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HomeMy WebLinkAboutRes1985-041 . . . . . 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". -1- . . . . . 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 -2- . . . . . 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 . . . ", . . 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