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HomeMy WebLinkAbout19634 - RESOLUTIONS - 9/1/1999 RESOLUTION NO. 19634 APPROVING THE SUBMISSION OF AN APPLICATION FOR SECTION 108 PROGRAM FUNDS IN THE AMOUNT OF $1 MILLION($1,000,000)FOR PROPERTY IMPROVEMENTS AT VIP MOTOR CARS, INC. AT 4095 EAST PALM CANYON DRIVE WHEREAS, the City of Palm Springs is eligible to receive Community Development Block Grant funds as an entitlement city under the Department of Housing and Urban Development regulations, and therefore eligible for funding under the Section 108 Loan Guarantee Program; and WHEREAS, under the Section 108 Program, the funds must be used for eligible activities which principally benefit low and moderate income people or eliminate slum and blight; and WHEREAS, the City received approval of a generic HUD 108 loan from HUD in September, 1995, but has not made a loan from that commitment as of this date; and WHEREAS, according to federal regulations the City must conduct a public hearing to receive input on the proposed use of the loan funds; and WHEREAS, the City Council desires to assist VIP Motor Cars to expand and upgrade their automobile dealership at 4095 East Palm Canyon Drive, in order to retain the business in Palm Springs, make it a more profitable facility for the dealer and the City, and increase the level of employment; and WHEREAS, expansion of the dealership will create on-site jobs for documented low and moderate income households, therefore improving overall living conditions for low and moderate income households in the City. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, as follows: Section 1. That the submission of a HUD Section 108 application, in the amount of$1 million and in the form of a loan guarantee, to the U.S. Department of Housing&Urban Development is hereby approved. Section 2. That the City Manager is authorized to file said applications, and any amendments thereto, and all understandings and assurances contained therein in a form acceptable to the City Attorney, and to provide any additional information or documents requested by HUD, and to execute any agreements pertaining to said loan guarantee. ADOPTED this 1st day of September 1999. AYES: Members Barnes, Hodges, 0den, Reller-Spurgin and Mayor Kleindienst NOES: None ABSENT: None ATTEST:: CI�F+ALM-SPRINGS, CALIFORNIA City Clerk i y Man ger REVIEWED & APPROVED AS TO FORM