11-133 - Tukwila Pool Metropolitan Park District (TPMPD) - Loan and Repayment Terms

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11- 133(a) Council Approval N/A MEMORANDUM OF UNDERSTANDING TO INTERLOCAL AGREEMENT FOR LOAN AND REPAYMENT BETWEEN THE CITY OF TUKWILA AND THE TUKWILA POOL METROPOLITAN PARK DISTRICT This Memorandum of Understanding is made and between the City of Tukwila ( "City ") and the Tukwila Pool Metropolitan Park District ( "MPD "), both of whom are Washington municipal corporations, to clarify the Interlocal Agreement for Loan and Repayment. WHEREAS, the City and the MPD have a fully executed interlocal agreement regarding the loaning of funds by the City to the MPD on a pre- determined schedule; and WHEREAS, the MPD wishes to borrow funds on an "as needed" basis thereby reducing the total amount of interest cost incurred; and WHEREAS, the City acknowledges that it would be beneficial to both the City and the MPD to lend funds only as needed by the MPD, NOW, THEREFORE, BE IT UNDERSTOOD THAT THE CITY AND THE MPD AGREE TO THE FOLLOWING: SECTION 1: Loan Amount and Disbursement. The City agrees to lend sufficient funds from its General Fund to the MPD Fund and agrees to disburse funds in a total principal sum not to exceed $1,100,000.00 (the "Loan ") which principal is subject to interest at a rate of two percent per year. The following loan amounts have been remitted to the MPD: a. October 15, 2011- $191,294.00 b. April 15, 2012 - $225,000.00 c. October 15, 2012 - $433,706.00 d. January 15, 2013 - $250,000.00 SECTION 2: Loan Repayment Terms and Schedule. The MPD agrees to assume and accept the financial obligation to repay the Loan in the maximum amount of $1,100,000.00, plus interest thereon at the rate of two percent per year, for a ten -year period. The Park District obligation hereunder constitutes a non -voted general obligation of the Park District to which its full faith, credit and resources are pledged. This Loan will be repaid in monthly payments to the City beginning in 2013. The first payment will be due May 15, 2013 and will be due every month on the 15th of each month, thereafter. Should the MPD desire to pre -pay any of the loan amount, pre - payment shall include accrued interest, through the date of payment. EXECUTED this ) P1-11- day ofd , 2013.