HomeMy WebLinkAboutR7- Development Director ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: RONALD WINKLER Subject: INFRASTRUCTURE IMPROVEMENTS
DEVELOPMENT DIRECTOR FOR NEW PINE AVENUE
Date: October 5, 1995
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Synopsis of Previous Commission/Council/Committee Action(s):
On August 7, 1995, the Mayor and Common Council discussed the need to
identify a funding source for the New Pine Avenue project.
On September 5, 1995, the Mayor and Common Council and the Community
Development Commission approved loans from the Sewer Line Maintenance
Fund, the Sewer Line Construction Fund and the Economic Development
Agency for the construction of New Pine Avenue.
Recommended Motion(s):
(Mayor and Common Council)
(Community Development Commission)
MOTION: That the Mayor and Common Council and the Community
Development Commission approve a loan agreement between the
City and the Agency in the amount of $500,000 for the
construction of New Pine Avenue, authorize staff to execute
the loan agreement and increase the Agency's budget
accordingly.
Administrator RONALD W R
DEVELOP NT DIRECTOR
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Contact Person(s) : Adam Eliason; Ron Winkler Phone: 5081
Project Area(s): N/A Ward(s): Fifth (5)
Supporting Data Attached: Staff Report; Loan Agreement
Funding Requirements: Amount: $500,000 Source: Line of Credit
Budget Authority: Requested
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Commission/Council Notes:
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RW:BJL:2106A COMMISSION MEETING AGENDA
Meeting Date: 10/16/1995
Agenda Item Number:
ANN
0
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
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Infrastructure Improvements for New Pine Avenue
On September 5, 1995, the Mayor and Common Council and the Community
Development Commission approved funding sources for the construction of
New Pine Avenue, between Kendall Drive and Irvington Avenue. The cost
to construct New Pine Avenue was estimated at $1,133,000. The
following sources were identified and approved to finance the
construction of New Pine:
1. Sewer Line Maintenance Fund $316,500
2. Sewer Line Construction Fund 316,500
3. EDA Loan through Line of Credit 500,000
Total $1,133,000
The terms of the attached Loan Agreement between the City and the
Agency are such that the Agency will be advanced the amount of $500,000
from the Agency's Line of Credit at Wells Fargo Bank, and will in turn
loan the funds to the City. The loan to the City will be at an
_. interest rate of 6% p g
per annum and will be repaid through the annual
levy on the parcels or from the sale of each home on a proportionate
share (44%) with the other two (2) loans according to the outstanding
original principal balances. It is anticipated that at the close of
escrow on the first 42 homes, $402,000 will be proportionately repaid
on the three (3) loans; the Agency will be repaid approximately
$176,880 from the sale of the first 42 homes. The balance will have
the option of being paid at the time of close of escrow on the
remaining 54 homes, or over a 25 year period commencing at the time of
the formation of the assessment district.
Based on the foregoing, staff recommends adoption of the form motion.
Ronald ��
W nkler
Development Director
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RW:BJL:2106A COMMISSION MEETING AGENDA
Meeting Date: 10/16/1995
Agenda Item Number: 7
0 0
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
LOAN AGREEMENT
NEW PINE AVENUE
THIS LOAN AGREEMENT is entered into as of the day
of , 1995, by and between the Economic Development Agency
of the City of San Bernardino (the "Agency") and the City of San
Bernardino (the "City") with reference to the following facts:
RECITALS
A. The Agency is a redevelopment agency, a public body,
corporate and politic within the State of California, organized and
existing pursuant to the Community Redevelopment Law (Part 1 of
division 24) commencing with Section 33000 of the Health and Safety
Code of the State of California (the "Act").
B. The City of San Bernardino, California, is a municipal
corporation and a charter city duly created and existing pursuant to
the Constitution of the State of California.
C. The City desires to construct New Pine Avenue, between
Kendall Drive and Irvington Avenue, within the City limits for an
estimated cost of $1,133,000.
D. The costs of the infrastructure improvements
consisting of the construction of New Pine Avenue will exceed the
amounts identified. The Sewer Line Maintenance Fund will contribute
$316,500 and the Sewer Line Construction Fund will contribute
$316,500 towards the construction of New Pine Avenue, for a total of
$633,000.
E. The Agency and the City deem it desirable for the
Agency to borrow funds against the Agency's established Line of
Credit with Wells Fargo Bank, and to loan these certain monies to
the City in order to fund a portion of the costs of undertaking
those certain infrastructure improvements required for the
construction of New Pine Avenue.
NOW, THEREFORE, in connection of the foregoing and the
mutual covenants and conditions set forth herein, the parties hereto
agree as follows:
1. Agency Loan. The Agency hereby agrees to loan to the
City (the "Loan") certain monies, attributable to the Agency's
established Line of Credit with Wells Fargo Bank, to fund a portion
of the costs of certain infrastructure improvements necessary for
the construction of New Pine Avenue. The Loan shall be established
on the following terms:
a. The principal amount of the Loan to be repaid to the
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Loan Agreement - New Pine Avenue
Agency is $500,000, plus accrued interest.
b. The Loan proceeds will be used exclusively by the City
for the purpose of causing the undertaking of the infrastructure
improvements required for the construction of New Pine Avenue and to
pay any incidental costs attributable thereto. Funds received from
the Sewer Line Construction Fund and the Sewer Line Maintenance Fund
will be drawn and used before the Loan proceeds from the Agency.
The Loan proceeds will be drawn by the City based upon Developer
requests received and approved by the City.
c. The amortized principal amount of the Loan shall be
due, together with accrued interest thereon, thirty (30) days after
the collection of the annual levy or thirty (30) days after the sale
of each home. The City shall have the right to prepay all or part
of the Loan plus accrued interest without penalty.
d. Interest shall accrue at the rate of six (6) % per
annum from the date that funds representing Loan proceeds are
advanced to the City and will continue until the Loan is paid in
full.
2. Repayment. The City agrees to repay the Agency for
the Loan created pursuant to this Agreement. All funds received
through the annual levy or through the sale of each home shall be
paid to the Agency thirty (30) days after the collection of the levy
or the sale representing principal and accrued interest. The funds
received through the annual levy or from the sale of each home shall
be proportionately distributed to the Sewer Line Maintenance Fund,
the Sewer Line Construction Fund and the Agency according to the
original outstanding loan balances. The Agency's share shall be
equal to 44% of the collection of the annual levy or the sale of
each home. The maximum length for repayment of the loan will be 25
years from the formation of the assessment district. In the event
that the assessment district is not formed and the annual levy does
not occur, the City agrees that repayment of the outstanding
principal balance and interest will be subject to agreed upon terms.
3. Miscellaneous.
a. This Loan Agreement shall bind and inure to the
benefit of the successors and assigns of each of the parties hereto.
b. Each party agrees to perform any further acts and
execute and deliver any documents which may be necessary to carry
out the provisions or intent of this Loan Agreement.
c. This Loan Agreement may be amended at any time by the
written agreement of the parties hereto. No amendment or waiver of
the terms hereto shall be valid unless contained in writing and
executed by the parties to this Loan Agreement.
d. The parties hereby agree that this Loan Agreement has
been executed and delivered in the State of California and shall be
construed, enforced and governed by the laws thereof.
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0
Loan Agreement - New Pine Avenue
e. In the event that any provision in the Loan Agreement
shall be held invalid or unenforceable, such provision shall be
severable from, and such invalidity or unenforceability shall not be
�... construed to have any effect on, the remaining provisions of this
Loan Agreement.
f. This Loan Agreement contains the entire agreement
between the parties hereto pertaining to the subject matter hereof,
with the exception of the other agreements reference explicitly or
implicitly herein. The Loan Agreement supersedes all prior and
contemporaneous agreements and understandings of the parties with
respect to the matters resolved herein, and there are no warranties,
representations or other agreements between the parties in
connection with the subject matter hereof, except as set forth or
referred to herein.
IN WITNESS WHEREOF, the parties have signed this Loan
Agreement as of the date first above written.
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
By:
Development Director
Attest:
Now,
By: Secretary
APPROVED AS TO
FORM AND CONTENT:
By: Agency Counsel
CITY OF SAN BERNARDINO
By:
Attest;
By: City Clerk
APPROVED AS TO
FORM AND CONTENT:
By: City Attorney
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