RES 16-704 - Pledging Full Faith and Credit for PAEC Section 108 LoanRESOLUTION NO. .16-704
A RESOLUTION of the City Council of the City of Federal Way,
Washington, pledging the City's full faith and credit in support of its
Section 108 Loan for the development of the Performing Arts and Events
Center.
WHEREAS, the City Council, via Resolution 14 -665, unanimously voted to approve
development of the Performing Arts and Events Center in downtown Federal Way; and
WHEREAS, the City of Federal Way has compiled project funding through a variety of
sources including state and federal funding, private and public grants, a local capital campaign, and
the selling of naming rights; and
WHEREAS, the City of Federal Way applied for the establishment of a Section 108
Guaranteed Loan Fund from the U.S. Department of Housing and Community Development (HUD),
and received approval for the Loan Fund on May 15, 2014; and
WHEREAS, the City Council, via Resolution 15 -691, approved a Section 108 Loan
Application in support of development of the Performing Arts and Events Center and authorized its
submission to HUD, and authorized the Mayor to execute all documents associated with the
application and loan; and
WHEREAS, pursuant to Resolution 15 -691, the City of Federal Way applied for loan
guarantee assistance from HUD under Section 108 of the Housing and Community Development Act
of 1974, as amended; and
WHEREAS, a Section 108 Loan in the amount of $3,030,000, to be guaranteed by HUD and
evidenced by a Variable/Fixed Rate Note numbered B- 13 -MC -53 -0015 (the Note), will be made
available to the City of Federal Way and governed by the terms of a Contract for Loan Guarantee
Resolution No. 16 -704 Page 1 of 3
Assistance under Section 108 of the Housing and Community Development Act of 1974, as amended
(the Contract) between the City of Federal Way and HUD; and
WHEREAS, HUD and the Contract require a Resolution of the City Council to pledge its full
faith and credit as security in support of all of the obligations of the City of Federal Way under the
Note and Contract;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Section 1. The City Council hereby pledges the full faith and credit of the City of Federal
Way for the prompt payment of the principal and interest of its Section 108 Loan for the
development of the Federal Way Performing Arts and Events Center, as evidenced by the Note. The
Note constitutes a general indebtedness of the City of Federal Way, payable from tax revenues of the
City of Federal Way and such other money as is lawfully available. For as long as the Note is
outstanding, the City of Federal Way irrevocably pledges that it shall, in the manner provided by law
within the constitutional and statutory limitations provided by law without the assent of the voters,
include in its annual property tax levy amounts sufficient, together with other money that is lawfully
available, to pay principal of an interest on the Note as the same become due. The full faith and
credit of the City of Federal Way is pledged irrevocably for the prompt payment of the principal and
interest on the Note and such pledge shall be enforceable in mandamus against the City of Federal
Way.
Section 2. Severability. If any section, sentence, clause or phrase of this resolution should be
held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
Resolution No. 16 -704 Page 2 of 3
clause or phrase of this resolution.
Section 3. Corrections. The City Clerk and the codifiers of this resolution are authorized to
make necessary corrections to this resolution including, but not limited to, the correction of
scrivener /clerical errors, references, resolution numbering, section/subsection numbers and any
references thereto.
Section 4. Ratification. Any act consistent with the authority and prior to the effective date
of this resolution is hereby ratified and affirmed.
Section 5. Effective Date. This resolution shall be effective immediately upon passage by
the Federal Way City Council.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this 3rd day of May 2016.
ATTEST:
ES
CITY CLERK, STEPHANIE C • d R EY, CMC
AP
i P �h VED AS T ?4 I RM:
L iii■_ o
CITY AT II/ • EY, AMY JO PEARSALL
FILED WITH THE CITY CLERK: 04/27/2016
PASSED BY THE CITY COUNCIL: 05/03/2016
RESOLUTION NO.: 16 -704
Resolution No. 16 -704
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