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Home My WebLink About15-031 CERB Financing Howard Street Resolution 15-031 Page I of 2 RESOLUTION NO. 15-031 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE WASHINGTON STATE COMMUNITY ECONOMIC REVITALIZATION BOARD (CERB) FOR AID IN FINANCING THE COSTS OF PUBLIC FACILITIES CONSISTING OF THE HOWARD STREET CORRIDOR PUBLIC INFRASTRUCTURE AND STORMWATER FACILITIES WHEREAS, the Howard Street corridor between Sims Way and Discovery Road is commercially zoned property that the City has an interest in seeing developed to its highest and best use; and WHEREAS, The City is completing the design and right of way acquisition for the Howard Street Project; and WHEREAS, the City was awarded a grant of$300,000 from CERB for assistance in adding the roundabout at Discovery Road and has been awarded a loan of$1,200,000 for a regional stormwater facility that would handle the runoff from Howard Street as well as from the properties adjacent to the Howard Street improvements; and WHEREAS, Council believes it is the best interests of the Howard Street Project that the City accept this grant and this loan, to be repaid from stormwater utility revenues. NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Port Townsend: Section 1. The City Manager of the City of Port Townsend is hereby authorized and directed to execute a final contract with CERB and such other documents as may be required for securing aid in financing the cost of the above-described public facilities. Section 2. The City Council accepts the offer from the CERB of a grant in the amount of $300,000, and a loan in the amount of$1,200,000, said loan to bear interest at a rate of 3.0%per annum. Repayment of said revenue loan shall be consistent with the terms provided in the signed Initial Offer of Financial Aid and more particularly as follows: Subordinate revenue loan of$1,200,000 Interest rate: 3%per annum on the outstanding principal balance Term: 20 years maximum A copy of the initial Offer of Financial Aid is attached as Exhibit A. Section 3. As required by CERB, staff is directed to establish a separate fund to be known as the CERB Fund. Establishment of this fund applies to CERB grants and loans. In the case of a loan, there shall be sufficient monies placed in this fund to meet the above- detailed repayment schedule. The source of payment is stormwater utility funds, Resolution 15-0.31 Page 2 of 2 including developer repayments. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 17th day of August 2015. David ing Mayor Attest: Approved as to form: rA Joanna Sanders, HMC Steven L. bross City Clerk City Attorney Resolution 15-031 Exhibit A Project Nurnberg B2015-011 Contract#:S25-790A0-0653 Washington State Department of Commerce Community Economic Revitalization Board Initial Offer of Financial Aid City of Port Townsend Federal Tax Number:91-6001267 Offer Date:March 19,2015 The Community Economic Revitalization Board(CERB)is authorized by chapter 43.160 RCW to provide funds to political subdivisions to assist in financing the cost of certain public facilities.This Initial Offer of Financial aid is contingent upon the availability of CERB funds.CERB hereby offers to make funds available to the City of Port Townsend,hereafter referred to as the"Contractor,"in order to aid in financing the cost of,or improvements to,public facilities consisting of Cloward Street Corridor Public Infrastructure,as described in the application(hereafter collectively referred to as the"Project"). This offer consists of: • Subordinate revenue loan of$1,200,000 • Interest rate:3.0 percent(%)per annum on the outstanding principal balance • Term:20 years maximum ■ Grant of$300,000 This offer is subject to completion of pre-contract conditions,as described in Attachment A. A final contract shall be developed by CERB prior to disbursement of funds.No project costs incurred prior to this offer date will be reimbursed by CERB. In the event a final contract is not executed,no CERB funds will be disbursed. If accepted,this Initial Offer of Financial Aid must be signed and returned to CERB by April 27,2015. ACCEPTANCE FOR C RB FOrTHE NTRA T . Steve R.Anderson,Chair Name; _ vl Community Economic Revitalization Board Title: Date: _ _ .._. �I� ��c�f-�i _- - Date: