HomeMy WebLinkAboutResolution 4039-10-2011A Resolution
NO. 4039 -10 -2011
AUTHORIZING THE REFINANCING OF THE SECTION 108 LOAN FOR THE MERCADO
PROJECT GUARANTEED BY THE UNITED STATES DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
WHEREAS, on April 8, 1997, the City Council of the City of Fort Worth authorized an
application for a Section 108 loan of $5,000,000.00 guaranteed by the United States Department of
Housing and Urban Development ( "HUD ") for the North Main Mercado project (M &C G- 11857); and
WHEREAS, the project has been completed and the loan, which matures in 2017, has an
outstanding principal balance of $1,590,000.00, and
WHEREAS, City staff has been informed by HUD that it can refinance its loan in a Section 108
offering scheduled for November 17, 2011 and that such refinance will save the City an estimated
$303,344 in interest expense for the remaining life of the loan; and
WHEREAS, the new note will have the same terms as the existing note, including payment
schedule and security provisions, and
WHEREAS, it is necessary for a new note and a new Contract for Loan Guarantee Assistance to
be executed and returned to HUD by October 28, 2011 in order to refinance the Section 108 loan and
take advantage of the interest savings.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
1. The City Council approves the refinancing of the City's Section 108 Note numbered B- 97 -MC-
48 -0010 dated June 14, 2000 in the original principal amount of $3,475,000.00.
2. The City Manager or his designee is authorized to execute and deliver the Promissory Note and
the Contract for Loan Guarantee Assistance with the Secretary of Housing and Urban
Development along with any other documents necessary or desirable to accomplish the
refinancing.
Resolution 4039 -10 -2011
Adopted this 25th day of October, 2011.
ATTEST:
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Marty Hendrix, Cit Secretary pA 0 � 0
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APPROVED
CITY COUNCIL
OCT 2 5 2011
City Secretary of the
City of Fort Worth, Texas