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Economic&Conunuuity Development <br /> DATE: 12/17/2018 <br /> MEMO: No. 18-45 <br /> TO: Mayor Julie Moore Wolfe and City Council Members <br /> FROM: Billy Tyus,Interim City Manager <br /> Gregg Zientara,City Treasurer&Director of Finance <br /> Raymond Lai,Director of Economic and Community Development <br /> SUBJECT: Authorization to participate in the HiJD public offering to refinance an existing Section 108 Loan <br /> SUMMARY RECOMMENDATION: <br /> Staffrecommends the Interim City Manager be authorized to execute the necessary documents as required by the U.S. <br /> Departrnent of Housing and Urban Development(HUD)to refinance an existing guaranteed Section 1081oan for the Near North <br /> Redevelopment Project. <br /> BACKGROUND: <br /> Previously,the City of Decatur was awarded by HLJD a$3 million Section 108 Loan for the Near North Development Project <br /> (a/k/a Wabash Crossing). The loan has been gradually paid down on a semi-annual basis by using a portion of the City's annual <br /> CDBG enritlement allocation <br /> At this time,a balance of$810,000 for the principal amount is outstanding for this loan wluch will mature in August 1,2022. <br /> HUD now offers the City an opportunity to participate in a public offering to refinance the remaining principal amount with an <br /> estimated saving of approacimately$42,000 by the loan maturity date. <br /> POTENTIAL OBJECTIONS: Staff is not aware of any objections. <br /> INPUT FROM OTHER SOURCES: <br /> Relevant inforn�ation was received from HUD offices. <br /> STAFF REFERENCE: Should the City Council have any questions,you may contact Gregg Zientara at 424-2702 or <br /> GZientara@decaturil.gov,or Ray Lai at 424-2727 or RLai@decaturil.gov. <br /> BUDGET/TIME IMPLICATION5: None <br /> ATTACHMENTS: <br /> Description Type <br /> Resolution Resolutic�u L�ttcr <br /> Supporting Documentation Baclaip Material <br />