2019/10/23 Council Agenda Packet

EVERETT } Project title: 1999 Community Development Block Grant (CDBG) Loan Agreement Amendment- Volunteers of America Food Bank and Distribution Center City Council Agenda Item Cover Sheet ff Consideration: Amend CDBG Loan Agreement and association........................ ..... .. . . . .. .. .. Council Bill#interoffice use documents Project: Everett Food Bank and Distribution Center Agenda dates requested: Partner/Supplier : Volunteers of America Western Washington Location. 1232 1..23.2..Bro.a.dway.Avenu e Briefing 10/23/19 Preceding action: Resolution 4749 dated April 28, 1999 Proposed action Fund: None Consent Action 10/30/19 Ordinance Public hearing Fiscal summary statement: Yes x No CDBG Funds in the amount of$250,000 were dispersed in 1999. No additional funds are being .. requested. Budget amendment: Yes x No Project summary statement:Volunteers of America (VOA) received a CDBG award in PowerPoint presentation: 1999 for acquisition and construction of a 14,200 square foot Food Bank and Yes x No Distribution Center. The grant was awarded in the form of a deferred payment loan for a Attachments: period of 25 years at three percent simple interest and a lien was placed on the property OMNIBUS AMENDMENT by the City to guarantee the loan.The loan will be forgiven after the 25-year period, due Agency Information July 1, 2024, provided the facility continues the use as a food bank and distribution center. Both the Food Bank and Distribution Center have outgrown the current facility. Department(s)involved: The location does not provide adequate space for receiving, sorting, and distribution of Community Development the food needed to support the food-insecure population in Everett.VOA intends to Contact person: continue providing food services in "mobile pop-up" food pantries in various locations Rebecca McCrary throughout the community and securing a larger warehouse space more conducive to a distribution facility function.VOA wishes to sell the current property and has requested Phone number: some relief from the loan obligation.Staff and VOA are proposing a pro-rated loan 425.257.7133 amount that would essentially give them credit for 20 years of service and amend the agreement amount still owing to$50,000 with 5 years remaining on the forgivable loan. Email: This will allow VOA to sell the property and relocate the Distribution Center while ramccrary@everettwa.gov continuing to provide food services via mobile pop-up food pantries in the community. Initialed by: Depa i •nt head - Recommendation (exact action requested of Council):Authorize the Mayor to execute the 1999 Community Development Block Grant Loan Agreement Amendment in a form .dministra o approved by the City Attorney. Council President 85