2010-04 1
RESOLUTION NO. 2010- 04
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF GRAND TERRACE, CALIFORNIA,AUTHORIZING A LOAN
TO THE CITY OF GRAND TERRACE
FOR FY 2010-11
WHEREAS,the Agency board has considered a loan to the City of Grand
Terrace general fund through the budget process; and
WHEREAS,the Agency is owed a cumulative amount of$4,606,950 by the City
of Grand Terrace through advances by the agency, 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, shall be treated as a loan to the City; and
WHEREAS,the Agency recognizes the City's limited ability to repay and
recognizes 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 Agency is further willing to accept a 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 Agency Board acknowledges that the City is constitutionally
precluded from committing repayment from future revenues; and
NOW THEREFORE,the Board of Directors of the Community Redevelopment
Agency of Grand Terrace does hereby resolve, declare, determine, and order as follows:
Section 1. Loan amount to the City 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. Agency will accept property or other considerations toward the repayment
of the loan amount.
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:
Secretary of the Grand Terrace Community Chairmanthe Grand Terrace
Redevelopment Agency Commun y Redevelopment Agency
Approved as to form;
l>Il��l I 1
Agency Coun el
Resolution CRA 2010-04
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 Community Redevelopment
Agency of the City of Grand Terrace held on the 22`d day of June, 2010 by the following vote:
AYES: Agency Members Cortes and Stanckiewitz;Vice-Chairman Garcia
and Chairman Ferre
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk