HomeMy WebLinkAboutR08-RDA Item
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Recle.eIop~~q. C~of~~
~ Nar1Ia "i)"...... .......... . .............. ~ 9241.
(714)__1 'AX (714) ......13
I'rIde ~
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JUNE 22, 1990
AUTHORIZING AN UNRESTRICTED LINE OF CREDIT
WITH WELLS FARGO BANK
SynoDsls of PrevIous CommIssIon/CouncIl/CommIttee ActIon:
4-02-90 CoInunlty Development CommIssIon receIved and filed the fIrst
Agreement wIth Wood-Huslng and AssocIates for fInancIal servIces.
4-09-90 CommunIty Development CommIssIon receIved and fIled status report on
the fIrst Agreement wIth Nood-Huslng and AssocIates.
4-09-90 CommunIty Development CommISsIon recelve~ and fIled the second
Agreement wIth Wood-Huslng and AssocIates.
RecOlllmtndedMo~ Ion:
(COMMUNITY DEVELOPMENT COMMISSION)
Move to dIrect the Agency's ExecutIve DIrector to accept and execute
the Loan Proposal Letter and subsequent Loan Documents wIth Wells
Fargo Bank.
Respectfully SubmItted,
R~~~cutlve DIrector
SupportIng data attached: Yes
FundIng requIrements: NA
CommIssIon Notes:
Hard: All
Project: All
1306A
Agenda of:
Item No.:
July g 1990
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Redevelopment Agency
S T A F F R E P 0 R T
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The flna of Wood-Huslng and Associates was directed to assist the Agency with
the maximization of yields the Agency can earn on Its Investment portfolio by
undertaking a review of the cost, risk and rate of return fro. alternate
Inves~nt strategies available consistent with the Agency's existing
tnvestment policies, and the firm was directed to maximize the leverage which
that portfolio gives the Agency In obtaining loanable funds fro. the banking
cOllllUnlty, Wood-Huslng and Associates has now assisted In negotiating with
Wells Fargo Bank a maximum line of credit for use on Redevelopment Projects.
Attached for your review Is a Loan Proposal Letter with Wells Fargo Bank.
This Proposal Is designed to extend credit to the Agency In the aggregate
principal amount of $7,000,000. Of this $7.000,000. $1,000,000 Is an .
unsecured line of credit payable at prime rate to be repaid at the Agency's
terms. but with a maturity date of Dtce~er 1. 1991. The remaining $6,000,000
Is a secured lIne of credit payable atprl.. rate minus .501 to be repaid at
the Agency's terms. wIth a maturtt~ d.te of December 1. 1991 and with
collateral of secured Interest In cash or cash equivalents of not less than
the L1 ne CollIIII tment. There are nC) c_'tlMnt or loan fees, but the Agency
will matntaln the ratIo of cash or cash eqUivalents to the Unsecured Line of
Credit CollIIIltment of not less than 1.5 at any time.
This Proposal Letter expires on July IS, 1990 and all loan documents must be
. signed by August I, 1990. If this Proposal Letter Is executed, the Agency
will pay to the Bank upon demand all of the Bank's costs and expenses,
IncludIng reasonable attorney's fees, expended In the preparation of the loan
agreement and other loan documents If outside counsel Is used, but the Bank
anticipates usIng their Inhouse counsel.
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WBLLS FARGO BAR
bIUlDDUU\i"A-'" LIRB OF o.kun PROP08AL
JuDe II, 1190
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....... . IliiiiIP. CA ..no
LOM~~LI"a..
Date: June 18, 1990
1Ir. ~n J. .......1., .x~tive Director
.......1 '\J ..~ .....al'.r *Jut
Citl' .01.... ~
300 JIorth-p- ItrMt, l'01trtll Floor
"n "_rdino. (:A 92418
Dear Hr. 2'eJDple:
Well. Fargo Bank. National Aa.~,tation (-Bank-) is ~l"l!.d to
~rovicle -to the llecIevelC"..nt ."~...!tt .~ .CJ,t.1' of. .... "rul'dino
(-Borrotter-) a propo..l ~ .at.... U. or_it. ~1_l)4.ti...
de.cribed below in the. anre",tepriacipal ~Tfl..t (Or! Seven
Million Dollu. (.7,000.0001, \)Il the foll.,ift9 t.,.. aad
c:ondition., so 10Q9 a. thel'._.' been fto..~t'.ia1. aav.l'.e Change
in Borrower'. financial ClOncu'Uon, a. detei'lline4 by Bank:
1. Type of Credit: A) Un.ecured Liu of Credit
s) S.cured Line of Cre4it
2. Principal AIlIount: A) $1,000,000
S) $6,000,000
3.
Purpo.e:
A ~ S) A..i.t witb financing Re4evelopment
Project..
... Yntel'ut Rate: A) Prime Rate
B) Prime Rate - .50%
5. Repayment: A' BI Cuh venerated frOll Agency financing or
inve.tment activitie..
6. Prepayment: A) None
8) None
7. Maturity Date: A' B) Deceaber 1, 1991
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......l<l1fr _t Agency
P.... 2
8.
eo.penaating Bal.nc...
Ro coat.-.etual bal_no... .r:. r:eguhed
~t it I.. .._..-t" ~t tblt A"heY
will..i~in it', prt.ar.rbanking
r:.l.tioaahip with Me11. r..r:go.
,.
Commitment or: Loan F.e.
Rone
10.
Borl'OWing .....
Rone
11. CoUatenh
A)
B)
Rone
Security intel'lUt in ea.h or ea.h
equiv.l.nt. 01 not 1... than the Line
C~itileDt.
12.. Guar:uti...
Rone
13. Subordination.. Rone
14. Reporting.
T.... cre4it .cc~~cdation. ue _de .v..il.bl. .ubject to the
te...... co"itiou .nd P1'O,,18ion. 01 compr....aive lo.n docUlllenta
to.e_._f.. bt. 89r:r:<*er. including without lillitation . loan
.,ral'fll't, aU 1ft 10raaDel .ubatance aati.f.ctor.r to Bank and all
of wb.lc"ahaU be executed prior: to -.t 1. 1990. Said loan
4~ta _U includ. .uch r:epre.entation.. w.rr.ntie..
coaaUiou. cc.vaa.nta and eventa of delaul t .. Bank de..
appropriate. whiob .baU be in addition to the tel'll. .nd
proyi.ion. atated in thi. letter.
Wheth.r or not the loa~ .greeMnt .nd other loan docWlent. .re
.greed to and executed. or: wheth.r: or: not .ny loan alledbed
aJ>>ov. ia .de. Bonower wiU pay to Bank .i....i.t.ly upon d.-nd
.11 01 Iaftk'. co.t. and ._penaea, inClUding reaaonable ..ttor:ney'a
fee.. expended in pr:epar:ation of the loan .gr:....nt and other
loan 4ocu.ent..
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Bank A"I'V.. tlut ript to t.raiJaat. .th18 propo...l at any ti..
pr.j,or t4t ...... a r...lpt of aco.pta....., iOJ'I'GWr. _ \'biaprQpOul
18 Pitl"....1 to BOr.nMfer ..841 ...y ...t. ~ tr....'.rrecl or .aal,n.d
withOu' ...... prior wpitten ~....t..of .tq.. Bank. .Your
.ok..~........t. of. ~. .1.ter a"ll .a~itUte a~...,. of the
to~~ 't4lnI.ancl ~.".Ol'.' ",1... ..~oepted or te_..ted~
tll18 Propo..l will eXl'iN 0" ....11' 15. 1990.
Sino.rely,
WILLS FAROO UNK, 1f.A.
cf2.?t"
Jla Bela
Vice Pre.ident
Acknowledged and acceptecl
, 1"0:
Reelevel"ll lilt AgeDOJ' of the
eity of San .......rclillO
By:
RobIrt J.~...le
Executive Direotor