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HomeMy WebLinkAboutR14-RDA Item .' o JI U!I . . o o . Redevelopment Agency · City or San Bernardino ~NclIIh"D'Slnet, ~FJoar. SlIls-.ao. c.tiCcmia 92418 (714) 384-5081 PAX (714) 888-9413 PrIde ., ~~- OCTOBER 31, 1990 RELOCATION OF COMMUNITY DEVELOPMENT/REDEVELOPMENT AGENCY FROM CITY HALL TO THRIFTY BUILDING. Synopsis of Previous Commission/Council/Committee Action: 12-07-89 Mayor and Common Council/Community Development Commission and Joint Powers .Financing Authority, authorized Resolutions executi.ng loan. agreement for purchase of the Thrifty Building. 10-oS-90 Thrifty Building financing alternatives report presented to Mayor and Common Council and Community Development Commission. Recommended Motion: 4C:> . (COMMUNITY DEVELOPMENT COMMISSION) MOTION: A.. . That the Community Development Commission authorize the Community Development/Redevelopment Agency to move and occupy the Third Floor of the Thrifty Buildin9. continued on page 2. o Respectfully Submitted, R~~~e~ng Agency Administrator of the Economic Development Agency Supporting data attached: YES Ward: ALL Funding Requirements: $62,000 Project: ALL Commission Notes: . 334SH Agenda of 11-S-90 Item No. A-- .' o o o " - . ~ - o o Recommended Motion continued: MOTION: B. MOTION: C. That the Community Development Commission direct the Director of Facilities Management to work with the Acting Agency Administrator of the Economic Development Agency and the Director of the Community Development/Redevelopment Agency to expedite plans for the mqve. Further. that the Director of Facilities Management be directed to coordinate with all other appropriate departments. That the Economic Development Agency Administrator and Director of Facilities Management prepare a plan of action and time table for the move and report on the status of same at the December 3. 1990 Commission meeting. ~- .. - - ~ - 0 0 I' STAFF REPORT C o o On October 15, 1990, a report was transmitted to the Commission.re9arding the Thrifty Building financing options. A copy of that report is attached. . Since that time discussions have taken place with regard to the City budget deficit and the possible move of Public Works and Planning and Building Services. . It has been.suggested that the City not move these departments over to the Thrifty Building at this time du~ to the cost. It is may recommendation that the option of the Community Development/Redevelopment Agency moving over to and occupying the. Thrifty Building be implemented. It is envisioned that all entities associated with the Economic Development Agency will also move to the Thrifty Building. . This approach would make space available for the Water Department on the fifth floor of City Hall with no loss of revenue to the City. It would also make space available on the fourth floor to other City Departments. Additional space would still be ava11'able on the second floor of the building for future expansion of City departments or functions. The possibility of other Government entities relocating and using space on the third floor will be possible as not all of the approximately 17,023 square feet will be req~ired by the currently identified elements of. the Economic Development Agency. I recommend adoption of the form motions. . , ,."1. ., o o o o rJ-- -. \ ~rO 11/5 f1tJ . ~ . Redevelopment Agency · City of San Bernardino ~ Nclnh "D" S1Ieet, Fourth FJoor . Sill Bcm...IiDo, CllifIlrDia nU8 (714) 384-S081 FAX (714) 888-9413 PrIde ~ ~. October 4, 1990 TO: Community Development Commission FROM: . Robert J. Temple, Acting Agency Admlnlstrator~ Economic Development Agency -" . SUBJECT: THRIFTY BUILDING FINANCING ALTERNATIVES At the Redevelopment Committee meeting of September 20, 1990, I was asked to prepare a written summary of the basic options Involving the sale of the Thrifty Building. The purpose of this written communication Is to Inform each of you of the basic options under consideration, so that at such time that a recommendation Is brought forward for your action, you will have this background. I believe It Is Important to first review the rationale and circumstances surrounding the purchase of the Thrifty Building, as I underst>nd them. The bull dl ng was purchased for $3.5 million. The source of funds used for thl s purchase was tax Increment from the State College Redevelopment Project Area. A loan agreement was passed by the Council and Commission and Joint Powers Authority (attached>' This loan agreement and the need for Immediate space for Public Works and Planning and Building Services set the stage for the efforts and financing plans for the building to date. If the basic assumptions regarding the need for and desire for the Thrifty Building are no longer valid, then the options discussed below may not be appropriate. Until and unless action Is taken that changes the above assumptions, It Is my understanding that we are to work on options that accomplish the following: 1. Provide space for City departments that would Include Initially Public Works and Planning and Building Services 2. Transfer title of the building from the Redevelopment Agency to another entity as redeve lopment law precl udes the Agency from owning and operating the b~lldlng on a permanent basis (unless It Is the base of operations of the Agency~ 3. Recover as much of the $3.5 million In tax Increment as possible, given the above There are three basic options that accomplish the objectives listed above. Each of the options has many variations within that optIon. ~ ~\V\ o o o INTEROFFICE MEMO Community Development Commission Page Two OPTION 1 TRANSFER TITLE TO THE CITY OF SAN BERNARDINO This option meets the first two objectives and Is consistent with the Benefit Resolution adopted. The consideration or amount. of money Involved In the transaction could vary depending on many factors as determined by the Mayor and Council and Commission. The amount could vary from $0 to $3.5 million. The more Important variable to be considered, In my opinion, Is what the source of funds and method of payment would be. This variable will be discussed In more detail later. OPTION 2 TRANSFER TITLE TO AN OUTSIDE THIRD PARTY This option would result In the greatest return of money to the Redevelopment Agency, but would only meet the objectives of space for City departments on a rental basis, while It would restore the building to the tax roles, the additional Income to the City would not offset the additional rental cost. This option may not be a reasonable or cost effective approach from the viewpoint of the City. It would be the most expensive option for the City to occupy the space needed and would not result In title to the building. There Is a variation within this option of selling only part of the building to an outside third party, the first and second floors for Instance. The disadvantage of acqufrlng title to only the third floor Is that the City would not have the first floor to lease out to conrnerclal or retail users In order 4C:) to generate a revenue source to pay operating expenses. OPTION 3 THE REDEVELOPMENT AGENCY RETAINS TITLE AND MOVES INTO THE BUILDING AS ITS BASE OF OPERATIONS o Redevelopment law provides for the Agency to retain title and operate the faCility If It Is Its' base of operations. The Agency could then lease the remaining space In the building. This option could Include leasing space to the City at favorable rates and would also free up space In City Hall currently occupied by the Redevelopment Agency and Community Development. This option could Include other elements of the proposed Economic Development Agency. These other agencies could not be housed In the Thrifty Building Immediately, but would depend on their existing leases and how long they were obligated In theIr current location. VARIATIONS ON FINANCING OPTION 1 The transfer of title of the Thrifty Building to the City of San Bernardino has been the option that staff has spent the most time Investigating. Possible approaches include the draft proposal attached that would convert the $3.5 mill Ion loan to the Joint Powers Financing Authority from a loan to an expenditure. We have also considered an approach that would use tax exempt bond proceeds to purchase the second and third floors (approximately half the square footage of the building) for $1.75 million and converting the remaining $1.75 million loan to an expenditure as above and transferring title of the whole facility to the City. It should be mentioned again that the ground floor commerc i a 1 and reta 11 space I s needed by the City to generate a revenue stream to pay for the operating expenses of the building. o o o o o INTEROFFICE MEMO Community Development Commisslon Page Three Another possible financing option is one that involves the City issuing tax exempt bonds that net $1.75 million and give that money as consideration for the whole building. The $1.75 million would be the public use portion of the second and third floors and again the $1.75 million for the first floor would be converted from a loan to an expenditure of tax Increment. The bonds Issued could be interest only for seven years and then when the City Hall facility is paid off in 1997, the debt service on the bonds could be fully amortized using the freed up funds previously .committed to debt service on City Hall. Many other options have been considered, but they are all variations of those already discussed. RJT:pv:1739S cc: Mayor W. R. "Bob" Holcomb Shauna Edwins, City Administrator Ken Henderson, Redevelopment Agency Andrew Green, Finance Craig Graves, Treasurer , . '. o cO o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 o o RESOLUTION NO. 5218 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF CITY OF. SAN IiERNAlUlINO APPROVING A LOAN AGREEMENT WITH THE BERNARDINO JOINT ~OWBRS )'INANCING AUTHORITY WHEREAS, The Community Development ('.ft-18Sion of the City THE SAN of San Bernardino (The "Agency"), under the provi8ions of the California Community Redevelopment Law, i8 responsible to encourage and foster redevelopment in the Central City Redevelopment Project Area: and . WHEREAS, the Agency desires to engage in certain redevelopment activities within the Project Area: WHEREAS, the San Bernardino Joint Powers FinanCing Authority (The "Authority").is authorized to provide financial and other assistance to the Agency to promote the redevelopment of the Redevelopment Project Area: and WHEREAS, the Authority proposes to loan and the Agency 16 proposes to borrow Three Million, Five Hundred Thousand Dollars 17 ($3,500,000) pursuant to the "Loan Agreement", which is attached 18 hereto as Exhibit "A" and is incorporated herein by reference: 19 NOW THEREFORE, the Agency does hereby find, determine, 20 order and resolve as follows: 21 SECTION 1. The Loan Agreement is in the best interests of 22 the Agency and will promote the pUblic health, safety and 23 welfare. 24 SECTION 2. The Loan Agreement is hereby approved and the 25 Executive Director is hereby authorized to execute the Loan 26 Agreement on behalf of the Agency. 27 28 / / / DAB/sea December 6, 1989 1 . ." o co o 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 " 27 28 o 0, 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A LOAN AGREEMENT WITH THE SAN 2 BERNARDINO JOINT POWERS FINANCING AUTHORITY 3 I HEREBY CERTIFY ~ha~ ~e foregoing reso1u~1on was duly 4 adop~ed by ~he Commun1~ Development Commission of ~he City of 5 San Bernardino at a special meeting thereof, held on ~he 7th 6 day of Decelllber , 1989, by the following vote, ~o wit: AYES: Commissioners ESTHER ESTRADA, JACK REILLY, JESS FLORES MICHAEL MAUDSLEY, TOM MINOR, VALERIE POPE-LUDLAM, NORINE M LLE NAYS: NONE ABSENT: NONE s~~~*i-'~f The foregoing resolution is hereby approv th1s 7th day of Decelllber , 1989. ~~- ~-~ 0" a rm of Communi ~ De 10 ent Commission of the City of San Bernardino . Approved as ~o form and legal content: BY:~4J ~gency sel DAB/ses Decamber 5, 1989 -~ 2 . '. o o o SECRETARY'S CERTIFICATE OF ADOPTION AND AUTHENTICATION I, Arlene S. Berman, Assistant, Secretary of the Conununity Development Conunission, DO HEREBY CERTIFY that the attached aesolution is a true and correct copy of Resolution No. 5218 adopted December 7 , 19~, by the Conununity Development Conunission of. the City of San Bernardino, by the vote set forth below, and that said ReSOlution has not been amended or repealed. COMMISSION MEMBERS ESTHER R. ESTRADA JACK REILLY JESS FLORES co MICHAELMAUDSLEY -rOM MINOR VALERIE POPE-LUDLAM NORlNE MILLER DATED: tlfII!r.@mher 11 o lSEAL) SBE00097C-S2/3ll0S Check Aporooriate Box YEAS NAYS ABSENT . ABSTAIN I~I 1=1 1=1 1=1 r;1 1=1 1=1 1=1 1 x I 1=1 1=1 1=1 1 xl 1=1 1=' 1=1 1-;1 1=1 1=1 1=1 1 xl 1=1 1=1 1=1 1 xl 1=1 1=1 I=~ , 1989. ~/&..uCJt<< .I 19~. Secretary of the Conununity Development Conunission of the City of San Bernardino - 3 - . '. o co o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 o o LOAN AGRBBMBN'.l' (AUTIIOlU'l'r M AGBNCr) 'lBIS AGRBBMBIft' :1s entered into as of 1:h1. 7th day of na,...WIln.op , 1989, by and between 'the SAN BERNARDINO JOINT POWBRS FINANCING AUTHORITY (The "Authority") and the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BBRNARDINO (the "Agency"). A~ ~CU'ALS WHBREAS, the Community Redevelopment Law ~Health & Safety Code, Section 33610) and other law authorizes the Au'thority to loan money to the Agency for adm1nistrat~ve expenses and overhead of 'the Agency; . and B. 1fBBRBAS,'the Authority desires to assist 'the Agency in its responsibility of redevelopment of the Central City Redevelopment Project Area; and C. WBBRBAS, the Agency and the Authority desire to 17 facilitate 'the redevelopment of 'the Project Area consistent. with 18 the Redevelopment Plan; and 19 20 21 22 23 D. WHBREAS, the Agency, pursuant to the Bedevelopment Plan and provisions of 'the Community Redevelopment Law (Health & Safety Code Section 33000, !! secr.) is au'thorized to borrow funds to facilitate redevelopment; and B. WHBREAS, no o'ther reasonable means of financing such 24 administrative expenses is available; 25 NOW TBBRBFORB, the Authority and the Agency agree as 26 follows: 27 28 I I I DAB/ses December 6, 1989 1 .,' .0 cO I I I I f i , , I I 10 I I I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 o o 1. The Authority agrees to loan Three Million, Five Hunc2red Thousand Dollars ($3,500,000) to the Agency on or before December 8, 1989. The Agency shall, in consideration of such loan, be obligated to pay to the Authority the. amount of Three Million, Five Hunc2red Thousand Dollars ($3,500,000) (the "Loan Amount"), plus interest accruing at the lesser of (i) eight percent (8t) or (ii) the maximum interest rate that may lawfully be paid by a redevelopment agency: on or before December 8, 1990, provided that at the option of the Authority said loan may be extended for successive one year periods: provided that the Authority agrees and acknowledges that such Loan Amount shall be repaid as soon as economically feasible only from (i) tax allocation revenues of the Project and (ii) such tax allocation revenues as may hereafter be generated within the Project Area 16 to make payment from any other revenues. and received by the Agency. The Agency shall have no obligation 17 2. The obligations of the Agency pursuant to Section.l of 18 this Agreement shall constitute the indebtedness of the Project. 19 The obligation of the Agency to make payments pursuant to this 20 Agreement shall be subordinate and subject to Section 33334.2 of 21 the Health & Safety Code and to the right of the Agency to pledge 22 or commit tax allocations from the Project Area to repay bonds or 23 24 25 26 27 28 other indebtedness incurred by the Agency in carrying out the Redevelopment Plan (and such redevelopment plan as may hereafter become applicable to the Project Area). The Agency agrees to file statements of indebtedness setting forth such obligation until such time as the Loan Amount (together with accrued DAB/ses December 6, 1989 2 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 o 28 ., . .. ... o (0 o o ;lnterest) has been pa;l.d j.n full. I .....,u_ .. a< thol. ODd I 3. I The Agreement shall be date f;lrst above shown. San Bernardino P;lnancing Au ATTEST: By: ~A?~~ Becretary Approved as to form and ~ega1 content: By: J1 MAUA)JIZ~.I'!1.,) 7A~1V-~1 The Community Development C'^"""18sion of the City of San BernarMno ~ \ *' ~ By: - ... A." \_ - L Ac i Ex cutive Director Approved as to form and legal content: .BY:~J ../Agency unse1 DAB/ses December 6, 1989 3 .. .. ". o (0 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 o o LOAN AmI--uwftI (AUTBORI'l'Y m AGENCY) 'l'BIS AGRBBMBN'r is ent:ered 1nt:o as of th1s 7th day of n.,...._Nt...... . 1989. by and bet:waen 'the SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY (The "Author1t:y") and t:he COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ('the "Agency"). RECITALS A. WHBREAS. t:ha Commun1t:y Redevelopment: Law (Heal'th & Safet:y Code. Sect:1on 33610) and ot:her law aut:hor1zes t:he Au'thor1ty t:o loan money t:o 'the Agency for adm1n1st:rat1ve expenses and overhead of 'the Agency; and B. 1fHBRBAS, 'the Au'thor1ty desires t:o assist: 'the Agency in 1t:s respons1b1l1t:y of redevelopment: of t:he Cent:ral City Redevelopment: Project: Area: and C. WHBRBAS, t:he Agency and t:he Aut:hor1t:y desire t:o 17 facilitate t:he redevelopment: of t:he Project Area consistent with 18 'the Redevelopment Plan; and 19 D. WHBREAS, t:he Agency. pursuant: t:o t:he Redevelopment: . 20 Plan and provision8 of t:he CoIIIIIIun1ty Redevelopment: Law (Healt:h & 21 Safety Code Section 33000. et: 8eQ.) is aut:horized t:o borrow funds 22 t:o facilit:ate redevelopment:: and 23 B. WHBREAS, no ot:her reasonable means of financing such 24 admin1strat:ive expenses is available; 25 NOW THERBFORE, t:he Authori t:y and the Agency agree as 26 follows: 27 28 / / / DAB/ses December 6. 1989 1 ~vL.t.... . Ll" -,' o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 co o 0, 1. The Author~ty agrees to loan Three M~11~on, F~ve HuncSred Thousand DOllars ($3, 500,000) to the Agency on or before December 8, 1989. The Agency shall, ~n cona~derat~on of such loan, be obligated to pay to the Author~ty the 8IIIOunt of Three M~llion, Five HuncSred Thousand Dollars ($3,500,000) (the "Loan Amount"), plus ~nterest accruing at the lesser of (i) eight percent (8t) or (11) the maximum interest rate that may lawfully be paid bya redavelopment agency; on or before December 8, 1990, provided that at the option of the Authority said loan may be extended for successive one year periods; provided that the Author~ty agrees and acknowledges that such Loan Amount shall be repa~d as soon as economically feasible only from (i) tax allocat~on revenues of the Project and (ii) such tax allocation revenues as may hereafter be generated within the Project Area and received by the Agency. The Agency shall have no obligation 16 to make payment from any other revenues. 17 2. The obligat~ons of the Agency pursuant to Section 1 of 18 this Agreement shall constitute the indebtedness of the Project. 19 The obligat~on of the Agency to make payments pursuant to this 20 Agreement shall be subord~nate end subject to Section 33334.2 of 21 the Health & Safety Code and to the right of the Agency to pledge 22 or commit tax allocations from the Project Area to repay bonds or 23 I other indebtedness ~ncurred by the Agency '~n carry~ng out the 24 Redevelopment Plan (and such redevelopment plan as may hereafter 25 become applicable to the Project Area). The Agency agrees to 26 file statements of indebtedness setting forth such obligation o 27 28 until such time as the Loan Amount (together with accrued DAB/ses December 6, 1989 ...- 2 ,- . ." .." 1 0 2 3 4 5 6 7 8 9 10 11 12 13 14 Co 15 o 1ntereat) ha. bean paid in ~u11. / / / - o 3. The Agree.ent aha11 be e~~ect1ve .. o~ the day and date ~1rst above .hOwn. ATTEST: By: ~~D?~'/ Secretary Approved a. to ~orm and legal contant: .B~.) thori Counsel 16 Approved as to ~orm 17 and legal content: lIS ~ 19 Agency unsel 20 21 22 23 . 24 25 26 27 0 28 DAB/aes 3 Dece.ber 6, U89 ...'~ San Bernerc11no Joint Powera Financing Author The Community Development t"-""""'i aa10n of the City of San Bernarc11no BY:~~D1rector ... o (0 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 o o 0, 1 RESOLUTION NO. 5219 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BElNARDI"O AUTHORIZING THE EXECUTION OF A LOAN 3 AGREEMENT WITH THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WHEREAS, pursuant 1:0 the Commun11:y Development Law of the State of California, (Health & Safety Code Section 33000, !! sea.), the Redevelopment Agency of the C11:y of San Bernardino (the "Agency") is carrying out the Redevelopment Plan for the State College Redevelopment Project (the "Project Area"): and WHEREAS, the Agency is authorized to invest funds not immediately necessary for the implementation of the Redevelopment Plan: and WHEREAS, the Agency and the Authori1:y desire to promote redevelopment in the downtown area of the Ci1:y of San Bernardino: and WHEREAS, the redevelopment of the downtown area would address blighting influences within the vicini1:y of the Project Area and throughout the Ci1:y, and would substantially benefit the PrOject Area and the community: and WHEREAS, in order to effectuate the provisions of the Redevelopment Plan, the Agency proposes to loan and the Authority proposes to borrow Three Million, Five Hundred Thousand Dollars (S3,500.000) pursuant to that "Loan Agreement", a copy of which is attached hereto as Exhibit "A" and is incorporated herein by reference: NOW THEREFORE, the Communi1:y Development COmmission of the Ci1:y of San Bernardino hereby resolves as follows: / / / DAB/ses December 5, 1989 -- 1 .. . .. .0 (0 o 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 o o 1 RESOLUTION OF '!'HE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUT"ORIZING THE EXECUTION OF A LOAN 2 AGREEMENT WIT" THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY SECTION 1. The loan of funds pursuant to the Loan Agreement is in the best interest of the Agency and will promote the public health, safety and welfare. SECTION 2. The Executive Director is hereby authorized to execute theLoen Agreement on behalf of "the Agency. SECTION 3. This Resolution is rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage of this resolution. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Community Development C^"'1ll1ssion of the City of San Bernardino at a special meeting thereof, held on the 7th day of December , 1989, by the following vote, to wit: AYES: C'.nmmj ssioners ESTHER ESTRADA, JACK REILLY, JESS FLORES, MICHAEL MAUDSLEY, TOM MINOR, VALERIE POPE-LUDLAM, NORINE MILLER NAYS: NONE ABSENT: !lONE ~~k.~TL The foregoing resolution is hereby 22 of December , 1989. 23 24 25 26 27 28 day the Approved as to form and legal content: B~ Agency unael DAB/ses December 5, 1989. 2 , . ." o ( ..... o o SECRETARY'S CERTIFICATE OF ADOPTION AND AUTHENTICATION I, Arlene S. BeZ1lllll1, Assistant, Secretary of the Community Development Commission, DO HEREBY CERTIFY that the attached Resolution is a true. and correct copy t)f Resolution No. 5219 adopted December 7th , 19..!!.!-, by the Community Development Commission of the City of ,San Bernardino, by the vote set forth below, and that said Resolution has not been amended or repealed. COMMISSION MEMBERS ESTHER R. ESTRADA JACK REILLY JESS FLORES cO MICHAEL MAUDSLEY 'TOM MINOR VALERIE POPE-LUDLAM NORINE MILLER DATED: December Il.. o [SEAL] SBE00097C-52/3ll0S Check Appropriate Box YEAS NAYS ABSENT ABSTAIN - '-~I 1=1 1=1 1=1 1:-' 1=1 1=1 1=1 I~I 1=1 1=1 1=1 1 x I 1=1 1=1 1=1 1:-1 1=1 1=1 1=1 1 x 1 1=1 1=1 1=1 1:-' 1=1 1=1 1=1 , 1989. ~xf~~..,~ J ~. Secretary of the Community Development Commission of the City of San Bernardino - 3- -,' o (0 o 14 15 L o o 1 2 3 4 5 6 7 8 9 LOAN AGRBmmN'l' (AGENCY '1'0 AU'l'RORI'l'Y) THIS AGRBBMBN'l' is en1:ered in1:o as of 1:h1s 7th day of 1'>>rAmna,.. , 1989, by' and between tile SAN BERNARDINO JOINT POWBRS FINANCING AUTHORITY (The "Au1:hori1:y") and 1:he COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO (1:he "Agancy").. RECITALS A. WHBREAS. 1:he Communi1:y Redevelopmen1: Law (Heal1:h & 10 Safety COde, Sec1:ion 33610) authorizes redevelopment agencies 1:0 11 inves1: any money held in reserves or sinking funds, or any money 12 not required for immediate disbursement, in proper1:y or 13 securi1:ies; and B. WHBREAS. tilere are presently available to 'the Agency funds generated by 'the State COllege Redevelopment Project (the 16 "Projec1:" ), which may be invested; and 17 18 19 20 21 22 C. WHBREAS. the Authority desires to borrow funds from tile Agency; NOW THBRBFORE. the Authority and the Agency agree as followS: 1. The Agency agrees 1:0 loan Three Million, Five Hundred Thousand Dollars ($3,500,000) to the Authori1:y on or befor~ 23 December 8, 1989. The Au1:hority shall, in consideration of such 24 loan, be obligated to pay to the Agency the amount of Three 25 Million, Five Hundred Thousand Dollars ($3,500,000) (the "Loan 26 Amount"), plus interest accruing at the lesser of (i) eight 27 28 percent (8t) or (ii) the maximum interest rate 'that may lawfully DAB/ses December 6, 1989 1 ~ 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 o (0 o - o o be pa:1d by a Author:1ty on or before December 8, 1990 prov:1ded ~hat at the opt:1on of ~e Agency sa:1d10an may be extended for success:1ve one year per:1ods. 2. Th:1s Agreement shall be effect:1ve as of ~e day and date f:1rst above shown. San Bernard:1no Jo:1 F:1nancing A A'1"l'EST: Jemes F. Penman, City Attorney Communi ty Developm C'.--...f ss:1on of the City San Bernardino yO B~iN Author Counsel / 17: ATTEST: BY:~~_ rL See et Approved as to form and legal content: BY:~ ') ./'Agency sel DAB/ses December 6, 1989 2 , , . . :'. o (0 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 - I' o o LOAN AGR8BMBNT (AGBNClr 70 AUTIIOlU:'1'!') '1'B1:8 AGRBBMBN'1' i. entered into a. of 1:h1. 7th day of t\a....._~.... , 1989, by and between the SAN BERNARDINO RBCZ'1'ALS A. WBBRBAS, the Community aedevelopment Law (Health & Safety Code, Section 33610) authorize. redevelopment agencie. to invest any money held in reserve. or .inking funds, or any money not required for immediate disbur.ement, in property or securities; and B. IfBBRBAS, there are pre.ently available to the Agency fund. generated by the State College aedevelopment Project (the 16 "Project" ), which maybe invested; end 17 18 19 20 21 22 C. IfBBRBAS, the Authority desire. to borrow funds from the Agency; NOW TBBRBFORB, the Authority and the Agency agree as followS: 1. The Agency agrees to loan Three Million, Five Hundred Thousand Dollars ($3,500,000) to the Authority on or before 23 December 8, 1989. The Authority shall, in consideration of such 24 loan, be obligated to pay to the Agency the amount of Three 25 Million, Five Hundred Thousand Dollars ($3,500,000) (the '"Loan 26 Amount"), plus interest accruing at the lesser of (i) eight 27 percent (8t) or (ii) the maximum interest rate that may lawfully 28 DAB/ses December 6, 1989 6''''''' 1 ~xh.J..._ ...., ,. 10" o. .'," .0 (0 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 liS 19 20 21 22 23 24 25 26 27 28 o o be paid by a Authori'ty on or before December 8, 1990 provided 'that at 'the option of the Agency said loan .ay be extended for , successive one year perio48. ~. This Agree.ent shall be effective as of the day and date first above shown. ATTEST: By: Secretary Approved as to form and legal content: James F. P8nlllan, Ci'ty Attorney BY~~4.t u r Counsel ATTEST: .BY:~~'R-rt- Approved as to form and legal content: BY:.@.Al4--'~.I6",," J .A\gency ~el DAB/aes Decamber 6, 1989 #- San Bernardino Joint Powers Financing Author! 'ty By: W.R. Holcomb, Chairman 2