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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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