILE MEMO From: Greg A. Bengtson 1^{!K Re: Carousel Building Alarm System Date: January 23, 1989 Morrie Soderberg called me this morning to report that he had received a call from Barry Queen with Southwestern Bell regarding the Carousel building alarm system. Apparently, Southwestern Bell had contacted Beverly Revels about whether the alarm system should be continued. Mrs. Revels informed Southwestern Bell that they should terminate the system unless directed differently by Charles Walker. I then called Roy Dudark who agreed with me that we should continue the alarm system which ties into the Salina Police Department. I then spoke with Barry Queen of Southwestern Bell (574-1261) and reported our desire to continue the service in the name of the City. Mr. Queen explained that there are currently $155 in charges outstanding on the account and that the monthly charge for the system is $36.30. He explained our two options as follows: 1. The City could assume the Revels account, including the existing $155 balance, and continue the service with a $21.00 fee at the same monthly rate of $36.30. 2. The City could allow the Revels account to be terminated and reinitiate service with a $200.00 service charge, followed by the same monthly expense of $36.30. I then spoke briefly with Roy and Dennis. It was decided to take option 1 and take over the existing Revels account. I then left a message with a Southwestern Bell representative for Mr. Queen advising him that the existing Revels account should be transferred to the City and that any billings should be directed to Robert K. Biles, Director of Finance. I then reported back to Morrie Soderberg that we had made arrangements to continue the alarm service. Mr. Queen called me later in the afternoon to confirm that he had received my message. He also said he would be calling Mrs. Revels and forwarding the necessary forms to her for signature. cc: Morrie Soderberg Dennis Kissinger, City Manager Roy Dudark, Director of Planning and Community Development Bob Biles, Director of Finance LOAN AGREEMENT THIS AGREEMENT is entered into as of the 23rd day of December, 1986 by and between Revels, Inc., a corporation authorized to transact business within the State of Kansas, hereinafter referred to as the "Corpo- ration", and the City of Salina, Kansas, a municipal corporation located in Saline County, Kansas, hereinafter referred to as the "City". This Agree- ment will not become effective until all conditions placed upon the City's funding approval are satisfied and funds are released by the Kansas Depart- ment of Economic Development (KDED). WHEREAS, the City has received a grant in the amount of $400,000 under the Housing and Community Development Act of 1974, as amended, principally to benefit low and moderate -income persons by malting a loan to private for-profit entities; WHEREAS, the purpose of the loan is to enable the Corporation to create approximately 24 new jobs in the private sector with 90% of those new employees to be of low and moderate -income levels; and NOW THEREFORE, in consideration of these premises and the mutual covenants and promises set forth below, the parties to this agreement hereby agree as follows: M. Loan. Upon receipt of the grant funds from KDED, the City shall lend to the Corporation the sum of $400,000 under the terms set forth in the Note attached to this agreement as Exhibit "A" and incorporated herein by this reference. (2). Use of Proceeds. From the $400,000 in loan proceeds, Corporation shall use $395,000or the purchase of the Carousel Restaurant and Club building located at 621 Westport Blvd, in Salina, Kansas and the remaining $5,000 for organization and administrative costs incurred in con- nection with the project. (3). Security. The loan shall be secured in the following manner: (a) The Corporation shall grant to the City a first mortgage in substantially the same form as that attached and incorporated herein as Exhibit "B". The Corporation agrees to pay the cost of recording and registering the mortgage. The Corporation agrees to execute such documen- tation as is necessary to perfect the security interest. (b) The Corporation shall provide mortgagee's title insurance insuring mortgagee's interest in the real estate in an amount of no less than $400,000. (c) The Corporation shall maintain an insurance. policy on the life of Gene Revels which shall provide the City with a death benefit which shall be equal to the amount by which the City has subordinated its mortgage lien to the mortgage lien of Charles W. Walker and Carolyn L. Walker on the Carousel building. (4). The Corporation shall: (a). Carry out the project as described in the application submitted to and approved for funding by KDED within the schedule set forth in the application, a copy of which is attached to this Agreement as Exhibit "C" and incorporated herein by this reference. (b). Provide expanded employment opportunities at the Salina plant, by either retaining or creating 24 staff positions, with 90% of those employees to be of low to moderate -income levels. (5). Compliance with Law. Corporation shall operate the Salina plant in full compliance with applicable federal, state, and local laws includ- ing, without limitation, federal laws relating to equal employment opportunity and occupational health and safety, the Kansas Building Code, and the City's land use ordinances. (6). Availability of Records. Corporation shall make available to the City, KDED or their duly authorized representatives all books, accounts, records, reports, files and other papers pertaining to funds provided under this Agreement for the purpose of making audits, examinations, and monitor- ing and shall retain such records for a period of three years following closeout and resolution of all pending matters. (7). Costs and Expenses. The Corporation acknowledges that all costs associated with obtaining and securing the loan shall be paid by the Corporation including: (a). Administrative costs incurred by the City in arranging and processing the loan. (b). Legal expenses incurred by the City in documenting and securing the loan. (c). Any expenses incidental to securing the loan, including but not limited to: (i). Appraisal costs (H). Recording fees (iii). Mortgage registration fees (iv). Mortgagee's title insurance All such expenses shall be specifically itemized and shall be paid by the Corporation from the loan proceeds at the time such proceeds are made available to the Corporation. (8). Prepayment. The Corporation reserves full right of prepay- ment at any time during the term of the loan, without penalty. In the event of such prepayment in full, the City shall promptly release all remaining property given as security for the loan. (1). Community Development Grant Agreement. Notwithstanding anything herein to the contrary, the parties hereto acknowledge the due execution of the Community Development Grant Agreement between the City and KDED and agree that any conflict between the provisions, requirements, duties or obligations of this Agreement and the Community Development Grant Agreement shall be resolved in favor of the Community Development Grant Agreement. (10). Applicable Law. This loan agreement constitutes a legally enforceable contract and shall be governed and construed in accordance with the laws of the State of Kansas. (11) Bindin Effect. The provisions of this loan agreement shall both bind and benefit thethe parties hereto and their, successors and assigns. CIT) ATTEST: 1._ j* a.," D. L. Harrison, I City I Clerk 1 ATTEST: overly 6,Plevels, Mecretary 3 REV) By: PROMISSORY NOTE FOR VALUE RECEIVED, Revels, Inc., hereinafter referred to as the "Corporation", promises to pay to the order of the City of Salina, Kansas, a municipal corporation, hereinafter referred to as the "City", at the offices of the City, the principal sum of Four Hundred Thousand Dollars ($400,000) with interest thereon at the rate of Three Percent (3$) per annum commencing 1988, all in accordance with the following terms and conditions: (1) Pa en! of Princi al and Interest. The Corporation shall pay the principal o this note in two undrerorty (240) equal, consecutive, monthly installments of $2,218.39 each, commencing on the 1st day of 1988, and a like sum on or before the 1st day of each and every month thereafter until , on which date the entire indebtedness then outstanding, including principal and interest, shall be paid in full. Payments shall be applied first to the interest on the unpaid balance of the indebtedness, and then to the reduction of the principal. (2) Waivers. The Corporation hereby waives presentment, demand of payment, protest, and notice of nonpayment and of protest, and any and all other notices and demands whatsoever. No waiver of any pay- ment or other right under this note shall operate as a waiver of any other payment or right. (3) Security. This note is secured by a first mortgage executed by the Corporation constituting a mortgage lien on the following described real estate, including all existing and future improvements and fixtures, including but not limited to the computer message reader sign presently in place on the real estate, in Saline County, Kansas: All of Lots One (1), Two (2), Three (3) and Twelve (12), in Block One (1) in the Westport Exchange Addi- tion to the City of Salina, Saline County, Kansas. The mortgage terms shall be those set forth in the mortgage instrument attached hereto as Exhibit "B" and incorporated herein by this reference. (4) Prepayment. This note may be prepaid, at any time, in whole or in part, without penalty, and in the event of a prepayment the amount remaining after the prepayment shall be amortized over the remaining months of the payment period in equal monthly installments. (5) Loan Agreement. The Corporation and the City acknowledge that this note is made pursuant to and subject to the terms and conditions of the Loan Agreement dated as of the 23rd day of December, 1986, entered into between the parties. EXHIBIT"A" (6) Default. This note shall be considered in default: (a) Upon any default or failure to strictly perform under the Loan Agreement dated as of the 23rd day of December, 1986, or the mort- gage securing this note. (b) Upon any occurrence under such Loan Agreement or Mortgage by which this note may or shall become due and payable. (c) Upon failure to pay any installment required hereunder on the date it is due. (d) Upon failure in the performance of any other obligation of the Corporation. (e) At any time that the City determines in good faith that the prospect of any payment required by this note is impaired. In the event of default, the City may, at its option, declare all unpaid indebtedness evidenced by this note and any modifications hereof, immediately due and payable, without notice, and regardless of date of maturity. The City's failure at any time to exercise this option shall not constitute a waiver of its right to exercise the same at any other time. Should it become necessary to collect this note through an attorney, the Corporation agrees to pay all costs of collecting this note, including reason- able attorneys' fees, whether collected by suit, foreclosure, or otherwise. (7) BindingCorpoEffect. The provisions of this note shall both bind and benefit the ration's successors; assigns, guarantors, endorsers, and any other person or entity now or hereafter liable hereon. Dated this day of , 1986. ATTEST: Beverly G. Revels, Secretary 2 Revels, Inc. By: Eugene Revels, President REAL ESTATE MORTGAGE THIS INDENTURE, made this day of , 1986, between REVELS, INC., a corporation authors ed to transact 'business within the State of Kansas, hereinafter referred to as "Mortgagor", and the CITY OF SALINA, KANSAS, a municipal corporation, located in Saline County, Kansas, hereinafter referred to as "Mortgagee". (1) Mortgage. Mortgagor, in consideration of the sum of One Dollar ($1.00) and other valuable consideration, hereby grants, mortgages, and warrants to Mortgagee, its successors and assigns, all of the following described real estate located in Saline County, Kansas: All of Lots One (1), Two (2), Three (3) and Twelve (12), in Block One (1) in the Westport Exchange Addi- tion to the City of Salina, Saline County, Kansas. including all existing and future improvements, and fixtures, including, but not limited to the computer message reader sign presently in place on the real estate, and together with all the appurtenances and all of the estate, title, and interest of the Mortgagor therein, hereinafter collectively referred to as the "Property", to have and to hold the Property unto the Mortgagee, forever. (2) Security and Amount of Lien. This mortgage is given to secure (a) performance o all obligations owed by Mortgagor to Mortgagee and (b) the payment of any sums of money which may be advanced to Mort- gagor herein at the date of this mortgage or from time to time hereafter; however, that the lien of such mortgage shall not exceed $400,000 principal at any one time, plus the unpaid interest accumulated thereon, all as evi- denced by that certain Promissory Note dated , 1986, herein- after referred to as the "Note". This mortgage shall secure the payment of any and all extensions or renewals and successive extensions or renewals of the Note and of any indebtedness at anytime secured by this mortgage, and all interest on the same, all of which extensions or renewals shall be optional with Mortgagee, and for all of which this mortgage shall stand as continuing security until paid and shall remain in full force and effect until all advances heretofore, now or hereafter made by virtue of this mortgage are paid in full, with interest. This mortgage also secures the performance of all other obligations of the Mortgagor in connection with this loan transaction as set forth in the Loan Agreement between the parties dated , the Note and this Mortgage. EAHB1T "pr (3) Additional Security. As additional collateral security for the performance of all obligations and the payment of such sum or sums of money, with interest, and the taxes and insurance premiums on the Prop- erty, Mortgagor hereby transfers, assigns, sets over, and conveys to Mort- gagee all rents, and other income that may from time to time become due and payable under any lease(s) of any kind now existing or hereafter to come into existence covering the Property, or any portion thereof, with authority to collect the same. Mortgagor hereby agrees to execute, acknowledge, and deliver to Mortgagee such leases to other instruments as Mortgagee may now or hereafter require in order to facilitate the payment to and of such rents and other income, which rights are to be exercised by Mortgagee only in the event of delinquency or default in compliance with the terms of this Mortgage and the debt hereby secured. Such assignment shall terminate and become void upon the payment and release of this Mortgage. Should operation under any lease seriously depreciate the value of the Property, then all notes secured by this Mortgage shall thereupon become due and payable, at the option of Mortgagee. (4) Good Title. Mortgage hereby covenants and agrees that at the delivery hereo�he lawful owner of the Property, and is seized of a good and indefeasible estate of inheritance therein, free and clear of all encumbrances, and that it will warrant and defend the same against any and all claims whatsoever. (5) Abstract or Title Insurance. Mortgagor has or will deliver to Mortgagee, upon Mortgagee's request, either abstracts or title showing merchantable title in Mortgagor to the Property, or Mortgagee's title insur- ance policies insuring Mortgagee's interest in the Property in the amount of no less than $400,000. Mortgagee agrees to pay for the cost of any exten- sion of such abstracts during the term of this Mortgage or the cost of the title insurance policies, and should Mortgagor neglect to pay the same, Mortgagee may do so and recover from Mortgagor the amount paid therefore, and this Mortgage shall stand as security therefore. Futhermore, Mortgagee agrees to pay for examination of the abstracts of title for Mortgagee's title opinion, if required. (6) Good Condition and Repair. Mortgagor agrees to keep and maintain the buildings and other improvements now on the Property, or which may be hereafter erected thereon, in good condition at all times, and not suffer waste or permit a nuisance thereon. (7) Taxes and Insurance. Mortgagor hereby agrees to pay all taxes assessed on the Property be ore any penalties or costs accrue thereon. Mortgagor also agrees to keep the Property insured at an amount not less 2 than Eighty percent (80%) of the full insurable (replacement) value under the co-insurance provisions of the insurance policy, and to cause Mortgagee to be shown as a Mortgagee under the loss payable clause, with an insurance company satisfactory to Mortgagee. In the event of default, Mortgagee may pay the taxes and accruing penalties, interest and costs, and may insure the same at the expense of Mortgagor. THe expense of such taxes and accruing penalties, interest and costs, and insurance, shall from the date of payment thereof become an additional lien under this Mortgage upon the Property, and shall bear interest at the rate of ten percent (10%) per annum until paid to Mortgagee. (8) Waiver of Right of Redemption. Mortgagor hereby waives the right of redemption. (9) Release of Mortgage. If Mortgagor shall cause to be paid to Mortgagee the entire amount due hereunder and under the terms and pro- visions of the Note hereby secured, including future advances, and any extensions or renewals thereof, in accordance with the terms and provisions thereof, and comply with all the provisions in the Note and this Mortgage contained, upon execution of release, then this Mortgage shall be void; otherwise to remain in full force and effect. Time is expressly made the essence hereof. (10) Default. If default is made in the performance of any obligation of Mortgagor, or in the payment of the Note, or any part thereof, or interest thereon, or in the timely payment of any prior encumbrance, principal or interest, if any, or in the payment of the taxes assessed on the Property, or if the insurance is not maintained thereon, or if all or any part of the Property or any interest therein is sold or transferred by the Mortga- gor without the Mortgagee's prior written consent, or if any other terms of the Note, this Mortgage, or any of the other Loan Documents are breached by Mortgagor, then the whole of the principal sum hereby secured, with interest, and all taxes and accruing penalties and interest and costs remaining unpaid or which may have been paid by Mortgagee, and all sums paid by Mortgagee for insurance, shall become immediately due and payable, at the option of Mortgagee. It shall be lawful for Mortgagee at any there- after to take possession of the Property and foreclose and sell the same, or any part thereof, in the manner prescribed by law, appraisement waived or not, at the option of Mortgagee. Out of all money arising from such foreclo- sure sale, Mortgagee may retain the amount due or to become due to it according to the conditions of this instrument, together with the costs and charges of making such sale, including reasonable attorneys' fees, and the balance, if any, shall be paid by the party making such sale, on demand, to Mortgagor. IN TESTIMONY WHEREOF, Mortgagor has caused this Mortgage to be signed in their names on the day and year first above written. ATTEST: Beverly G. Revels, Secretary ATTEST: D. L. Harrison, City Clerk 4 REVELS, INC. By: Eugene Revels, President CITY OF SALINA, KANSAS M