HomeMy WebLinkAboutReso. 2025-024 - Authorizing the Subordinate its encampment reso grant loan to a private line of credit for the Good News Rescue Mission's day resource centerR111I I
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WHEREAS, The Department of Housing and Community Development ("Department") awarded
the City of Redding ("City") $8,354,955 of Encampment Resolution Funding Program ("ERF -3-
U) funds and entered into a Standard Agreement with an effective date of 10/12/2023; and
WHEREAS, The Good News Rescue Mission ("Developer") is a nonprofit corporation organized
under the laws of the State of California and qualifying for Federal Tax -Exempt Status under
Section 501 (c) (3) of the Internal Revenue Code; and
WHEREAS, the City has awarded the Developer $3,000,000 of ERF -3-1, funds for the purchase
and rehabilitation of their Day Resource Center located at 3150 Veda Street identified as
Assessor's Parcel Number 104-620-059-000, (the "Project Site or "Site"); and
WHEREAS, the Developer wishes to apply for and secure a $500,000 line of credit from
Cornerstone Bank for additional construction costs associated with the Project; and
WHEREAS, the Developer is requesting that the City Subordinate its ERF -3-1, loan to the
$500,000 line of credit;
1. The City is hereby authorized and directed to subordinate its loan to the line of credit.
2. The City Manager, or his designee, is authorized to execute the Subordination Agreement
and any other documents to facilitate the transaction.
I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the
City Council of the City of Redding on the 15th day of April, 2025, and was duly adopted at said
meeting by the following roll call vote:
AYES: COUNCIL MEMBER- - Audette, Dhanuka, Littau, Resner, and Munns
NOES: COUNCIL MEM13ER: - None
ABSENT- COUNCIL MEM13ER: - None
ABSTAIN* COUNCIL MEMBER: - None
H4ARLEAR TIPTON, City Clerl
JACK VUN1NS, Mayor
CERTIFICATE OF THE ATTESTING OFFICER
The undersigned, Sharlene Tipton, City Clerk, does hereby attest and certify that this Resolution
is a true, full and correct copy of a resolution duly adopted at a meeting of the City of Redding
which was duly convened and held on the date stated thereon, and that said document has not been
amended, modified, repealed or rescinded since its date of adoption and is in full force and effect
as of the date hereof. -
ATTEST:
S'natureof Attesting Officer
Sharlene Tipton, City Clerk