HomeMy WebLinkAbout1996-07-09 - AGENDA REPORTS - REDEVELOPMENT AGENCY (2)AGENDA REPORT
City Manager Approval
Item to be presented by:
George Caravalho
UNFINISHED BUSINESS
DATE: July 9, 1996
SUBJECT: REVIEW OF REDEVELOPMENT AGENCY BUDGET AND LOAN TO
THE REDEVELOPMENT AGENCY
RESOLUTION NO. 96-101
DEPARTMENT: City Manager
At their meeting of June 11, 1996, the City Council of the City of Santa Clarita gave conceptual
approval to the Downtown Newhall Improvement Program. A Redevelopment Agency was
identified as a component of the overall financing strategy. The Freedman Study identified
momentum as a critical component of a revitalization plan. Therefore, staff previously provided
a proposed budget to the Redevelopment Agency for consideration. This budget outlined
several of the key appropriations for initiation of the agency. The proposed budget provides
for the necessary funding to retain consultants to assist agency set up including conducting a
blight survey, ensuring compliance with AB 1290, conducting a public participation program,
and preparing financial information. In addition, monies for a nine member redevelopment
commission as well as all attorney costs, and approximately 30% of specific staff member's time,
was included.
Given that the tax increment or the revenue associated with the agency will not be available
for some period of time, it is necessary for the City to assist the Agency by providing a loan of
$500,000 from the General Fund. This loan will be paid back to the General Fund through the
tax increment when generated. Resolution 96-101 approves the form of the promissory note
developed by the City Attorney and approves the execution by the RDA as well as authorizing
establishment of a "credit line" of $500,000 by the General Fund to the RDA. This credit line
will be used to fund the startup and initial operating costs provided to the RDA during the
1996/97 fiscal year.
Adopt Resolution 96-101 authorizing a loan by the City of Santa Clarita to the Redevelopment
Agency in the amount of $500,000.
Adopted. -J--.. -qb Agoenda Itemsi
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Resolution 96-101
Redevelopment Agency Budget
Promissory Note
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RESOLUTION NO. 96-101
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA CLARITA AUTHORIZING A LOAN TO THE
SANTA CLARITA REDEVELOPMENT AGENCY
The City Council of the City of Santa Clarita does resolve as follows:
SECTION 1, The City is hereby authorized to make a loan to the Santa Clarita
Redevelopment Agency in the amount of Five Hundred Thousand Dollars ($500,000.00), which
loan is authorized pursuant to the Community Redevelopment Law (Section 33000 g.1 =. of the
Health and Safety Code.) The loan shall be evidenced by a Promissory Note in substantially the
form attached as Exhibit A to this Resolution and incorporated herein by this reference.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution and certify
this record to be a full, true, correct copy of the action taken.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Santa Clarita
at a regular meeting held on the day of '19—.
ATTEST:
CITY CLERK
MAYOR
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF SANTA CLARITA
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City
Council of the City of Santa Clarita at a regular meeting, thereof, held on the day of
, 19_, by the following vote of the Council:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
CITY CLERK
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RDA97.TMM
REDEVELOPMENT AGENCY BUDGET
PROPOSED 1996197
PERSONNEL
85-8700-101 Salaries 103,439
85-8700-130 Heath and Welfare 3,040
85-8700-135 Life Insurance 224
85-8700-150 Workers Comp 1,256
85-8700-155 PERS 46,789
85-8700-160 Deferred Comp 2,400
85-8700-165 Unemployment 200
TOTAL PERSONNEL 159,000
OPERATIONS AND MAINTENANCE
85-8700-201
85-8700-210
85-8700-211
85-8700-213 Adverfisinq 11
85-8700-260
TOTAL OPERATIONS AND MAINTENANCE 341,000
TOTAL REDEVELOPMENT AGENCY 500,000
Notes., Salaries include a portion of the Economic Development Manager and Assistant City Manager
salaries. Commission stipend included.
Contractual services for redevelopment consultant services
Attorney services based on estimates of prior usage
Other items include funding for operations of staff and travel and training of commission
Budget to be reviewed given progress at mid year.
Page i
$500,000.00
EXHIBIT'A
PROMISSORY NOTE
July 9, 1996
The Santa Clarita Redevelopment Agency, a redevelopment agency
("Agency"), for a good and valuable consideration, receipt of which is hereby
acknowledged, does hereby agree to pay on or before maturity, to the City of Santa
Clarita, a municipal corporation ("City"), at Santa Clarita, California 91355, the sum of Five
Hundred Thousand Dollars ($500,000.00), together with interest per annum thereon, at a
rate equal to the prime rate plus one (1) point; "prime rate" as used herein shall mean the
prime rate of interest quoted in the greater Los Angeles area as of July 1st of each
calendar year during the term thereof, by the Wells Fargo Bank, or its successor.
Principal and interest shall be payable in lawful monies of the United States.
Said principal and interest shall be paid at maturity; provided, at the option of the Agency,
the entire balance of principal and interest may be paid prior to said maturity date.
Should litigation be reasonably necessary to enforce the provisions of this
Note, the Agency shall pay, in addition to all other sums due on this note, an amount
equal to reasonable attorneys' fees as set by the court, plus court costs Incurred therein.
SANTA CLARITA REDEVELOPMENT AGENCY,
REDEVELOPMENT AGENCY
By
Executive Director
ATTEST:
By
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A,sslstzaYSecretary