HomeMy WebLinkAbout1997-06 Plaza Flood LoanRESOLUTION NO. 97-
A RESOLUTION ESTABLISHING THE PLAZA BUSINESS FLOOD LOAN
("SAVE THE PLAZA") FUND FOR RESTORATION OF PLAZA
BUSINESSES DAMAGED IN THE 1997 FLOOD WITH LOAN
REPAYMENT PROCEEDS TO BE USED TO RESTORE LITHIA PARK.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. Declaration of Public Purpose.
A. The City of Ashland has an important and continuing role in the economic
development and promotion of businesses within its boundaries.
B. The devastating effects of the 1997 flood on Plaza businesses creates a
need to restore the vibrancy and viability of these businesses which provide
employment opportunities in the private sector. Continued success of Plaza
businesses is necessary to insure the success and prosperity of the city.
C. It is in the public interest to assist Plaza businesses damaged or destroyed
in the flood by offering Iow interest or no interest loans.
D. The long term goal of balanced employment, the provision of public services,
and generation of tax revenues together with the city's promotional role in employment
and creating permanent job opportunities is a public purpose and the program
established by this resolution shall be regarded as performing an essential
governmental function.
SECTION 2. The Plaza Business Loan Program. The Plaza Business Loan Program is
established to finance the costs of Plaza business restoration resulting from the 1997
flood. The program will utilize only those non-tax revenues received by the city as
donations for this purpose.
Donations will be received through the "Save the Plaza Fund" solicitation being
coordinated by the Ashland Chamber of Commerce.
Criteria for ioans made through this.program, shall be developed by the
Chamber and the loans shall be approved and administered through SOREDI on the
following terms:
1. The proposed business restoration project is feasible and a reasonable risk from
practical and economic standpoints, and the loan has reasonable prospect of
repayment.
2. The city has received sufficient donations for this purpose, none of which shall be
from tax revenues.
3. The need for the proposed restoration resulted from the 1997 flood, the business
suffered physical damage as a direct result of Ashland Creek flooding, the business
was located on or near the Plaza at the time of the flood; the business will restore its
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business within the City and the applicant's financial resources are adequate to assure
success of the restoration.
4. The loan contract administered by SOREDI shall set forth a plan for repayment to
the City. Loan contract terms, repayment schedules and interest rates shall be
determined by the Chamber and SOREDI commensurate with the purpose of the loan
and the pubtic purposes expressed in this resolution. The contract:
a. May provide for loans at no interest.
b. May provide for a reasonable extension of the time for making any
repayment in emergency or hardship circumstances if approved by the Chamber and
SOREDI.
c. Shall provide for such evidence of debt assurance of, and security for,
repayment by the applicant as is considered necessary by the Chamber and SOREDI.
SECTION 3. Loan Repayment to Benefit Lithia Park. Moneys received as repayments
of loans made under the Plaza Business Loan Program and surplus moneys received
as donations for this purpose but not used in the program shall be transferred to the
park commission who shall use the proceeds to restore damage to Lithia Park
resulting from the 1997 flood.
This resolution was read by title only in accordance with Ashland Municipal Code
§2.04/090 duly PASSED and ADOPTED this
Barbara Christensen, City Recorder
SIGNED and APPROVED this
Paul Nolte, City Attorney
,1997.
__ day of '-.//~ ,1997.
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