RES 2004-14 KCCHA CONTINGENT LOAN AGREEMENTRESOLUTION NO. 2004-14
A RESOLUTION of the City Council of the City of Bainbridge Island
declaring its intent to enter into a Contingent Loan Agreement with Kitsap County
Consolidated Housing Authority to provide assistance to the Authority in the
repayment of bonds, notes and other obligations issued or incurred to provide
financing for housing purposes.
WHEREAS, RCW 35.83.050 provides that a city may lend or donate money to a housing
authority or agree to take such action; and
WHEREAS, the Authority expects to acquire a mobile home park currently known as the
Islander Mobile Home Park and located within the City at [201 Madrona Way NE), and to
develop such site for housing purposes (the "Project"); and
WHEREAS, it is anticipated that the Authority will issue bonds or notes in an aggregate
principal amount not to exceed $6 1 3 0 . o o.0and will incur other obligations related thereto
(such as reimbursement obligations for letter of credit draws or the requirement to maintain a
reserve account at a specified level) (collectively with any bonds and notes, the "Obligations"),
to provide financing for the Project; and
WHEREAS, it is anticipated that the parties to whom payments are due under the
Obligations will request additional assurances that such payments will be paid when due; and
WHEREAS, the City Council finds that the Project is in the City's best interest; NOW
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAINBRIDGE
ISLAND, WASHINGTON, as follows:
Section 1. To assist in the financing of the Project, with the public benefits resulting
therefrom, the City declares its intention, subject to the conditions and terms set forth herein, to
enter into a contingent loan agreement with the Authority (the "Agreement") pursuant to which the
City will make loans to the Authority in the event the Authority is unable to make payments under
the Obligations, when due. The Agreement will be executed and delivered by the City only if the
City finds the terms of both the Agreement and the Obligations to be acceptable.
Section 2. The adoption of this resolution does not constitute a guarantee that the
Agreement will be executed or delivered by the City or that the Project will be financed as described
herein.
ADOPTED by the City Council of the City of Bainbridge Island, Washington, at a
regular open public meeting thereof, this 28th day of Apri 1 , 2004.
APPROVED by the Mayor this 29th day of April , 2004.
CITY OF BAINBRIDGE ISLAND,
WASHINGTON
Darlene Kordonowy,
ATTEST:
Susan P. Kasper, City Cler
FILED WITH THE CITY CLERK: April 20, 2004
PASSED BY THE CITY COUNCIL: April 28, 2004
RESOLUTION NO. 2004-14
50426627.01
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