HomeMy WebLinkAbout89-066 RESOLUTION NO. ~;--~
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT
TOWNSEND AUTHORIZING EXECUTION OF DOCUMENTS AND DIS-
BURSEMENT OF FUNDS FOR A LOAN OF COMMUNITY DEVELOPMENT
BLOCK GRANT FUNDS PURSUANT TO RESOLUTION NO. 88-58 OF
THE CITY OF PORT TOWNSEND
WHEREAS, the City Council for the City of Port Townsend previ-
ously authorized by Resolution No. 88-58 the terms and limits for
certain loans of Community Development Block Grant funds for side-
walk improvements and other improvements in the City business dis-
tricts, and
WHEREAS, Mount_Baker Block Corporation 'has applied for
a loan from the City's HUD loan panel of such funds in the amount of
$12,000 for certain rehabilitation and preservation work to be done
upon the Mount Baker Block building located at Water and Taylor
Streets in Port Townsend, Washington, which work consists of con-
struction and installation of a fire escape to the historic building,
and
WHEREAS, the City Council has review the loan proposal previ-
ously approved by the HUD loan panel, and the terms of the loan and
the documents therefor should be approved, now, therefore,
BE IT RESOLVED by the City Council for the City of Port Town-
send that a loan of Community Development BloCk Grant funds in the
amount of $12,000, pursuant to the terms of Resolution No. 88-58 of
the City Council, to Mount Baker Block Corporation,..! be and the
same is here and hereby approved, subject to the following, conditions:
1. Funds shall be disbursed by the City Clerk upon completion
of construction, after verification by the City to the City's saris-
- 1 -
faction of the amounts expended and satisfactory completion of the
work. The borrower shall present receipts and other evidence of ex-
penditures to the City Clerk to support disbursement of the funds.
2. interest at the rate of 6% per annum.shall accrue upon all.
funds di'sbursed from the'date of dispersal.
3. The loan transaction shall be in accordance with the at-
tached documents to this Resolution, including Truth in Lending Dis-
closure Statement, Promissory Note, and Deed of Trust, which are
incorporated herein as if set forth in full, and such other docu-
ments necessary to close the transaction.
4. The borrower shall provide title insurance in the amount
of the loan in favor of the City, in a form and with companies ac-
ceptable to the City, and the title report shall show the borrower
as the sole owner of the property, subject only to those excep-
tions, encumbrances, rights, reservations or other matters which are
acceptable to the City Clerk, the City Attorney and the Mayor of
the City.
5. The Promissory Note shall provide for semi-annual payments,
beginning six months after disbursement of the loan proceeds, in
self-amortizing payments together with interest at the rate of 6%
per annum, payable in 10 years.
BE IT FURTHER RESOLVED by the City Council for the City of
Port Townsend that the Mayor for the City is authorized to sign
any and all documents necessary to close said loan in accordance
with this Resolution and the attachments herein, and such other
documents necessary to close the loan, and the Clerk for the City
is hereby authorized to issue the City's warrant or warrants for
said loan in accordance with this Resolution in the total amount of
2,ooo.
PASSED by the City Council for the City of Port To~nsend and
signed by the Mayor this /ST~ day of /9o~,~$ ~ , 1989.
Attest:
David Grove, City Clerk
Mayor Bren~
ApprOved as ~ form:
Keith C. Harper/~City Attorney