Title
Ordinance Approving and Authorizing Loan Guarantee Contract Under Section 108 of the Housing and Urban Development (HUD) Act of 1974 for Downtown Safety Improvements Project
Recommended Action
City Manager Recommendation:
Move to suspend Council's usual Guideline and approve on first and final reading the ordinance authorizing Section 108 loan guarantee contract for Downtown Safety Improvements Project.
[Note: Two-thirds affirmative vote of those present is needed for first and final reading.]
Report
Issue:
Should the City enter into a loan agreement with U.S. HUD Department for federal Section 108 funds to fund the Downtown Safety Improvements Project?
Staff Contact:
Leonard Bauer, Deputy Director, Community Planning and Development, 360.753.8206
Presenter(s):
Leonard Bauer, Deputy Director, Community Planning and Development
Background and Analysis:
The City Council approved Downtown Safety Improvements as Olympia's first project to be funded from its Section 108 loan program on January 14, 2014, after a 30-day public comment period. The project includes installing alleyway lighting in the downtown core, and sidewalk and ADA improvements at State and Columbia Streets near the Olympia Senior Center. A summary of the project is attached.
HUD has completed its review of the project and the loan documents attached to the ordinance. To meet Council's goal of completing the alleyway lighting portion of the project for winter of 2014-2015, it would be necessary to suspend second reading and approve the ordinance at this time.
The total loan amount is $325,000. Terms of the loan are included as attachments to the ordinance. Repayment of the loan would be pledged from the City's future CDBG federal allocations over a five-year repayment period and must be backed by the full faith and credit of the City of Olympia.
HUD approved Olympia's Section 108 Loan Guarantee Fund in 2013 in the amount of $1,756,000. The balance of...
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