HomeMy WebLinkAbout11-009 CDBG Loan - Human Performance AcademyResolution 11 -009
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RESOLUTION NO. 11 -009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PORT TOWNSEND, WASHINGTON, AUTHORIZING
EXECUTION OF DOCUMENTS AND DISBURSEMENT OF
FUNDS FOR A LOAN OF COMMUNITY REDEVELOPMENT
BLOCK GRANT FUNDS PURSUANT TO RESOLUTION NO. 09 -012
OF THE CITY OF PORT TOWNSEND
Applicant(s): Human Performance Academy, Inc. - Teresa Hoffman
(Port Townsend Athletic Club)
WHEREAS, the City Council for the City of Port Townsend previously authorized
Resolution 09 -012, establishing the terms and limits for certain loans of Community
Redevelopment Block Grants for sidewalk improvements and other improvements in the City
business district; and
WHEREAS, pursuant to Resolution 09 -012, the minimum loan amount is $1,000 and the
maximum loan amount is $40,000; and
WHEREAS, the Community Redevelopment Block Grant Fund currently contains in
excess of approximately $100,000; 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, Human Performance Academy, Inc. — Teresa Hoffman, hereinafter referred
to as "Borrower," has applied to the City's Main Street Redevelopment Loan Fund Committee
( "Committee ") for a loan in the amount of up to $40,000 for building upgrades at the building
located at 229 Monroe Street in Port Townsend, Washington; and
WHEREAS, the Committee has reviewed the application by Borrower for funds for
historic restoration projects in the Downtown Historic District and has unanimously approved the
request as being consistent with Resolution 09 -012 contingent upon the closing sale of the
building, as well as on the condition that the roof and stormwater removal system is in place
prior to the tuckpointing project,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Townsend that a loan of Community Redevelopment Block Grant Funds in the amount of up to
$40,000 to Borrower pursuant to the teens of Resolution 09 -012 is hereby approved, subject to
the following conditions:
1. Funds shall be disbursed by the City Finance Department /Director upon
completion of construction after verification to the City's satisfaction of the amounts
expended and satisfactory completion of the work. Borrower has to present receipts and
other evidence of expenditures to the City Finance Department /Director to support
Resolution 11 -009
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disbursement of the funds. Funding is contingent upon the closing sale of the building, as
well as on the condition that the roof and storniwater removal system is in place prior to
the tuckpointing project.
2. Interest at the rate of 5 percent per annum shall accrue upon all funds
disbursed from the date of disbursal.
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 forin approved by the City Attorney.
4. Borrower is required 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 5 percent per annum, payable in 10 years.
6. 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 charges in excess of 1 percent will be rebated for loans paid off
within 24 months of recorded lien;
C. all interest charges in excess of 2 percent will be rebated for loans paid off
within 36 months of recorded lien;
d. all interest charges in excess of 3 percent will be rebated for loans paid off
within 48 months of recorded lien;
e. all interest charges in excess of 4 percent will be rebated for loans paid off
within 60 months of recorded lien.
BE IT FURTHER RESOLVED, the City Council authorizes the City Manager to
execute any and all documents necessary to close the loan, and the City Finance Director shall
issue the City's warrant or warrants for the loan from the Community Redevelopment Block
Grant Fund account for the total amount of up to $40,000.
ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 2nd day of May 2011.
ichelle Sandoval, Mayor
Att
Pamela Kolacy, MMC, City Clerk ('
Approved as to form:
John P. Watts, City Attorney