ORDINANCE NO. 150295
Authorizing execution of a
Section 108 Loan Guarantee for the 18th & Vine Economic Loan Fund and all
necessary documents and for the submission of said documents to the U.S.
Department of Housing and Urban Development (“HUD”) to enable HUD to refinance
the Section 108 Loan.
WHEREAS, on
March 18, 1999, Council passed Committee Substitute for Ordinance No. 990359
which authorized the acceptance of a Loan Guarantee pursuant to Section 108 of
the Housing and Community Development Act of 1974, as amended, 42 U.S.C. 5308,
in the amount of $7,100,000.00 (“Section 108 Loan”), as well as other grant
funding, for the 18th & Vine Economic Loan Fund and Culture Facilities and
authorized the execution of the Funding Approval and the Contract
for Loan Guarantee Assistance with HUD, the Note and all other necessary
documents in order the implement the Section 108 Loan; and
WHEREAS, the
City has made continual and timely payments on the Section 108 Loan from annual
Community Development Block Grant (“CDBG”) entitlement funds in accordance with
the terms of the Section 108 Loan Guarantee; and
WHEREAS, the
Section 108 Loan funding provided for the construction of mixed use projects
and improvements to occur in the 18th & Vine project area; and
WHEREAS, HUD
desires to refinance the Section 108 Loan to obtain a lower interest rate and
will include the 18th & Vine Loan in a public offering to be conducted on
May 28, 2015; and
WHEREAS, it is
in the City’s interest for this Section 108 Loan to be refinanced in order to
save the City approximately $392,000.00 of CDBG funds between now and the
Note’s final maturity date; NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. That
the City Manager, on behalf of the City of Kansas City, Missouri, is authorized
to execute the Contract for Loan Guarantee Assistance, the Fixed Rate Note for
Series 2015-A Certificates, and all other necessary documents in order to
implement the Section 108 Loan Guarantee.
Section 2. That
the City Manager is authorized to submit all necessary Section 108 Loan
refinancing documents to the U.S. Department of Housing Urban Development.
_____________________________________________
Approved
as to form and legality:
___________________________________
Nicole
Rowlette
Assistant City Attorney