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HomeMy WebLinkAbout063-96 ~"" ' RESOLUTION NO. 63-96 AUTHORIZING THE TOWN MANAGER TO EXECUTE A LOAN AGREEMENT AND PROMISSORY NOTE FOR A $93,000 LOAN TO VALLEY PARENT PRESCHOOL FROM THE CHILD CARE FUND WHEREAS, Danville Ordinance No. 89-2 establishes a mechanism whereby the Town of Danville can encourage and support the establishment and maintenance of high quality child care services in Danville; and WHEREAS, pursuant to such Ordinance, the Town of Danville has received a request from Valley Parent Preschool for financial assistance for their move from St Timothy's Church (their home ibr 30___ years off of Diablo Road) to the residence at 935 Camino Ramon (which they have purchased and are currently converting for use as a child care facility); and WHERFAS, the proposed use of the loan would be to cover the shortfall of funds necessary to make physical improvements to the new facility and to retire the second mortgage between Valley Parent Preschool and the seller of the property; and WHERF~S, Valley Parent Preschool occupies a special niche as regards the range of child care providers, being the only non-profit, parent cooperative preschool in the Danville area; and WHEREAS, by assuming responsibility for the secondary loan, the Town will be placed in second position on the improved, renovated property; now, therefore, be it RESOLVED, that the Danville Town Council hereby authorizes a $93,000 loan to Valley Parent Preschool from the Child Care Fund to cover the shortfall in renovation costs and to refinance the existing second mortgage; and be it further RESOLVED, that the Danville Town Council authorizes the City Attorney to prepare and the Town Manager to execute a loan agreement and promissory note for such a loan, with the term of the loan running through December, 2002, and with the terms of the agreement serving to establish performance criteria for Valley Parent Preschool that would potentially allow said loan to become an interest free loan. APPROVED by the Danville Town Council at a Regular Meeting held on May 7, 1996, by the following vote: AYES: NOES: ABSTAIN: Arnerich ABSENT: None Greenberg, Shimansky, Doyle, Waldo None MAYOR APPROVED AS TO FORM: CITY ATTORNEY ATTEST: CITY CLERK wp51 planning/gailey/vpsres. m 07