ORDINANCE No. 176689

* Authorize execution of financing documents for Floyd Light Project (Ordinance)

The City of Portland ordains:

Section 1.  The Council finds:

1.  In 1996, the City entered into a Security Agreement with Key Bank of Oregon and a Reimbursement Loan Agreement with Floyd Light Apartments, LLC, to pledge a portion of the net revenues from the City’s Southwest Fourth and Yamhill parking garage as security for the financing of the Floyd Light Apartments Project (the Project).

2.  In 2002, the City authorized the extension of the original Security Agreement and Reimbursement Loan Agreement for an additional year and further authorized the execution of a new Security Agreement and Reimbursement Loan Agreement for a period that ends not later than five years from November 1, 2002.

3.  The City is willing to continue its support for the Project and to extend its current Security Agreement and Reimbursement Loan and enter into a new Security Agreement and Reimbursement Loan Agreement on similar terms in order to provide continuing security for the Project.

4.  Floyd Light Apartments, LLC, has extended it original letter of credit and is currently negotiating a new letter of credit for the Project.

5.  As condition to the issuance of the new letter of credit, the lender requires the City and Floyd Light Apartments, LLC to make various representations and warranties to the lender regarding the ground lease and to grant the lender various rights with respect to the ground lease to protect the security for the letter of credit in a form of agreement similar to that entered as part of the original transaction.

NOW, THEREFORE, the Council directs:

a.  The Debt Manager is authorized to execute an Estoppel and Non-Disturbance Agreement or similar agreement with the lender and Floyd Light Apartments, LLC, upon approval of such Agreement by the City Attorney’s Office.

b.  The termination date of the Estoppel and Non-Disturbance Agreement shall coincide with the termination date of the Security Agreements and Reimbursement Loan Agreements previously authorized by Council.

Section 2.  The Council declares that an emergency exists because delay will jeopardize the financing for the project, and therefore this ordinance shall take effect from and after its passage by the Council.

Passed by the Council: JUL 10 2002

Mayor Vera Katz            Gary Blackmer

Office of Management and Finance        Auditor of the City of Portland

Linda Meng:ootca            By /S/ Susan Parsons

June 27, 2002  

Deputy

BACKING SHEET INFORMATION

AGENDA NO. 828-2002

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 176689