HomeMy WebLinkAbout12-020 Execution and Disbursement of Funds for Community Development Block Grant Loan to Philippa Mills and Dan Meyerson of 632 Water Street, LLC Resolution 12-020
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RESOLUTION NO. 12-020
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PORT TOWNSEND, WASHINGTON AUTHORIZING
EXECUTION OF DOCUMENTS AND DISBURSEMENT
FUNDS FOR A LOAN OF COMMUNITY REDEVELOPMENT
BLOCK GRANT FUNDS PURSUANT TO RESOLUTION NO. 09-012
OF THE CITY OF PORT TOWNSEND
Applicant(s): PHILIPPA MILLS and DAN MEYERSON,
632 WATER STREET, LLC/PIPPA'S, INC. dba PIPPA'S REAL TEA
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$68,000; 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, Philippa Mills and Dan Meyerson of 632 Water Street, LLC and Pippa's,
Inc. dba Pippa's Real Tea, hereinafter referred to as "Borrower,"have applied to the City's Main
Street Redevelopment Loan Fund Committee ("Committee") for a loan in the amount of
$13,000.00 for the repair and painting of windows and cornice facing Water Street; and the
repair, restoration and painting of the cedar siding on the addition to the Frankling Building
located at 632/636 Water 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; 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 of the City of Port
Townsend that a loan of Community Redevelopment Block Grant Funds in the amount of
$13,000.00 to Borrower pursuant to the terms 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
Resolution 12-020
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expended and satisfactory completion of the work. Borrower shall present receipts and
other evidence of expenditures to the City Finance Department/Director to support
disbursement of the funds.
2. Interest at the rate of 5 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. 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$13,000.00.
ADOPTED by the City Council of the City of Port To end at a re ar meeting
thereof, held this 7th day of May 2012.
David/king, Mayo ,
Attest: Approved as to form:
Pamela Kolacy, MMC t` John P. Watts
City Clerk City Attorney