HomeMy WebLinkAboutRDA #4 6-01-87DATE: MAY 27, 1987
REDEVELOPMENT AGENCY
NO. 4
6-1-87
Inter- Com
TO:
FROM:
SUBJECT:
WILLIAM HU,S~T~N, CITY MANAGER/EXECUTIVE DIRECTOR, TUSTIN
~ COMMUNJ~TY REDEVELOPMENT AGENCY
RONALD A. ~~CE DIRECTOR
1987-88 ADVANCE FROM THE GENERAL FUND TO THE SOUTH CENTRAL
PROJECT AREA
Recommendation
Members of the City Council/Redevelopment Board
authorize the Mayor/Chai rman to si gn the attached
directing the advance of an additional $600,000 to
Central Project Area to carry out the programs
Redevelopment Agency during the 1987-88 fiscal year.
members,
agreement
the South
of the
,, J
Discussion
Various Sections of the Health and Safety Code dictate the use of
tax increment income generated by and under redevelopment law.
The only allowable use of tax increment is for the payment of
debt. There are various ways of establishing debt, and for the
present, the City has entered into short term cash advances to
the Redeveloment Agency to be repaid from the annual tax
increment of the project area.
In order to complete the various projects of the Agency in the
South Central Project Area, an additional $600,000 needs to be
advanced from the General Fund. This will bring the total amount
due the General Fund from the South Central Project Area to
$1,147,416, with accrued interest. Our fiscal consultants, Katz
Hollis Coren & Associates, has estimated the 1987-88 tax
increment for this project area to be $1,034,000.
The City and the Agency will be working on a proposal for a more
permanent, long term financing alternative during the coming
fiscal year.
RAN/ej
Attachment
T. HIS. AGREEMENT
June, 1987, by and betWeen
corporation of the County
hereinafter .referred to as
AGENCY,
REDEVELOPMENT
hereinafter
referred
AGREEMENT
is made and entered into this 1st day of
the CITY OF TUSTIN, a municipal
of Orange, State of California,
"City", and the TUSTIN COMMUNITY
a California Redevelopment Agency,
to as "Agency".
Health
loan the
RECITALS
WHEREAS, the City Council of the City, pursuant to
and Safety Code Section 33610, has deemed it necessary to
Agency Six Hundred Thousand Dollars ($600,000) for the
administrative expenses
WHEREAS, the
to the Agency; and
WHEREAS,
Section 33601, has
WHEREAS,
Hundred Twenty-Five
Agency on June 18,
($250,000) accepted
and overhead of the Agency; and
City Council of the City offered
the Agency, pursuant to Health &
accepted said offer; and
this loan is in addition to the amount
Thousand Dollars ($125,000) accepted
1984, and Two Hundred Fifty Thousand
by the Agency on June 2, 1986, making
said loan
Safety Code
of One
by the
Dollars
a total
loan of Nine Hundred
plus accrued interest;
WHEREAS, the
agreement as to said
conditions thereof as
acceptance.
Seventy-Five
and
Thousand Dollars ($975,000),
Jgreed to at the time of offer and
parties intend to further memoralize their
loan and to set forth the terms and
NOW,' THEREFORE, in consideration of the mutual
covenants, ~agreements and considerations contained herein, City
and Agency hereby agree as follows:
1. Said loan is to be used by the Agency in carrying
out the South. Central Area Redevelopment Project and any other
lawful purposes.
2. The sum loaned to the Agency is to be repaid to
City as follows:
a. Simple interest on said sum shall accrue at the
rate of twelve percent (12%) per annum from the
date of transfer of said sum until such time as
..
said sum is repaid to City.
b. The sum loaned to the Agency, as well as
accrued interest thereon, shall be repaid to
City by the Agency from tax increment revenues
received pursuant to Health and Safety Code
Sections 33670 et seq.
Co If no funds become available to the Agency to
repay said sum, the money loaned and accrued
interest thereon is forgiven and need not be
repaid to City.
Executed this 1st Day of June, 1987.
"C I T Y"
CITY OF TUSTIN
By
Richard B. Edgar, Mayor
"AGE NC Y"
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
By
Richard B. Edgar, Chairman
ATTEST:
Mary E. Wynn, City Clerk
Mary E. Wynn, Redevelopment Agency Secretary