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A Resolution of the Council of the County of Allegheny approving the use of federal Community Development Block Grant funds allocated and granted to the County as an urban county under Section 106 of Title I of the Housing and Community Development Act of 1974, as amended (the “Act”), program income generated from guaranteed loan funds and any grants which are or may become available to the County pursuant to Section 108(q) of the Act as part of the security required by the Secretary of the United States Department of Housing and Urban Development (“HUD”) for the issuance of a guarantee pursuant to Section 108 of the Act and 24 CFR Part 570, Subpart M, for a six million dollars ($6,000,000) loan to be made by a Fiscal Agency approved by HUD to the County's designated public agency borrower, the Redevelopment Authority of Allegheny County, for the purpose of defraying a portion of the costs of the redevelopment of two former “brownfield” sites currently owned by the Regional Industrial Development Corporation Southwestern Pennsylvania Growth Fund (“RIDC”) known as “City Center Duquesne” located in the City of Duquesne and “Industrial Center of McKeesport” located in the City of McKeesport
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Whereas, “RIDC” is the record owner of two former “brownfield” sites within the County known as “City Center Duquesne” located in the City of Duquesne and “Industrial Center of McKeesport” located in the City of McKeesport; and
Whereas, the County, through its Department of Economic Development, in cooperation with RIDC, is desirous of undertaking new redevelopment efforts at the City Center Duquesne and Industrial Center of McKeesport sites, including but not limited to, the remediation of environmental conditions, the construction, reconstruction and installation of public and other site improvements, utilities, or facilities and clearance, demolition and removal of structures and other buildings previously erected on these sites (the “Project”); and
Whereas, the Project is anticipated to take approximately three years to complete and to cost approximately thirteen million dollars; and
Whereas, the County, has applied for, and has been awarded, a grant in the amount of $2,000,000.00 from the Secretary of HUD pursuant to HUD's Brownfields Economic Development Initiative Grant Program (the “BEDI Grant”) to defray a portion of the costs of the Project; and
Whereas, the County intends to enter into a Cooperation Agreement with the Redevelopment Authority of Allegheny County (“RAAC”) under which RAAC will transfer a portion of the proceeds of the BEDI Grant to RIDC for use in connection with the Project; and
Whereas, the County, through its Department of Economic Development, submitted an application in 1997 to the Secretary of HUD pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. §§ 5301 et seq., and 24 CFR Part 570, Subpart M”) under which HUD would guarantee the timely payment of the principal and interest on a six million dollars ($6,000,000) loan, (the “Guaranteed Loan Funds”) to be made by a Fiscal Agency approved by HUD to the County's designated public agency borrower, RAAC, for the purpose of acquiring additional funds to be used to defray the costs of the Project (the “Section 108 Loan”); and
Whereas, the Secretary of HUD has approved the County's application for a Section 108 Loan for the Project; and
Whereas, RAAC, as the County's designated public agency borrower and recipient of the Section 108 Loan, will make a loan of the proceeds of the Section 108 Loan to RIDC for use in connection with the Project, and
Wheras, RAAC's agreement with RIDC for the loan of the proceeds of the Section 108 Loan will include, among other things, RIDC's guaranty of repayment of the Section 108 Loan with appropriate security in the form of a mortgage or pledge of revenues; and
Whereas, the Contract for Loan Guarantee Assistance under Section 108 of the Act to be entered into by the Secretary of HUD, the County and RAAC for the Section 108 Loan requires that the County, as the “Unit Of General Local Government,” provide a pledge as security for the repayment of the Section 108 Loan of the following:
a) “all allocations or grants which have been made or for which the Unit of General Local Government …may become eligible under Section 106 of the Act, as well as any grants which are or may become available to the Unit of General Local Government … pursuant to Section 108(q) of Act;”
b) “Program income, as defined at 24 CFR 570.500(a)(or any successor regulation), directly generated from the use of the Guaranteed Loan Funds;”
c) “Other security as described in” the Contract for Loan Guarantee Assistance;
d) “All proceeds (including insurance and condemnation proceeds) from any of the foregoing;” and
e) “All funds or investments in the accounts established pursuant to Paragraphs 1 and 6” of the Contract for Loan Guarantee Assistance.”
Whereas, County Council is of the considered opinion that a pledge of the security requested by the Secretary of HUD, including the pledge of federal Community Development Block Grant funds allocated and granted to the County as an urban county under Section 106 of the Act, any grants which are or may become available to the County pursuant to Section 108(q) of the Act, and the program income from any Guaranteed Loan Funds, as part of the security for the issuance of a guarantee for the Section 108 Loan to RAAC is necessary to secure the redevelopment of the City Center Duquesne and the Industrial Center of McKeesport brownfield sites and to promote economic growth and revitalization within the Mon Valley region of the County.
The Council of the County of Allegheny hereby resolves as follows:
Section 1. Incorporation of Preamble.
The provisions set forth in the preamble to this Resolution are incorporated by reference in their entity herein.
Section 2. Approval of Use of County CDBG Grant As Security for Section 108 Loan Guarantee.
As required by the Secretary of HUD as a condition for execution of a Contract for Loan Guarantee Assistance under Section 108 of the Act between HUD, the County and RAAC, the County Council does hereby approve a pledge of federal Community Development Block Grant funds allocated and granted to the County as an urban county under Section 106 of the Act, any grants which are or may become available to the County pursuant to Section 108(q) of the Act, and the program income from any Guaranteed Loan Funds as part of the security for the issuance of a guarantee for a Section 108 Loan to RAAC that has been requested by the County for the Project. The appropriate officers and officials of the County are hereby authorized to take all necessary actions, including the execution of all documents, deemed by them to be necessary and prudent to carry out the purposes of this Resolution.
Section 3. Severability.
If any provision of this Resolution shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Resolution which shall be in full force and effect.
Section 4. Repealer.
Any resolution or ordinance or part thereof conflicting with the provisions of this Resolution is hereby repealed so far as the same affects this Resolution.