Resolution 7640 - Laserfiche WebLink

ix EVERETT WASHINGTON RESOLUTION NO. 7640 A Resolution Concerning Close-Out of the City's New Markets Tax Credits Program WHEREAS, A. In 2009,the City Council in Resolution No. 6118 authorized an application to the United States Department of the Treasury's Community Development Financial Institutions Fund ("CDFI")for an allocation of new markets tax credits ("NMTC"). As part of this process, the City Council authorized the City of Everett to create City of Everett CDE LLC ("Company") as a Washington limited liability company comprised of the City as its sole member and manager. B. The Company applied for and was awarded by the CDFI in 2009 the right to deploy$25,000,000 of NMTC allocation to NMTC eligible investments. C. Approximately seven years ago,the Company with Heritage Bank deployed the NMTC allocation as low-interest loans to local projects. In this deployment,the Company created three entities, named Everett Sub-CDE I, Everett Sub-CDE II, and Everett Sub-CDE III ("Subcompanies"), in order to deploy the allocation. The Company is the managing member of the Subcompanies, and Heritage Bank is the investor member in each of the Subcompanies having invested a total of $25 million D. Under the NMTC rules, after seven years the deployment must end, and the$25 million invested by Heritage Bank is being returned through a combination of cash and loan assignments by the Subcompanies. Once this is complete, the City's NMTC program will be closed-out. E. The City Council desires to authorize the Mayor to take all actions necessary to close-out the City's NMTC program. NOW,THEREFORE, BE IT RESOLVED THAT: The Mayor is authorized to take all actions necessary to close-out the City's NMTC program, including without limitation authority to (i) execute redemption agreements with Heritage Bank and to execute all other instruments and agreements necessary to close-out the NMTC program and (ii) execute all agreements and instruments necessary to dissolve and liquidate the Company and the Subcompanies, all in form approved by the City Attorney.