City of Grand Terrace and Community Redevelopment Agency-2011-09 LOAN AGREEMENT
(CITY/CRA)
This Loan Agreement is hereby entered into by and between the City of Grand Terrace, a
municipal corporation, duly organized and existing under the laws of the State of California (the
"City") and the Community Redevelopment Agency of the City of Grand Terrace, a California
Redevelopment Agency(the"Agency"), as follows:
RECITALS
WHEREAS, the boundaries of the City and Agency are coterminous with the
consequence that the projects and expenditures of each entity respectively have a positive impact
on the other entity; and
WHEREAS, in furtherance of the mutual goals and objectives of the City and Agency,
the Agency has heretofore loaned to the City certain sums of money, which funds have been or
will be spent in funding operations, programs and projects of mutual benefit; and
WHEREAS, said loans, while a matter of public record through the budgeting process,
have heretofore not been memorialized in a formal loan agreement; and
WHEREAS, the Parties now desire to enter into a formal loan agreement setting forth
the Parties respective rights, duties and obligations.
NOW,THEREFORE,THE PARTIES DO HEREBY AGREE AS FOLLOWS:
1. The foregoing recitals are true and correct and incorporated herein as if set forth
in full.
2. The Parties acknowledge that the Agency has loaned to the City $3,388,091.00
(the "Loan").
3. Subject to the restrictions contained in paragraph 2 above, the City hereby agrees
to repay the Agency the amount of the Loan by making annual installment payments of
$147,308.30, beginning on July 1, 2012. The payment of said amount is contingent upon a
determination by the City Council that it has sufficient funds therefore, on an annual basis. The
Parties acknowledge that should such funds not be available in any fiscal year, the City shall
make a payment in the amount the City is able to pay as determined by the City Council. The
Loan shall be repaid in full on or before July 1, 2034. The Parties further agree that it is to the
Parties' mutual benefit that interest shall not accrue on any remaining Loan balance.
4. This Loan shall be subordinate to any and all obligations established under any
trust agreement, indenture of trust, bonds, loans or other indebtedness of the City incurred prior
or subsequent to the date of this Loan Agreement. This Loan Agreement shall also be
subordinate to any obligation to provide mandated City services as determined by the City
Council.
1
IN WITNESS WHEREOF, the City and Agency have executed this Loan Agreement as
set forth below.
Dated: ZI—/Z "CITY"
CITY OF GRAND TERRACE
By: ,g :
Walt Sta ewitz, Mayor
Dated: % _l - "AGENCY"
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF GRAND
TERRACE
By: %� o.
Walt Stanckiewitz, Chairman
Approved as to Form:
By:
John R. Harpe , ity Attorney
and Agency Counsel