ORDINANCE NO.______, SERIES 2021
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AN ORDINANCE APPROVING LOAN FORGIVENESS TO CATHEDRAL COMMONS LTD, A KENTUCKY LIMITED PARTNERSHIP PURSUANT TO LOUISVILLE METRO CODE OF ORDINANCES ("LMCO") SECTION 39.131(B).
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SPONSORED BY: COUNCIL MEMBER ARTHUR
WHEREAS, Louisville/Jefferson County Metro Government, Office of Develop Louisville, by and through its Office of Housing ("Metro Government" or "Office of Housing") entered into a certain loan agreement on May 13, 2004 with Cathedral Commons, Ltd., a Kentucky Limited Partnership, by Cathedral Properties, LLC, its General Partner, ("Cathedral Commons", and together, "Parties") secured by a note, executed of even date, in the amount of $500,000.00 USD and recorded at Deed Book 08415, Pages 0943-0963, (attached as Exhibit "A") in the Office of the Clerk of Jefferson County, Kentucky;
WHEREAS, the note evidencing the loan agreement between the Parties was secured by a mortgage recorded in Mortgage Book 08676, Page 0372. The note and mortgage encumber several properties located at 429-433 South 2nd Street, Louisville, KY 40202, where Cathedral Commons constructed 40 units of affordable housing;
WHEREAS, Metro Government stands in current need of affordable housing, and acknowledges that by forgiving Cathedral Common's current indebtedness to Metro Government, Cathedral Commons may better pursue its affordable housing goals;
WHEREAS, the maturity date of the note and mortgage calls for the principal balance to be paid on or before December 31, 2020;
WHEREAS, under LMCO ? 39.131(B), the Mayor, by and through, Develop Louisville, on behalf of Metro Government may forgive a note in excess of $150,000 with Metro Council approval by ordinance; and
WHEREAS, Office of Housing desires to forgive the indebtedness owed by Cathedral Commons in the amount of $500,000.00.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT AS FOLLOWS:
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