HomeMy WebLinkAbout20-008 Authorizing Execution of Documents and Disbursement of Funds for a Loan of Community Redevelopment Block Grant Funds pursuant to Resolution 15-001 (Russell C. Welch/Terry Building)Resolution 20-008
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RESOLUTION NO. 20-008
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. 15-001
Applicant: Russell C. Welch
WHEREAS, the City Council for the City of Port Townsend previously authorized
Resolution 15-001, establishing the terms and limits for certain loans of Community
Redevelopment Block Grants for sidewalk replacement and building rehabilitation and
preservation in the City business district; and,
WHEREAS, pursuant to Resolution 15-001, the minimum loan amount for rehabilitation
and preservation is $1,000 and the maximum loan amount is $40,000; and,
WHEREAS, the Community Redevelopment Block Grant Fund currently contains in
excess of $190,000; 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, Russel C. Welch (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 $40,000.00 to help finance restoration of the exterior of the Terry Building at 919
Washington 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 approved the request as
being consistent with Resolution 15-001; 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
$40,000.00 to Borrower pursuant to the terms of Resolution 15-001 is hereby approved, subject
to the following conditions:
Funds shall be disbursed by the City Finance Department/Director upon completion of
construction after verification to the City's satisfaction of satisfactory completion of the
work. Borrower may elect to submit invoices for interim payments before completion of
the work. Borrower shall submit evidence of expenditures or invoices submitted 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.
Resolution 20-008
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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.
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 up to $40,000.00.
BE IT FURTHER RESOLVED, the City Council directs the City Manager to include
the appropriations for this loan in the 2020 supplement budget.
ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 2nd day of March 2020.
Attest.
Joanna Sanders, MMC mm_.
City Clerk
Michelle Sandoval
Mayor
Approved as to form:
Heidi Circe ood
City Attorney