98-039RESOLUTION NO. 98R-39
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM (I)
APPROVING AND AUTHORIZING THE EXECUTION OF THE CONTRACT
FOR LOAN GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED,
(H) AUTHORIZING THE USE OF ROSS AND VERMONT PARKS AS
COLLATERAL REQUIRED UNDER THE SECTION 108 LOAN GUARANTEE
AND (HI) AUTHORIZING THE PREPARATION AND EXECUTION OF OTHER
DOCUMENTS RELATED THERETO.
WHEREAS, the City of Anaheim (the "City") has endeavored to acquire and develop park sites
located (i) at the comer of Broadway and Manchester ("Ross Park") and (ii) at the southwest
corner of Anaheim Boulevard and Vermont Street ("Vermont Park"); and
WHEREAS, the City Council of the City (the "City Council") has previously approved the use of
$2,773,400 of Community Development Block Grant ("CDBG") funds for the acquisition and
development of Ross and Vermont Parks; and
WHEREAS, the City has acquired the Ross Park site and is in negotiations to purchase the
Vermont Park site; and
WHEREAS, on September 10, 1996, the City Council authorized the City's apphcation (the
"Application") for a United States Department of Housing and Urban Development CHUD")
Section 108 Loan in the amount of $3,000,000 (the "Section 108 Loan") in order to provide
funds necessary to complete the acquisition and development of Ross and Vermont Parks; and
WHEREAS, HUD has accepted and approved the Section 108 Loan Application contingent
upon the City's execution of that certain Contract For Loan Guarantee Assistance Under Section
108 of the Housing and Community Development Act of 1974, as Amended, 42, U.S.C Section
5308, and other documents related thereto (the "Section 108 Loan Documents"); and
WHEREAS, the Section 108 Loan Documents require that the City provide as collateral for the
Section 108 Loan (the "Section 108 Loan Collateral") (i) a pledge of Section 108 funds which
may be allocated to the City in the future and (ii) a mortgage on real property or properties
acceptable to HUD (a "Mortgage"); and
WHEREAS, the City has proposed the City's Mortgage of the Ross and Vermont Park sites (the
"City Mortgage") as part of the Section 108 Loan Collateral and HUD has expressed a
willingness to accept the City Mortgage, provided an appraisal of the Ross and Vermont Park
sites (the "Park Sites Appraisal") estimates the fair market value of such sites to be in excess of
$3,750,000.