HomeMy WebLinkAbout04-013RESOLUTION NO. 04-013
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PORT TOWNSEND, WASHINGTON AUTHORIZING
EXECUTION OF DOCUMENTS AND DISBURSEMENT OF
FUNDS FOR A LOAN OF COMMUNITY REDEVELOPMENT
BLOCK GRANT FUNDS PURSUANT TO RESOLUTION NO. 88-58
OF THE CITY OF PORT TOWNSEND
Applicant(s): Hastings Estate Company, Inc., and Jonathan G. Dudley,
Harry H. Dudley and Lucinda Dudley Eubanks
WHEREAS, the City Council for the City of Port Townsend previously
authorized Resolution 88-58, establishing the terms and limits for certain loans of
Community Redevelopment Block Grants for sidewalk improvements and other
improvements in the City business district; and; and
WHEREAS, pursuant to Resolution 88-58, the minimum loan amount is $1,000
and the maximum loan amount is $25,000; and
WHEREAS, the Community Redevelopment Block Grant Fund currently
contains in excess of $135,000; and
WHEREAS, the Community Redevelopment 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, Hastings Estate Company, Inc., and Jonathan G. Dudley,
Harry H. Dudley and Lucinda Dudley Eubanks, hereinafter referred to as "Borrower,"
have applied to the City's Main Street Redevelopment Loan Fund Committee
("Committee") for a loan in the amount of $25,000 to shore up and repair foundation in
the Hastings Building, 839 Water Street, 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 88-58; 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 Redevelopment Block Grant Funds in the
amount of $25,000 to Borrower pursuant to the terms of Resolution 88-58 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 the amounts
1 Resolution 04-013
expended and satisfactory completion of the work. Borrower has presented receipts and
other evidence of expenditures to the City Finance Department/Director to support
disbursement of the funds.
2. Interest at the rate of 6 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 6 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 offwithin 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
Redevelopment Block Grant Fund account for the total amount of $25,000.
ADOPTED by the City Council of the City of Port Townsend at a regular
meeting thereof, held this twenty-ninth day of March, 2004.
Catharine Robinson, Mayor
Attest:
Pamela Kolacy, CMC 0
City Clerk
Approved as to form:
John P. Watts
City Attorney
Resolution 04-013