HomeMy WebLinkAbout09-Community Development
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crN dF SAN BERN~RD'IRo - REQUEOr FOR COUNCIL ACo,N
Dept:
Community Development
\S81 Y.A Y -II PI,: 3: ;)~:
Assumption by City of San Bernardino
Economic Development Council Small
Business Loan Program
From:
Kenneth J. Henderson, Directo'REC'D.-ADMIKJififGt:
Date:
May 4, 1987
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Synopsis of Previous Council action:
On November 3, 1986, the Mayor and Common Council approved in concept the transfer
to City of the San Bernardino Economic Development Council Small Business Loan Program.
On December 8,1986, the Mayor and Common Council adopted Resolution #86-487
approving the transfer of the San Bernardino Economic Development Council Small
Business Loan Program to City. The City Attorney was directed to prepare a contract
between San Bernardino Economic Development Council and City.
Recommended motion:
ADOPT RESOLUTION
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Contact parson:
Ken Henderson
Phone:
5065
Supporting date ettached:
Staff Report
Ward:
1-7
FUNDING REQUIREMENTS:
Amount:
NjA
Source:
( ACCT.
(ACCT.
NO.) N/A
DESCRIPTION)
N/A
Flnenca:
Council Notes:
AnanAs Ihu.... 11.1....
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CI~ OF SAN BERNARDIO>> - REQUEQ FOR COUNCIL ACUN
STAFF REPORT
On December 8, 1986, the Mayor and Common Council took
actions approving the transfer to City of the San Bernardino
Economic Development Council (SBEDC) small business revolving
loan fund and establishing the Community Development
Department Economic Development Program (small business loan
program). Attached to the resolution was a contract between
the City and SBEDC which set forth the various loans, leases
and lease/purchase agreements for which City was assuming
administrative control. After reviewing the contract, the
SBEDC chairman and executive director contacted the Senior
Assistant City Attorney regarding the descriptions and
correct business names of some of the agreements.
During the intervening period of time, a capitalization plan
for the City's small business loan program was approved by
the Mayor and Common Council, while City and SBEDC staff
resolved various issues relating to adequate security for
particular agreements and certain SBEDC liabilities. The
contract between City and SBEDC attached to the resolution
assigns and transfers to City all outstanding loans,
lease/purchase agreements, contracts of purchase and sale,
building, land and equipment leases, together with property
interests owned by SBEDC and made by SBEDC under its revolv-
ing loan fund program. San Bernardino Economic Development
Council shall further transfer the balance remaining in its
revolving loan fund in the approximate amount of $21,295.00.
City agrees to accept same.
Staff recommends adoption of the resolution authorizing and
directing the execution of a contract between City and SBEDC
relating to the transfer by SBEDC and assumption by City of
certain agreements entered into by SBEDC under its revolving
loan fund program.
Kenneth J. Henders n
Director of Community Development
KJH/lab/0266
5/ 4/ ~7
75-0264
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RESOLUTION NO.
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A CONTRACT WITH SAN BERNARDINO ECONOMIC DEVELOPMENT
COUNCIL RELATING TO THE ASSIGNMENT AND TRANSFER TO CITY OF
CERTAIN LOANS, ETC., RELATING TO THE REVOLVING LOAN FUND AND
ASSUMPTION OF CERTAIN LIABILITIES.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is hereby
authorized and directed to execute on behalf of said City a
contract with San Bernardino Economic Development Council
relating to the assignment and transfer to City of certain loans,
etc., relating to the revolving loan fund and assumption of
certain liabilities, a copy of which is attached hereto, marked
Exhibit "A" and incorporated herein by reference as fully as
though set forth at length.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held on
the
day of
, 1987, by the following vote,
to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
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4/30/87
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IN WITNESS WHEREOF, the parties have executed this agreement
effective the day and year first above written.
CITY OF SAN BERNARDINO
ATTEST:
By
Mayor
City Clerk
SAN BERNARDINO ECONOMIC
DEVELOPMENT COUNCIL
By
Approved as to form:
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City A torney
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CONTRACT BETWEEN THE CITY OF SAN BERNARDINO AND
THE SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL
THIS CONTRACT is made and entered into this
day of
, 1987, by and between the CITY OF SAN BERNARDINO,
a municipal corporation, hereinafter referred to as "City," and
the SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL, a California non-
profit corporation, hereinafter referred to as "SBEDC."
The parties hereto do hereby agree:
1. SBEDC hereby agrees to assign and transfer to City, all
of those outstanding loans, lease-purchase agreements, contracts
of purchase and sale, building, land and equipment leases,
together with the property interests therein owned by SBEDC,
heretofore made by SBEDC under its revolving loan fund, identified
as follows:
Pedro R. Ortiz, dba Buttercup Bakery, option House, Inc., D.
Gold Corp., Inc., dba Don's Drug Store, John Earl Haywood, Jr.,
dba Cajun's Seafood Market and Deli, Willie Clark, dba Foothill
Meridian Plaza, Heritage House Parking Lot, La Esparanza Market,
Julia's Enterprises, Inc., Leticia Joy Arciniega, dba Community
Financial Services, Progressive Mortgage Corporation, operation
Second Chance, Inc., and Willard Blakely, dba Mt. Vernon Hardware.
SBEDC shall transfer with the promissory notes and
lease/purchase agreements, and other such agreements referred to
in the first paragraph hereof, any and all security therefor, and
all records pertaining to said loans, and shall execute any
assignment documents, deeds, or bills of sale relating thereto
required or desired by City to effectively transfer all of SBEDC's
interests therein. In addition, SBEDC shall transfer to the City
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the balance remaining in its revolving loan fund, in the
approximate amount of $21,295.00-
2. City shall accept assignment and transfer of all such
loans and related accounts and transactions, and shall, through
its Community Development Department, administer a small business
revolving loan fund. City shall transfer into said small business
revolving loan fund all proceeds of those loans heretofore made by
SBEDC which are hereafter received by City. City shall deliver to
SBEDC a receipt for the documents provided by SBEDC.
3. City assumes and agrees to pay SBEDC's note to the United
States of America for funds received by SBEDC and loaned to La
Esperanza, upon SBEDC's delivery of a grant deed covering the real
estate and bill of sale affecting the personal property securing
La Esperanza's obligation to SBEDC.
4. City is not assuming SBEDC's $75,000 note to Pacific
Federal Savings and Loan Association.
5. City and SBEDC hereby agree that SBEDC will be relieved
of any further obligations to maintain a revolving loan fund in
accordance with earlier contractual arrangements between City and
SBEDC, upon delivery of the assignments provided for herein. All
documents shall be prepared by SBEDC's counsel, subject to
approval by the City Attorney.
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The foregoing resolution is hereby approved this ____-- day
of
, 1987.
Mayor of the City of San Bernardino
Approved as to form:
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CIty torney
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CONTRACT BETWEEN THE CITY OF SAN BERNARDINO AND
THE SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL
THIS CONTRACT is made and entered into this
day of
, 1987, by and between the CITY OF SAN BERNARDINO,
a municipal corporation, hereinafter referred to as "City," and
the SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL, a California non-
profit corporation, hereinafter referred to as "SBEDC."
The parties hereto do hereby agree:
1. SBEDC hereby agrees to assign and transfer to City, all
of those outstanding loans, lease-purchase agreements, contracts
of purchase and sale, building, land and equipment leases,
together with the property interests therein owned by SBEDC,
heretofore made by SBEDC under its revolving loan fund, identified
as follows:
Pedro R. Ortiz, dba Buttercup Bakery, Option House, Inc., D.
Gold Corp., Inc., dba Don's Drug Store, John Earl Haywood, Jr.,
dba Cajun's Seafood Market and Deli, willie Clark, dba Foothill
Meridian Plaza, Heritage House Parking Lot,\La Esparanza Marke~,
Julia's Enterprises, Inc., Leticia Joy Arciniega, dba Community
Financial Services, progressive Mortgage Corporation, operation
second Chance, Inc., and willard Blakely, dba Mt. Vernon Hardware.
SBEDC shall transfer with the promissory notes and
lease/purchase agreements, and other such agreements referred to
in the first paragraph hereof, any and all security therefor, and
all records pertaining to said loans, and shall execute any
assignment documents, deeds, or bills of sale relating thereto
required or desired by City to effectively transfer all of SBEDC's
interests therein. In addition, SBEDC shall transfer to the City
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the balance remaining in its revolving loan fund, in the
approximate amount of $21,295.00.
2. City shall accept assignment and transfer of all such
loans and related accounts and transactions, and shall, through
its Community Development Department, administer a small busines~
revolving loan fund. City shall transfer into said small business
revolving loan fund all proceeds of those loans heretofore made by
SBEDC which are hereafter received by City. City shall deliver to
SBEDC nts provided by SBEDC.
3.
pay SBEDC's n
Esperanza,
estate and
affecting the
La Esperanza's 0
tion to SBEDC.
City is not assuming SBEDC'S $75,000 note to pacifiC}
Savings and Loan Association.
City and SBEDC hereby agree that SBEDC will be relieved
4.
5.
of any further obligations to maintain a revolving loan fund in
accordance with earlier contractual arrangements between City and
SBEDC, upon delivery of the assignments provided for herein. All
documents shall be prepared by SBEDC's counsel, subject to
approval by the City Attorney.
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The foregoing resolution is hereby approved this ____ day
of
, 1987.
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Mayor of the City of San BernardinO-
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Approved as to form:
~i/p; /I;J'-.1~q
City httorney
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