Resolution No. 4914 - Laserfiche WebLink

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RESOLUTION NO. 4914 A RESOLUTION AUTHORIZING EXECUTION OF A HUD SECTION 108 LOAN CONTRACT IN THE AMOUNT OF $7,895,000 AND NOTES IN THE AMOUNT OF $7,895,000. The City Council of the City of Eugene finds as follows: A. The City of Eugene is one of only eleven communities in the United States to be approved for a Brownfields Economic Development Initiative grant from the United States Department of Housing and Urban Development ("HUD") in Fiscal Year 2005. The grant is in the amount of $2,000,000. B. The BEDI grant award is conditioned upon, and must be used in conjunction with, a new Section 108-guaranteed loan commitment made by HUD pursuant to section 108 of title I of the Housing and Community Development Act of 1974, as amended and 24 CFR Part 570, Subpart M (the "HUD Loan Guarantee Law and Regulations"). The guaranteed loan is expected to be in the amount of approximately $7,895,000. C. The City enacted Ordinance No. 20376 on February 26,2007, authorizing the City to issue up to $7,895,000 of revenue bonds to finance loans and other assistance for economic development, property acquisition, public facilities, large-scale physical development projects and any other projects that are eligible for funding under Section 108 (the "Projects"). More than thirty days have passed since that ordinance was enacted, no citizens have petitioned to have the ordinance authorizing those bonds referred to the voters, and the City is now authorized to issue the revenue bonds described in that ordinance. D. Ordinance No. 20376 authorized the City to secure any HUD Loan Contracts with federal grant funds, revenues and rights the City obtains in connection with the projects, repayments of loans and other assistance provided by the City pursuant to Section 108, payments from the Urban Renewal Agency of the City of Eugene (the "Agency"), and similar amounts. The City anticipates that the Agency will authorize a resolution on the date of this resolution that will allow the Agency to sell a bond to the City in an amount equal to the amount due to HUD under the 2007 Project Notes. E. The City adopts this resolution to authorize: (i) execution and delivery of a "Contract For Loan Guarantee Assistance Under Section 108 Of The Housing And Community Development Act of 1974, As Amended, 42 U.S.C. S5308" with HUD (the "HUD Loan Contract") in the amount of $7,895,000, (ii) the execution and delivery of a revenue bond under Ordinance No. 20376 in the form of one or more Notes that are required by the HUD Loan Contract in the amount of not more than $7,895,000 to finance property acquisition for the West Broadway Redevelopment Project (the "2007 Project"); and (iii) City staff to take other actions to obtain funds from HUD under the HUD Loan Contract for the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eugene, a municipal corporation of the State of Oregon, as follows: