HomeMy WebLinkAbout1989-398
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RESOLUTION NO. 89-398
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, APPROVING A LOAN AGREEMENT BETWEEN
3 THE CITY OF SAN BERNARDINO AND THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO.
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WHEREAS, the City of San Bernardino (the "City") and the
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Community Development Commission of the City of San Bernardino
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(the "Agency") desire to engage in the study of the feasibility
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of the redevelopment of a potential redevelopment survey area
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including the Mount Vernon Business Corridor and surrounding area
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(the "Potential Survey Area"); and
WHEREAS, the Agency under the provisions of the California
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Community Redevelopment Law, is engaged in assessing the
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feasibility of the redevelopment of the Potential Survey Area;
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and
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WHEREAS, the City is authorized to provide financial and
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other assistance to the Agency to promote the redevelopment of
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the Potential Survey Area; and
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WHEREAS the City proposes to loan and the Agency proposes
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to borrow Two Hundred Fifty Thousand Dollars ($250,000.00)
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pursuant to the "Loan Agreement", a copy of which is attached
hereto as Exhibit "A" and is incorporated herein by reference;
NOW THEREFORE, the City of San Bernardino does hereby find,
determine, order and resolve as follows:
SECTION 1. The Loan Agreement is in the best interests of
the City and will promote the public health, safety and welfare.
SECTION 2.
The Loan Agreement is hereby approved.
The
Mayor is authorized to execute the Agreement on behalf of the
City.
DAB:br
July 19, 1989
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SECTION 3. This resolution is rescinded if the parties to
2 the agreement(s) fail to execute it within sixty (60) days of the
3 passage of this resolution.
4 I HEREBY CERTIFY that the foregoing resolution was duly
5 adopted by the Mayor and Common Council of the City of San
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Bernardino at a
regular
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day of October
, 1989, by the following vote, to wit:
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AYES:
Council Members Estrada, Reilly, Flores, Maudsley,
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meeting thereof, held on the 2nd
NAYS:
Minor, Pope-Ludlam, Miller
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None
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ABSENT:
None
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~#.(?#~
Ci-fy Clerk
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The foregoing resolution is hereby approved this
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of
, 1989.
Approved as to form
and legal content:
JAMES F. PENMAN,
City Attorney
BY:~~_
DAB:br
July 19, 1989
day
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LOAN AGREEMENT
(CITY TO AGENCY)
THIS AGREEMENT is entered into as of this IOtn day
of l?~ , 1989, by and between the CITY OF SAN BERNARDINO
(the "City") and the COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF BAN BERNARDINO (the "Agency").
RECITALS
A. WHEREAS, the Community Redevelopment Law (Health'
Safety Code, Section 33610) authorizes the City to loan money
to the Agency for administrative expenses and overhead of the
Agency; and
B. WHEREAS, the City and the Agency desire to engage in
the study of the feasibility of the redevelopment of a
potential redevelopment survey area including the Mount Vernon
Corridor and surrounding area (the "Potential Survey Area"); and
C. WHEREAS, if feasible, the redevelopment of the
Potential Survey Area may proceed as a separate and distinct
redevelopment project area or as an amendment to the
Redevelopment Plan for the Southeast Industrial Park
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Redevelopment Project (the "Redevelopment Plan" and the
"Existing Project", respectively); and
D. WHEREAS, the Agency and the City desire to facilitate
the redevelopment Of the Potential Survey Area consistent with
the Redevelopment Plan; and
E_ WHEREAS, the Agency, pursuant to the Redevelopment
Plan and provisions of the Community Redevelopment Law (Health
& Safety Code Section 33000, at seq.) is authorized to borrow
funds to facilitate redevelopment; and
F. WHEREAS, no other reasonable means of financin; such
administrative expenses is available;
NOW THEREFORE, the City and the Agency agree as follows:
1. The City agrees to loan Two Hundred Fifty
Thousand Dollars ($250,000.00) to the Agency on or before June
30, 1990. The Agency shall, in consideration of such loan, be
obligated to pay to the City the amount of Two Hundred Fifty
Thousand Dollars ($250,OOO.OO) (the "Loan Amount"), plus
interest accruing at the lesser of (i) eight percent (8\) or
(ii) the maximum interest rate that may lawfully be paid by a
redevelopment agency; provided that the City a;rees and
aCknowledges that such Loan Amount shall be repaid as soon as
economically feasible.
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only from (i) tax allocation revenues of the Project and (ii)
such tax allocation revenues as may hereafter be generated
within the Potential Survey Area and received by the Agency.
The Agency shall have no obligation to make payment from any
other revenues.
2. The obligations of the Aqency purs~ant to Section
1 of this Agreement shall constitute the indebtedness of the
Project ~nd such additional redevelopment project as may
hereafter include the Potential Survey Area. The obligation of
the Agency to make payments pursuant to this Agreement shall be
subordinate and subject to Section 33334.2 of the Health &
Safety Code and to the right of the A~ency to pledge or commit
tax allocations from the Potential Survey Area to repay bonds
or other indebtedness incurred by the Agency in carrying out
the Redevelopment Plan (and such redevelopment plan as may
hereafter become applicable to the Potential Survey Area). The
Agency agrees to file statements of indebtedness setting forth
such obligation until such time as the Loan Amount (to;ether
with accrued interest) has been paid in full.
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date first above Shown.
3. The Agreement shall be effective as of the qay and
ATTEST:
BY:~~$/
City Clerk
Approved as to
form and content:
II
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Approved as to
form Bnd content:
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The Community Development
Commission of the City of
San Bernardino
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