5917-85 Loan for Marlowe Project

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RESOLUTION N0. 5917--=85 BY: Brown, Chinnock, Gallagher, Graham, McBride, Salmon, Wendling AN EMERGENCY RESOLUTION recommending and authorizing the Community Development Corporation of Lakewood, a non-profit corporation, to make a loan to the LSC Service Corp., the management subsidiary of Lakewood Senior Citizens, Inc., a non-profit corporation, to develop the Marlowe Project, subject to certain terms and conditions. WHEREAS, the Marlowe Project, a 90 one-bedroom unit independent living center for the elderly, would provide much needed elderly housing in the City for those persons who can no longer live alone, but do not need nursing home care, and WHEREAS, the LSC Service Corp. has advised the City that the proposed elderly living center cannot proceed without the availability of financial assistance in the form of a loan from the Community Development Corporation of Lakewood utilizing Community Development Block Grant Funds, and WHEREAS, such utilization of Community Development Block Grant Funds would not jeopardize any existing or future Community Development Block Grant funded activities, and WHEREAS, this. Council determines that it is in the tiest interest of the City to recommend to the Community Development Corporation of Lakewood to consider and approve the loan request of the LSC Service Corp. to develop the Marlowe Project subject to certain terms and conditions, and WHEREAS, this ordinance constitutes an emergency measure providing for the immediate preservation of the public health and welfare; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LAKEWOOD, STATE OF OHIO: Section 1; That this Council recommends and does hereby authorize the Community Development Corporation of Lakewood, a non-profit corporation, to lend financial assistance to the LSC Service Corp. to develop. the Marlowe Project in the form of a loan in the amount of $400,000 subject to the following terms and conditions: 1. Said loan shall bear interest at the rate of five percent (5%) per annum; 2. The term of said loan shall not exceed ten years; 3. The loan agreement shall provide for prepayment if, in the opinion of the City, such prepayment is economically possible and feasible; 4. Said loan is to be secured by a second mortgage on the realty and by $400,000 Notes due LSC, Inc. from Forest City Dillon; and 5. The City shall be given the right to audit the books of the LSC Service Corp. on a quarterly basis and the LSC Service Corp. shall provide the City quarterly financial reports pertaining to the Marlowe Project.. Section 2. It is found and determined that all formal actions of this Council concerning and relating to the passage of this resolution were adopted in an open meeting of this Council, and that all such deliberations of this Council and of any of its committees that resulted in such formal action were in meetings open to the public, in compliance with all legal requirements including Section 121.22 of the Ohio Revised Code.