HomeMy WebLinkAbout13-015 CDBG Loan Taylor Made LLC Resolution 13-015
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RESOLUTION NO. 13-015
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 TO TAILOR MADE, LLC
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 to historic
properties in the City; 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$47,000.00; 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; and
WHEREAS,TAILOR MADE, LLC, a Washington Limited Liability Company,
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$18,933.00 for replacement of the
roof of the Terry Building located at 923 Washington Street in Port Townsend, Washington; and
WHEREAS, for the purposes of full disclosure, the manager and "owner" of TAILOR
MADE, LLC is David Peterson, the City Engineer; and David Peterson having previously
discussed this matter with City Manager David Timmons and City Attorney John Watts, whose
opinion was that since the HUD loan committee makes an independent recommendation
concerning the approval of any HUD loans, this would avoid the appearance of any conflict of
interest given David Peterson's position as both an employee of the City and a HUD loan
applicant; and
WHEREAS, the Committee has reviewed the application by Borrower for funds for
qualifying historic restoration projects and the members present unanimously approved the
request as being consistent with Resolution 09-012 (noting that Mark Cole was excused so as to
avoid any potential conflict of interest, due to his being a tenant in the Terry Building); and
WHEREAS, the City Council has reviewed the loan proposal previously approved by the
Committee, and the terms of the loan,
Resolution 13-015
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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
$18,933.00 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 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 disbursement.
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 full within 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$18,933.00.
Resolution 13-015
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ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 6th day of May 2013.
David King, Mayoli
Attest: Approved as to form:
-V
Pamela Kolacy, MMC JohnP. Watts
City Clerk City Attorney