HomeMy WebLinkAbout97-012Resolution No. 97-
A RF~OLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND
AUTHORIZING EXECUTION OF DOCUMENTS AND DISBURSEMENT OF FUNDS
FOR A LOAN OF COMMUNITY DEVELOPMENT BLOCK GRANT' FUNDS
PURSUANT TO RESOLUTION NO. 88-58 OF THE CiTY OF PORT TOWNSEND
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 Development
Block Grants for sidewalk improvements and other improvements in the city business district; 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 $44,000; and
WlW~REAS, 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
WItEREAs, Middlepoint Associates (Borrower(s) have applied to the City's Main Street
Redevelopment Loan Fund Committee ("Committee") for a loan in the amount of $25,000 for
facade improvements, structural reinforcement and roofing of the Good Templars Hall
building, located at -204' Quincy Street in Port Townsend, Washington; and
WHEREAS, the Committee has reviewed the application by Borrowers for funds for
historic restoration projects in the Downtown Historic District and has unanimously approved the
request as 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 for the City of Port
Townsend that a loan of Community Development Block Grant Funds in the amount of $25,000
to Middlepoint Associates pursuant to the terms of Resolution 88-58 of the City Council, is
hereby approved, subject to the following conditions:
1. Funds shall be disbursed by the City Treasurer upon completion of construction,
after verification to the City's satisfaction of the amounts expended and satisfactory completion
of the work. The borrower shall present receipts and other evidence of expenditures to the City
Treasurer 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.
Q .
4. The borrower shall ~be reqmred 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. All 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 in excess of 1 percent will be rebated for loans paid off within
24 months of recorded lien;
c. All interest in excess of 2 percent will be rebated for loans paid off within
36 months of recorded lien;
d. All interest in excess of 3 percent will be rebated for loans paid off within
48 months of recorded lien;
e. All interest in excess of 4 percent will be rebated for loans paid off within
60 months of recorded lien.
BE IT FURTHER RESOLVED by the City Council for the City of Port Townsend that
the Mayor is authorized to sign any and all documents necessary to close the loan, and the City
Treasurer shall issue the City's warrant or warrants for the loan from the Community
Development Block Grant Fund account for the total amount of $25,000.
ADOPTED by the City Council of the City of Port Townsend and signed by the Mayor
on this ~ day of .?~,~ , 1997.
Attest:
Pam Koiacy, City Clerk
Julie ~ulloch, Mayor
~rimothyl
as to Form:
/l~Mahan, City Attorney
01/29/97 CA§Res{Middle. Res}
2 Res. No. 97- ! 2~