HomeMy WebLinkAbout08-016 Authorizing CM to execute docs approving City's participation in public offering for FY2008 for MWMC HUD loan (B-01-DC-53-0001)RESOLUTION N0.08-016
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS
APPROVING THE CITY'S PARTICIPATION IN THE PUBLIC OFFERING FOR FY
2008 FOR THE NWMC HUD LOAN (NOTE NUMBER B-Ol-DC-53-0001 /PORT
TOWNSEND)
WHEREAS, City (as sponsor/borrower) previously participated with NWMC to obtain a
HUD loan for the. NWMC project (Note Number B-O1-DC-53-0001 /Port Townsend). The loan
was set up on apass-through, non-recourse basis, meaning that in the event of default by the
NWMC, there was no recourse against the City for payment. The balance is approximately
$690,000; and
WHEREAS, HUD requests the participation of the City (as borrower) to agree to re-
financethe debt for the current variable/fixed rate note to guaranteed trust certificates,
essentially, taking out the current financing with federal trust certificates.. The note terms remain
the same (including, the note remains on anon-recourse basis). No new debt is created for the
City by participation in this public offering.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Townsend as follows:
The City Council hereby authorizes the City Manager to execute documents approving the City's
participation in the public offering for FY 2008 for the NWMC HUD loan (Note Number B-Ol-
DC-53-0001 /Port Townsend).
ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 19th day of May, 2008.
Attest:
i C
Pamela Kolacy, MMC
City Clerk
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Michelle Sandoval, Mayor
Approved as to form:
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John P. Watts
City Attorney
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