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EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET 14 <br /> PROJECT TITLE: <br /> A Loan Agreement by and Briefing COUNCIL BILL# <br /> between HopeWorks Social Proposed Action Originating Department Planning <br /> Enterprises and the City of Consent Contact Person Rebecca McCrary <br /> Everett for the construction of Action Phone Number X7133 <br /> a workforce development First Reading FOR AGENDA OF <br /> center available to very low- Second Reading <br /> income persons Third Reading <br /> Public Hearing <br /> Budget Advisory Initialed by: <br /> Department Head <br /> Administration _ <br /> Council President AP <br /> Location Preceding Action Attachments Department(s)Approval <br /> 3319 Broadway Ave Ordinance 3574-17 10/11/17 Loan Agreement Public Health and Safety <br /> Budget Committee 4/4/18 Planning <br /> Council Meeting 4/11/18 Legal <br /> Administration <br /> Amount Budgeted $400,000 <br /> Expenditure Required $400,000 Account Number(s): <br /> Budget Remaining -0- <br /> Additional Required -0- <br /> DETAILED SUMMARY STATEMENT: <br /> The HopeWorks Station II project will create affordable housing in the Everett community for homeless and <br /> low-income individuals and a workforce development center providing training programs designed to create <br /> career pathways toward wage progression and a livable wage. The project plan includes apartments for 65 <br /> individuals in the upper floors and an internship program for up to 100 low-income individuals annually <br /> through the social enterprises. The City Council was provided information about the HopeWorks Station II <br /> project on September 27,2017 and passed Ordinance 3574-17 on October 11,2017 reallocating$400,000 <br /> General Government Funds from the 2017 budget to support the construction of the HopeWorks Station II <br /> Project. <br /> The proposed loan agreement implements Ordinance 3574-17 and includes the following terms and <br /> conditions typical of other funding sources for projects benefitting low-income people: a) structured as a <br /> "forgivable"loan;b)must operate the workforce development center for low-income people for not less than <br /> 25 years;c)loan is provided at 3%simple interest;d)security requirements for the loan in the form of a <br /> promissory note,deed of trust, and use covenant; and e)performance reporting requirements. <br /> RECOMMENDATION(Exact action requested of Council): <br /> Authorize the Mayor to sign a Loan Agreement by and between HopeWorks Social Enterprises and the City <br /> of Everett for the construction of a workforce development center available to very low-income persons in <br /> the form substantially provided. 73 <br />