HomeMy WebLinkAboutOB 1 LOAN RDA 06-21-82AG'N)A
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II
DATE: June 16, 1982
OLD BUSINESS
NO. 1
6-21-82
nter- Corn
TO:
FROM:
$ UBJ ECT:
HONORABLE htAYOR AND CITY COUNCIL
BILL HUSTON, CITY MANAGER
LOAN AGREEMENT BETWEEN CITY AND REDEVELOPMENT AGENCY
RECOMMENDATION:
That the City Council authorize the Mayor to execute the agreement between
the City and the Redevelopment Agency which provides for a loan of $350,000
from the City's general fund to the Agency.
BACKGROUND:
At its February 16, 1982 meeting, the City Council authorized the loan of
$350,000 to the Redevelopment Agency in order to supplement Agency funds
earmarked for the Stevens Square Parking Structure projec~.~--The attached
agreement which provides for a repayment of the loan over a 3 year period
at 12% interest (or whatever higher rate is authorized by State law and
subsequently approved by the City Council) is consistent with the terms of
the loan approved by the City Council in February. The agreement merely
memorializes the fact that the City Council has authorized the loan to the
Agency.
AGREEMENT
THIS AGREEMENT is made and entered into this
day of , 1982, 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 COMMUNITY REDEVELOP-
MENT AGENCY, a California Redevelopment Agency, hereinafter referred
to as "Agency."
RECITALS
WHEREAS, the City Council of the City of Tustin, pursuant
to Health and Safety Code Section 33610, has deemed it necessary
to loan the Agency Three Hundred and Fifty Thousand Dollars
($350,000.00) for the purchase of interests in the "C" Street park-
ing structure.
WHEREAS, the City Council of the City of Tustin offered
said loan-to the Agency, as reflected in the Minutes of the City
Council of Tustin for February 16, 1982; and
WHEREAS, the Agency, pursuant to Health and Safety Code
Section 33601, has accepted said offer, as reflected in the Minutes
of the Agency for February 16, 1982; 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 Tow-ne Centre Area Redevelopment Project and
any other lawful purpose.
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 or such
higher rate that may be authorized by statute
and approved by the City Council 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 within three (3) years 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 day of , 1982.
"CITY" CITY OF TUSTIN
By
Richard B. Edgar, Mayor
"AGENCY" TUSTIN COMMUNITY REDEVELOPMENT AGENCY
Richard B. Edgar, Chairman
ATTEST:
Mary E. Wynn, City Clerk
Mary E. Wynn, Redevelopment
Agency Secretary