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HomeMy WebLinkAbout2015-02-09 15-083 ORDERCOUNCIL ACTION Item No. 15-083 Date: February 9, 2015 Item/Subject: ORDER, Awarding a $25,000 Loan to Broadway Housing, Inc. Responsible Department: Community & Economic Development Commentary: This Order would authorize the City Manager to execute an agreement with Broadway Housing, Inc., a subsidiary of Penquis, to provide up to $25,000 in a forgivable CDBG funded loan to renovate the existing 27 unit Ernst Manor, a facility reserved for low income handicapped and elderly persons. The agreement is contingent upon Penquis securing the additional funding needed for the project. Forgiveness of the loan would be based upon meeting a CDBG national objective by providing housing for the identified population. The Business & Economic Development Committee reviewed and recommended this item for approval at its February 3, 2015 meeting. Manager's Comments: Associated Information: Budget Approval: Legal Approval: Introduced for X Passage First Reading Referral Tanya Emery Department Head City Manager Finance Director '1-21XV11 Ci olicitor Page _ of _ Assigned to Councilor Faircloth CITY OF BANGOR 15-083 FEBRUARY 9, 2015 (TITLE.) ORDER, Awarding a $25,000 Forgivable Loan to Broadway Housing, Inc. WHEREAS,, Broadway Housing Inc, a subsidiary of Penquis, has made the request as a part of its planned rennovations at the existing 27 unit facility reserved for low income handicapped and elderly persons, called Ernst Manor; and WHEREAS, Ernst Manor has been a valuable asset in the community that has met an important need in the City and the planned rennovations will ensure the facility is viable for many years to come; and WHEREAS, the forgivable loan will be contingent upon the project securing the remaining funding needed and will be forgiven at a rate of 25% percent for every year that housing is provided to the identified population, meeting a CDBG national objective: BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT The City Manager is authorized to enter into a forgivable loan agreement for $25,000 with Broadway Houisng, Inc. in a final form approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL FEBRUARY 9, 2015 PASSED CITY CLERK