Ordinance No. 8,83120000210 -3
ORDINANCE NO. 8831
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING AND DIRECTING THE CITY MANAGER OF THE CITY OF BAYTOWN TO
TAKE ALL NECESSARY STEPS TO DISCONTINUE THE COMMUNITY DEVELOPMENT
SMALL BUSINESS REVOLVING LOAN PROGRAM; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
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WHEREAS, the City of Baytown has operated the Small Business Revolving Loan Program (the
"Program ") since 1988; and
WHEREAS, in 1999, the Program was subject to a United States Department of Housing and Urban
Development ( "HUD ") investigation, in which four areas of concern were identified; and
WHEREAS, the City has worked diligently to resolve all areas of concern to HUD's satisfaction; and
WHEREAS, HUD has cleared all concerns identified with the assurance from the City that the Program
would be discontinued; and
WHEREAS, the City Council desires to discontinue the Program, for:
➢ with the current market lending rates, the interest rate on revolving loans under the Program no longer
provides the incentives to borrowers to participate;
➢ no loans have been made since September 1997;
➢ one of the reinvestment zones within the City, which provided added incentives to the Program, has not
been renewed; and
➢ HUD desires the program to be discontinued; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and directs the
City Manager of the City of Baytown to take all necessary stops to discontinue the Community Development Small
Business Revolving Loan Program.
Section 2: This ordinance shall take effect immediately from and after its passage by the City Council
of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown
this the 10`" day of February, 2000.
PETE C. ALFARO, ayor
ATTEST:
G W. SMITH; City Clerk
APPROVED'AS TO FORM:
eTMACIO RAMIREZ, SR., Ci Attorney
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