HomeMy WebLinkAboutPR 14715: US DEPT. OF HOUSING & URBAN DEVELOPMENT - SECTION 108 LOANINTEROFFICE MEMORANDUM
To: STEVE FITZGIBBONS, CITY MANAGER
FxoM: DALE L. WATSON, DIRECTOR OF PLANNING /q~, 5 I
suslECr: P.R. NO...14715 - SECTION 108 LOAN ~ G/
DATE: 04/16/08
RECOMMENDATION:
I recommend that Proposed Resolution No. 14715 be approved. This Resolution would
authorize an application to the U.S. Department of Housing and Urban Development for
a loan not to exceed $4.5 million under the Section 108 Loan Program.
BACKGROUND:
The Port Arthur EDC is considering an incentive agreement with ENGlobal. This
incentive could. involve the EDC constructing a building for ENGlobal and then leasing it
to them. This loan would be repaid from the lease payments. This is one'of the financing.
options being. considered.
BUDGETARY/FISCAL EFFECT:
The loan would be repaid by the EDC from the lease payments.
STAFFING/EMPLOYEE EFFECT:
None
SUMMARY:
I recommend that Proposed Resolution No. 14715 be approved'.
P.lt 14715
04/30/08
RESOLUTION NUMBER
A RESOLUTION. AUTHORIZING AN
APPLICATION TO THE U.S. DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT
FOR FUNDING UNDER SECTION 108 IN AN
AMOUNT NOT TO EXCEED 4.5 MILLION
DOLLARS FOR ECONOMIC DEVELOPMENT
ACTIVITIES
WHEREAS,. the Port Arthur Economic Development Corporation does wish to provide
an incentive for a business to locate in the Business Pazk; and,
WHEREAS, this incentive includes the construction of a building, and,
WHEREAS, the City Council of the City of Port Arthur wishes to assist the Port Arthur
Economic Development Corporation by utilizing a Section 108 Loan; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT
ARTHUR:
THAT the City Council authorizes an application to the U. S. Department of Housing
and Urban Development for a Section 108 Loan in an amount not to exceed $4.5 million.
READ, ADOPTED AND APPROVED this day of
A.D., 2008 at a Regulaz Meeting of the City Council of the City
of Port Arthur, Texas by the following vote: AYES: MAYOR
P.R 14715
04/30/08
NOES:
MAYOR
ATTEST:
CITY. SECRETARY
APPROVED FOR FORM:
~^~.,,~ ~e`.~
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
® I/.~
DALE WATSON, DIRECTOR
PLANNING AND GRANTS MANAGEMENT
PROVED FOR AVAILABILITY OF FUNDS:
REBECCA UNDERHILL
DIRECTOR OF FINANCE