HomeMy WebLinkAboutRDA LOAN AGREEMENT 07-06-81DATE:
TO:
FROH:
SUBJECT:
July 1, 1981
REDEVELOPMENT AGENCY
__ 7-6-81
NO. 9
Honorable Mayor and City Co%~wcil Members via C.R. Thayer, Acting City
Manager ~, ,,.,\ ~, ~
Ron Nault, Finance Director~* '
Loan Agreement between RDA and City
DISCUSSION
The attached loan agreement has been prepared by the City Attorney to address
in particular the terms and conditions of the loan between the City and the
Tustin Community Redevelopment Agency. This loan was originally agreed to by
Council action at the meeting of June 4, 1979 and accepted by the Agency at
the meeting of June 18, 1979.
RECOMMENDATION
Review the agreement, as prepared by the City Attorney, and execute same.
AGREEMENT
THIS AGREEMENT is made and entered into this
day of , 1981, 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 REDEVELOPMENT 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 One Million One Hundred Twenty-
Five Thousand Dollars ($1,125,000.00) for the administrative
expenses and overhead of the Agency; and
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 June 4, 1979; and
~EREAS, the Agency, pursuant to Health and Safety
Code Section 33601, has accepted said offer, as reflected in
the Minutes of the Agency for June 18, 1979; 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 carry-
ing out the Towne 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 eight percent (8%) per annum from the
date of transfer of said sum until such time as
said sum is repaid to City.
b). Th~ 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.
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Executed this
"C I TY"
day of , 1981.
CITY OF TUSTIN
By
James Sharp, Mayor
"AGENCY" TUSTIN C05~UNITY REDEVELOPMENT AGENCY
By
James Sharp, Chairman
ATTEST:
Mary Wynn, City Clerk'
Mary Wynn, Redevelopment Agency
Secretary
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