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Adoption of Resolution Authorizing the City of Alameda to Participate in the United States Department of Housing and Urban Development (HUD) Public Offering as Part of the Section 108 Loan Guarantee Assistance Program to Refinance an Existing Note in the Original Principal Amount of $4,000,000, Related to Financing of the Civic Center Parking Garage (Series 2006-A);
Adoption of Resolution Authorizing the City of Alameda to Participate in the United States Department of Housing and Urban Development (HUD) Public Offering as Part of the Section 108 Loan Guarantee Assistance Program to Refinance an Existing Note in the Original Principal Amount of $3,000,000, Related to Financing of the Civic Center Parking Garage (Series 2008-A); and
Recommendation to Authorize the Interim City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications Related to the Refinancing. (Community Development 274)
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To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
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EXECUTIVE SUMMARY
In 2006, the City of Alameda was awarded HUD Section 108 funding of $7,000,000 to finance the construction of the Civic Center Parking Garage. The loan is evidenced by two notes with projected average interest rates of 5.19% for the life of the loan. HUD has announced plans for a public offering for the Section 108 Loan Guarantee Program that would allow for the refinancing of the two notes. Refinancing the current Section 108 Loan to reduce the interest rate, will save the City of Alameda approximately $500,000 over the remaining life of the loan.
BACKGROUND
The federal Department of Housing and Urban Development (HUD) awarded the City an $800,000 Brownfields Economic Development Initiative (BEDI) grant in October 2004, and a combined total $7,000,000 Section 108 Loan guarantee in January 2006. The Section 108 Loan was evidenced by two notes, one for $4,000,000 and another for $3,000,000. Proceeds from the loan were ...
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