The URL can be used to link to this page

Home My WebLink About5.794 Original Contract S.7Q-<! i H-f.D FC"!' R~C ~)I:r; (, -; "-J ,"l '," i'.IIt: ". I 1- <..'~.... ':.. ~ ! .,. ~ cl- ~ ....~,:-- I'~ -- ~~~. ~-'"'~,,~ '~ ....\,J -;: ...... .,. , ' -~..-.~..~ - - ..to.. j""; L _ J T1. r J I/.. 11.' " L'-<.J RETURN ADDRESS: City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 2005 SEP -5 Ml 10; 04 G) 2006 1187184 Clallam County DOCUMENT TITLE: Loan Agreement Serenity House of Clallam County CDBG Funds LENDER: City of Port Angeles BRORROWER: c.. t..,4LL.,4-M C-.OU NT \.1 OSe Ve.J1 d-i-] flcu:se... OF (!j,a.{ (IU-n ('Of,{ h 1- ~ Loan Agreement Serenity House of Clallam County This Loan Agreement ("Agreement") is made as of the o<q~ day of August, 2006 between the City of Port Angeles (the "City") and Serenity House of Clallam County ("Serenity House"), a non-profit corporation. AGREEMENT IN CONSIDERA nON OF THE MUTUAL PROMISES HEREIN, SERENITY HOUSE AND THE CITY AGREE AS FOLLOWS: FUNDS The City holds certain CDBG funds granted to the City for the purpose of providing loans to private individuals for limited housing rehabilitation projects, the pay-off of which loans has accrued to the City and is held for reuse in accordance with federal CDBG regulations; and, Serenity House proposes to borrow $70,000 of those funds to be used for their Tempest Permanent Supportive Housing Project to serve low income people in the City of Port Angeles. Such use is consistent with the purpose of the CDBG grant funds. This Agreement has been authorized and approved by the City Council of the City of Port Angeles, following a meeting in open session and pursuant to public notice, on the 15th day of August, 2006. LOAN The City agrees to lend to Serenity House, and Serenity House agrees to borrow from the City, $70,000 of the funds identified above, all pursuant to the terms of this Agreement. TERMS Serenity House, as borrower, agrees to repay the City, as lender, the full amount of the loan not later than five (5) years from the date of the accompanying Promissory Note. One year after the execution of this loan, Serenity House agrees that interest shall accrue at the rate of three percent (3%) per annum on the unpaid balance of the loan. SECURITY As security for borrowing said $70,000.00, Serenity House shall make, execute and deliver to the City a Promissory Note in the form and substance satisfactory to the City in full amount of the Loan. - 1 - LOAN PROCEEDS Upon execution of the Note in favor of the City and the satisfaction of any other conditions precedent applicable to loan disbursement, the loan proceeds will be disbursed in full to Serenity House. CANCELLA nON OF COMMITMENT; ACCELERATION 1. The entire principal of the Note shall become due and payable, at the option of the City, upon the Serenity House breach of, or failure to comply with, any covenant, agreement, term or condition contained in this Agreement or upon the occurrence of the following: 2. Failure to pay when due any sum owing hereunder, under Promissory Note. LIMIT OF LIABILITY The only liability and obligation of the City arising pursuant to this Loan Agreement is to advance $70,000 loan proceeds payment pursuant to this Agreement, and no creditor or other person or entity of whatever nature shall have any recourse to the assets, credits, or services of the City by reason of this Agreement SUCCESSORS AND ASSIGNS The terms of this Agreement shall be binding upon the parties hereto, their respective successors and assigns; it being agreed, however that Serenity House shall not assign or transfer any of its rights, duties, benefits, obligations, liabilities or responsibilities under this Agreement without the express written consent of the City. RECORDS Serenity House agrees to maintain such records and follow such procedures as may be required under the State's CDBG Program and any such procedures as the City or CTED may prescribe. At a minimum, such records will include information pertaining to the Agreement, obligations and unobligated balances, assets and liabilities, outlays, equal opportunity labor standards (as appropriate), and performance. Serenity House shall retain all such records and all other records pertinent to this Agreement and work undertaken under this Agreement for a period of three (3) years from and after repayment of the loan unless a longer period is required to resolve audit findings or litigation. In such cases, the City shall request a longer period of record retention. The City, CTED, and duly-authorized officials of the state and federal government shall have full access and the right to examine, excerpt or transcribe any pertinent documents, papers, records, and books of Serenity House involving transactions related to the Scope of Work and this Agreement. - 2 - COMPLIANCE WITH LOCAL LAWS Serenity House shall comply with all applicable laws, ordinances, and codes of the federal, state and local governments. HOLD HARMLESS Serenity House shall defend, indemnify, and hold the City harmless from and against any claim, liability or loss arising from this agreement or from any act or failure to act by Serenity House in connection with the construction or operation of the Tempest Permanent Supportive Housing Project. TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 Under Title VI of the Civil Rights Act of 1964, no person shall, on the grounds ofrace, color, creed, religion, sex, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. INTEREST OF OFFICERS AND EMPLOYEES No member of the governing body of the City or of Serenity House, and no officer, employee, or agent of the City or of Serenity House who exercises any control or discretion in connection with the planning or carrying out of the project, shall have any personal financial interest, direct or indirect, in the project or in this Agreement; and Serenity House shall also take appropriate steps to assure compliance with the obligations of this paragraph. APPLICABLE LAW AND VENUE This Agreement shall be governed by the laws of the State of Washington. Venue for any action hereunder shall be in Clallam County, Washington. IN WITNESS WHEREOF, the City and Serenity House have executed this Loan Agreement as of the date and year last written below. CITY OF PORT ANGELES SERENITY HOUSE OF CLALLAM COUNTY ~ ahto, Executive Director Date: August ail ,2006 Date: August 2" ,2006 - 3 - /7 APROVED ~S TO FO~: /:/~ . By:_1/~~- /~/~ William E. Bloor, City Attc)mey Date: August d)tj ,2006 G ILegal_BackupIAGREEMENTS&CONTRACTS\2006 Agmts&ContractsISeremtyHouse7-26-06 wpd - 4 - PROMISSORY NOTE Port Angeles Rehabilitation Loan Program Amount: $70,000.00 Date: August ')..1 ,2006 FOR VALUE RECEIVED, Serenity House of Clallam County, a non-profit corporation (herein called the BORROWER) promises to pay to the order of THE CITY OF PORT ANGELES (herein called the LENDER), the sum of seventy thousand ($70,000). Interest on the unpaid balance of this Note shall accrue from the date hereof at the rate of three percent (3%) per annum. Principal and interest on this Note is payable in lawful money of the United States at City Hall of the City of Port Angeles, Washington, or at such other place as shall be designated by the LENDER in writing. On or before August 30, 2011, the Borrower shall pay to the Lender in full the balance of the principal and all accrued interest. The Borrower reserves the right to prepay at any time all or any part of the principal amount due under this Note without penalty or premium. All payments received on amounts due under this note shall be applied first to the interest due on the Note. If the interest and principal due on this Note are not paid in full by August 30, 2011, the Borrower shall pay to the Lender additional interest of 1/2% (one-half of one percent) on the amount remaining unpaid, per calendar month, or fraction thereof. If suit is instituted by the Lender to recover on this Note, or any portion thereof, Borrower agrees to pay all costs of such collection, including reasonable attorney's fees and court costs, and the Borrower further agrees that venue and jurisdiction may be in Clallam County, Washington. If this Note is reduced to judgment, such judgment shall bear the statutory interest rate on judgments. Demand, protest and notice of demand and protest are hereby waived, and the undersigned hereby waives, to the extent authorized by law, any and all homestead and other exemption rights that would otherwise apply to the debt evidenced by this Note. 1 , . Any notice to the Borrower provided for in this Note shall be in writing and be given by mailing such notice by certified mail, return receipt requested, addressed to Borrower at the property address stated below, or to such other address as Borrower may designate by Notice in writing to the Lender. Any notice to the Lender shall be given by mailing such notice by certified mail, return receipt requested, to 321 E. Fifth Street, Port Angeles, W A 98362. IN WITNESS WHEREOF, this Note has been duly executed by the undersigned as of its date. BORROWER: Serenity House of Clallam County Signature ~ ~ 0~ '" Kathy ahto, Executive DIrector P.O. Box 4047 Port Angeles, W A 98363 G ILegal_ BackupIAGREEMENTS&CONTRACTS\2006 Agmts&ContractslSeremty House PromISsory Note 081706 doc 2