HomeMy Public PortalAbout2015.060 (04-21-15)RESOLUTION NO. 2015.060
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING THE DEFEASANCE OF THE HOUSING AND URBAN DEVELOPMENT
FISCAL YEAR 2002 SECTION 108 LOAN GUARANTEE
WHEREAS, on August 8, 2002, the Department of Housing and Urban
Development (HUD) granted the City of Lynwood a $7 million Section 108 loan
guarantee for the development and construction of the Plaza Mexico project, and only
$4,099,461 of the $7 million was used to complete the project; and
WHEREAS, there is a balance of approximately $3.8 million (principal and
interest) remaining in the City's Section 108 Loan account; and
WHEREAS, the debt service on the Section 108 Loan Guarantee is
approximately $630,000 annually. As required by HUD, the City pledged its current
and future Community Development Block Grant (CDBG) as security for the Loan,
which has been detrimental to other CDBG support activities such as public
improvements, streets, code enforcement, and services for the seniors and youth; and
WHEREAS, the balance owed on the Section 108 Loan Guarantee is
approximately $3,725,969; and the City wishes to defease (repay) its Section 108 Loan
Guarantee with funds from its Section 108 Loan proceeds in order to free up additional
resources to address a wide range of community development needs.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Lynwood City Council authorizes staff to _ initiate the Fiscal Year
2002 Section 108 Loan Guarantee defeasance process with the Department of Housing
and Urban Development.
Section 2. Lynwood City Council hereby approves the defeasance of the
Section 108 Loan Guarantee and authorizes the payoff wire transfer accordingly.
Section 3. This Resolution shall become effective immediately upon its
adoption.
PASSED, APPROVED and ADOPTED this 21St day of April, 2015.
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Luis SolachLy, Mayor
ATTEST:
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Maria Quinonez, City Clerk
APPROVED AS TO FORM:
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David A. Garcia, City Attorney
APPROVED AS TO CONTENT:
J. Arnoldo Beltran, City Manager
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
foregoing Resolution was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the 21St day of April, 2015.
AYES: COUNCIL MEMBERS ALATORRE,
SANTILLAN -BEGS AND SOLACHE
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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Niria—Quinonez, Cffy Clerk e�m
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
CASTRO, HERNANDEZ,
I, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council
of said City, do hereby certify that the above foregoing is a full, true and correct copy of
Resolution No. 2015.060 on file in my office and that said Resolution was adopted on
the date and by the vote therein stated. Dated this 21St day of April, 2015.
. - Clerk