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HomeMy WebLinkAboutR30-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION FROM: Barbara Lindseth SUBJECT: Admin Sernces Dir\] R 1 G 1 NA L May 18, 2004 Education Revenue Augmentation Fund Low Moderate Ineome Housing Note Amended DATE: SvnoDsis of Previous Commission/Couneil/Committee Aetion{ s ): On December 15, 2003 the Community Development Commission approved the ERAF finaneing plan and borrowing from the Low- and Moderate Income Housing Fund. On May 18,2004, Redevelopment Committee Members Estrada, Longville, and McGinnis recommended amending the Low- and Moderate Income Housing Fund loan. Reeommended Motion{s): (Community DeveloDment Commission) MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN AMENDED EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS AND AMENDED PROMISSORY NOTES FROM REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING EXECUTION THEREOF. Contact Person( s): Gary Van OsdellBarbara Lindseth Phone: 663-1044 Project Area(s): All Ward(s): All Supporting Data Attached:OO Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LtrlMemo FUNDING REQUIREMENTS: Amount: $1.052.749 Source: LM Income Housina Fund. Note ReDav Budget Authority: Reouested SIGNATURE: A~~J,j$<-Yi Barbara Lindseth Administrative Services Director Commission/Counen Notes: -~~~-~-~~-~~------------------------------------------------------------------------------ GVO:bl:AgendCCD C ERAF 03-04 Amend.doc COMMISSION MEETING AGENDA MEETING DATE: 6n12004 '. Agenda Item Number: tf..3o ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ Education Revenue Au!!:mentation Fund Low Moderate Income Housin!!: Note Amended Baclmronnd: For the fiscal year 2003-04, State legislation was passed that required redevelopment agencies to shift to the Education Revenue Augmentation Fund ("ERAF") $135 million in property tax revenues for K-12 schools and community colleges. Each redevelopment agency was required, on or before May 10, 2004, to remit to the county auditor the amount ofERAF as determined by the State Director of Finance. In accordance with the State ERAF legislation, the total ERAF obligation for the fiscal year 2003-04 was $1,052,749, which was paid prior to May 10, 2004. ERAF by Redevelopment Project Area Redevelopment Project Area 2001-02 Tax Increment ERAF Transfer State College Central City North Central City West Southeast I ndustnal Park Northwest Tn City Uptown South Valle Central City Projects Mt Vernon 40th Street Totals 5,829,819.43 1,113,146.41 25,596.25 3,554,617.57 1,432,888.53 1,816,446.96 428,916.47 707,004.50 2,401,684.54 513,183.74 40.791.09 17.864.095.49 343,568 65,598 1,508 209,474 84,440 107,044 25,276 41,664 141,531 30,242 2.404 1.052.749 Current Issues: Based upon interpretation of the State ERAF legislation, Agency special counsel's legal opinion was that the Agency was allowed to use Low- and Moderate Income Housing Funds, in the form of a ten (10) year note receivable from the redevelopment project areas, for only 50% of the ERAF obligation ($526,374.50), if the Agency had no other funds available. For the remaining 50% of the obligation the Agency was required to use other available funds. Accordingly, on December 15,2003, the Commission approved a note receivable from each of the redevelopment project areas based upon borrowing only 50% of the ERAF from the Low- and Moderate Income Housing Fund. GVO:bl:Agenda CDC ERAF 03-04 Amend.doc COMMISSION MEETING AGENDA MEETING DATE: 6nn004 Agenda Item Number: 130 Commission Agenda Item Education Revenue Augmentation Fund Low Moderate Housing Note Amended Staff Report Page -2 - However, recently the Agency's financial auditors, Conrad and Associates ("the Auditors"), pointed out to staff a different interpretation of the State ERAF legislation. The Auditors contend that the intent of the legislation was to allow the borrowing of up to 50% of that fiscal year's Low- and Moderate Income Housing Fund allocation, which may be sufficient to pay 100% of the ERAF obligation, unless executed contracts would be impaired if the agency reduced the amount allocated to the Low- and Moderate Income Housing Fund. Based upon this meeting with the Auditors, staff requested a review and a revised opinion from the Agency's special counsel. In a legal opinion dated April 29, 2004, legal counsel concurred with the Auditor's interpretation of the ERAF legislation, and issued such an opinion (attached). Also, in accordance with the condition of borrowing from the Low- and Moderate Income Housing Fund, the Agency was required to make a finding that there are insufficient tax increment funds to meet the full 1 00% ERAF obligation. This finding was presented to the Commission on December 15, 2003 in the following chart: c ua - ayment A B C 0 E F G H I project Area 2002.()3 Tax 100% Deposil2O% All Pass Non-Housing Admin Casts Net Net 11'h..I1;:II11Il:lI4 ERAF to l1Mr Mod Thru Debt Svc & & Operation Remaining Remaining Receipts 0bIigai0n Hoosing Payments ContracluaI Elqlenses & FISC8i Vear InckJding Fund Obligalions Other Mise Tax Other Elcpenses Ioo;;,;:m RlMlnue Soon:es 5_ CoUege 5,603,592 343,568 1,120,718 11,164 4,456,763 291,541 ~,162 290,838 CCNorlh 965,978 85,598 193,195 2,196 2,042,920 0 -1,337,933 -176,081 CCWesl 17,909 1,508 3,582 0 11,200 0 1,619 20,619 Soulheast Ind 3,407,507 209,474 681,501 7,327 2,675,010 144,485 -310,270 -151,070 Nor1hwest 1,587,245 64,440 317,449 263,080 995,338 62,148 -135,210 97,890 TriCiIy 1,791,726 107,044 358,345 35,994 6,840,436 13,196 -5,563,289 -102,289 UplaNn 448,086 25,278 89,617 925 329,880 30,764 -28,396 -3,396 South Valle 733,040 41,664 148,608 17,370 454,141 49,967 23,270 53,270 CCPrnjec:1s 2,442,043 141,531 468,409 4,765 3,632,110 100,000 -1,924,792 -1,061,206 Ml Vemoo 650,199 30,242 130,040 38,628 374,617 60,621 15,651 102,051 40th ~ 106,904 2.404 21,381 30,000 5,996 30,306 16,817 18.817 A t 1 2003 04 ERAF P 17,754,221 1.052,749 3,550,845 411,689 21,818,411 763,048 -9,862,495 -910,557 GVO:bl:Agenda CDC ERAF 03-04 Amend.doc COMMISSION MEETING AGENDA MEETING DATE: 6n12004 Agenda Item Number: tf.Jo Commission Agenda Item Education Revenue Augmentation Fund Low Moderate Income Housing Note Amended Staff Report Page - 3 - The Agency's projected gross tax increment for the fiscal year 2003-04 is shown in column "B", with the 100% ERAF obligation shown in column "C". The 20% low and moderate set-aside (from which the Agency may borrow 50% for the ERAF obligation) is shown in column "D". Other obligations of the Agency, including administration and operating costs, are shown in columns "E", "F" and "G". After subtraction of the ERAF and other obligations, the Agency is in a negative position (- $9,862,495) in most redevelopment project areas when only current fiscalyear 2003-04 tax increment is considered as available (column "H"). When all other project area revenue sources (land sales, bond reserves, interest earnings, notes receivable, leases, etc) that may be available to the redevelopment project area are included, the negative impact of the ERAF obligation (-$910,557) is shown in column "I". Based upon the revised legal opinion, and to avoid a negative ERAF impact on the project areas, it is recommended that the Commission amend the notes approved on December 15, 2003 in order to allow 100% of the ERAF obligation ($1,052,749) to be borrowed from the 2003-04 Low and Moderate Income Housing Fund, which is less than 50% of the Low- and Moderate Income Housing Fund allocation for the fiscal year 2003-04. Environmental Impact: None. Fiscal Impact: As required by State legislation, the amount of$I,052,749 was paid by May 10,2004 to the County Auditor for deposit into the Education Revenue Augmentation Fund. The total of$l ,052,749 is now requested to be in the form of notes, as descn"bed in the above charts, from each of the redevelopment project areas payable to the Low- and Moderate Income Housing Fund. Recommendations: That the Community Development Commission approve amended notes from each of the redevelopment project areas, as outlined above, and adopt the Resolution ,1cuG[4~~j~~ Barbara Lindseth Administrative Services Director ------------------------------------------------------------------------------------------------------------------ GVO:bl:Agenda CDC ERAF 03-04 Amend.doc COMMISSION MEETING AGENDA MEETING DATE: 6n12004 Agenda Item Nnmber: IC3D LEWIS BRISBOIS BISGAARD & SMITH LLP ATTORNEYS AT LAW 650 EAST HOSPITALITY LANE, SUITE 600, SAN BERNARDINO, CA 92408 PHONE: 909.387.1130 I FAX: 909.387.1138 I WEBSITE: www.lbbslaw.com TIMOTHY JiSABO DlRECTDlAL: 909.381.7187 E-MAIL: sabo@lbbslaw.com April 29, 2004 ATrO~Y-CLlENT PRIVILEGED ATTORNEY WORK PRODUCT PRIVATE & CONFIDENTIAL VIA FACSIMILE AND U.S. MAIL FACSIMILE NO. 909.663.2297 Barbara Lindseth Director of Administrative Services REDEVELOPMENT AGE~9"OF TIIE CITY OF SAN BERNARDINO . 201 North "E" Street, Suite 301 San Bernardino, CA 92401 fI) \3 ;,-'1 )> .CO ..j en Z :r~ :~~~M .'" roo "" I. .J"-""l cq=i W '(0 ~::;-( 0 r;" >C) .~ :JJ-n :i rn 0 -( z ~ 0 , \Jl W Re: Fiscal Year 2003-04 ERAF Payment and Low/Mod Allocation ODinion Dear Barbara: In response to your e-mail dated April 28, 2004 wherein you request an opinion regarding the amount of a proposed loan of funds to satisfy the Fiscal Year 2003-2004 Education Revenue Augmentation Fund ('.. 'ERAF') obligation that the Redevelopment Agency of the City of San . . Bernardino (the "Agency'') may borrow from the Low/Mod Income Housmg Fund, we respond as follows: The relevant Health and Safety Code (the "Code'') Section 33681.9 (b) (1) provides, in pertinent part, as follows: an agency may borrow up to 50 percent of the amount required to be allocated to the Low and Moderate Income Housing Fund. . during the 2003-04 [lScal year, unless executed contract exist that would be impaired.. . (emphasis added) Los ANGElES 213.250.1800 SAN FRANasco 415.362.2580 SAN llIooo 619.233.1006 COsTA MEsA SAN BERNARDINO SACRAMENTO NEW YORK 714.545.9200 909.387.1130 916.564.5400 . 212.232.\300 LAs VEGAS 702.893.3383 4840-4865.5872.1 LEWIS BRISBOIS BISGAARD & SMITH UP Barbara Lindseth April 29, 2004 Page 2 Our interpretation of the Code is in accord with that of your auditors. That is, the Agency may borrow any gross amounts from the Low and Moderate Income Housing Fund (the "Fund") to pay for Fiscal Year 2003-04 ERAF obligation of the Agency provided such a loan does not exceed the 50% of allocation requirement to the Fund. Please note the additional requirements in Section 33681.9 (b)(2) of the Code; specifically, that the Agency make a "finding" that there are "insufficient other moneys to meet the requirements of subdivision 33681.9 (a)" of the Code. It is our understanding that such a finding has previously been made by the Community Development Commission. Please contact the undersigned if you have any further questions. Very truly yours, ~~ timothy J. Sabo of David Gondek of Julia Sylva of LEWIS BRISBOIS BISGAARD & SMITH LLP 4840-4865-5872.1 o I 2 3 4 5 6 7 8 9 10 II 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 c o (C(Q)rv RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN AMENDED EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS AND AMENDED PROMISSORY NOTES FROM REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING EXECUTION THEREOF. WHEREAS, the legislature of the State of California enacted urgency legislation adding Health and Safety Code Sections 33681.9 and 33681.10 and requiring the Agency to remit certain community redevelopment funds of the Agency to the San Bernardino County Auditor for deposit into the Educational Revenue Augmentation Fund created pursuant to the Revenue and Taxation Code (the "ERAF"); WHEREAS, under Health and Safety Code Section 33681.9(a)(2) the Director of Finance of the State of California calculated the amount of money that the Agency was required to remit to the San Bernardino County Auditor for deposit into the ERAF on or before May 10, 2004; WHEREAS, the Agency received a letter, dated September 22, 2003, from the Department of Finance of the State of California stating that the Agency was required to remit the total sum of One Million Fifty Two Thousand Seven Hundred Forty-Nine Dollars ($1,052,749.00) (the "Agency FY 2003-04 ERAF Obligation") to the County of San Bernardino Auditor for deposit into the ERAF; WHEREAS, the Agency has found and determined that there are insufficient funds of the Agency to meet the Agency FY 2003-04 ERAF Obligation, without borrowing funds from the Low and Moderate Income Housing 1 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c o Funds of the Agency for each of the redevelopment project areas of the Agency (collectively, the "Low-Mod Funds"); WHEREAS, Health and Safety Code Section 33681.9(b)(l) authorizes the Agency to borrow up to fifty percent (50%) of the Agency FY 2003-04 Low-Mod Fund allocation in order to make the State-mandated payment as required by Chapter 260, Statutes of 2003; Health and Safety Code Section 33681.9; WHEREAS, the Agency has further found and determined that although borrowing funds from the Low-Mod Funds will not expand or preserve the community's supply of affordable housing or otherwise promote the goal of providing affordable housing in the community, the loan of Low-Mod Funds to pay the Agency's FY 2003-04 ERAF Obligation will not impair any executed existing contracts of the Low-Mod Funds; WHEREAS, on December 15, 2003, the Commission did make such fmdings and approved the borrowing of funds from the Low-Mod Fund for 50% of the ERAF Obligation, and the executive of such notes, but now desires to amend such fmancing plan and related notes; WHEREAS, prior to May 10, 2004, the Agency did remit the amount of $1,052,749.00 for payment ofthe Agency's ERAF Obligation; NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: Section 1. The Commission hereby approves the amended ERAF Loan Plan. The purpose of this amended ERAF Loan Plan is to evidence an indebtedness of the Agency in the original principal amount of One Million Fifty- 2 o I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c o Two Thousand Seven Hundred and Forty-Nine Dollars ($1,052,749.00) as incurred by each of the redevelopment project areas of the Agency to the Low~Mod Funds, as evidenced by the ten (10) promissory notes identified below. Such indebtedness is incurred by the Agency to satisfy the State-mandated redevelopment indebtedness of the Agency to transfer certain tax increment, or other available funds of the Agency, to the County of San Bernardino Auditor for deposit into the ERAF for Fiscal Year 2003-04 pursuant to Chapter 260, Statutes of 2003 (Health and Safety Code Section 33681.9). Section 2. The Agency hereby declares its intention to borrow the sum of One Million Fifty-Two Thousand Seven Hundred and Forty-Nine Dollars ($1,052,749.00) from the Low-Mod Funds (the "ERAF Loan Plan Amount"), the sum remitted to the County of San Bernardino Auditor for deposit into the ERAF satisfaction of the Agency's FY 2003-04 ERAF Obligation under Health and Safety Code Section 33681:9 for fiscal year 2003-2004, as authorized by Health and Safety Code Section 33681.9(b). Section 3. The amended ERAF Loan Plan Amount shall be allocated among the Low-Mod Housing Funds of each redevelopment project area of the Agency as follows: State College Redevelopment Project Central City North Redevelopment Project Central City West Redevelopment Project Southeast Industrial Park Redevelopment Project Northwest Redevelopment Project Tri City Redevelopment Project $343,568 65,598 1,508 209,474 84,440 107,044 3 o I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c o Uptown Redevelopment Project South Valle Redevelopment Project Central City Redevelopment Projects (Merged Projects) Mt Vernon Corridor Redevelopment Project 40111 Street Redevelopment Project Total ERAF Loan Plan Amount for FY 2003-04: 25,276 41,664 141,531 30,242 2.404 $1.052.749 Section 4. The amended ERAF Loan Plan Amount shall be evidenced by the ten (10) promissory notes attached to the amended ERAF Loan Plan as Exhibits "A" through "1", inclusive. The Chairperson of the. Community Development Commission ofthe City of San Bernardino is hereby authorized and directed to execute the amended ERAF Loan Plan and each of the ten (10) amended promissory notes, as attached in the original principal amounts as set forth for each such redevelopment project area in Section 3 of the amended ERAF Loan Plan. The date of each such amended promissory note shall be May 10, 2004. The principal amount and interest under each such amended promissory note shall be payable by each redevelopment project area in accordance with the terms set forth in each amended promissory note. Section 5. Repayments of the amended ERAF Loan Plan Amount, plus interest thereon, shall be made under each amended promissory note to the applicable Low-Mod Fund by each redevelopment project area in each fiscal year commencing on May 10, 2005 and on each following May 10, thereafter to and including tenth (1O~ anniversary of each amended promissory note from "Excess . Revenues", as this term is defmed in the uext sentence. "Excess Revenues" means 4 o I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c o those excess tax increment revenues (as defined in the redevelopment plan for the applicable redevelopment project area) available and paid to the Agency, if any, in an applicable fiscal year between July 1,2004 and May 10,2014, after the Agency has made provision from such fiscal year tax increment revenues to pay all ofthe following for each such redevelopment project area: (i) all debt service on any outstanding bonds, notes, loans, money advanced to, other contractual obligations or other forms of indebtedness of the Agency as evidenced by each of the promissory notes for each particular redevelopment project area; (ii) the administrative and operational costs of the Agency incurred in the implementation of the redevelopment plan and the undertaking of Agency redevelopment activities within the particular redevelopment project area; and (iii) the amount to be deposited into the Low-Mod Fund for the particular redevelopment project area for such then current fiscal year. No other source of funds of the Agency is pledged or made available thereafter for the repayment of any amount of the amended ERAF Loan Plan Amount when due under any of the amended promissory notes. Section 6. All sums applied towards repayment of the Low-Mod Fund Loan Amount together with interest thereon, as evidenced by each of the amended promissory notes, are an indebtedness of the redevelopment project area to which such amended promissory note relates, payable from Excess Revenues and shall constitute an indebtedness of the Agency with respect to each of the applicable redevelopment projects, until paid in full, pursuant to Health and Safety Code Section 33681.9. Section 7. The Executive Director of the Agency is hereby authorized and directed to cause the sum of One Million Fifty-Two Thousand Seven Hundred 5 o I 2 3 4 5 6 7 8 9 10 II 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 c o Forty-Nine Dollars ($1,052,749.00) to be transferred from the Low-Mod Funds of the Agency in the amounts specified in Section 3 of this amended ERAF Loan Plan to the San Bernardino County Auditor, which was deposited to the ERAF on or before May 10, 2004. Section 8. The Executive Director of the Agency is further authorized and directed to identifY the indebtedness as hereby created, in the Statements of Indebtedness for each of the redevelopment project areas of the Agency in the original principal amounts as set forth in Section 3. Section 9. This Resolution shall. take effect upon the date of its adoption. II II II II II II II II II II II II II 6 o c 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o 1 2 3 4 5 6 7 8 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN AMENDED EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS AND AMENDED PROMISSORY NOTES FROM REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING EXECUTION THEREOF. I HEREBY CERTIFY that the forgoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a meeting thereof, held on the _day of , 2004, by 9 the following vote, to wit: Commission Members Navs Abstain Absent Aves ESTRADA LONGVILLE MCGINNIS DERRY KELLEY JOHNSON MCCAMMACK Secretary The foregoing Resolution is hereby approved this _day of ,2004. By: Chairperson, Community Development Commission of the City of San Bernardino Approv 7. o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO EDUCATIONAL REVENUE AUGMENTATION FUND AMENDED LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS (Fiscal Year 2003-2004) THIS EDUCATIONAL REVENUE AUGMENTATION AMENDED FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS ("ERAF Loan Plan") is dated as of June 7, 2004 and. evidences the obligation of the Agency to repay funds borrowed by the Agency from the Low and Moderate Income Housing Funds of the Agency to . pay the Agency's fiscal year 2003-2004 deposit into the County of San Bernardino Educational Revenue Augmentation Fund, as mandated by Health and Safety Code Section 33681.9, Chapter 260, Statues of2003. This amended ERAF Loan Plan has been approved by the Agency in view of facts set forth in the following recital paragraphs: RECITALS c: WHEREAS, the legislature of the State of California enacted urgency legislation adding Health and Safety Code Sections 33681.9 and 33681.10 requiring the Agency to remit certain community redevelopment funds of the Agency to the San Bernardino County Auditor for deposit into the Educational Revenue Augmentation Fund created pursuant to Revenue and Taxation Code (the "ERAF"); WHEREAS, under Health and Safety Code Section 33681.9(a) the Director of Finance of the State of California calculated the amount of money that the Agency was required to remit to the San Bernardino County Auditor for deposit into the ERAF on or before May 10, 2004; WHEREAS, the Agency received a letter, dated September 22, 2003, from the Department of Finance of the State of California stating that the Agency was required to remit the total sum of One Million Fifty Two Thousand Seven Hundred Forty-Nine Dollars ($1,052,749) (the "Agency FY 2003-04 ERAF Obligation") to the County of San Bernardino Auditor for deposit into the ERAF; WHEREAS, the Agency has found and determined that there are insufficient funds of the Agency to meet the Agency FY 2003-04 ERAF Obligation, without borrowing funds from the Low and Moderate Income Housing Funds of the Agency for each of the redevelopment project areas of the Agency (collectively, the "Low-Mod Funds"); WHEREAS, Health and Safety Code Section 33681.9(b) authorizes the Agency to borrow up to fifty percent (50%) of the Agency's FY 2003-04 Low-Mod Fund allocation in order to make the State-mandated payment as required by Chapter 260, Statues of 2003; Health and Safety Code Section 33681.9; WHEREAS, the Agency has further found and determined that although borrowing funds o from the Low-Mod Funds will not expand or preserve the community's supply of affordable 1 o c' c housing or otherwise promote the goal of providing affordable housing in the community, the loan of Low-Mod Funds to pay the Agency's FY 2003-04 ERAF Obligation will not impair any executed existing contracts of the Low-Mod Funds; NOW, THEREFORE, THE AGENCY HEREBY APPROVES THE AMENDED ERAF LOAN PLAN FOR FUNDS BORROWED FROM THE AGENCY'S LOW AND MODERATE INCOME HOUSING FUNDS AS SET FORTH HEREIN, WHICH REMITTED TO THE AUDITOR OF THE COUNTY OF SAN BERNARDINO THE SUM OF $1,052,749.00 FROM THE AGENCY'S LOW-MOD FUNDS FOR DEPOSIT INTO THE EDUCATIONAL REVENUE AUGMENTATION FUND FOR FISCAL YEAR 2003-2004: Section I. The purpose of this amended ERAF Loan Plan is to evidence an indebtedness of the Agency in the original principal amount of One Million Fifty-Two Thousand Seven Hundred and Forty-Nine Dollars ($1,052,749.00) as incurred by each of the redevelopment project areas of the Agency to the Low-Mod Funds, as evidenced by the ten (10) promissory notes identified below. Such indebtedness is incurred by the Agency to satisfy the State-mandated redevelopment indebtedness of the Agency to transfer certain tax increment, or other available funds of the Agency, to the County of San Bernardino Auditor, which were deposited into the ERAF for Fiscal Year 2003-04 pursuant to Chapter 260, Statues of 2003 (Health and Safety Code Section 33681.9). Section 2. The Agency hereby declares its intention to borrow the sum One Million Fifty-Two Thousand Seven Hundred and Forty-Nine Dollars ($1,052,749.00) from the Low-Mod Funds (the "ERAF Loan Plan Amount"), which were remitted to the County of San Bernardino Auditor for deposit into the ERAF in satisfaction of the Agency FY 2003-04 ERAF Obligation under Health and Safety Code Section 33681.9 for fiscal year 2003-2004, as authorized by Health and Safety Code Section 33681.9(b). Section 3. The amended ERAF Loan Plan Amount shall be allocated among the Low-Mod Housing Funds of each redevelopment project area of the Agency as follows: State College Redevelopment Project Central City North Redevelopment Project Central City West Redevelopment Project Southeast Industrial Park Redevelopment Project Northwest Redevelopment Project Tri City Redevelopment Project Uptown Redevelopment Project South Valle Redevelopment Project Central City Redevelopment Projects (Merged Projects) Mt Vernon Corridor Redevelopment Project 40th Street Redevelopment Project Total ERAF Loan Plan Amount for FY 2003-04: $343,568 65,598 1,508 209,474 84,440 107,044 25,276 41,664 141,531 30,242 2.404 $1.052.749 2 o c o Section 4. The amended ERAF Loan Plan Amount shall be evidenced by the ten (10) amended promissory notes attached to this amended ERAF Loan Plan as Exhibits "A" through "f', inclusive. The Chairperson of the Community Development Commission of the City of San Bernardino is hereby authorized and directed to execute each of the ten (10) amended promissory notes, as attached in the original principal amounts as set forth for each such redevelopment project area in Section 3 of this ERAF Loan Plan. The date of each such amended promissory note shall be May 10, 2004. The principal amount and interest under each such amended promissory note shall be payable by each redevelopment project area in accordance with the terms set forth in each amended promissory note. Section 5. Repayments of the amended ERAF Loan Plan Amount, plus interest thereon, shall be made under each amended promissory note to the applicable Low-Mod Fund by each redevelopment project area in each fiscal year commencing on May 10, 2005 and on each following May 10, thereafter to and including tenth (lOth) anniversary of each amended promissory note from "Excess Revenues", as this term is defmed in the next sentence. "Excess Revenues" means those excess tax increment revenues (as defmed in the redevelopment plan for the applicable redevelopment project area) available and paid to the Agency, if any, in an applicable fiscal year between July I, 2004 and May 10, 2014, after the Agency has made provision from such fiscal year tax increment revenues to pay all of the following for each such redevelopment project area: (i) all debt service on any outstanding bonds, notes, loans, money advanced to, other contractual obligations or other forms of indebtedness of the Agency as evidenced by each of the promissory notes for each particular redevelopment project area; (ii) the administrative and operational costs of the Agency incurred in the implementation of the redevelopment plan and the undertaking of Agency redevelopment activities within the particular redevelopment project area; and (iii) the amount to be deposited into the Low-Mod Fund for the particular redevelopment project area for such then current fiscal year. No other source of funds of the Agency is pledged or made available thereafter for the repayment of any amount of the amended ERAF Loan Plan Amount when due under any of the amended promissory notes. Section 6. All sums applied towards repayment of the Low-Mod Fund Loan Amount together with interest thereon, as evidenced by each of the amended promissory notes, are an indebtedness of the redevelopment project area to which such amended promissory note relates, payable from Excess Revenues and shall constitute an indebtedness of the Agency with respect to each ofthe applicable redevelopment projects, until paid in full, pursuant to Health and Safety Code Section 33681.9. Section 7. The Executive Director of the Agency is hereby authorized and directed to cause the sum of One Million Fifty-Two Thousand Seven Hundred and Forty-Nine Dollars ($1,052,749.00) to be transferred from the Low-Mod Funds of the Agency in the amounts specified in Section 3 of this amended ERAF Loan Plan, which was remitted to the San Bernardino County Auditor for deposit to the ERAF on or before May 10, 2004. Section 8. The Executive Director of the Agency is further authorized and directed to identifY the indebtedness as hereby created, in the Statements of Indebtedness for each of the redevelopment project areas of the Agency in the original principal amounts as set forth in Section 3. 3 o c o IN WIlNESS WHEREOF, the Agency executes this amended ERAF Loan Plan, as follows: AGENCY Redevelopment Agency of the City of San Bernardino By: Judith Valles Chairperson of the Community Development Commission, its governing board (SEAL) ATTEST: Agency Secretary APPROVED AS TO FORM: c/~~ Agency Specia ounsel 4 o c o IN WITNESS WHEREOF, the Agency executes this amended ERAF Loan Plan, as follows: AGENCY Redevelopment Agency of the City of San Bernardino By: Judith Valles Chairperson of the Community Development Commission, its governing board (SEAL) ATTEST: Agency Secretary APPROVED AS TO FORM: if~~ Agency Specia ounsel 4 o o o IN WITNESS WHEREOF, the Agency executes this amended ERAF Loan Plan, as follows: (SEAL) ATTEST: Agency Secretary APPROVED AS TO FORM: c/~~ Agency Specia ounsel AGENCY Redevelopment Agency of the City of San Bernardino By: Judith Valles Chairperson of the Community Development Commission, its governing board 4 o o o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) TillS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF. ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initia] Principal Amount $343,568.00 Date of this Note: May 10,2004 Variab]e Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (]) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note TillS AMENDED AGENCY PROMISSORY NOTE is dated May ]0,2004 (the "Note") and evidences an indebtedness of the Redeve]opment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the State College Redeve]opment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein,. together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan P]an"), as approved by Agency Resolution No. R- -----> dated June 7, 2004 with respect to the facts set forth in such amended ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY TillS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION I. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized tenns used herein and not otherwise defined shall have the meaning assigned to them in the amended ERAF Loan Plan. 1 o o o SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAlF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 1 0, commencing on May 10, 2004 to be equal to the LAlF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2005, solely from "Excess Revenues", if any, as this term is defined in the amended ERAF Loan Plan, of the Agency from the State College Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the 2 o c o Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 o c c REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $65,598.00 Date of this Note: May 10,2004 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (J) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AMENDED AGENCY PROMISSORY NOTE is dated May 10,2004 (the ''Note'') and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Central City North Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- -> dated June 7, 2004 with respect to the facts set forth in such amended ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION J. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used 1 o c herein and not otherwise defined shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May I 0, commencing on May 10, 2004 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2005, solely from "Excess Revenues", if any, as this term is defmed in the amended ERAF Loan Plan, of the Agency from the Central City North Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indeJ:>tedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal halance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or o assign its right to receive the payment of principal and payments of accrued interest under the 2 o o o Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 o c o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) TillS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $1,508.00 Date of this Note: May 10,2004 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (I) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note TillS AMENDED AGENCY PROMISSORY NOTE is dated May 10, 2004 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Central City West Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- -' dated June 7, 2004 with respect to the facts set forth in .such amended ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY TillS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used 1 o c' herein and not otherwise defined shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAlF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 10, commencing on May 10,2004 to be equal to the LAlF Rate ofInterest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2005, solely from "Excess Revenues", if any, as this term is defmed in the amended ERAF Loan Plan, of the Agency from the Central City West Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power ofthe Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or o assign its right to receive the payment of principal and payments of accrued interest under the 2 o c c Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 o c o REDEVELOPMENT AGENCY OF TIIE CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) TillS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER TIIE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $209,474.00 Date of this Note: May 10, 2004 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note TillS AMENDED AGENCY PROMISSORY NOTE is dated May 10,2004 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Southeast Industrial Park Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- --.J dated June 7, 2004 with respect to the facts ~t forth in such amended ERAF Loan Plan: TIIE AGENCY HEREBY AGREES TO PAY TillS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used 1 o c herein and not otherwise defmed shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per armum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May I 0, commencing on May 10, 2004 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10,2005, solely from "Excess Revenues", if any, as this term is defined in the amended ERAF Loan Plan, of the Agency from the Southeast Industrial Park Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or o assign its right to receive the payment of principal and payments of accrued interest under the 2 o c o Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this day of at San Bernardino, California. REDEVELOPMENT AGENCY OF TIIE CITY OF SAN BERNARDINO By: 3 o c o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $84,440.00 Date of this Note: May 10, 2004 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (I) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AMENDED AGENCY PROMISSORY NOTE is dated May 10,2004 (the ''Note'') and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Northwest Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- -' dated June 7, 2004 with respect to the facts set forth in such amended ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION I. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used 1 o c o herein and not otherwise defmed shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per armum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAlF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 1 0, commencing on May 1 0, 2004 to be equal to the LAlF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2005, solely from "Excess Revenues", if any, as this term is defmed in the amended ERAF Loan Plan, of the Agency from the Northwest Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the 2 o c o Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 o c o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $107,044.00 Date of this Note: May 10, 2004 . Variable Rate ofInterest: LAIF Rate of Interest on Funds Invested for One (I) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AMENDED AGENCY PROMISSORY NOTE is dated May 10,2004 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Tri-City Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- -' dated June 7, 2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION J. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terrns used 1 o c herein and not otherwise defined shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (J) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 1 0, commencing on May 10, 2004 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2005, solely from "Excess Revenues", if any, as this term is defmed in the amended ERAF Loan Plan, of the Agency from the Tri-City Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10, 2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or o assign its right to receive the payment of principal and payments of accrued interest under the 2 o c o Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 o c o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $25,276.00 Date ofthis Note: May 10,2004 Variable Rate ofInterest: LAlF Rate ofInterest on Funds Invested for One (I) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AMENDED AGENCY PROMISSORY NOTE is dated May 10,2004 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Uptown Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- ---> dated June 7, 2004 with respect to the fac.ts set forth in such amended ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used .1 1 o c o herein and not otherwise defined shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAlF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May I 0, commencing on May 10, 2004 to be equal to the LAlF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2005, solely from "Excess Revenues", if any, as this term is defmed in the amended ERAF Loan Plan, of the Agency from the Uptown Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the 2 o c o Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 o c c REDEVELOPMENT AGENCY OF THE CITYOF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) TillS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $41,664.00 Date of this Note: May 10,2004 Variable Rate ofInterest: LAlF Rate ofInterest on Funds Invested for One (I) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note TillS AMENDED AGENCY PROMISSORY NOTE is dated May 10, 2004 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the South Valle Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated June 7, 2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY TillS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION I. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used 1 o c herein and not otherwise defmed shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 10, commencing on May 10,2004 to be equal to the LAIF Rate ofInterest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10,2005, solely from "Excess Revenues", if any, as this term is defmed in the amended ERAF Loan Plan, of the Agency from the South Valle Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or o assign its right to receive the payment of principal and payments of accrued interest under the 2 o c o Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 o o o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $141,531.00 Date of this Note: May 10,2004 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (1 ) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AMENDED AGENCY PROMISSORY NOTE is dated May 10, 2004 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Central City Redevelopment Projects - Merged Projects - (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- --' dated June 7, 2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terrns used 1 o c o herein and not otherwise defmed shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAlF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May I 0, commencing on May 10, 2004 to be equal to the LAlF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2005, solely from "Excess Revenues", if any, as this term is defined in the amended ERAF Loan Plan, of the Agency from the Central City Redevelopment Projects - Merged Projects, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal halance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the 2 o c o Note unless the Agency has fIrst granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 o c o REDEVELOPMENT AGENCY OF TIffi CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM TIffi SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITIffiR TIffi FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $30,242.00 Date of this Note: May 10,2004 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AMENDED AGENCY PROMISSORY NOTE is dated May 10, 2004 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Mt. Vernon Corridor Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- --' dated June 7, 2004 with respect to the facts set forth in such amended ERAF Loan Plan: TIffi AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with. an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used 1 o c herein and not otherwise defined shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May I 0, commencing on May 10, 2004 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10,2005, solely from "Excess Revenues", if any, as this term is defmed in the ERAF Loan Plan, of the Agency from the Mt. Vernon Corridor Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2014. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or o assign its right to receive the payment of principal and payments of accrued interest under the 2 o c c Note unless the Agency has fIrst granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 o o o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY AMENDED PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) TillS AMENDED PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $2,404.00 Date of this Note: May ] 0,2004 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (]) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May ]0 During Term of this Note TillS AMENDED AGENCY PROMISSORY NOTE is dated May 10,2004 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the 40th Street Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain amended Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of June 7, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated June 7, 2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY TillS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION I. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the amended ERAF Loan Plan. The terms and provisions of the amended ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used 1 o o o herein and not otherwise defmed shall have the meaning assigned to them in the amended ERAF Loan Plan. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per armum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 10, commencing on May 10,2004 to be equal to the LAIF Rate ofInterest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2005, solely from "Excess Revenues", if any, as this term is defmed in the amended ERAF Loan Plan, of the Agency from the 40th Street Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2014. SECTION'4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing. power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2014, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2014, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2014. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the 2 , . o c o Note unless the Agency has flTst granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. Executed this _day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 CITY OF SAN BERNARDINO Interoffice Memorandum CITY CLERK'S OFFICE Records and Information Management (RIM) Program DATE: June 11,2004 TO: Margaret Parker, Secretary FROM: Michelle Taylor, Senior Secretary RE: Transmitting Documents for Signature - Resolution CDC/2004-13 At the Mayor and Common Council meeting of June 7, 2004, the City of San Bernardino adopted Resolution CDC/2004-13 - Resolution approving an amended Education Revenue Augmentation Fund Loan from Community Low and Moderate Income Housing funds and Amended Promissory Notes from Redevelopment Project Areas, and authorizing execution thereof Attached is one (I) original agreement with three (3) signature pages. Please obtain signatures in the appropriate location and return one original agreement to the City Clerk's Office as soon as possible, to my attention. If you have any questions, please do not hesitate to contact me at ext. 3206. Thank you. Michelle Taylor Senior Secretary I hereby acknowledge receipt of the above mentioned documents. Signed: ?:r:J:/2{h~' Please sign and return Date: ECONOMIC DEVELOPMENT AGENC;:Y.._\T'( e\ ERl\ OF THE CITY OF SAN BERN~n \j' . INTER-OFFICE MEMORANDO)'J JIN 22 1\11 :03 TO: l1ichelle Taylor, Senior Secretary, City Clerk's Office /,~~ l~argaret Parker, Secretary FROM: SUBJECT: Executed Document DATE: June 21, 2004 Enclosed is the fully executed Agreement pertaining to the following resolution: CDC/2004-13 Resolution Approving an Amended Education Revenue Augmentation Fund Loan from Community Low and Moderate Income Housing Funds and Amended Promissory Notes from Redevelopment Project Areas, and Authorizing Execution Thereof. Please let me know if you have any questions. Thank you, Margaret Enclosure ., ,~ , ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): (.,-1)-04' Item # l2.3a Resolution # Vote: Ayes 1-') Nays --Er Abstain J8- Change to motion to amend original documents 0 Companion Resolutions CIX-/ '2.00..1\ - l ?-, , Absent .e- Null/Void After: days / Resolution # On Attachments: D PUBLISH 0 POST 0 Note on Resolution of attachment stored separately: 0 RECORD W/COUNTY 0 By: Date Sent to Mayor: Date of Mayor's Sigoature: Date of Clerk/CDC Sigoature: <a -<1-04 (01 -<:)1\- "4-0'-\ Reso. Log Updated: Seal Impressed: g.- W Date Memo/Letter Sent for Sigoature: I" Reminder Letter Sent: "-l \-01\- Date Returned: . fo-z..7.rotJ 2nd Reminder Letter Sent: Not Returned: 0 Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985, 8234, 655, 92-389): Yes / No By No-L By No / By NO~BY No -L B Yes Yes Yes Yes Copies Distributed to: Animal Control 0 EDA 0'" Information Services 0 City Administrator 0 Facilities 0 Parks & Recreation 0 City Attorney 0 Finance 0 Police Department 0 Code Compliance 0 Fire Department 0 Public Services 0 Development Services 0 Human Resources 0 Water Department 0 Others : 1- Notes: Ready to File:_ Date: Revised 12/18/03