HomeMy WebLinkAboutRDA LOAN SO. CENTRAL 06-18-84 REDEVELOPMENT AGENCY
-- NO. 4
or
SUBJECT: Loan to Tustin Community Redevelopment Agency, South Central Project
Area ~Y
RECOHHENDATION
The Agency should authorize the Chairman to sign the attached Agreement
accepting loan of $125,000 at 12% interest from the City's General Fund.
Fiscal year 1985 will be the first year that the South Central Project Area can
receive tax increment income. The Agency must incur a debt by 6-30-84 in order
to receive tax increment for the following year.
The attached agreement between the City and the Agency will satisfy the debt
requirement and will cash flow the capital improvements budgeted to the South
Central Project Area for 1984-85.
RAN:mm
attachment
AGREEMENT
THIS AGREEMENT is made and entered into this 18th day of June, 1984,
by and between the CITY OF TUSTIN, a municipal corporation of the County of
Orange, State of California, hereinafter referred to as "City," and the TUSTIN
COMMUNII~{ REDEVELOPMENT AGENCY, a California Redevelopment Agency, hereinafter
referred to as "Agency."
RECITALS
WHEREAS, the City Council of the City, pursuant to Health and Safety
Code Section 33610, has deemed it necessary to loan the Agency One Hundred
Twenty-Five Thousand Dollars ($125,000.00) for the administrative expenses and
overhead of the Agency; and
WHEREAS, the City Council of the City offered said loan to the Agency;
and
WHEREAS, the Agency, pursuant to Health & Safety Code Section 22601,
has accepted said offer; and
WHEREAS, the parties intend to further memorialize their agreement as
to said loan and to set forth the terms and conditions thereof as agreed to at
the time of offer and acceptance.
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 he 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 transfe.r 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.
c. 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 18th day of June, 1984.
"CITY"
CITY OF TUSTIN
By
Ursula E. Kennedy, Mayor
~TTEST:
"AGENCY"
TUSTIN COMMDNITY REDEVELOPMENT AGENCY
Ursula E. Kennedy, Chairman
Mary E. Wynn, City Clerk
Mary E. Wynn, Redevelopment Agency Secretary