HomeMy WebLinkAboutResolution No. 11-7302RESOLUTION NO. 11-7302
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
APPROVING A $810,000 LOAN FROM THE U.S. DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT, PURSUANT TO SECTION 108
OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974.
AS AMENDED, AND AUTHORIZING THE MAYOR TO EXECUTE THE
PROMISSORY NOTE AND THE CONTRACT FOR LOAN GUARANTEE
ASSISTANCE IN CONNECTION WITH THE LOAN.
WHEREAS, The City of Downey, (hereinafter referred to as “CITY”) has applied to
borrow $810,000 from the U.S. Department of Housing and Urban Development (“HUD”)
through the Section 108 Loan Guarantee Program;
WHEREAS, the City intends to use funds obtained from the loan to finance the sale of
the property located at 9715 Firestone Blvd, Downey CA, to Champion Automotive Properties,
LLC, a California Limited Liability Company (“Champion Automotive”), for the purpose of
eliminating slum blight and effecting the productive reuse of the subject property as a new car
dealership;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City authorizes the execution of the Promissory Note with a
principal obligation of $810,000 (the “Note”), and the execution of a Contract For Loan
Guarantee Assistance under Section 108 of the Housing and Community Development Act of
1974, as amended (the “Contract”), and directs the City Manager or his authorized designee as
an official representative of the City in connection with said loan to negotiate with HUD
amendments to Paragraph 15 (Special Conditions and Modifications) of the Contract for terms
that are more favorable to the City, and directs the City Manager to provide additional
information, as may be required by the City Council, concerning the Note, Contract, and any
amendments to the Contract.
SECTION 2. The City Council authorizes the Mayor to execute the Note, the Contract,
an amendment to the Contract pursuant to the authority granted in Section 1 of this Resolution
and approved by HUD, and such documents as may be required in order to complete the loan
identified in this Resolution.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this 25a' day of October, 2011.
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RESOLUTION NO. 11-7302
PAGE TWO
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 25th day of October, 2011, by the following
votes, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN :
Council Members: Brossmer, Gafin, Mayor Marquez
Council Member: None
Council Member: None
Council Members: Guerra, Vasquez
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