HomeMy WebLinkAboutCC RESO 15,242RESOLUTION NO. 15,242
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
CALIFORNIA, AUTHORIZING AND APPROVING AN APPLICATION
TO THE U. S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT FOR A LOAN OF FUTURE COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS IN THE AMOUNT OF $700,000
WHEREAS, the Community Development Commission of the City of
National City, California, is in need of funds for property acquisition within
the National City Downtown Redevelopment Project at 8th Street and
National City Blvd.; and
WHEREAS, the National City Downtown Redevelopment Project,
adopted by City Council Ordinance No. 1762 on December 1, 1981, is a voter
approved and a court approved Project; and
WHEREAS, the obtaining by the City of a loan of CDBG Funds
from the U. S. Department of Housing & Urban Development (HUD) is the
least costly method of obtaining $700,000 for property acquisition by the
Community Development Commission at 8th Street and National City Blvd.;
and
WHEREAS, the City's Committee for Housing & Community
Development has considered this matter and has recommended approval and
the Board of Community Development Commission of the City of National
City has considered this matter and has recommended approval; and
WHEREAS, a public hearing has been properly noticed and has been
held on this matter as required by HUD regulations; and
WHEREAS, the loan and the repayment thereof will be done in a
manner which will not impair the City's annual CDBG Program by reason of
method and timing of repayment by the Community Development Commission
using its tax increment funds from the National City Downtown
Redevelopment Project and from earlier approved Redevelopment Projects
which were merged into the National City Downtown Redevelopment Project
on December 1, 1981; and
WHEREAS, it is understood that there is a fee of less than 1% of
the principal amount of the loan in connection with obtaining the loan;
NOW, THEREFORE, BE IT RESOLVED that the Mayor of the City
is hereby authorized to apply, on behalf of the City of National City, to the
U. S. Department of Housing & Urban Development (HUD) a loan of $700,000
pursuant to the HUD Loan Guarantee Program;
BE IT FURTHER RESOLVED that the $700,000 will be paid by the
City to the Community Development Commission of the City of National
City pursuant to an Agreement and a Note under the terms of which the
Community Development shall make annual payments of principle on August
1 of each year and semiannual payments of interest on August 1 and
February 1 of each year for 6 years beginning August 1, 1988 in the
approximate amount of $145,000 each year in order to assure that the City's
annual receipts of CDBGP Funds will actually not be impaired; and
BE IT FURTHER RESOLVED that the Final Statement for the use
of CDBG Funds for the 1986-87 Program Year and the Final Statement for
the use of CDBG Funds for the 1986-88 Program Year shall be and are
hereby revised to reflect the obtaining by the City of National City of
subject loan; and
BE IT FURTHER RESOLVED that the Mayor is hereby authorized
to execute any and all certifications and documents which may be required
in connection with this transaction.
PASSED AND ADOPTED this 17th day of March, 1987.
eoldlit:geTWaters, Mayor
ATTEST:
IONE C BELL
Ione Ca p ell, City Clerk
BY: �t i%t�tx��Chsi
D✓t C�
APPROVED AS TO FORM:
Ge rge H. Eiser, III, City Attorney