HomeMy WebLinkAboutReso 2003-459RESOLUTION NO. 2003-459
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING SUBMITrAL OF THE CDBG
SECTION 108 LOAN APPLICATION IN THE AMOUNT OF
$11,915,000 FOR THE WESTERN CHULA VISTA FINANCING
PLAN TO THE U. S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT (HUD)
WHEREAS, during the 2003-2005 budget presentations it was determined that Chula
Vista needed to focus attention in western Chula Vista for infrastructure improvements; and
WHEREAS, in order to facilitate these improvements it was recommended that Chula
Vista apply for a Section 108 loan from the U.S. Department of Housing and Urban
Development (HUD) in the amount of $11,915,000; and
WHEREAS, the Community Development Block Grant (CDBG) program regulations at
24 CFR 570, subpart M allow a CDBG entitlement community to apply for Section 108 loan
funds equating to five times the annual entitlement or $11,915,000; and
WHEREAS, the Section 108 loan funds will be targeted within the Montgomery Area for
street improvements/assessment district formation, Fire Station No. 5 replacement/rehabilitation,
Oxford Street park development, and Eucalyptus Park reconstruction; and
WHEREAS, in Section 108 loan in the amount of $11,915,000 will be amortized over 20
years and will require annum principal and interest payments in the amount of $681,124. The
loan payment is calculated by using the 3-Month London Inter Bank Offer Rate. The loan
payment will be paid from a portion of the City's annual CDBG entitlement; and
WHEREAS, in the event that there is insufficient annual CDBG entitlement funds to
repay the Section 108 loan, the City's General Fund will be responsible for the loan payments.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby conduct the public hearing to review and receive public comment regarding
submittal of a CDBG Section 108 loan application in the amount of $11,915,000 for the Western
Chula Vista Financing Plan to the U.S. Department of Housing and Urban Development and
authorize submittal of the CDBG Section 108 loan application in the amount of $11,915,000 for
the Western Chula Vista Financing Plan to the U.S. Department of Housing and Urban
Development (HUD).
Presented by
Approved as to form by
- Laun~ Madigan / ~/
Com/nunity Development Director
Ann Moore
City Attorney
Resolution 2003-459
Page 2
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 4th day of November, 2003, by the following vote:
ATFEST:
Councilmembers:
Councilmembers:
Councilmembers:
AYES:
NAYS:
ABSENT:
Davis, McCann, Rindone, Salas and Padilla
None
None
Susan Bigelow, CMC, City Glerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2003-459 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 4th day of November, 2003.
Executed this 4th day of November, 2003.
Susan Bigelow, CMC, City Clerk