HomeMy WebLinkAbout2385 ResolutionRESOLUTION NO. 2)3
A RESOLUTION authorizing the City Manager to enter into a
loan agreement with the Hanford Area Economic
Investment Fund Committee
WHEREAS, the City has already invested $8 million in a process water reuse
facility to support food processing plants located in the Pasco Processing Center, and
WHEREAS, the $690,000 loan allows the City to construct additional winter
storage capacity, allowing food processors to operate during the winter months,
retaining jobs year round and providing the opportunity for new companies to be
served by the system, and
WHEREAS, the terms of the loan agreement are favorable to the City, NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DOES
RESOLVE AS FOLLOWS.
That the City Manager is authorized to enter into an agreement with the
Hanford Area Economic Investment Fund Committee for a $690,000 loan with terms
as set forth in the May 5, 1998 letter from the Benton-Franklin Council of
Governments to Gary Crutchfield, City Manager
PASSED by the City Council of the City of Pasco at a regular meeting this
— day of a,.\\* , 1998
CITY 0 PASCO:
harles D. Kilbury, Mayo
ATTEST:
atherine D. Seaman, Deputy City Clerk
APPROVED AS TO FORM.
Leland B. Kerr, City Attorney
Benton-Franklin Council Of Governments
1622 TERMINAL DRIVE
P0 BOX 217 RICHLAND WA 99352
PHONE (509) 943 9185
FAX (509) 943 6756 E MAIL BFRCO3 CITIES COM
May 5, 1998
Mr Gary Crutchfield
City Manager
City of Pasco
P0 Box 293
Pasco, Washington 99301
Dear Mr Crutchfield
;‘,.!
MAY 6 1998
COMMUNITY Otl/LIONENT DOI
The Benton-Franklin Council of Governments, through its Economic Development District,
is assisting the Hanford Area Economic Investment Fund Committee in the administration of
the Fund The Committee has acted on your apphcation and elects to make a commitment
to the City of Pasco as follows
1 The maximum amount of the loan shall be $690,000 repayable at the following interest
rates and times (using an assumed closing date of June 1, 1998) There is a one and
one-half percent origination fee and a service fee of one-half of one percent of the
principal balance due each year
Interest in the first two years shall be at 3%, Year 3 shall be at 4%, Year 4 shall be at
5%, Year 5 shall be at 6% (rates do not include the 1/2% per month service fee or the
origination fee) Interest and fees accumulated durmg the first two years will be
deferred until principal payments begin the third year, at which time the total amount
due will be amortized over 240 months, with a balloon payment due at the end of
Year 5
Payments have been tentatively calculated as follows
June 1, 1999 — no payment due Interest accumulated at 3% in the amount of
$20,700, fees of $3,450
June 1, 2000 — no payment due Compounded interest accumulated at 3% in the
amount of $21,321, fees of $3,450
•o °
.° t.
Mr Gary Crutchfield
May 5, 1998
Page 2
June 1, 2001 Due is interest at 4% in the amount of $29,280 84, prmcipal of
$24,582 55, fees of $10,350
June 1, 2002 Due is interest at 5% in the amount of $35,371 92, prmcipal of
$21,394 77, fees of $3,344 34
June 1,2003 — Due is interest at 6% in the amount of $41,162 62, remaining principal
of $686,043 68, and fees of $3,220 11
2 The City will be required to pledge its full faith and credit to repayment of the loan
This commitment is conditioned upon approval of the State's Community, Trade and
Economic Development Department
Would you please let me know at your earliest convenience if the above terms are acceptable
to the City of Pasco
Smcerely,
Tom DiDomenico
Economic & Community Development Manager
cc Ms Ann Beier
Mr Henry Field
Mr John Givens
Ms Christine Eide