HomeMy WebLinkAbout1984-442 Authorizing Loan of CDBG funds to Economic Development Council for Rehab of La Esperanza1
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RESOLUTION NO. 84-442
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING LOAN OF $26,000.00
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO ECONOMIC DEVELOPMENT COUNCIL FOR
REHABILITATION OF LA ESPERANZA.
BE IT* RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AS FOLLOWS:
SECTION 1. The Executive Director of the Redevelopment Agency of the
City of San Bernardino (hereinafter "Agency") is hereby authorized and
directed to loan to the Economic Development Council of the City of San
Bernardino the sum of $26,000.00, for the purpose of enabling the Economic
Development Council of the City of San Bernardino to make a $26,000.00 secured
loan for working capital to the developers of the La Esperanza located on 5th
Street near Mt. Vernon Avenue, in the City of San Bernardino. Such loan shall
be made to the Economic Development Council with the proviso that the Economic
Development Council shall enter into an agreement to in turn lend that amount,
or more, as a working capital loan to the developers of the La Esperanza,
secured by a third deed of trust, payable at the rate necessary to amortize
the loan over a term of twenty (20) years, but due and payable at the end of
fifteen (15) years. The third deed of trust shall contain convenants against
additional encumbrances except with approval of both the Economic Development
Council and the Agency. The Executive Director is authorized to make
arrangements with the Economic Development Council for Economic Development
Council staff to prepare all appropriate loan documents and to secure ar
appropriate five-year business plan from the developer, and to work wits
Agency staff to facilitate, to the extent reasonable, the speedy processing of
the loan application. The Economic Development Council shall thereafter
oversee the accomplishment of the purposes of this loan. Amon
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other things, the Executive Director shall work with the Economic Development
Council of the City of San Bernardino to assure that the funds loaned
hereunder shall be used for appropriate Community Development Block Grant Fund
purposes only, and that no unauthorized use of such funds be permitted. The
loan to the Economic Development Council shall bear no interest, but shall be
evidenced by a promissory note in form approved by the City Attorney.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at
an adjourned regular meeting thereof, held on the 2nd day
of November , 1984, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Councilmen Reilly, Hernandez, marks,
Quiel, Strickler
None
Council 1Iembers Castaneda, Frazier
Am
City Clerk
The foregoing resolution is hereby approve this day
of November 1984.
W�of t :e City of
San Bernardino
Approved as to form:
Assistant City AttO Wey
355L
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