HomeMy WebLinkAbout1026 - AUTHORIZING the city's financial participation in the Boulder-Dushanbe Sister City Cyber CafeRESOLUTION NO. 1026
CYBER CAFE FINANCIAL PARTICPATION RESOLUTION
WHEREAS, in 1987, the Mayars of Boulder and Dushanbe, Tajikistan, signed a protocol
agreeing to the exchange of major reciprocal gifts as part of their Sister City relationship;
WHEREAS, in 1990, the City of Dushanbe presented the City of Boulder with an ornate
Persian-style Teahouse, which was hand carved and painted by some 40 Tajik artisans;
WHEREAS, in 1998, construction of the Dushanbe Teahouse at 1711 13`h Street, across
from Central Pazk, was completed, and it opened for business as a successful restaurant;
WHEREAS, the Dushanbe Teahouse restaurant has been generating revenues for the City
of Boulder, which have been placed in a special reserve fund and now total over
$230,000;
WHEREAS, the Boulder-Dushanbe Sister Cities non-profit has coordinated the design
and implementation of Boulder's reciprocal gift to Dushanbe - an energy efficient and
environmentally sensitive cyber cafe;
WHEREAS, Boulder-Dushanbe Sister Cities has raised $80Q000 in cash, loans, pledges,
and in-kind donations out of the estimated $1,000,000 long-term project costs, and in
May of this year initiated construction of the Cyber Cafe structure in Dushanbe; and
WHEREAS, the remaining $200,000 is necessary in the immediate fuhue as the Cafe is
currently under construction; and,
WHEREAS, restructuring the current obligations is necessary to adequately fund
maintenance and rehabilitation costs for the Teahouse;
NOW, THEREFORE BE IT RESOLVED by the City of Boulder City Council:
SECTION L• The Boulder City Council hereby authorizes the City Manager to use
dedicated reserves to participate in the Cyber Cafe loan program, in an amount not to
exceed $200,000 with the following conditions:
1) It is understood that privately held promissory notes created as a result
of Resolution No. 936 shall be paid in full prior to repayment of the
aforementioned notes to be held by the city; and,
2) The maintenance and rehabilitation fee deducted from Teahouse lease
revenues shall be increased to three percent (3%) of current replacement
value commencing in 2013; and,
3) The remaining balance on the original construction loan shall be
refinanced so as to reduce the compounding interest rate from 6% to 5%
commencing January 1, 2008;
SECTION 2: The Boulder City Council finds that a key condition of Council Resolution
No. 936 (as amended 2/21/06), which specifies that delivery of the reciprocal gift be
substantially completed by August 2007, has been met.
Adopted this date: October 16, 2007
Attest: ayor
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City Clerk