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HomeMy WebLinkAbout175-90 RESOLUTION• RESOLUTION NO. .175-90 • • A RESOLUTION AUTHORIZING AN AGREEMENT WITH AU INDUSTRIES, INC. AND DISBURSEMENT OF $74,000 FROM THE 1990 COMMUNITY DEVELOPMENT BUILDING GRANT ALLOCATION FUND. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the Mayor and City Clerk are hereby authorized and directed to execute an agreement with AU Industries, Inc. and disbursing $74,000.00 from the 1990 CDBG allocation fund to be used for building and site improvements at the facility at 1102 Happy Hollow'Road. A copy of the agreement authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 6th day.of November , 1990. • ;ti. - %.rke;sh 5 oATTEST: • tftaw 4.0' ..1.A.y hi C= r[tri[c�i— City, Cl - v— /i.-r rf' z .0-7.: .0•7„, f^ ...r at' s' APPROVED: je By : o-f�.�. coon!. •Mayor I AGREEMENT THIS AGREEMENT executed this 6th ' day of November 1990, between the City of Fayetteville, hereinafter called the City and Abilities Unlimited of Northwest Arkansas, Inc. dba AU Industries, Inc., hereinafter called Grantee. In consideration of the mutual covenants contained herein, the parties agree as follows: The City shall provide the Grantee a loan at 0% interest from the Community Development Block Grant (CDBG) awarded the City by the U.S. Department of Housing and Urban Development. The loan shall be in the amount of Seventy four thousand 00/100 dollars ($74,000.00 ), The funds shall be used for site and building improvements at AU Industries, Inc. located at 1102 Happy Hollow Road in Fayetteville, Arkansas. The improvements are described more particularly in the "Construction Bid Items" attached to and made a part of this Agreement. CONDITIONS OF LOAN 1. Grantee certifies that it is a non-profit entity and is eligible to receive the loan and that the loan proceeds will'be used only for the work and materials necessary for site and building improvements at AU Industries, Inc. 2. The City will monitor the performance of Grantee under this Agreement and, if Grantee is found to be in compliance with the terms and conditions, Grantee will receive a credit of ten percent per year for ten years. At the end of the tenth year the City will transfer any interest in the structure to the Grantee. 3. During theterm of this Agreement, the Owner shall make nopayments of principal or interest; provided however, that, if the Owner shall be in default of any of the terms or conditions of this Agreement, the unpaid and remaining balance of the aforementioned loan shall become immediately due and payable upon demand by the City. 4. If the City determines that the loan proceeds will not or cannot be used for the purposes described in the "Construction Bid Items," Grantee agrees that the proceeds shall be returned forthwith in full to the City and further acknowledges that, with respect to such proceeds so returned, will have no further interest, right, or claim. GENERAL PROVISIONS The Grantee agrees to occupy and use said structure in a manner consistent with the requirements of 24 CFR Part 570 of the Housing and Community Development Act of 1974 and to comply with the terms and conditions of this agreement and all local, State and Federal laws governing such use. The Grantee further agrees to: 1. Provide evaluation, training, employment, and other services to physically and developmentally impaired individuals 16 years of age or older. 2. Submit quarterly reports to the City's Community Development office specifying gender, age, and number of persons employed or receiving services through AU Industries, Inc. 3. Provide financial and other records or access to same for the purpose of inspection to the City or the Department of Housing Urban Development (HUD). The City and HUD shall have the right to copy said records. 4. Maintain the structure and electrical, plumbing, and good condition and repair facilities, including heating, air conditioning equipment in at all times. 5. Carry fire and extended coverage insurance on the structure, improvements thereon and contents throughout the term of this agreement. 6 Carry out service activity in compliance with all Federal laws and regulations described in Subpart K of the Housing and Community Development of 1974 (attached to and made a part of this agreement), except that: a. The Grantee does not assume the City's environmental review responsibilities; b. The Grantee does not assume the City's responsibility for initiating the review process under Executive Order 12372. 7. Cooperate with the City to undertake construction or improvements in accordance with Attachment 0 of OMB Circular A-102, "Standards Governing State and Local Grantee Procurement." During construction, the City will monitor compliance of contractor(s) or subcontractor(s) with Federal labor Standards, Davis -Bacon Act (as amended) and Contract Work Hours and Safety Standards Act. SUSPENSION AND TERMINATION In accordance with 24 CFR 85.43, in the event Grantee sells the structure or otherwise materially changes the use as described herein, or fails to abide by the terms and conditions of this agreement, Grantee agrees that the loan made thereby shall automatically be revoked; that Grantee shall immediately repay said loan to the City less any credit accrued by Grantee of the total loan for each year the Grantee has occupied and used the aforesaid structure prior to any sale or change of use of said structure. OTHER PROVISIONS By executing this agreement, the City does not waive its statutory tort immunity under Arkansas Code Ann. Section 21-9-301 (1987). The United States shall be deemed to be a beneficiary of these provisions both for and in its own right and also for the purpose of protecting the interests of the community and other parties, public or private, in whose favor or for whose benefit these provisions have been provided and shall have the right, in the event of any breach of these provisions, to maintain any actions or suits at law or in equity or any other property proceedings to enforce this Agreement. r��1�^`��.,. WITNESS: . ='.a 71 ty Gflerk r`_ WITNESS: CITY F FAYETTEVIJJ,E //` Mayor AUJiNDUSTRIES, INC. pV es‘"i— Title