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HomeMy WebLinkAbout96-153Resolution No. 96.- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND AUTHORIZING EXECUTION OF DOCUMENTS AND DISBURSEMENT OF $19,500 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO KEITH D. JACKSON, 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's historic 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 Development Block Grant Fund currently contains $63,901.08; 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, Keith D. Jackson, has applied to the City's Main Street Development Loan Fund Committee ("Committee") for a loan in the amount of $19,500.00 for exterior masonry work in restoration of the James and Hastings Victorian Square historic building site located at 940 Water Street in Port Townsend, Washington; and WI-IE~S, the Committee has reviewed the application by Keith D. Jackson 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 $19,500.00 to Keith D. Jackson, 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. 4. The borrower shall be required to provide title insurance in the amount of the loan in favor of the City in accordance with Resolution 88-58. 5. The Promissory Note shall provide for annual payments, beginning January 1, 1997, in self-amortizing payments together with interest at the rate of 6 percent per annum, payable by semi-annual payments in 5 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; 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 $19,500.00. ADOPTED by the City Council of the City of Port Townsend and signed by the Mayor on this 16th day of December, 1996. Attest: Pam Kolacy, 12/11/96 CA§Re~{Blockl3r4.doc} JUlie~ Yifnothy ~'~han,tCity Attorney 2