HomeMy WebLinkAbout99-009Resolution No. 99- ~ D c}
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND
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): Barbara Donovan, Lou Schwartz -- Amount $8,000
The City Council of the City of Port Townsend, WashingtOn, does resolve as follows:
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
WItE~S, 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 $40,000; and
WI-IE~, 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, Barbara Donovan and Lou Schwartz, 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 $8,000 for interior paint, repair and exterior lighting of the WashingtOn
Street Building located at 922-930 Washington 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 88-58; and
WttEREAS, 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 for the City of Port
Townsend that a loan of Community Redevelopment Block Grant Funds in the amount of $8,000
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 mounts expended and satisfactory
completion of the work. Borrower shall present 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.
of the City.
Borrower is required to provide title insurance in the amount of the loan in favor
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 annnm, 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 Mayor 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 $8,000.
2 nes. 99- OOq
ADOPTED by the City Council of the City of Port Townsend and signed by the Mayor
on this Ist day of February, 1999.
Attest:
Pam Kolacy, City ~lerk (J
01/12/99
[HUD] Form\Grant\{ 1-BD-LS.res}
ul~McCulloch, Mayor
'xty Attorney
3 Res. 99- D 0 ~