HomeMy WebLinkAbout15-006 HUD Loan Teresa Hoffman Resolution 15-006
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RESOLUTION NO. 15-006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON AUTHORIZING EXECUTION OF DOCUMENTS AND
DISBURSEMENT FUNDS FOR A LOAN OF COMMUNITY DEVELOPMENT BLOCK
GRANT FUNDS PURSUANT TO RESOLUTION NO. 15-001
Applicant(s): Teresa Hoffmann, Mano Wai, LLC
WHEREAS,the City Council of the City of Port Townsend previously authorized
Resolution 15-001, establishing the terms and limits for certain loans of Community
Development Block Grants for sidewalk improvements and other improvements in the City
business district; and
WHEREAS,pursuant to Resolution 15-001, the minimum loan amount is $1,000 and the
maximum loan amount is $40,000; and
WHEREAS,the Community Development Block Grant Fund currently contains in
excess of$146,000; and
WHEREAS,the Community Development Block Grant Fund is a revolving loan fund
intended to encourage downtown reinvestment and rehabilitation, preservation and restoration of
historic properties in the Downtown Historic District; and
WHEREAS, Teresa Hoffmann, Mano Wai LLC, dba Port Townsend Athletic Club,
hereinafter referred to as "Borrower,"have applied to the City's Main Street Development Loan
Fund Committee ("Committee") for a loan in the amount of$20,000.00 for the replacement of
windows at the Port Townsend Athletic Club Building located at 229 Monroe Street in Port
Townsend, Washington; and
WHEREAS,the Committee has reviewed the application by Borrower for funds for
historic restoration projects in the Downtown Historic District and has unanimously approved the
request as being consistent with Resolution 15-001; and
WHEREAS,the City Council has reviewed the loan proposal previously approved by the
Committee, and the terms of the loan,
NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Townsend that a loan of Community Development Block Grant Funds in the amount of
$20,000.00 to Borrower pursuant to the terms of Resolution 15-001 is hereby approved, subject to
the following conditions:
1. Funds shall be disbursed by the City Finance Department/Director upon completion of
construction after verification to the City's satisfaction of satisfactory completion of the
work. Borrower shall provide evidence of expenditures to the City Finance
Department/Director to support disbursement of the funds.
Resolution 15-006
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2. Interest at the rate of 5 percent per annum shall accrue upon all funds disbursed from
the date of disbursal.
3. The loan transaction shall be in accordance with a Truth in Lending Disclosure
Statement, Promissory Note, Deed of Trust, and such other documents necessary to close
the transaction, in a form approved by the City Attorney.
4. Borrower is required to provide title insurance in the amount of the loan in favor of the
City.
5. The Promissory Note shall provide for annual payments beginning 6 months after
disbursement of the loan proceeds, in self-amortizing payments,together with interest at
the rate of 5 percent per annum, payable in 10 years.
6. Interest charges shall be rebated as follows:
a. all interest charges will be rebated for loans paid off within 12 months of date of
recorded lien;
b. all interest charges in excess of 1 percent will be rebated for loans paid off within
24 months of recorded lien;
c. all interest charges in excess of 2 percent will be rebated for loans paid off within
36 months of recorded lien;
d. all interest charges in excess of 3 percent will be rebated for loans paid off within
48 months of recorded lien;
e. all interest charges in excess of 4 percent will be rebated for loans paid off within
60 months of recorded lien.
BE IT FURTHER RESOLVED, the City Council authorizes the City Manager to
execute any and all documents necessary to close the loan, and the City Finance Director shall
issue the City's warrant or warrants for the loan from the Community Development Block Grant
Fund account for the total amount of$20,000.00.
ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 20th day of January, 2015.
V
David King
Mayor
Attest: Approved as to form:
Joanna Sanders, CMC teven L. ross
City Clerk City Attorney