2005/09/14 Council Agenda Packet

EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET PROJECT TITLE: i 6 Consent COUNCIL BILL# ASARCO SMELTER 9/14/05 Action Originating Department Legal REDEVELOPMENT AREA— First Reading Contact Person Peter Camp CONTINGENT FUNDING Second Reading Phone Number X 8624 AGREEMENT Third Reading FOR AGENDA OF 9/14/05 Public Hearing Initialed by: Department Head CAA Council President Cti Location Preceding Action Attachments Department(s) Approval Res. 5504 designating blighted area (7/21/04) North Everett Res. 5505 community renewal plan (7/21/04) Approval of Contingent Funding Agreement Agreement (7/21/04 Amount Budgeted Expenditure Required Account Number(s): Budget Remaining Additional Required DETAILED SUMMARY STATEMENT: As part of the transactions among the City, the Everett Housing Authority, and ASARCO, the City guaranteed a line of credit for the Housing Authority with the Bank of America. ASARCO's bankruptcy filing caused Bank of America to freeze the line of credit. Bank of America asks the City and the Housing Authority to execute documents to allow the line of credit to be unfrozen. The proposed documents bring the agreements with the bank into line with the actual situation that developed. Approval of these documents will not likely result in substantially greater risk to the City and will allow the clean up to proceed. Completion of the cleanup will allow consummation of the sale of the vacant land to Barclay's North, and consummation of the sale of vacant land will substantially reduce the City's financial risk. RECOMMENDATION (Exact action requested of Council): AUTHORIZE THE MAYOR TO SIGN(1)CONFIRMATION AGREEMENT AMONG THE CITY,HOUSING AUTHORITY AND BANK OF AMERICA AND(2)SUPPLEMENT TO AGREEMENT BETWEEN CITY AND HOUSING AUTHORITY REGARDING CLEANUP AND REDEVELOPMENT OF ASARCO PROPERTY r _ v