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Home My WebLink AboutR13-Economic Development Agency DEVELOPMEBT DEPARTMEIfT OF TIlE CITY OF SAIl BERIWmIBO REQUEST FOR COMMISSIOB/CQUIICIL ACTIOIf From: KENNETH J. HENDERSON Executive Director Subject: REDEVELOPMENT AGENCY GUARAIn'EE OF SAlIBAG LOAR TO IVDA Date: May 12, 1992 Synonsis of Previous Commission/Council/Committee Action(s): None Recommended Motion(s): (Community Deve10Dment Commission) MOTION That the Community Development Commission authorize the Executive Director to execute a Loan Guarantee Agreement in the amount of $1.2 million between the Inland Valley Development Agency and the Redevelopment Agency of the City of San Bernardino. ~ ~~RSON Executive Direc or Administrator Contact Person(s): Ken Henderson/Jim Sharp Phone: 5081 Project Area(s): CCP-OSR, Waterman to Arrowhead Ward(s): 1.3.7 Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: $1.2 million Guarantee Budget Authority: Source: Bond Proceeds ReQuested Commission/Council Notes: KJH:SMM:1ag:0747E COMMISSION MEETING AGENDA Meeting Date: 5/18/1992 13 Agenda I tem Number: DEVELOPMERT DEPARTMEBT OF THE CITY OF SAR BERlWlDIRO STAFF REPORT Redevelonment hency Guarantee of SAlfBAG Loan to IVDA The Director of Public Works/City Engineer has requested on behalf of the Inland Valley Development Agency (IVDA) that the Redevelopment Agency agree to provide a written guarantee for a capital improvement loan in the amount of approximately $1.2 million. Said request is to facilitate the acquisition of monies from SANBAG for the preparation of engineering plans and specifications for major public improvements. The specifics of the transaction and request are as follows: 1) SANBAG shall loan to IVDA $1.2 million from East Valley FAU funds. 2) The loan is contingent upon a determination by SANBAG that there are sufficient East Valley funds available to loan. 3) The loan funds shall be used by IVDA for preparation of plans and specifications for major arterial streets as follows: Tippecanoe/Del Rosa Avenue Connector Orange Show Road - Tippecanoe to Waterman Orange Show Road - Waterman to Arrowhead 4) The loan and accrued interest shall be paid by IVDA from construction funds for the projects. 5) The term of the loan shall be five (5) years from the date of receipt of funds from SANBAG regardless of whether construction or funding has been completed. 6) It is the Director of Public Works' opinion that the loan is necessary to expedite the development of said plans and specifications. Said actions would greatly increase the IVDA's ability to secure financing or funding for the development of these projects. 7) That the Redevelopment Agency unconditionally guarantee the repayment of the loan, plus accrued interest, according to the terms and conditions of said loan agreement and promissory note. KJH:SMM:lag:0747E COMMISSION MEETING AGENDA Meeting Date: 5/18/1992 13 Agenda I tem Number: DEVELOPMEIT DEPAR1."MER'l STAFF REPORT Redevelopment Agency Guarantee of SABBAG Loan to IVDA May 12, 1992 Page Number -2- Pursuant to the request from the Director of Public Works/City Engineer and the attached draft agreement, staff recommends adoption of the form motion. KENNETH J. BElIDE ON, Executive Director Development Department KJH:SMM:lag:0747E COMMISSIOlf MEETING AGENDA Meeting Date: 5/18/1992 /g Agenda Item Number: C I T Y o F SAN B ERN A R DIN 0 INTEROFFICE MEMORANDUM TO: KEN HENDERSON, Executive Director Development Department FROM: ROGER G. HARDGRAVE, Director of Public Works/ City Engineer SUBJECT: Guarantee of Loan from SANBAG - Preliminary Engineering Costs DATE: May 7, 1992 COPIES: Mayor W. R. "Bob" Holcomb; Marshall Julian; File No. 1.845; Reading File The IVDA has requested a l6~J1:~rom SAN BAG in the amount of $1.2 Million. These funds are to be used to prepare plans and speci- fications for the extension of Orange Show Road, from Arrowhead Avenue to Tippecanoe Avenue, and the Tippecanoe/Del Rosa Connector, between Mill Street and Third Street. Our experience indicates that having a project "shelf ready" greatly enhances the prospect of receiving funds to finance the construction cost. SANBAG's Administrative Conunittee has considered this request for a '.loan at two meetings. They are willing to reconunend appr?val ,.~9._~Jl~ ,..~ANBAG. Boardit._.a~_ th~i~.~eeting._. on 6-13-92,' for $.!Q~O!Of ._~Dmn. (no federn.... reg~~?-ons) -':Federal:-~.id~@.{})al1 - ~nds: that are available. 'In order to secure the $41 0,000" balance, 'we would have to agree to defer some of our projects that have been approved by Caltrans and are waiting on funds to be released by the Federal Highway Administration.." I would prefer not to defer these projects, but to try and' identify an alternate funding source. One possibility 1S Proposition III Funds. We received about $700,000 in 1991/92 to ~ maintain the current Level of Service on our Congestion ~ Management Network. However, since this network has not been . adopted by SANBAG, none of these funds have been expended. i. Attached, for your refere~~~.draft7~."" '~~M' fO~_.,..~he lc:>an to the IVDA. Please note .... ..' .. ~.Q~~II,."...~~>l.:':: Jl~:c.'~-$~. Wh1Ch provides the City of San ne ral"fio"s "-'ked~er pm~"A~n\y will guarantee the loan. \~ 13 UN HENDERSON IVDA Loan from wANBAG May 7, 1992 Page - 2 - The Mayor has requested that an item be on the Community Development Commission's agenda for 5-18-92, relative to this guarantee. It will be necessary for final action on this guarantee to be taken prior to the SANBAG Board meeting of 6-10- 92. Your cooperation in this matter is appreciated. Please advise if yo ve any question r ould like more information. HARDGRAVE of Public Works/City Engineer RGH:rs Attach. /:j . . AGREEMENT FOR LOAN OF FUNDS TO u- ~ND V ALLEY DEVELOPMENT ' '....ENCY ..,.,.~. a THIS AGREEMENT, entered into this _ day of May 1992 is by and between San Bernardino Associated Governments, hereinafter referred to "SANBAG,. Inland Valley Development Agency t hereinafter referred to "IVDA," and the Redevelopment Agency of the City of San Bernardino, hereinafter referred to as "REDEVELOPMENf AGENCY." Recitals WHEREAS, IVDA has requested SANBAG to loan it $1.2 million from East Valley FAU funds; and WHEREAS, SANBAG is willing to loan such funds under the terms and conditions set forth in this agreement; and WHEREAS, REDEVELOPMENT AGENCY is willing to unconditionally guarantee the repayment of the loan and interest thereon in the event IVDA does not do so according to the terms of this agreement and the promissory note signed by IVDA. NOW, TIlEREFORE, in consideration of the terms, conditions and provisions set forth herein, the parties hereto agree as follows: I. Loan Provisions: A. SANBAG shall loan to IVDA $1.2 million from East Valley FAU funds. Such funds shall be forwarded to IVDA within thirty (30) days after approval of this agreement by all parties hereto and execution by authorized representatives of the parties. The time for forwarding the loan proceeds may be delayed to a later date if such is determined to be appropriate by IVDA for meeting its project funding needs. B. This loan is contingent upon a determination by SANBAG that there are sufficient available East Valley FAU funds to allow for the loan to be made. c. The~loan funds shall be used by IVDA for preparation of plans and specifications for major arterial streets as follows: Tippecanoe/Del Rosa Avenue Connector Orange Show Road - Tippecanoe to Waterman Orange Show Road - Waterman to Arrowhead D. IVDA shall pay interest on the loaned funds from the date the loaned funds are provided to it until such funds are repaid. The interest rate SANBAG could otherwise earn on such funds during the entire period the loan is outstanding shall be paid by IVDA to SANBAG. Such interest rate shall be as determined by SANBAG's Director of Finance and Administration. Page 1 dlallVDA 6453/4-92 J3 . . E. The loan and accrued interest due shall be paid by IVDA to SANBAG from constnlctio .'Jnds for the projects identified in pa' ~ph C above except that in any event, the luan principal and accrued interest shall De repaid by IVDA to SANBAG within five (5) years of the date of receipt of funds from SANBAG regardless of whether construction funds become available for repayment within such five (5) year period. I , F. IVDA shall approve and execute the promissory note attached hereto as Exhibit A at the same time this agreement is approved and executed by IVDA. Said note is incorporated into this agreement by reference. II. wan Guarantee: A. REDEVELOPMENT AGENCY agrees to unconditionally and fully guarantee the repayment of the loan and accrued interest owed by IVDA to SANBAG under this agreement and Exhibit A in the event IVDA does not pay as agreed to herein or is unable to pay. REDEVELOPMENT AGENCY promises and agrees that it will pay in full any principal and accrued interest which is due and unpaid by IVDA under this agreement within thirty (30) days of a written demand for payment being made by SANBAG to REDEVELOPMENT AGENCY. ill. General Provisions: A. IVDA agrees to indemnify, defend and hold harmless SANBAG, its agents, officers and employees from and against any and all liability , expenses, including defense costs and legal fees, and claims for damages of any nature whatsoever, including but not limited to, bodily injury, death, personal injury or property damages, arising from or connected with IVDA's projects and activities funded by the loan under this agreemenL B. No party hereto shall assign or delegate any of its rights, duties or obligations under this agreement without the prior written consent of the other parties. c. This agreement shall remain in effect until the loan, plus accrued interest, is repaid in full. . D. In the event suit is instituted to collect under this agreement, SANBAG shall be entitled to costs and attorneys fees involved in collection from IVDA under the agreement and for any action to collect under the guarantee of REDEVELOPMENT AGENCY. IN WITNF.SS THEREOF, the parties hereto have caused this agreement to be executed by their respective officials thereunto duly authorized. Page 2 dullVDA 6453/4-92 /3 r - ... . ' r · SANBAG INLAND V ALLEY DEVELOPMENT AGENCY By: By: LARRY RHINEHART, President TITLE: Date: Date: APPROVED AS TO FORM APPROVED AS TO FORM By: ~: RONALD D. REITZ, SANBAG Counsel IVDA Counsel Date: Date: REDEVEWPMENT AGENCY OF THE APPROVED AS TO FORM CITY OF SAN BERNARDINO By: By: TI'ILE: Redevelopment Agency Counsel Da~: Date: Page 3 dsalIVDA 6453/4-92 /3