Resolution 4156 - Authorize Construction Loan - Courtyard Apartments810
RESOLUTION No. 4156
A RESOLUTION AUTHORIZING AN APPLICATION TO GLACIER BANK FOR A
CONSTRUCTION LOAN To CONSTRUCT THE COURTYARD APARTMENT COMPLEX.
WHEREAS,. the City of Kalispell has entered into an agreement
with the Northwest Montana Human Resources to
construct a 24 unit low income apartment complex,
and
WHEREAS, part of the City's commitment to the project is to
obtain partial funding for the complex through a
loan from the Montana Board of Housing, and
WHEREAS, in order to obtain permanent financing for the
project it is necessary, first, to arrange for a
construction loan, and
WHEREAS, Glacier Bank has agreed to provide interim
financing for the complex in accordance with the
terms and conditions of a letter dated June 16,
1994, a copy of which is attached hereto and for
purposes of this Resolution made a part hereof.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I.
That the city Manager and City Finance
Director are authorized and directed to
execute all legal documents necessary to
effectuate a loan in the amount of two hundred
and seventy one thousand dollars ($271,000)
from the Glacier Bank for the purpose of
obtaining construction financing for the
Courtyard Apartment complex.
SECTION II.
That the term and conditions of said loan
shall be as set forth in Exhibit "All attached
hereto.
SECTION III.
That the City Manager and City Finance
Director are, further, authorized and directed
to execute all legal documents necessary to
obtain permanent financing for the Courtyard
Apartment complex through the Montana Board of
Housing.
SECTION IV.
This Resolution shall take effect immediately
upon passage by the City Council and approval
by the Mayor.
1 M
-, 811
PASSED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AND APPROVED
BY THE MAYOR THIS 5th DAY JULY, 1994.
I
ATTEST:
"rinarr6e Director
I
0,
or wix
IQ
R t
au he Mayor
06/30/94 16:00
124067535015
EXHIBIT "A"
0
junet 16, 1994
Bnicz Willimus, City Managor
City of Kalispell
P. 0. Raw 1997
Kalispellq MT 5"03-1997
RE: Courty*rd Apartment Complex
1842 -AirpoFt Road
Kalis-pell, MT
Dear Bruce:
The City"s loan request for eomAruction of 16 low and very low Wcume rental units, 4 of
wbich sire Weifically for designed for whed chair occupants, has been approved by our
Bnard or Directors. The general ter, and conditions of our commitment are as follows;
Amount:
Term-
$2719000
9 months
Interest Rate: Equal to Prime rate, as quotod In Wall Stmt joumal at load clolng.
This Interest rate is approxhuately 2 to 2.9 perewtage puints less than
we normally charge for this type of kQn. Further mduction in the
Interest rate would be congdered provided thexe Is exemption from.
federal tax.
LAmn Fees: Our normal origination fee (1% of the luan mount) will bewalved.
7'he construction fee for ftbursmeat of checks and inspections of the
prvperty during construction, will be YM or the loan amount. Tbh is
'A the rec normally charged.
Servicing: We are expectIng to servke the long -tam permanent financing for the
N450H for 1/8th% annual rft.
Borrower- This borrower will be the City of Kalispell.
I
I
Securhy: First Deed or Trust on the property.
a
'I
I
06/30/94 16.00 04067555015 GUCIER BANK
June 16, 1994
111-11ce Williams, City manager
City of Kalispell
Page 2
Inquivace; A hazard insurance policy Jwuirigg agali3st nre and extelldW cuvezuge
is requireA. Mie policy must contain the SioadAW mortgagee Chun
or ' ifts payable to Gtatler Uank. A binder of this Inmrance Is rogulircd
Prior to loan closing.
Title InmirAnce Glacier requires a title policy in the form to Glacier Bank insuring the
& Vien Waivers: mortgaged premim Is in tht Borrower's nNue, free and clear of all
liens. clainve. and encumbrances smd that dM lender has a vafid first
11pn. UVA112 COM&UCtion, this Bank Will obtain at Borrowers expense,
a foundation survcy completed by the Ude company dtowing that all
knPrOvements -%rt lOeMed wbolly within the bouadary lines of the
subject property and so encroachments or nsemwts exist onto subject
property. The Borrower and all contractors shall agnv. to ewlite a
full release and waiver of any rights with respect to mechanics or
materialmen liens; and shall provide Me Bank wtth such other lien
waivers and evidence orsuch Payments 9s the lank mmy request.
Schedule of Funds will be disbused monthly based on work progress after
Disbursements: inspectIons by Glader Bank. Interest psymmu wM not be made from
unpaid construdian funds, but will be paid &rectly by the Borrowers.
Other Ftinding; The MROH comniltment to you for permanent fluancing, which would
pay our loan off upon completion of the project, must be acceptable
to us. In addition, the Ci(y must be in receipt of all other grants and
ffinds necesory to complete the project, prior to our Nan dosing.
We ave very excited about this project and are looking rOrward to continuing our
involvement with the City to provide affordable housing,
Sincerely,
StePhen J. Van Ffelden
Senior Vice President
Q 002
SVH/pi