HomeMy WebLinkAboutR-2007-184 Section 108 loan Agreement Amendments; Trail Wagons and guaranteed by LukehartA RESOLUTION
RESOLUTION NO. R-2007-184
authorizing the City Manager to execute amendments to agreements related
to the Section 108 loan issued to Trail Wagons, Inc. and personally
guaranteed by Gary and Mary Lukehart.
WHEREAS, the City, pursuant to Resolution No. 2002-144, adopted on November 26,
2002, and Ordinance No. 2003-03, passed by the City Council on January 21, 2003, approved a
Section 108 Loan Agreement with the United States Department of Housing and Urban
Development (HUD) and from those funds loaned money to Trail Wagons, Inc. under Loan
Agreements and Promissory Notes dated July 23, 2003 and December 24, 2003; and
WHEREAS, Gary Lukehart on behalf of Trail Wagons, Inc., has requested an amendment
to the Trail Wagons' Section 108 loan repayment agreement that would change the repayment
schedule from a monthly to a semi-annual repayment. schedule. The City has consulted with HUD
and HUD has agreed go allow the City to restructure the loans, dated July 23, 2003 and December
24, 2003, to Trail Wagons, Inc., to the proposed amendment of current payment structure. The
restructured loans shall be evidenced by amendments to the existing Loan Agreement and
Promissory Note(s) signed the City and borrower. There will be no changes to the principal and
interest amounts that Trail Wagons, Inc. is obligated to repay the City. All other terms of the loan,
including the interest rate, collateral and personal guaranty will remain the same; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA;
The City Manager is hereby authorized and directed to execute the Loan Agreement
amendments, the Promissory Note, and all other agreements and documents associated with this
loan and the restructuring thereof with Trail Wagons, Inc.
ADOPTED BY THE CITY COUNCIL, this 11th day of December, 2007.
ATTEST:
City Clerk
/i/
David Edler, Mayor
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No /
For Meeting of December 11, 2007
ITEM TITLE A Resolution authorizing the City Manager to execute amendments to
agreements related to the Section 108 loan issued to Trail Wagons, Inc. and personally
guaranteed by. Gary and Mary Lukehart.
SUBMITTED BY William Cook, Director, Community & Economic Development
CONTACT PERSON / TELEPHONE Michael Morales, CED Deputy Director
(575-3533)
SUMMARY EXPLANATION.
Gary Lukehart has requested an- amendment to the Trail Wagons' Section 108 loan repayment
agreement that would change the repayment schedule from a monthly to a semi-annual
repayment schedule Payments would now be due as scheduled in the amended Loan
Agreement and amended promissory notes. The City has consulted with the United States
Department of Housing and Urban Development and they have agreed to the proposed
amendment of'current payment structure There will be no changes to the principal and interest
amounts that -Mr Lukehart is obligated to repay the city All other terms of the loan, including
the interest rate, collateral andpersonal guaranty will remain the same
This request was reviewed by the .Council Economic Development Committee on November 7,
2007, and the Committee recommended approval
Resolution X Ordinance_ Contract Other (Specify)
Funding Source N/A
City Manager
APPROVED FOR SUBMITTAL.
STAFF RECOMMENDATION Approve Resolution_
BOARD RECOMMENDATION
COUNCIL ACTION
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