Explanation
BACKGROUND: The Economic Development Division established a business loan program in the early 1980's for acquisition, rehabilitation, working capital and purchase of equipment for commercial and industrial businesses. The program includes the following loan products: Business Development Loan, Working Capital Loan, NCR Investment Fund Loan, NCR Commercial Improvement Loan Fund (CILF), and the NCR Façade Loan. These loans are funded by Community Development Block Grant Funds (CDBG), Urban Development Action Grant (UDAG) repayment funds and Urban Site Acquisition Loan Funds (USAL). In 2004 the Economic Development Loan Program was out-sourced to the Community Capital Development Corporation (CCDC) by authority of legislation number 0913-2004, passed June 21, 2004.
Loans closed prior to June 21, 2004 require the Development Director to sign various documents pertaining to authorization and servicing of the business loan deals. These documents include: loan modification agreements, term note modification agreements, subordination agreements, forebearance agreements, satisfaction of mortgages, UCC filings and releases, consent agreements and assumption agreements.
This legislation authorizes the Director of the Department of Development, or his designee, to sign various documents associated with the Economic Development Loan Program on loans closed prior to June 21, 2004 on behalf of the City of Columbus.
Emergency action is requested to allow the Director of Development to sign various loan documents in a timely manner to avoid interruptions in program services.
FISCAL IMPACT: No funds are associated with this legislation.
Title
To authorize the Director of the Department of Development, or his designee, to sign various loan documents on CDBG, UDAG and USAL repayment loans closed prior to June 21, 2004 on behalf of the City of Columbus in connection with the Economic Development Loan Program; and to declare an emergency.
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