HomeMy WebLinkAbout95-094Resolution 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. $8-58 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
$51,992.45; 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, George Nieminen and Maryann Nieminen, husband and wife, have
applied to the City's Main Street Redevelopment Loan Fund Committee ("Committee") for a
loan in the amount of $1,962.00 for emergency roof repair of the Mary Webster Building,
located at 920 Washington Street in Port Townsend, Washington; and
WHEREAS, the Committee has reviewed the application by George Nieminen and
Maryann Nieminen 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
$1,962.00 to George Nieminen and Maryann Nieminen 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 not be required to provide title insurance in the amount
of the loan in favor of the City as allowed by Resolution 88-58 for loans under $10,000.
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 FURTI-IER 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 $1,962.00.
2 qg_qq.
ADOPTED by the City Council of the
on this 7th day of August, 1995.
end and signed by the Mayor
M. Clise, Mayor
Attest:
//Micl~ael Hfidt, Acting City Clerk
08/03/95 CA§Res{Blockgr.doc}
Approved as to Form:
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