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HomeMy WebLinkAboutR34-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF TIlE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION FROM: Barbara Lindseth Admin Services Director SUBJECT: Education Revenue Augmentation Fund Low Moderate Income Housing Note DATE: December 5, 2003 ORIGINAL ---~-------~----_._------------------------------.-------------------------------------_.-------.------.-.-------------------------._---.-- SvnoDsis of Previous Commission/Council/Committee Action(s): On December 4, 2003 Redevelopment Committee Members Anderson and Suarez recommended approval of the ERAF financing plan and borrowing from the Low- and Moderate Income Housing Fund. Recommended Motion(s): (Communltv DeveloDment Commission) MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS AND PROMISSORY NOTES FROM REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING EXECUTION THEREOF. Contact Person(s): Garv Van OsdellBarbara Lindseth Phone: 663-1044 Project Area(s): All Ward(s): All Supporting Data Attached:lKI Staff Report Cl Resolution(s) Cl Agreement(s)/Contract(s) Cl Map(s) Cl LtrlMemo FUNDING REQUIREMENTS: Amount: $1.052.749 Source: LM Income HouSin2 Fund. Note Reoay Budget Authority: Reauested SIGNATURE: !// I/o / --.l.J-.LAf GU. u.. -= , "7 c Is., 7 '} Barbara Lindseth Administrative Services Director Commisslon/Cauncil Notes: ~~~~~~~-~~:-:-~u=------------------------~~;;;;;;;~;-;;~~~_~~~;~~-__ MEETING DATE: 1211512003 Agenda Item Number: r.3 if ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Education Revenue AUl!mentation Fund Low Moderate Income Housinl! Note Backnound: On September 1,2002, the State Assembly and the Senate passed Assembly Bill 1768, Chapter 1127, which shifted $75 million in property taxes to the schools. Prior to May 10, 2003, the Economic Development Agency ("Agency") transferred the amount of $622,600 to the Education Revenue Augmentation Fund ("ERAF'). However, in order to do so the Agency found it necessary to borrow 50% of this amount from the Low- and Moderate Income Housing Fund, with the remaining 50% paid from the Auto Recycle land sales proceeds ($180,000) and lease revenues from the Golf Course ($131,300). For the fiscal year 2003-04, State legislation was passed that requires redevelopment agencies to shift to ERAF $135 million in property tax revenues for K-12 schools and community colleges. Each redevelopment agency shall, prior to May 10, 2004, remit to the county auditor the amount determined by the State Director of Finance. In making the determinations required, the State Director of Finance used those redevelopment project area property tax amounts as reported in the 2001-02 fiscal year Controller's State of California Community Redevelopment Agencies Annual Report ("State Controller's Report"). As in the prior fiscal year, an agency may borrow up to 50% of its ERAF obligation from the fiscal year 20% low and moderate income housing set-aside, unless executed contracts would be impaired if the agency reduced the amount allocated to the Low- and Moderate Income Housing Fund. Further, as a condition of borrowing, an agency must make a finding that there are insufficient other moneys to meet the deposit requirement, and any funds borrowed from the Low and Moderate Income Housing Fund must be repaid in full within ten (10) years following the date on which the funds were borrowed. In order to make the full ERAF allocation, an agency may use any funds that are legally available and not legally obligated for other uses, including, but not limited to, reserve funds, proceeds of land sales, proceeds of bonds or other indebtedness, lease revenues, interest, and other earned income. The ERAF obligation imposed, including the amounts owed, if any, have been declared by this legislation to be an indebtedness of the redevelopment project to which the allocation relates, payable from taxes allocated to the agency, and shall constitute an indebtedness of the agency with respect to the redevelopment project, until paid in full. If an agency fails to transmit the full amount offunds required, ifit is precluded by court order from transmitting the amount, or it is otherwise unable to meet its full obligation, the county auditor, no GYO:bl:Agenda CDC ERAF 03-04.doc COMMISSION MEETING AGENDA MEETING DATE: 12/1512003 Agenda Item Number: ..f.Jt-- Education Revenue Augmentation Fund Low Moderate Housing Note Staff Report Page -2 - later than May 15,2004, shall transfer any amount necessary to meet the obligation from the local legislative body's property tax allocation. Current Issues: Pursuant to the State Director of Finance, the ERAF obligation for each of the Agency's redevelopment project areas, based on the 2001-02 State Controller's Report, is as follows: ERAF by Redevelopment Project Area Redevelopment Proiect Area 2001-02 Tax Increment ERAF TransCer State College Central City North Central City West Southeast Industrial Park Northwest Tri City Uptown South Valle Central City Projects Mt Vemon 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 The total ERAF obligation for the fiscal year 2003-04 is $1,052,749. Based upon the legislation, the Agency is 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 50% of the ERAF obligation ($526,374.50) if the Agency has no other funds available. However, for the remaining 50% obligation the Agency must find and use other available funds, or the obligation could fall upon the City. In accordance with the condition of borrowing from the Low- and Moderate Income Housing Fund, the Agency must make a finding that there are insufficient other moneys to meet the full I 00010 ERAF obligation. The following chart makes such a finding and demonstrates the negative impact upon each of the redevelopment project areas if 100% of the ERAF obligation is imposed, without the GVO:bl:Agenda CDC ERAF 03-04.doe COMMISSION MEETING AGENDA MEETING DATE: 12/1512003 /J3U Agenda Item Number: 15,: L Education Revenue Augmentation Fund Low Moderate Income Housing Note Staff Report Page - 3- benefit of borrowing 50% of the ERAF obligation from the Low- and Moderate Income Housing Fund. Actual 2003-04 ERAF Pavment A B C 0 E F G H I Project Area 2002-03 Tax lOO"A. Deposit 20% All Pass Thru Non-Housing Admin Costs & Net Net Remaining I......... ERAF to Low Mod Payments Debt Svc &; Operation Remaining Including Receipts Obligation Housing Contractual Expenses & Fi9Cal Year Other Revenue Fuod Obligations Other Mise Tax Sources Expenses Increment 0nIv Sla.. College 5,603,592 343,568 1,120,718 11,164 4,456,763 291,541 -620,162 290,838 CCNortb 965,976 65,598 193,195 2,196 2,042,920 0 -1,337,933 -176,081 CCWest 17,909 1,508 3,582 0 11,200 0 1,619 20,619 Southeastlnd 3,407,507 209,474 681,501 7,327 2,675,010 144,465 -310,270 -lSI ,070 Northwest 1,587,245 84,440 317,449 263,080 995,338 62,148 -135,210 97,890 TriCity 1,791,726 107,044 358,345 35,994 6,840,436 13,196 -5,563,289 -102,289 Uptown 448,086 25,276 89,617 925 329,880 30,784 -28,396 -3,396 South Valle 733,040 41,664 146,608 17,370 454,141 49,987 23,270 53,270 CCProjects 2,442,043 141,531 488,409 4,785 3,632,110 100,000 -1,924,792 -1,061,206 MtVemon 650,199 30,242 130,040 38,828 374,617 60,621 15,851 102,051 40th Street 106,904 2,404 21,381 30,000 5,996 30,306 16,817 18,817 17,754,227 1,052,749 3,550,845 411,669 21,818,411 783,048 -9,862,495 -910,557 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 fiscal year 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 inJpact ofthe ERAF obligation (-$910,557) is shown in column "I". To avoid the negative ERAF inJpact on the project areas it is recommended that 50% of the ERAF obligation ($526,374.50) be borrowed from the 2003-04 Low and Moderate Income Housing Fund. It is further proposed that the remaining 50% of the ERAF obligation be taken from the recent repayment from Inland Plaza ($1.9 million), which is not included in the other income, with the balance of the Inland Plaza repayment to be held for HUB expenditures. GVO:bl:Agenda CDC ERAF 03-04.doc COMMISSION MEETING AGENDA MEETING DATE: 12/1512003 Agenda Item Number: R. -3 Lj" Education Revenue Augmentation Fund Low Moderate Income Housing Note Staff Report Page - 4 - TIle lollowing represents how the total $1,052.749 ERAF payment will be made on May 10, 2004: I. Low and Moderate Income Housing Notes State College Central City North Central City West Southeast Ind Park Northwest Tri City Uptown South Valle Central City Projects Mt Veroon 40th Street Total 2. Inland Plaza Repayment Total Environmental ImDact: None. Fiscal ImDact: $526,374.50 $171,784.00 32,799.00 754.00 104,737.00 42,220.00 53,522.00 12,638.00 20,832.00 70,765.50 15,121.00 1.202.00 526.374.50 526.374.50 $1.052.749.00 As required by State legislation, the amount of $1,052,749 will be paid by May 10, 2004 to the County Auditor for deposit into the Education Revenue Augmentation Fund. One half of this amount, $526,374.50, will be paid from Inland Plaza's note repayment to the Agency. The remaining $526,374.50 will be paid from the Low- and Moderate Income Housing Fund. Notes payable, as described above, will be executed in each of the redevelopment project areas as required. GVO:bl:Agenda CDC ERAF 03-04.doc COMMISSION MEETING AGENDA MEETING DATE: 12/1512003 Agenda Item Number: RJi/ / Education Revenue Augmentation Fund Low Moderate Income Housing Note Staff Report Page - 5 - Recommendations: That the Community Development Conunission approve the financing plan for the 2003-04 ERAF payment, approve notes payable from each of the redevelopment project areas, as outlined above, and adopt the Resolution. ~cu ~MV' J')j~ /~' Barbara Lindseth Administrative Services Director GVO:bl:Agenda CDC ERAF 03-04.doc COMMISSION MEETING AGENDA MEETING DATE: 1211512003 Agenda Item Number: IZ 3 if' e e 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 e 27 28 II I RESOLUTI~9 ~r I ' 2 3 4 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ARPPOVING AN EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS AND PROMISSORY NOTES FROM REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING EXECUTION THEREOF. ~ ;) 6 WHEREAS, the legislature of the State of California enacted urgency 7 legislation adding Health and Safety Code Sections 33681.7 and 33681.8 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 Revenue and Taxation Code Section 97.03 (the "ERAF"); WHEREAS, under Health and Safety Code Section 33681.7(a) the Director of Finance of the State of California has calculated the amount of money that the Agency is 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 is 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 e :1 !I I 2 3 4 ;) 6 ~ I 8 9 10 II 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 e e 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 33681.7(b) authorizes the Agency to borrow up to fifty percent (50%) of the Agency FY 2003-04 ERAF Obligation from the Low-Mod Funds in order to make the State-mandated payment as required by Stats 2002: Chapter 1127; Health and Safety Code Section 33681.7; 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 a portion of the Agency FY 2003-04 ERAF Obligation will not impair any executed existing contracts of the Low-Mod Funds; NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: Section I. The Commission hereby approves the ERAF Loan Plan. The purpose of this ERAF Loan Plan is to evidence an indebtedness of the Agency in the original principal amount of Five Hundred Twenty Six Thousand Three Hundred Seventy-Four Dollars and Fifty Cents ($526,374.50) as incurred by each of the redevelopment project areas of the Agency to the Low-Mod Funds, as evidenced by the ten (I 0) 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 2 'I . 1 Fiscal Year 2003-04 pursuant to Stats 2002: Chapter] ] 27 (Health and Safety Code 2 Section 33681.7). 3,: Section 2. The Agency hereby declares its intention to borrow the sum 41 51 of Five Hundred Twenty Six Thousand Three Hundred Seventy-Four Dollars and 61 Fifty Cents ($526,374.50) from the Low-Mod Funds (the "ERAF Loan Plan 71 Amount") to remit to the County of San Bernardino Auditor for deposit into the I 8 ERAF in partial satisfaction of the Agency FY 2003-04 ERAF Obligation under 9 Health and Safety Code Section 33681.7 for fiscal year 2003-2004, as authorized 10 by Health and Safety Code Section 33681.7(b). 11 Section 3. The ERAF Loan Plan Amount shall be allocated among the 12 Low-Mod Housing Funds of each redevelopment project area of the Agency as 13 . 14 follows: State College Redevelopment Project $]7],784 15 16 Central City North Redevelopment Project 32,799 17 Central City West Redeve]opment Project 754 18 Southeast Industrial Park Redevelopment Project 104,737 19 Northwest Redevelopment Project 42,220 20 21 Tri City Redevelopment Project 53,522 22 Uptown Redevelopment Project ]2,638 23 South Valle Redevelopment Project 20,832 24 Central City Redevelopment Projects 25 (Merged Projects) 70,765.50 26 Mt Vernon Corridor Redevelopment Project 15,]2] . 27 40th Street Redevelopment Project 1.202 28 3 e e e 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I' :, I Total ERAF Loan Plan Amount for FY 2003-04: $526.374.50 Section 4. The ERAF Loan Plan Amount shall be evidenced by the ten 2 3 4 (10) promissory notes attached to the ERAF Loan Plan as Exhibits "A" through "T', inclusive. The Chairperson of the Community Development Commission of 5 6 the City of San Bernardino is hereby authorized and directed to execute the ERAF _I / loan Plan and each of the ten (10) promissory notes, as attached in the original principal amounts as set forth for each such redevelopment project area in Section 3 of the ERAF Loan Plan. The date of each such promissory note shall be May 10, 2004. The principal amount and interest under each such promissory note shall be payable by each redevelopment project area in accordance with the terms set forth in each promissory note. Section 5. Repayments of the ERAF Loan Plan Amount, plus interest thereon, shall be made under each 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 promissory note from "Excess Revenues", as this term is defmed in the next sentence. "Excess Revenues" means 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 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 4 e e e 8 9 10 11 12 13 14 15 'I 1 2 particular redevelopment project area; (ii) the administrative and operational costs of the Agency incurred in the implementation of the redevelopment plan and the 3: I undertaking of Agency redevelopment activities within the particular 4 redevelopment project area; and (iii) the amount to be deposited into the Low-Mod i) 6 Fund for the particular redevelopment project area for such then current fiscal year. i No other source of funds of the Agency is pledged or made available thereafter for the repayment of any amount of the ERAF Loan Plan Amount when due under any of the 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 promissory notes, are an indebtedness of the redevelopment project area to which such promissory note relates, payable from Excess Revenues and shall constitute an indebtedness of the Agency with respect to each of the applicable redevelopment 16 projects, until paid in full, pursuant to Health and Safety Code Section 33681. 7( e). Ii 18 19 20 21 22 23 24 25 26 2i 28 Section 7. The Executive Director of the Agency is hereby authorized and directed to cause the sum of Five Hundred Twenty Six Thousand Three Hundred Seventy-Four Dollars and Fifty Cents ($526,374.50) to be transferred from the Low-Mod Funds of the Agency in the amounts specified in Section 3 of this ERAF Loan Plan 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. 5 e e 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 e 26 27 28 i 1 2 3 4- 5 6 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS AND PROMISSORY NOTES FROM REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING EXECUTION THEREOF. 1 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 , 2003, by the following vote, to wit: Commission Members Aves Navs Abstain Absent ESTRADA LONGVILLE MCGINNIS DERRY SUAREZ ANDERSON MCCAMMACK Secretary The foregoing Resolution is hereby approved this _day of ,2003. Chairperson, Community Development Commission of the City of San Bernardino By: 7 e e e REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS (Fiscal Year 2003-2004) THIS EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS ("ERAF Loan Plan") is dated as of December 15, 2003 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 a portion of 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 33681.7 (Stats 2002: Chapter 1127). This ERAF Loan Plan has been approved by the Agency in view of facts set forth in the following recital paragraphs: RECITALS WHEREAS, the legislature of the State of California enacted urgency legislation adding Health and Safety Code Sections 33681.7 and 33681.8 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 Revenue and Taxation Code Section 97.03 (the "ERAF"); WHEREAS, under Health and Safety Code Section 33681.7(a) the Director of Finance of the State of California has calculated the amount of money that the Agency is 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 leller, dated September 22, 2003, from the Department of Finance of the State of California stating that the Agency is 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 33681.7(b) authorizes the Agency to borrow up to fifty percent (50%) of the Agency FY 2003-04 ERAF Obligation from the Low- Mod Funds in order to make the State-mandated payment as required by Stats 2002: Chapter 1127; Health and Safety Code Section 33681.7; 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 I e tit tit housing or otherwise promote the goal of providing affordable housing in the community, the loan of Low-Mod Funds to pay a portion of the Agency FY 2003-04 ERAF Obligation will not impair any executed existing contracts of the Low-Mod Funds; NOW, THEREFORE, THE AGENCY HEREBY APPROVES THE ERAF LOAN PLAN FOR FUNDS BORROWED FROM THE AGENCY'S LOW AND MODERATE INCOME HOUSING FUNDS AS SET FORTH HEREIN AND DIRECTS THE EXECUTIVE DIRECTOR OF THE AGENCY TO REMIT TO THE AUDITOR OF THE COUNTY OF SAN BERNARDINO THE SUM OF $526,374.50 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 ERAF Loan Plan is to evidence an indebtedness of the Agency in the original principal amount of Five Hundred Twenty Six Thousand Three Hundred Seventy-Four Dollars and Fifty Cents ($526,374.50) 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 Stats 2002: Chapter 1127 (Health and Safety Code Section 33681.7). Section 2. The Agency hereby declares its intention to borrow the sum of Five Hundred Twenty Six Thousand Three Hundred Seventy-Four Dollars and Fifty Cents ($526,374.50) from the Low-Mod Funds (the "ERAF Loan Plan Amount") to remit to the County of San Bernardino Auditor for deposit into the ERAF in partial satisfaction of the Agency FY 2003-04 ERAF Obligation under Health and Safety Code Section 33681.7 for fiscal year 2003-2004, as authorized by Health and Safety Code Section 33681. 7(b). Section 3. The 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: $171,784 32,799 754 104,737 42,220 53,522 12,638 20,832 70,765.50 15,121 L202 $526.374.50 2 tit e e Section 4. The ERAF Loan Plan Amount shall be evidenced by the ten (10) promissory notes attached to this ERAF Loan Plan as Exhibits "A" through "1", 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) 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 promissory note shall be May 10, 2004. The principal amount and interest under each such promissory note shall be payable by each redevelopment project area in accordance with the terms set forth in each promissory note. Section 5. Repayments of the ERAF Loan Plan Amount, plus interest thereon, shall be made under each 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 promissory note from "Excess Revenues", as this term is defined in the next sentence. "Excess Revenues" means 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 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 ERAF Loan Plan Amount when due under any of the 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 promissory notes, are an indebtedness of the redevelopment project area to which such 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 33681.7(e). Section 7. The Executive Director of the Agency is hereby authorized and directed to cause the sum of Five Hundred Twenty Six Thousand Three Hundred Seventy-Four Dollars and Fifty Cents ($526,374.50) to be transferred from the Low-Mod Funds of the Agency in the amounts specified in Section 3 of this ERAF Loan Plan 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 . . e IN WITNESS WHEREOF, the Agency executes this 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~'" L Agency Special 4 e e e REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAY ABLE 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 $53,522 Date of this Note: May 10,2004 Variable Rate ofInterest: LA IF 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15,2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15, 2003 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 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 e e e 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 (1) 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 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 assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assigrunent in its sole and absolute discretion. 2 e e e California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 . . . REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $12,638 Date of this Note: May 10,2004 Variable Rate ofInterest: LAIF Rate of Interest 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _' dated December 15, 2003 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 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. .1 1 e e e 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 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 defined in the 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 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. 2 . . . California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 . . . REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $171,784 Date of this Note: May 10, 2004 Variable Rate ofInterest: LA IF Rate of Interest on Funds Invested for One (1 ) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Tenn of this Note THIS 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 State College 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 tenns hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15,2003 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 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 ERAF Loan Plan. The tenns and provisions of the 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 ERAF Loan Plan. 1 e e e 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 defined in the 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 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. 2 e e e California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 . tit tit REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $20,832 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15, 2003 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 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 . . . 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 oLthis 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 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 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 assign its right to receive the payment of principal and payments of accrued interest under the 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. 2 e tit tit California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 e e e REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $104,737 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15, 2003 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 e e e 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 defined in the 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 assign its right to receive the payment of principal and payments of accrued interest under the 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. 2 e e e California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 . . . REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $42,220 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15, 2003 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 e e e 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 1 0, 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 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 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. 2 e e e California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 e e e REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $15,121 Date of this Note: May 10, 2004 Variable Rate ofInterest: LA1F Rate of Interest 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15, 2003 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference.. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 e e e 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 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 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 assign its right to receive the payment of principal and payments of accrued interest under the 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. 2 e e e California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 . e e REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $32,799 Date of this Note: May 10, 2004 Variable Rate ofInterest: LAIF Rate of Interest 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15,2003 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 . . . 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 "LA IF 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 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 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 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. 2 e e e California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 e e e REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $70,765.50 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15, 2003 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 e e e 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 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 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 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 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. 2 e e e California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 . tit tit REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $754 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15, 2003 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 e e e 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 defined in the 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 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 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. 2 e e e California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 e e e REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2003-04 ERAF Obligation) THIS 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 $1,202 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 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 Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 15, 2003 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15, 2003 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 ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 e e e 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 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 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 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. 2 r e e e California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): 1z.-IS"O~ Item # e 3"\ Resolution # Vote: Ayes 1-(" Nays -0' Abstain 'I Change to motion to amend original documents: - ClX:JZ(Xj 3 - LIS I Absent ..e- Reso. # On Attachments: Contract term: NulVVoid After: Note on Resolution of Attachment stored separately:-==-- Direct City Clerk to (circle I): PUBLISH, POST, RECORD W /COUNTY By: Date of Clerk/CDC Signature: 1"2-- l '1 rO z., \"2- \ l{ -<:,5 \,d-- \ 1)--0.1., Reso. Log Updated: Seal Impressed: ..----- .../' Date Sent to Mayor: Date of Mayor's Signature: 60 Day Reminder Letter Sent on 30t 90 Day Reminder Letter Sent on 45th day: See Attached: See Attached: e d: Date Returned: - Date Memo' ent for Signature: Request for Council Action & Staff Report Attached: Yes ~ Updated Prior Resolutions (Other Than Below): Yes Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Yes Updated CDC Personnel Folders (5557): Yes Updated Traffic Folders (3985, 8234, 655, 92-389): Yes No By No ./' By_ No /B No ;:> B No B Copies Distributed ~ City Attorney " Code Compliance Dev. Services Parks & Rec. Police Public Services Water EDA / Finance MIS Others: Notes: BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.) Ready to File:_ Date: Revised 01112/01