HomeMy WebLinkAboutRes1985-041
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 85-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, APPROVING APPLICATION FOR PRELIMINARY
LOAN FOR MUTUAL HELP HOUSING AND AUTHORIZING A COOPERATIVE
AGREEMENT WITH NORTH PACIFIC RIM HOUSING AUTHORITY
WHEREAS, it is the policy of the City of Seward to eliminate
substandard and inadequate housing, to prevent the spread of slums and
blight, and to realize as soon as feasible the goal of a decent home in
a suitable living environment for all of its citizens, and
WHEREAS, under the provisions of the United States Housing act
of 1937, as amended, the United States of America, acting through the
Secretary of Housing and Urban Development (herein called the "Govern-
ment"), is authorized to provide financial assistance to local public
housing agencies for undertaking and carrying out preliminary planning
of Mutual Help housing projects that will assist in meeting this goal,
and
WHEREAS, the act provides that there shall be a local deter-
mination of need for Mutual Help housing to meet needs not being ade-
quately met by private enterprise and that the Government shall not make
any contract with a public housing agency for preliminary loans for
surveys and planning in respect to any Mutual Help housing project
unless the governing body of the locality involved has by resolution
encouraged the application of the public housing agency for such prelim-
inary loan, and
WHEREAS, the North Pacific Rim Housing Authority (herein
called the "Local Authority") is a public housing agency and is applying
to the Government for a preliminary loan to cover the costs of surveys
and planning in connection with development of Mutual Help housing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. There exists in the City of Seward, Alaska, need
for such Mutual Help housing which is not being met by private enter-
prise.
Section 2. The City of Seward encourages and supports the
application of the Local Authority to the Government for a preliminary
loan in the amount of $138,340.00 for surveys and planning in connection
with the construction of approximately fifty Mutual Help dwelling units.
Section 3. The City Manager of the City of Seward is hereby
authorized to execute a cooperation agreement between the City and the
North Pacific Rim Housing Authority, attached and incorporated herein as
Exhibit "A".
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 85-41
Section 4. This resolution shall take effect immediately upon
its adoption.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, this 22 day of April , 19 85
SEWARD, ALASKA
AYES:
NOES:
ABSENT:
ABSTAIN:
CRIPPS, GILLESPIE, HILTON, MEEHAN, SCHOLL, SIMUTIS & WILLIAMS
NONE
NONE
NONE
ATTEST:
APPROVED AS TO FORM:
HUGHES, THORSNESS, GANTZ, POWELL
AND BRUNDIN, At torneys for the
City of Seward, Alaska
7~ ()/~
Fred B. Arvidson, City Attorney
(City
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Resolution No. 85-4]
EXHIBIT "A"
COOPERATION AGREEMENT
THIS AGREEMENT made this day of
19 ,BY AND BETWEEN North Pacific Rim Housing Authority (herein called
the "Authority") AND City of Seward (herein called the "City").
WITNESSETH:
In consideration of the mutual covenants hereinafter set forth, the
parties hereto do agree as follows:
1) Whenever used in this agreement:
a) The term "Project" shall mean any low-rent housing hereinafter
developed or acquired by the Authority with financial assistance
of the United States of America acting through the Secretary of
Housing and Urban Development (herein called the "Government");
excluding, however, any low-rent housing proj ect covered by any
contract for loans and annual contributions entered into between
the Authority and the Government, or its predecessor agencies,
prior to the date of this Agreement;
b)
The term "Taxing Body" shall mean the State or any political
subdivision or taxing unit thereof in which a project is situated
and which would have authority to assess or levy real or personal
property taxes or to certify such taxes to a taxing body or public
officer to be levied for its use and benefit with respect to a
Project if it were not exempt from taxation;
c) The term "Shelter Rent" shall mean the total of all charges to all
tenants of a Project for dwelling rents and non-dwelling rents
(excluding all other income of such Project), less the cost to the
Authority of all dwelling and non-dwelling utilities;
2) The Authority shall endeavor to secure a contract or contracts with the
Government for loans and annual contributions covering one or more
Projects consisting of approximately 74 units. The Authority shall
plan, develop or acquire and administer the Project or Projects, which
shall be located within the corporate limits of the City. The obliga-
tions of the parties hereto shall apply to each such project and the
city shall have no contractual responsibility with respect to the
Project other than as expressly provided in this Agreement.
3)
a)
Under the Constitution and laws of the State of Alaska, the
Project is exempt from all real and personal property taxes and
special assessments levied or imposed by any Taxing Body. So long
as either (i) the Project is owned by a public body or govern-
mental agency and is used for low rent housing purposes, or (ii)
any contract between the Authority and the Government for loans or
annual contributions~ or both, in connection with such Project
remains in force and effect, or (iii) any bonds issued in con-
nection with such Project or any monies due to the Government in
connection with such project remain unpaid, whichever period is
the longest, the City agrees that it will not levy or impose any
real or personal property taxes or special assessment upon such
Project or upon the Authority with respect thereto. During such
period, the Authority shall make annual payments (herein called
"Payments in Lieu of Taxes") in lieu of such taxes and special
assessments and in payment for the public services and facilities
furnished from time to time without other cost or charge for or
with respect to such Project.
b) Each such annual Payment in Lieu of Taxes shall be made at the
time when real property taxes on such Project would be paid if it
were subject to taxation, and shall be in amount equal to either
(i) ten percent (10%) of the Shelter Rent charged by the authority
in respect to such Proj ect during the 12 months' period ending
before such payment is made or (ii) the
amount permitted to be paid by applicable State law in effect on
the date such payment is made, whichever amount is the lower.
c) No payment for any year shall be made to the City in excess of the
amount of the real property taxes which would have been paid to
the City for such year if the project were not exempt from taxa-
tion.
d) Upon failure of the Authority to make any Payment in Lieu of
Taxes, no lien against any Project or assets of the Authority
shall attach, nor shall any interest or penalties accrue or attach
on account thereof.
4) During the period commencing with the date of the acquisition of any
part of the site or sites of any Proj ect and continuing so long as
either (i) such Project is owned by a public body or governmental
agency and is used for low-rent housing purposes, or (ii) any contract
between the Authority and the Government for loans or annual contribu-
tions, or both, in connection with such proj ect remains in force and
effect, (iii) any bonds issued in connection with such Project or any
monies due to the Government in connection with such Project remain
unpaid, whichever period is the longest, the City, without cost or
charge to the Authority or the tenants of such Project (other than the
Payments in Lieu of Taxes), shall:
a) Furnish or cause to be furnished to the authority and the tenants
of such Project public services and facilities of the same charac-
ter and to the same extent as are furnished from time to time
without cost or charge to other dwellings and inhabitants in the
City;
b) Accept grants of easements necessary for the development of such
Project; and
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c)
Cooperate with the authority by such other lawful action or ways
as the City and the authority may find necessary in connection
with the development and administration of such Project.
5) In respect to any Project, the City further agrees that within a
reasonable time after receipt of a written request therefor from the
Authority:
a) It will accept the dedication of all interior streets, roads,
alleys, and adjacent sidewalks within the area of such Project,
together with all storm and sanitary sewer mains in such dedicated
areas, after the Authority or its Developer has completed the
grading, improvements, paving and installation thereof, in accor-
dance with specifications acceptable to the City;
b) It will accept necessary dedications of land for, and will grade,
improve, pave, and provide sidewalks for, all streets bounding
such Project or necessary to provide adequate access thereto (in
consideration whereof the authority or its Developer shall pay to
the City such amounts as would be assessed against the Proj ect
site for such work if such site were privately owned).
6)
If by reason of the City's failure or refusal to furnish or cause to be
furnished any public services or facilities which it has agreed hereun-
der to furnish or cause to be furnished to the Authority or to obtain
such services or facilities, then the authority may deduct the amount
of such expenses from any Payment in Lieu of Taxes due or to become due
to the City in respect to any Project or any other low-rent housing
projects owned or operated by the Authority.
7) The City agrees to exempt the tenants of the Project and the Authority
from the payment of Sales Taxes in conjunction with rents.
8) No Cooperation Agreement heretofore entered into between the City and
the Authority shall be construed to apply to any Project covered by
this Agreement.
9) No member of the governing body of the City or any other public offi-
cial of the City who exercises any responsibilities or functions with
respect to any Project during his tenure or for one year thereafter
shall have any interest, direct or indirect, in any proj ect or any
property included or planned to be included in any Proj ect, or any
contracts in connection with such Proj ects or property. If any such
governing body member or such other public official of the City invol-
untarily acquires or had acquired prior to the beginning of his tenure
any such interest, he shall immediately disclose such interest to the
Authority.
10) So long as any contract between the Authority and the Government for
loans (including preliminary loans) or annual contributions, or both,
in connection with any Project remains in force and effect, or so long
as any bonds issued in connection with any project, or any monies due
the Government in connection with any Project remain unpaid, this
Agreement shall not be abrogated, changed, or modified without the
consent of the Government. The privileges and obligations of the City
hereunder shall remain in full force and effect with respect to each
Project so long as the beneficial title to such Project is held by the
Authority or by any other public body or governmental agency, including
the Government, authorized by law to engage in the development or
administration of low-rent housing projects. If at any ~ime, the
beneficial title to, or possession of, any Proj ect is held by such
other public body or governmental agency, including the Government, the
provisions hereto shall inure to the benefit of and may be enforced by,
such other public body or governmental agency, including the Govern-
ment.
IN WITNESS WHEREOF, the City and the Authority have respectively signed
this Agreement and caused their seals to be affixed and attested as of the
day and year first above written.
CITY OF SEWARD, ALASKA
NORTH PACIFIC RIM HOUSING AUTHORITY
Ronald A. Garzini, City Manager
ATTEST:
APPROVED AS TO FORM:
Hughes, Thorsness, Gantz, Powell
& Brundin--Attorneys for the
City of Seward
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk