2010-15 1
RESOLUTION NO. 2010- 15
A RESOLUTION OF THE CITY OF GRAND TERRACE, CALIFORNIA,
LOAN AGREEMENT WITH
COMMUNITY REDEVELOPMENT AGENCY
FOR FY 2010-11
WHEREAS,the City Council has considered a formal loan with the Community
Redevelopment Agency(Agency)through the budget process; and
WHEREAS,the City owes a cumulative amount of$4,606,950 to the
Community Redevelopment Agency through advances to the City, allocation of interest
due on advances and allocation of prior tax increment pass through to the City was not
allowed under the Health and Safety Code without the determination of benefit to the
project area as required under Section 33445; and
WHEREAS,the City has limited ability to repay and observes that repayment of
an amount more than the City is able to budget may be detrimental to the City, as well as
the Agency; and
WHEREAS,it is the intention of the City and the Agency that repayment be
based on a fourteen year amortization schedule; and
WHEREAS,the City is offering to transfer of property with an estimated market
value of$138,000 from the General Fund and the City General Fund will forgive an
unpaid balance of a loan amount due to the City in the amount of a $267,622 in
consideration towards the first payment and part of the second payment due; and
WHEREAS,the City is constitutionally precluded from committing repayment
from future revenues; and
NOW THEREFORE,the City Council of the City of Grand Terrace does hereby
resolve, declare, determine, and order as follows:
Section 1. Loan amount owed to Agency is $4,606,950.
Section 2. Payments due to the Agency shall be based on a 14 year amortization
schedule, subject to availability of City funds.
Section 3. Loan amount will accrue interest at the rate Local Agency Investment
Fund rate(LAIF).
Section 4. City will offer property or other considerations toward the repayment of
the loan amount.
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Section 5. A formal loan agreement and a budget appropriation will be done at future
date.
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PASSED, APPROVED, AND ADOPTED this 22nd day of June, 2010.
Attest:
City Clerk Mayor,
City of Grand Terrace City of Zand Terrace
Approved as to form;
City Attorney
Resolution 2010-15
I,BRENDA MESA, CITY CLERK of the City of Grand Terrace, do hereby certify that the
foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City
of Grand Terrace held on the 22"d day of June, 2010 by the following vote:
AYES: Councilmembers Cortes and Stanckiewitz; Mayor Pro Tern Garcia
and Mayor Ferre
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk
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