HomeMy WebLinkAbout1527/
RESOLUTION NO. /Sd. 7
A RESOLUTION of the City Council of the City
of Kent, Washington, reaffirming the City's promise to
guarantee the Kent Public Development Authority loan to be
obtained by that authority for the purpose of developing the
Landmark Lumberman Bam site as the permanent location
of the Kent Downtown Market.
WHEREAS, the Kent City Council created the Kent Downtown Public
Market Development Authority ("PDA") by its ordinance No. 3396 ; and
WHEREAS, the City of Kent created the PDA as the new home for the
Kent Downtown Market; and
WHEREAS, subsequent to the creation of the PDA, the City entered into
a development and use agreement with the PDA which established rights and obligations
between the City and the PDA for the transfer of the Lumberman Bam property and for the
renovation, development, and subsequent leasing of that site; and
WHEREAS, under Article II of that agreement, the PDA agreed to
negotiate with a lender to obtain a tax exempt loan on terms acceptable to the City to fund
the renovation and development of the Bam and Market; and
1
WHEREAS, under that same agreement, the City also guaranteed the loan
between the lender and the PDA in the event of a default by the PDA; and
WHEREAS, the PDA has developed the necessary plans and specifications
and concurrent budget proposal to redevelop the Lumberman Barn site; and
WHEREAS, with the assistance of the Kent Downtown Partnership, it is
now appropriate for the PDA to seek a tax exempt loan for its redevelopment of the Barn
site; and
WHEREAS, the PDA has requested that the City of Kent reconfirm its
obligation in the Development and Use Agreement to reaffirm its guarantee the loan
obtained between the lender and the PDA on the condition the loan is acceptable to the City
in the event of default by the PDA; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON,
HEREBY RESOL YES AS FOLLOWS:
SECTION 1. Pursuant to its motions, ordinance, and agreement to
establish and develop the Kent Public Development Authority for the purpose of
developing a new site for the Kent Downtown Market, the City of Kent hereby confirms
that the City will apply its full faith and credit to guarantee the PDA's loan for the
redevelopment of the Barn and site in the event of a default by the PDA on its loan
repayment schedule, and on the prior condition that the PDA negotiates the loan with a
lender under terms acceptable to the City.
Passed at a regular meeting of the City Council of the City of Kent, Washington
this .Z._ day of ~ , 1999.
2
~
Concurred m by the Mayor of the City of Kent, this _Z__ day of
'7lLwt du , 1999.
JIM
ATTEST:
ITYCLERK
APPROVED AS TO FORM:
I hereby certify that this is a true and correct copy of Resolution No. / 5J...-1,
passed by the City Council of the City of Kent, Washington, the ~day of
~ ,1999.
P: \Civi 1\Resoluticn\PD Aloan. doc
3
~(SEAL)
,CITY CLERK