HomeMy WebLinkAbout02-020RESOLUTION NO. 02-020
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON AUTHORIZING THE CITY MANAGER TO EXECUTE
LOAN FUND DOCUMENTS WITH THE STATE OFFICE OF COMMUNITY
DEVELOPMENT AND U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT IN THE AMOUNT OF $1,000,000 FOR THE
NORTHWEST MARITIME (NWMC) PROJECT, AND FURTHER, TO
EXECUTE AN AGREEMENT WITH THE NWMC REGARDING PROJECT
MANAGEMENT AND EXPENDITURE OF GRANT MONIES, AND
FURTHER, TO AWARD A CONSTRUCTION CONTRACT FOR THE
DEMOLITION AND ENVIRONMENTAL REMEDIATION OF THE
NWMC CLEANUP
WHEREAS,
1. The NWMC is a non-profit corporation. The NWMC is a qualified 501 (c)(3)
corporation (corporation//2-489-302-6; unified business identification #601-537-165), with an
established volunteer Board of Directors. The NWMC is organized and dedicated to the
beneficial public purpose of acquiring a parcel of property on Port Townsend's shoreline (the
"NWMC" property, also known as the "Thomas Oil" property), and developing the property for
use as a Maritime Center, dedicated to educational and cultural related purposes, and such other
purposes as described herein.
2. The City supports the NWMC because its Success will demonstrate what can be
achieved when local governments and community organizations work together to stimulate new
economic development opportunities. The development of the site will assist in revitalizing the
eastern end of downtown Port Townsend, promote sustainable economic development with an
emphasis on marine trades, and will provide a critical and compatible link between the historic
downtown and the water-oriented character of Port owned properties at Point Hudson.
3. On June 5, 2000, the City passed Resolution #00-036 authorizing the City
Manager to submit a grant application to the U.S. Department of Housing and Urban
Development (HUD) Brownfields Economic Development Initiative (BEDI) in support of the
NWMC. Among other things, City Resolution #00-036 provided that any BEDI grant monies
awarded to the City of Port Townsend for the NWMC project would be passed on to the NWMC
to be used to partially fund site cleanup and redevelopment of the NWMC property.
4. On August 31, 2000, the NWMC purchased the Thomas Oil property.
5. On March 8, 2001, HUD awarded a $500,000 BEDI grant (herein, the "grant" or
"BEDI grant") to the City of Port Townsend to fund a portion of the NWMC project, including
demolition, environmental cleanup and rehabilitation of the existing dock (HUD grant number B-
01-DC-53-0001).
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6. On January 28, 2002, HUD approved a further request by the City for loan
guarantee assistance under Section 108 of the Housing and Community Development Act of
1974, to finance other activities associated with the NWMC project, including the following:
a. Retiring the balance of an interim loan payable to the sellers of the Thomas Oil
property;
b. Paying for a portion of the rehabilitation costs associated with the existing dock
on the Thomas Oil property; and
c. Professional services including design, engineering, and land use and
environmental permit assistance associated with the NWMC project.
This funding approval amended the grant agreement, above, to include $1,000,000 in loan
guarantee assistance to the City for the NWMC project.
7. The City Council determines it appropriate to authorize the City Manager to
execute documents that will carry the NWMC project forward.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council hereby resolves as
follows:
1. The City Manager is authorized to enter into a loan fund agreement with the state Office
of Community Development (OCD) and U.S. Department Housing and Urban Development for
$1,000,000 to finance activities associated with the NWMC, including documents necessary to
carry out the terms of the loan fund consistent with HUD BEDI grant approved March 8, 2001
number B-01-DC-53-0001 for award of $500,000 grant, to finance demolition, environmental
cleanup and rehabilitation of the existing dock; as amended January 28, 2002 for loan guarantee
assistance under Section 108 of the Housing and Community Development Act of 1974, to
finance other activities associated with the NWMC project, including the following:
Retiring the balance of an interim loan payable to the sellers of the Thomas Oil
property;
b.
Paying for a portion of the rehabilitation costs associated with the existing dock
on the Thomas Oil property; and
Professional services including design, engineering, and land use and
environmental permit assistance associated with the NWMC project.
The documents that the Manager is authorized to execute on behalf of the City include, but are
not limited to:
Federal
Documents:
a. Grant agreement;
b. Variable/fixed rate note;
c. Contract for Loan Guarantee;
d. Signature cards/Request for Advance and Letter Agreements;
e. Model Legal Opinons;
f. Amended and Restated Master Fiscal Agency Agreement;
g. Trust Agreement; and
h. Supplement.
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State Documents:
Corporate Borrowing Resolution;
a. Loan Fund Agreement;
b. Commercial Security Agreement;
c. UCC-1 Filing;
d. Deed of Trust and Assignment of Leases and Rents.
2. The City Manager is authorized to execute an Agreement ("City-NWMC
Agreement") with the NWMC Regarding The Expenditure of Brownfields Economic
Development Initiative (BEDI) Grant Moneys Awarded to the City to be Passed Through to the
NWMC to Fund Demolition and Environmental Clean-Up Activities Associated with the
Development of the NWMC Facility, in Port Townsend, Washington, and to execute and carry
out all responsibilities of the City regards the Agreement.
3. The City Manager is authorized to execute a contract and take all necessary to
carry out the contract for the demolition and environmental remediation of the Northwest
Maritime Center Cleanup, consistent with and subject to the terms of the "City-NWMC
Agreement" and the state Office of Community Development and U.S. Department of Housing
and Urban Development loan and grant documents.
ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 6th day of May, 2002.
Kee~
Attest:
Pamela Kolacy, CMC 0
City Clerk
Approved as to form:
John P. Watts
City Attomey
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