HomeMy WebLinkAbout95-095Resolution No. 95- Q-~
A RESOLUTION 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, 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, 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, the Community Redevelopment Block Grant Fund currently contains
$51,992.45; and
WHEREAS, David Hero and Allison Hero, husband and wife, have applied to the
City's Main Street Redevelopment Loan Fund Committee ("Committee") for a loan in the
amount of $25,011.00 for seismic upgrades and facade improvements of the Mffier and
Burkett Building (Elks Building).located at 237 Taylor Street, in Port Townsend,
Washington; and
WHEREAS, the Committee has reviewed the application by David Hero and Allison
Hero 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
$25,011.00 to David Hero and Allison Hero, 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 a form and with companies acceptable to the City, and
the Title Report shall show the borrower as the sole owner of the property, subject only
to those exceptions, encumbrances, rights, reservations or other matters which are
acceptable to the City Treasurer, the City Attorney, and the Mayor of the City.
5. The Promissory Note shall provide for semi-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
month s 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 RESOL~ 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 $25,011.00.
2 q ".95'
ADOPTED by the City Council of the
on this 7th day of August, 1995.
Townsend and signed by the Mayor
M. Clise, Mayor
Attest:
~cting City Clerk
08/03/95 CA§Rca\BlockGrl .doc}
TimothyTl~ahP, Cit~ Attorney
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