HomeMy WebLinkAboutReso 2022-115 - Accepting Section 108 Guaranteed Loan Under Section 108 of the Housing and Community Development Act of 1974RESOLUTION NO. 2022-115
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I Irriv.9, FAI
WHEREAS, The City of Redding City Council, by resolution numbered 2022-115
authorized the City Manager to execute all necessary documents or contracts as might be
required by HUD as support of a loan in the amount of an application for a $3,737,000 Section
108 Loan Guarantee for the South City Park Improvements Project and Downtown Fagade
Improvement Program; and
WHEREAS, said resolution is hereby incorporated by reference; and
WHEREAS, California Government Code sections 37103 and 53060 authorize cities to
enter into agreements, including loan agreements, with the United States or any agency or
department thereof for any lawful public purpose; and
WHEREAS, City of Redding has successfully obtained a commitment in the amount of
$3,737,000 from the U.S. Department of Housing and Urban Development ("HUD") for the
Loan Guarantee; and
WHEREAS, HUD's guarantee of the Note will be governed by a Contract for Loan
Guarantee Assistance under Section 108 between the City and HUD (the "Contract"), in which
this Resolution is incorporated by reference, and in which the City pledges Community
Development Block Grants pursuant to 24 CFR 570.705(b)(2) and City of Redding' General
Fund for the repayment thereof,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding
as follows:
Section 1. The City Council hereby authorizes and directs the City Manager to execute
any and all documents necessary to accept the loan guarantee referenced above and any
subsequent notes.
Section 2. The Note constitutes a general indebtedness of the City and is payable from
any money as is lawfully available and authorized or pledged by the City for the payment of
principal of and interest on the Note, including but not limited to CDBG block grant funds
pledged by the Borrower pursuant to 24 CFR 570.705(b)(2). For as long, as the Note is
outstanding, the City irrevocably pledges that it shall, in the manner provided by law within the
constitutional and statutory limitations provided by law without the assent of the voters, make
the prompt payment of principal and interest on the Note as the same shall become due. The
obligation of the City as Borrower to make payments under the Contract shall be payable first
from CDBG block grant funds pledged by the Borrower pursuant to 24 CFR 570.705(b)(2).
Section 3. The City Council hereby irrevocably pledges CDBG block grant funds
pledged by the Borrower pursuant to 24 CFR 570.705(b)(2) and the General Fund in support of
all obligations of the City as Borrower under any notes executed by the City, up to the amount of
HUD's commitment for Section 108 Loan Guarantee Assistance, evidencing the Section 108
guaranteed loan for the City's South City Park Improvement Project and Downtown Fagade
Improvement Program pursuant to paragraph 15 of the related Contract for Section 108 Loan
Guarantee Assistance between the City and HUD. This pledge shall be enforceable in
mandamus against the City.
Section 4. The provisions of this resolution are declared to be separate and severable. If
a court of competent jurisdiction, all appeals having been exhausted or all appeal periods having
run, finds any provision of this resolution to be invalid or unenforceable as to any person or
circumstance, such offending provision shall, if feasible, be deemed to be modified to be within
the limits of enforceability or validity. However, if the offending provision cannot be so
modified, it shall be null and void with respect to the particular person or circumstance, and all
other provisions of this resolution in all other respects, and the offending provision with respect
to all other persons and all other circumstances, shall remain valid and enforceable.
I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting
of the City Council of the City of Redding on the lsr day of November, 2022, and was duly
adopted at said meeting by the following vote:
AYES:
COUNCIL MEMBERS: Mezzano, Resner, Winter, and Schreder
NOES:
COUNCIL MEMBERS: Dacquisto
ABSENT:
COUNCIL MEMBERS: None
ABSTAIN:
COUNCIL MEMBERS: None
ATTEST:
PAMELA MIZE, City
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KRI TEN SCH EDER, Mayor
BARRY E. De ALT, City Attorney