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HomeMy WebLinkAbout95-095Resolution No. 95- Q-~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND AUTHORIZING EXECUTION OF DOCUMENTS AND DISBURSEMENT OF FUNDS FOR A LOAN OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS PURSUANT TO RESOLUTION NO. 88-58 OF THE CITY OF PORT TOWNSEND The City Council of the City of Port Townsend, Washington, does resolve as follows: WHEREAS, the City Council for the City of Port Townsend previously authorized Resolution 88-58, the terms and limits for certain loans of Community Development Block Grants for sidewalk improvements and other improvements in the city business district; 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, the Community Redevelopment Block Grant Fund currently contains $51,992.45; and WHEREAS, David Hero and Allison Hero, husband and wife, have applied to the City's Main Street Redevelopment Loan Fund Committee ("Committee") for a loan in the amount of $25,011.00 for seismic upgrades and facade improvements of the Mffier and Burkett Building (Elks Building).located at 237 Taylor Street, in Port Townsend, Washington; and WHEREAS, the Committee has reviewed the application by David Hero and Allison Hero for funds for historic restoration projects in the Downtown Historic District and has unanimously approved the request as consistent with Resolution 88-58; 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 for the City of Port Townsend that a loan of Community Development Block Grant Funds in the amount of $25,011.00 to David Hero and Allison Hero, pursuant to the terms of Resolution 88-58 of the City COuncil, is hereby approved, subject to the following conditions: 1. Funds shall be disbursed by the City Treasurer upon completion of construction, after verification to the City's satisfaction of the amounts expended and satisfactory completion of the work. The borrower shall present receipts and other evidence of expenditures to the City Treasurer to support disbursement of the funds. 2. Interest at the rate of 6 percent per annum shall accrue upon .all funds disbursed from the date of disbursal. 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. The borrower shall be required to provide title insurance in the amount of the loan in favor of the City in a form and with companies acceptable to the City, and the Title Report shall show the borrower as the sole owner of the property, subject only to those exceptions, encumbrances, rights, reservations or other matters which are acceptable to the City Treasurer, the City Attorney, and the Mayor of the City. 5. The Promissory Note shall provide for semi-annual payments, beginning 6 months after disbursement of the loan proceeds, in self-amortizing payments together with interest at the rate of 6 percent per annum, payable in 10 years. 6. All interest charges shall be rebated as follows: a. All interest charges will be rebated for loans paid off within 12 month s of date of recorded lien; b. All interest in excess of 1 percent will be rebated for loans paid off within 24 months of recorded lien; c. All interest in excess of 2 percent will be rebated for loans paid off within 36 months of recorded lien; d. All interest in excess of 3 percent will be rebated for loans paid off~ within 48 months of recorded lien; e. All interest in excess of 4 percent will be rebated for loans paid off within 60 months of recorded lien. BE IT FURTHER RESOL~ by the City Council for the City.of Port Townsend that the Mayor is authorized to sign any and all documents necessary to close the loan, and the City Treasurer shall issue the City's warrant or warrants for the loan from the Community Development Block Grant Fund account for the total amount of $25,011.00. 2 q ".95' ADOPTED by the City Council of the on this 7th day of August, 1995. Townsend and signed by the Mayor M. Clise, Mayor Attest: ~cting City Clerk 08/03/95 CA§Rca\BlockGrl .doc} TimothyTl~ahP, Cit~ Attorney 3