The URL can be used to link to this page

Home My WebLink AboutCDC/2007-06 1 Ii , , RESOLUTION NO, CDC/2007-6 2 3 4 5 6 7 8 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is the RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING A LOAN FROM THE LOW- AND MODERATE- INCOME HOUSING FUND IN THE AMOUNT OF $7.5 MILLION FOR PROPERTY ACQUISITION AND DEMOLITION COSTS RELATED TO THE REDEVELOPMENT OF THE NORTH ARDEN GUTHRIE AREA (IVDA REDEVELOPMENT PROJECT AREA) 9 owner of property ("Agency Property") in the area bounded by Highland Avenue, Arden Avenue, 10 20th Street and Guthrie Avenue, commonly known as the North Arden Guthrie Area ("Site"), within 11 the Inland Valley Development Agency ("IVDA") Redevelopment Project Area, which Site is 12 approximately seventeen (17) acres in size; and 13 WHEREAS, recognizing that the Site has become severely blighted, there is a need for the 14 Agency to acquire the remaining privately held property ("Private Property") within the Site in order 15 to demolish and clear the entire Site and to make the Site suitable for development; and 16 WHEREAS, in July 2003, the Mayor and Common Council of the City of San Bernardino 17 ("Council"), authorized an application for a HUD Section 108 Loan ("Section 108 Loan") in the 18 amount of $7,500,000 for the purchase of the Private Property within the Site; and 19 WHEREAS, in May 2006, HUD approved the Section 108 Loan; and 20 WHEREAS, on July 24,2006, the Council approved a HUD Section 108 Loan Contract and 21 authorized the City of San Bernardino ("City") to loan the funds to the Agency; and 22 WHEREAS, the Community Development Commission of the City of San Bernardino 23 ("Commission"), authorized Agency Staff to proceed with the acquisition of the Private Property; 24 and 25 WHEREAS, the estimated total Agency budget for acquisition and demolition of the Private 26 Property is $15 million, of which $7.5 million will be funded by the Section 108 Loan leaving a 27 shortfall of$7.5 million; and 28 -1- P:\Agcndas\ResoJutions\Resolutions\2007\03-0S-07 Low-Mod Loan - Home Depot CDC Reso,doc; 1 WHEREAS, it is proposed that the anticipated shortfall of $7.5 million be funded through a 2 loan from the Low- and Moderate-Income Housing Fund. 3 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY 4 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: 5 Section 1. The Commission hereby desires to authorize a $7.5 million loan from the 6 Low- and Moderate-Income Housing Fund, bearing interest at the current Local Agency Investment 7 Fund ("LAIF") rate at the time of funding, repayable from the anticipated land sales proceeds to be 8 received from the Developer, from those IVDA tax increment revenues received by the Agency and 9 other legally available funds ofthe Agency, with a final maturity date of March 5, 2012. 10 Section 2. The Commission hereby approves and authorizes a $7.5 million loan from the 11 Low- and Moderate-Income Housing Fund for acquisition of the Private Property and demolition 12 costs within the North Arden Guthrie Area, and authorizes execution of the Agency Promissory 13 Note as attached hereto by the Executive Director ofthe Agency. 14 Section 3. 15 III 16 III 17 III 18 III 19 III 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III The Resolution shall become effective immediately upon its adoption. -2- P:\Agcndas\Rcsolutions\Rcsolutiolls\2007\03-OS-07 Low-Mod Loan - Home Depol CDC Resodoe RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING A LOAN FROM THE LOW- AND MODERATE- INCOME HOUSING FUND IN THE AMOUNT OF $7.5 MILLION FOR PROPERTY ACQUISITION AND DEMOLITION COSTS RELATED TO THE REDEVELOPMENT OF THE NORTH ARDEN GUTHRIE AREA (IVDA REDEVELOPMENT PROJECT AREA) 1 2 3 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 7 Development Commission of the City of San Bernardino at a joint regular meeting 8 thereof, held on the 5th day of March ,2007, by the following vote to wit: 9 Commission Members: Aves Navs Abstain Absent 10 ESTRADA ---X..- 11 BAXTER ---X- BRINKER x 12 - DERRY --.L 13 KELLEY -L 14 JOHNSON ---X..- 15 MC CAMMACK x 16 17 ----y'v) ?~ 18 Secretary! 1~ 19 The foregoing Resolution is hereby approved this day of March 20 21 ,2007. J. Morris, erson o munity Development Commission of the City of San Bernardino 22 23 24 Approved as to Form: 25 26 27 28 By: ~ Agency 0 sel -3- P:\Agenda$\Rcsolulions\Resohuions\2007\03-05-07 Low-Mod Loan - Home Depot COC Rcso_doc ., REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Low- and Moderate-Income Housing Fund Loan - North Arden Guthrie CommerciallRetail Project -IVDA Project Area) 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 $7,500,000.00 Date of this Note: March 5, 2007 Variable Rate of Interest: LAIF Rate of Interest on Funds Invested for One (1) Year Determined as of the Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding March 5 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated March 5, 2007 (this "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 (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 this Note at the times specified herein, together with interest thereon in accordance with the terms hereof. This Note is hereby tendered in accordance with and as approved by Agency Resolution No.CDC/2P07-6 dated March 5, 2007 with respect to the facts set forth in such Community Development Commission staff report concerning the North Arden Guthrie CommerciallRetail Project - IVDA Project Area (the "Project"): . THE.AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. This 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 in furtherance of the Project. The terms and provisions of the Project 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 Project. SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from the date of each Advance, at the 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 I SB2003oI1888.1 P:\Agcndas\Agenda Attachments\Exhibits\2007\03--05-07 Low-Mod Loan Promissory NOle - Home Depot_doc . 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 March 5, commencing on March 5, 2008 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: March 5) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under this Note shall be made by the Agency to the Low-Mod Housing Fund no later than March 5, 2012, from land sales proceeds attributable to the Project, and/or from IVDA tax increment revenues remitted to the Agency and other legally available funds. It is anticipated that the Advance, plus accrued interest, will be repaid to the Low-Mod Housing Fund by the Agency on or before March 5, 2012. SECTION 4. The Agency hereby pledges to make payments hereunder from those sources listed in Section 3. The pledge of the Agency under this Section 4 of this 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. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof as is 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 March 5, 2012, 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 of March 5,2012, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before March 5, 2012. SECTION 6. The Agency may prepay the principal amount of this Note and accrued interest thereon, at any time, from time-to-time without penalty. SECTION 7. There shall be authority or power to transfer or assign from the Low-Mod Housing Fund any right to receive the payment of principal and payments of accrued interest under this Note unless the Agency has first granted written approval for such a proposed =;",mool from dm Low-Mod HO~ tIm oore md ....Iore di"""= of th, _'y Executed this ~ day of , 2007 at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO B;fh~~ Maggie P checo, Executive DIrector 2 P:\Agendas\Agenda Attll(:hmaus\Ex:hibits\2007\OJ.()5..o7 Low-Mod Lou Promissory Note - Home Depot.doc