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EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET <br />PROJECT TITLE: <br />Authorization to Proceed with <br />Use of New Markets Tax <br />Credits for Projects (Loan # 2 <br />and Loan #3) <br />Briefing <br />Proposed Action <br />Consent <br />Action <br />First Reading <br />Second Reading <br />Third Reading <br />Public Hearing <br />Budget Advisory <br />COUNCIL BILL # <br />Originating Dept. <br />Contact Person <br />Phone Number <br />FOR AGENDA OF <br />Initialed by: <br />Department Head <br />CAA <br />Council President <br />Public Works/Legal <br />R. Tarry/T. Benedict <br />425-257-8922/8669 <br />October 22, 2014 <br />Location <br />City of Everett <br />Preceding Action <br />(12-10-13) <br />Loan Program <br />Attachments <br />None <br />Department(s) Approval <br />Public Works <br />Legal <br />Amount Budgeted <br />-0- <br />Expenditure Required <br />-0- <br />Account Number(s): <br />Budget Remaining <br />-0- <br />Additional Required <br />-0- <br />DETAILED SUMMARY STATEMENT: <br />The funds generated from the city's New Markets Tax Credits $25 M allocation allow Heritage Bank to <br />market lower -than -market rate loans to businesses. The City Council approved the program's first loan in <br />May 2014. When these two new loans are executed the balance remaining to be loaned will be $14.4 M. City <br />staff expects to bring additional business loans to City Council during the next 2-3 months. Both loans are 7 <br />year interest -only loans at 3% fixed interest. These loans are recommended to City Council by the New <br />Markets Tax Credit Advisory Board: <br />Loan #2: <br />Hermes Law Firm Building - Loan Amount: $500,000 <br />A building under construction at 1812 Hewitt Avenue, Everett, WA (expected to be completed near year- <br />end). Prior building was destroyed by fire. <br />Loan #3: <br />Brien Motors facility improvements - Loan Amount: $1,400,000 <br />Facility upgrades to existing Brien Motors dealership facility located at 5200 Evergreen Way, Everett, WA. <br />RECOMMENDATION (Exact action requested of Council): <br />Authorize the Mayor on behalf of City of Everett CDE LLC and its subsidiaries to take all actions and <br />execute all documents necessary to close Loan #2 and Loan #3. <br />3 <br />