Item Coversheet

BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT

Item No. 8.
For Meeting of: January 8, 2019

ITEM TITLE:Resolution authorizing the City of Yakima to participate in the HUD public offering as part of the Section 108 Loan Guarantee Assistance Program to refinance two existing notes
SUBMITTED BY:

Joan Davenport, AICP, Community Development Director

 

SUMMARY EXPLANATION:

On November 27, 2018, the City of Yakima received a notice from HUD of the opportunity to participate in a federal refinancing of two Section 108 Loans approved by the City of Yakima in 2004. These loans supported the development of the Hilton Gardens Inn project by  Morrier Hotel, LLC. The original loan from HUD for the project was $3,560,000. In 2004, all loan costs were paid by Morrier Hotel LLC.  The private company (Morrier Hotel LLC) makes monthly payments on the loan directly to the financial institution. This loan  was an economic development project in 2004 and available within the City of Yakima due to our  participation in the  Economic Development Initiative (EDI) Program of HUD.

 

The opportunity to refinance the loan at a lower interest rate came unsolicited to the City of Yakima. We shared this information with the loan recipient (Morrier Hotel LLC). They have indicated a desire to participate in the loan refinance to a lower interest rate and will cover all costs including those incurred by the city of Yakima and the closing costs.  Upon approval by the City of Yakima, final documents will be prepared and submitted to HUD.

ITEM BUDGETED:NA
STRATEGIC PRIORITY:Economic Development
APPROVED FOR SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Adopt resolution
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
DescriptionUpload DateType
resolution refi12/26/2018Cover Memo
Letter to HUD Intent to Refinance, Loan B-02-MC-53-000812/21/2018Backup Material
Letter to HUD Intent to Refinance Loan B-04-MC-53-000812/21/2018Backup Material
R-2004-17312/27/2018Cover Memo
2004 conditional approval12/27/2018Cover Memo