HomeMy WebLinkAboutR-2003-104 HUD Section 108 Program Loans Conversion into Fixed Rate LoansCITY OF YAKIMA, WASHINGTON
RESOLUTION NO. R 2003- 104
A RESOLUTION to effect converting HUD 108 loans into fixed rate loans.
WHEREAS, the City of Yakima has set up the Yakima Commercial
Development Loan Fund; and
WHEREAS, the U.S. Department of Housing and Urban Development
("HUD") and the City of Yakima have entered into agreements such that HUD will
provide up to Three Million Dollars to fund the Yakima Development Loan Fund;
and
WHEREAS, the agreements between HUD and the City of Yakima
contemplate that each July, borrowers from the Yakima Commercial Development
Loan Fund can convert their variable rate loans into fixed rate loans; and
WHEREAS, borrowers from the Yakima Commercial Development Loan
Fund (including at this time Julmar, LLC, Trail Wagons, Inc., and Seong and Helen
Kim) want to convert their variable rate loans into fixed rate loans:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
1. The City is empowered to take all actions necessary and desirable to
convert variable rate loans into fixed rate loans on behalf of the borrowers
who choose to participate.
2. The City Manager is hereby designated as the official representative of
the City to act in connection with signing any agreement associated with
converting these loans into fixed rate loans.
ADOPTED BY THE CITY COUNCIL THIS 15th day of July, 2003.
Mary Pla , Mayor
ATTEST:
City Clerk
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. l
For Meeting of: July 15, 2003
ITEM TITLE: Resolution to effect converting HUD 108 loan into fixed rate loans.
SUBMITTED BY: William Cook, Director of Community and Economic Development
CONTACT: William Cook, 575-6113
SUMMARY EXPLANATION:
Once each year, the U.S. Department of Housing and Urban Development goes to the Finical Bond
Markets to purchase fixed rate long term debt for Loans made through the Section 108 Loan
program.
Borrowers of Section 108 funds may opt to participate in the "fixed rate" program or continue
repaying their debt with floating rate instruments that are subject to change every 90 days.
To date the City has approved three loans through the Section 108 program totaling $3,440,000:
1. Trailwagons $3,000,000.
$110,000.
2
Julmar LLC
(Yakima Cellars)
3. Helen and Seong Kim $330,000.
(Peppers Restaurant)
All borrowers are interested in converting their floating rate loans to fixed rate loans. Borrowers are
responsible for all fees associated with the conversion. HUD will close on "fixed rate" securities in
August of 2003.
The attached resolution authorizes the City Manager to act as official representative of the City in
executing any and all documents related to this financial transaction.
Resolution X Ordinance Contract Other (Specify)
Funding Source N/A
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION:
Adopt Resolution
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: