RES 19-753 - Authorizing Conversion of Section 108 Loan to Permanent RESOLUTION NO. 19-753
A RESOLUTION of the City of Federal Way,Washington,Authorizing the City
to participate in a public offering via the U.S Department of Housing&Urban
Development to Convert from Interim Variable Rate to Long-term Fixed Rate a
Section 108 Loan for the Performing Arts and Event Center
WHEREAS, the City of Federal Way applied for a U.S Department of Housing & Urban
Development (HUD) Section 108 Loan Fund, which was approved on May 15, 2014; and
WHEREAS,the City of Federal Way applied for a HUD Section 108 Loan in support of the
Federal Way Performing Arts and Event Center, which was approved on March 18, 2016; and
WHEREAS, the City of Federal Way signed an agreement with HUD for the Section 108
Loan on June 28, 2016; and
WHEREAS,the Section 108 Loan was considered an interim loan with the principal amount
subject to a variable interest rate; and
WHEREAS,HUD has advised the City of Federal Way that,on or about March 28,2019,it
will be converting interim Section 108 variable rate loans to long-term fixed rate loans via a public
offering, which will fix the interest rates of the City loan for the remainder of the term of the loan.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Section 1. Authorization. The Mayor and City Staff are authorized to participate in HUD's
public offering to convert the Section 108 interim variable rate loan to long-term fixed rate status,
and the Mayor is authorized to complete and execute all necessary documents.
Resolution No. 19-753 Page 1 of 3
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,
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.
Section5.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 5th day of March, 2019.
[Signature Page to Follow]
•
Resolution No. 19-753 Page 2 of 3
CITY OF FEDERAL WAY:
JIMRELL, MAYOR
ATTEST:
Ai , , ,
ST P ANIE COURTNEY, C C, ITY CLERK
APPROVED AS TO FORM:
OL--0)e_
J. RYAN CALL, CITY ATTORNEY
FILED WITH THE CITY CLERK: 02/27/2019
PASSED BY THE CITY COUNCIL: 03/05/2019
RESOLUTION NO.: 19-753
Resolution No. 19-753 Page 3 of 3