Resolution 4156 - Authorize Construction Loan - Courtyard Apartments818
RESOLUTION NO. 415
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 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 5thDAY JULY, 1994.
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ATTEST:
"rinarr6e Director
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0�/ �, �Irwix
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�. . - wau he Mayor
06/30/94 16:00
124067535015
EXHIBIT "A"
•
Jung 16, 1994
Bruce Williams, City Manager
City of Kalispell
P. CI. Raw 1997
Kalispell, MT 59903-1997
RE: Courtyard Apartment Complex
1842-Airport Road
Kalis-peil, MT
Dear Bruce:
The City's loan request for eomAruction of 16 low and very low fume rental units, 4 of
which sire specifically for designed for wheel chair occupants, has been approved by our
Bnard or Directors. The general terms and conditions of our Commitment are as follows:
Amount:
Term :
$2719000
9 months
Interest Rate: Equal to Prime rate, as quoted In Wall Street Journal at loan cWslng.
This interest rate is approxh uately 2 to 2.9 per wtage pulnts less than
we normally charge for this type of loan. Further mduc#ion in the
Interest rate would be considered provided there is exemption from.
federal tax.
Ivan Fees: Our normal origination fee (1% of the Juan amount) will be waived.
7'he construction fee for ftbursemeat of checks and inspections of the
pruperty during construction, will be YM of the loan amount. T h is
'h the rec normally charged.
Servicing: We are expecting to service the long-term permanent financing for the
M50H for I18th% annual fee.
Borrower- This borrower will be the City of Kalispell.
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Sec:srrhy: First Deed or Trust on the property.
a
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06/30/94 16.00 04067555015 GUCIER BANK
June 16, 1994
I31•114e Williams, city manager
City of Kalispell
Page 2
lnquivace; A hazard insurance policy insuring against tine and extelldW cove uge
is required. Tfae policy must contain the sioadAW mortgagee Chun
of lots payable to Glacier Bank. A binder of this Insurance Is roguircd
Prior to loan closing.
Title InmirAnce Glacier requires a title policy in the form to Glacier Bank insuring the
& Lien Waivers: mortgaged premises is in the Borrower's narue, free and clear of all
liens, clainlc and encumbrances and that dM tender has a valid first
lien. UVA112 COnstivction, this Rank will obtain at Borrowers expense,
a foundation survey completed by the title company dhnwing that all
knProvements Are located wbolly within the boutadary lines of the
subject property and no encroachments or casemwts exist onto subject
property. The Borrower and all contractors shall ague to ewlite a
full release and waiver of any rights with respect to mechanics or
materialmen liens; and shall provide Me Bank with such other lien
waivers and evidence of such Payments 9s the Bank may request.
Schedule of Funds will be disbuscd monthly based on work progress after
Disbursements: inspections by Glader Bank. intent psymmu will not be made from
unpaid construction funds, but will be paid directly by the Borrowers.
Other Funding: The MROH commhtment to you for permanent flaancing, which would
pay our loan off upon completion of the project, must be acceptable
to us. In addition, the City must be in receipt of all other grants and
hinds necessary to complete the project, prior to our loan closing.
We ave very excited about this project and are looking Forward to continuing our
involvement with the City to provide affordable housing.
Sincerely,
Stephen J. Van Ffelden
Senior Vice President
Q 002
SV Hlpi