103141. RESOLUTION NO. 10, 314 •
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a A RESOLUTION TO PERMIT THE CITY TO DEED
5 THE NATHANIEL W. HILL COMMUNITY
e COMPLEX TO THE U.S. DEPARTMENT OF
7 HOUSING & URBAN DEVELOPMENT TO BE USED
8 AS ADDITIONAL SECURITY FOR A CDBG
9 SECTION 108 LOAN IN THE AMOUNT OF $ 1,800,000
10 TO RENOVATE LEE SCHOOL AT 12TH AND PINE
it STREETS AS THE NEIGHBORHOOD RESOURCE
12 CENTER; AND FOR OTHER PURPOSES.
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14 WHEREAS, the City developed a plan to create a neighborhood resource center
15 in the old Lee School which would house various municipal services and other
16 neighborhood oriented programs; and
17 WHEREAS, the Little Rock School District deeded Lee School, located at 12th
18 and Pine Streets, to the City of Little Rock, Arkansas; and
19 WHEREAS, part of the renovation costs for this project have been secured from
20 the U.S. Department of Housing & Urban Development (HUD) by means of a Section 108
21 loan in the amount of one million and eight hundred thousand dollars ($ 1,800,000), to be
22 repaid by the City through the future use of Community Development Block Grant
23 (CDBG) monies; and
24 WHEREAS, since 1995, HUD has required additional security besides future
25 CDBG appropriations to repay Section 108 loans; and
2e WHEREAS, the City cannot simply pledge revenues for such purposes, but has
27 offered to deed the Nathaniel Hill Complex to HUD since it was purchased with federal
28 monies, the title to be held in trust until the Section 108 monies are repaid and, upon
29 repayment, the deed to be returned to the City; and
30 WHEREAS, the valuation of the CDBG loan is more than secured by the three
31 million and eight hundred thousand dollar ($3,800,000) value of the Nathaniel Hill
32 complex; and
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ME
1 WHEREAS, HUD has indicated its willingness to accept this sale pursuant to an
2 escrow agreement that will return title to the City upon the repayment of the Section 108
3 loan; and
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WHEREAS, pursuant to this agreement the City will continue to operate the
Nathaniel Hill Community Complex and, as a result of this agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. The Mayor and City Clerk are authorized to execute a deed and,
these persons and the City Manager are authorized to execute any documents, necessary
to sell the Nathaniel Hill Community Center to the U.S. Department of Housing and
Urban Development as additional security for a Section 108 loan that will be used to
finance the improvements for the Lee School Neighborhood Resource Center.
SECTION 2. It is understood that the documents authorized by this Resolution
must stipulate that upon the repayment of the Section 108 loan from HUD, title to the
Nathaniel Hill Community Center shall be returned to the City of Little Rock, Arkansas.
ADOPTED: July 7, 1998
ATTEST:
0 &41�;, -a,-
ROBBIE HANCOCK
CITY CLERK
APPROVED AS TO LEGAL FORM:
THOMAS M. CARPENTtk
CITY ATTORNEY
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APPROVED:
a
MICHAEL KECK
VICE -MAYOR
M M
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