HomeMy WebLinkAboutResolution No. 4914
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COUNCIL 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.
PASSED: 5:3
REJECTED:
OPPOSED: Bettman, Ortiz, Taylor
ABSENT:
RECUSED:
CONSIDERED: July 23, 2007
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:
Section 1. HUD Loan Contract and Note Authorized. The City Council hereby
authorizes the execution and delivery of the HUD Loan Contract in the amount of $7,895,000,
substantially in the form which has been reviewed and approved by the City Manager or the
person designated by the City Manager to act on behalf of the City pursuant to this Resolution
(the "City Official"). The City Council also hereby authorizes the execution and delivery of a
revenue bond under Ordinance No. 20376 in the form of one or more Notes (the "2007 Project
Notes") that are required by the HUD Loan Contract. The 2007 Project Notes shall be in a
maximum principal amount of $7,895,000, and proceeds of the 2007 Project Notes shall be used
to provide financial assistance for the 2007 Project.
Section 2. Delegation. The City Official may, on behalf of the City and without further
action by the Council:
(1) Negotiate the final terms of, execute and deliver the HUD Loan Contract and the
2007 Project Notes, and perform all of the City's obligations under the HUD Loan
Contract and the 2007 Project Notes.
(2) Pledge to secure the City's obligations under the HUD Loan Contract and the
2007 Project Notes, and grant HUD a right of assignment in all or any portion of,
the following: (a) the allocations or grants which have been made or for which the
City may become eligible under Section 106 of title I of the Housing and
Community Development Act of 1974, as amended (the "Act"), as well as any
grants which are or may become available to the City pursuant to Section 1 08( q)
of the Act; (b) "program income," as defined at 24 CFR 570.500(a) (or any
successor regulation), directly generated from the use of the amounts received by
the City under the HUD Loan Contract and the 2007 Project Notes;. (c) payments
made by the Agency to the City under bonds authorized by the Agency resolution
adopted on the date of this resolution that authorizes issuance of urban renewal
bonds to finance projects that receive funding under the HUD Loan Contract; (d)
proceeds (including insurance and condemnation proceeds) from any of the
foregoing; (e) funds or investments in the accounts established under the HUD
Loan Contract; and (f) any other amounts that are required by HUD.
(3) Negotiate the final terms of, and accept, one or more bonds issued by the Agency
to pay amounts due to HUD under the 2007 Project Notes;
(4) Execute and deliver any agreements or certificates and take any other action in
connection with the HUD Loan Contract and the 2007 Project Notes which the
City Manager finds is desirable to permit the City to sign the HUD Loan Contract,
execute and deliver the 2007 Project Notes and obtain funds from HUD for the
2007 Project.
Section 3. Effective Date. This resolution shall take effect immediately upon adoption.
The foregoing Resolution adopted on the 23rd day of July, 2007.
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City Recorder