HomeMy WebLinkAbout18-027 Affordable Housing Cherry Street Properties; Authorizing a Loan Agreement with Homeward BoundResolution 18-027
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RESOLUTION NO. 18-027
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON RELATED TO AFFORDABLE HOUSING AT THE CITY'S CHERRY
STREET PROPERTIES; AUTHORIZING THE CITY MANAGER TO EXECUTE A
LOAN AGREEMENT WITH HOMEWARD BOUND
WHEREAS, the City of Port Townsend ("City") transferred vacant property located in
the 100 block of Cherry Street (a portion of tax parcel 001024075 and a portion of tax parcel
001023005) to Homeward Bound to be used for affordable housing; and,
WHEREAS, the City Manager briefed Council or Council committees at several
meetings, including, but not limited to, September 5 and November 13, 2017 and April 18 and
April 23, 2018, regarding the challenges associated with securing commercial financing for
completion of Homeward Bound's Cherry Street project; and,
WHEREAS, staff recommends the City sell a private placement bond to Kitsap Bank,
and use the proceeds of that bond to loan to Homeward Bound the funds to complete the project;
and,
WHEREAS, the City Council concludes that supporting this housing initiative is in the
best interests of the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Townsend as follows:
The City Manager is authorized to loan Homeward Bound an amount not to
exceed $834,000.00 and to execute loan and security documents as necessary. The
funds shall come from bond proceeds if the bond is approved by Council by
separate action. It shall be a condition of the loan that a portion of the bond
proceeds be used to repay the promissory note dated April 27, 2017 from
Homeward Bound to the City. Staff shall prepare a budget adjustment as
necessary.
2. The City Manager is authorized to sign all other documents and agreements
consistent with this Resolution.
Resolution 18-027
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ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 7th day of May, 2018.
Nborah S. Stinson
Mayor
Attest:
C
Joanna Sanders, MMC
City Clerk
d as to form:
Steven L. Gross
City Attorney