RESOLUTION NO. 031245

Directing the City Manager to formally request the U.S. Department of Housing and Urban Development to authorize the retention of program income from the early debt repayment of a Section 108 guaranteed loan to finance additional housing and economic development projects within the City.

WHEREAS, in 1997, the City received a $7.1 million HUD Section 108 guaranteed loan for the Westside Business Park project (the Project) which was made available to the developer of the project through the Citys lender HEDFC; and

WHEREAS, DST, the developer of the Project, has paid in full the loan; and

WHEREAS, the City and HEDFC have been in preliminary consultations with HUD to retain the proceeds derived from the prepayment of the loan and use such proceeds as program income to finance new housing and economic development activities; and

WHEREAS, HUD officials have made further recommendations and suggestions regarding the use of the funds from the prepayment of the loan but have not made a final determination regarding the Citys request; and

WHEREAS, the City Council endorses the use of available proceeds from the repayment of the 108 loan and request HUD to consider and approve the Citys original request to retain the funds; NOW, THEREFORE,

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the City Manager is directed to formally request the U.S. Department of Housing and Urban Development to authorize the retention of program income from the early debt repayment of a Section 108 guaranteed loan to finance additional housing and economic development projects within the City.

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