03. Resolution 4156 - Authorize Construction Loan - Courtyard AptsRESOLUTION 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 "A" 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
upon passage by
by the Mayor.
1
shall take effect immediately
the City Council and approval
PASSED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AND APPROVED
BY THE MAYOR THIS DAY JULY, 1994.
ATTEST:
Finance Director
F
Douglas D. Rauthe, Mayor
EXHIBIT "A"
e
June 16, 1994
Bruce Wiiliaeus, City Manager
City of Kalispell
P. n. fax 1997
Kalispell, MT 59903-1997
RE; Courtyard Apartment Complex
1 842 -Airport Road
Kalispell, MT
Dear Bruce:
Tire City's loan request for eorictruction of 16 low and very low income rental units, 4 of
which sire specifically for designed for wheel ehair occupants, has been approved by our
Beard of Dirpe.mrs. The general terms and conditions of our conunitment are as follows:
Amount:
Term:
$271,000
9 months
Interest. Rate: Equal to Prime rate, as quoted In Wall Street Journal at loan closing.
This interest rate is approximately 2 to 2.5 perontage points lee than
we normally charge for this type of loan. Further eduction in the
intern! rate would be considered provided there is exemption from,
federal tax.
Lorin Feet: Our normal origination fee (1% of the loan iunount) will be waived.
The construction fee for disbursement of checics and inspections of the
property during construction, will be Y4% of the loan amount. This is
'h the fcc normally charged.
Servicing: We are expecting to service the long-term permanent financing for (lie
M8011 for 1I$th% annual lee.
Borrower: This borrower will be the City of Kalispell.
Stcurhy: First Deed of Trust on the property.
06/30/94 16:0o U40til55Ouaa W-14-ILK bAMs
June 16, 1994
Bruce Williams, City Manager
City of Kalispell
Page Z
Insurance; A hamrd insurance policy insuring agaiust fire and extended coverage
is required. The policy must contain the standard mortgagee clause
of loss payable to Glacier Bank. A binder of this Insurance is required
prior to loan closing.
Title Insurance Glacier regizires a title policy in the form to Glacier &nk insuring the
K Lien Waivers: mortgaged premises is in the Borrower's name, free and clear of all
liens, claims and 011cumbrAuces and that tha lender has a valid rust
lien. Miring construction, this Bank will obtain at Borrowers expense,
a foundation survey completed by the title company showing that All
improvements are located wholly within the boundary lines of the
subject property and no encroachments or easements exist onto subject
property. The Borrower and all contractors shall agm.p to execute A
full reloase and waiver of any rights with respect to mechanics or
materialmen liens; and shell provide the Bank with such other lien
waivers and evidence of such payments m the 'Rink znay reyueg
Schedule of Funds will be dicbused monthly based on work progress after
Disbursements; inspections by Glacier Bank. Interest. payme�ats will not be made from
unpaid construction funds, but will be paid directly by the Borrowers.
Other Funding; The MBOH commitment to you for permanent nuancing, which would
pay our loan off upon completion of the: project, must be acceptable
to us. In additinn, the City must be in receipt of all ot:hpr grants and
funds necessary to complete the project, prior to our loan closing.
We are very excited about this project and are looking forward to continuing our
involvement with the City to provide affordable housing.
Sincerely,
Stephen J. Van Belden
Senior Vice president
SV H/pi
WJUUZ