92-57Resolution No. 92 -57
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF CLEARWATER, FLORIDA AUTHORIZING A
GUARANTEE OF LOANS MADE UNDER THE CLEARWATER
NEIGHBORHOOD HOUSING SERVICES ECONOMIC
DEVELOPMENT LOAN PROGRAM, AUTHORIZING THE CITY
MANAGER OR HIS DESIGNEE TO EXECUTE SAME AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Clearwater has
recognized a need to conserve and upgrade the economic environment
in the North Greenwood neighborhood; and
WHEREAS, the City has granted funds to Clearwater Neighborhood
Housing Services (CNHS) to make economic development loans in this
neighborhood in accordance with lending criteria adopted by CNHS
which specifically consider job creation and retention, security
and collateral in review and approval of loan applications; and
WHEREAS, the City Commission desires to increase the number of
jobs available to residents of the North Greenwood neighborhood and
increase the level of funding available to conserve and upgrade the
community's business environment; and
WHEREAS, several banks and savings institutions have agreed to
provide business loans to qualified clients which will
significantly leverage the City's and CNHS's resources; and
WHEREAS, this leveraging requires the establishment of a loan
guarantee mechanism using federal Community Development Block Grant
(CDBG) funds; and
WHEREAS, the City will provide for each loan made a
certification identifying the loan as eligible for CDBG guarantee;
NOW THEREFORE BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
CLEARWATER, FLORIDA.
Section 1: The City Manager or his designee is authorized to
execute various letters of guarantee on behalf of the City, not to
exceed $75,000 for 1991 -92 and $40,000 for 1992 -93.
Section 2. Funds used to purchase guaranteed loans which must
be acquired due to default by mortgagees shall come from federal
Community Development Block Grant funds.
Section 3. Letters of guarantee do not constitute, directly,
indirectly or contingently, an obligation of the City of Clearwater
or the taxpayers thereof to make any appropriation of any kind or
pledge and form of taxation to support the financial obligations
which may be incurred under this pledge to purchase loans which may
1A ° 57
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fall into default.
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Section 4. This Resolution shall become effective immediately
upon its adoption.
PASSED AND ADOPTED THIS 17TH Y OF S PTEMBER, 1992.
Rita Garvey
Mayor- Commissione
Attest:
7
Cyn hia E. Goudeau
Cit Clerk
econdev.gar
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