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Home My WebLink About1998-06-23 - AGENDA REPORTS - REDEVELOPMENT AGENCY BUDGET (2)CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS City Manager Approval: Item to be presented by Paul Zaengle DATE: June 23, 1998 SUBJECT: REDEVELOPMENT AGENCY BUDGET ADOPTION RESOLUTION RDA 98-2 ACCEPTING A LOAN FROM THE CITY RESOLUTION RDA 98-3 ADOPTING THE ANNUAL BUDGET DEPARTMENT: Redevelopment Agency RECOMMENDED ACTION The Redevelopment Agency Board Adopt Resolution RDA 98-2 accepting the loan fi-om the City, and Adopt Resolution RDA 98-3 authorizing the 1998/99 Redevelopment Agency Budget. BACKGROUND The proposed Redevelopment Agency budget for the upcoming fiscal year totals $196,740. The proposed budget includes programming funds for the following: a marketing study which will identify businesses that will work in the target area, the fagade incentive program, a special event scheduled for late September, and other revitalization programs. The budget also represents funding for 20% of the Assistant City Manager's salary, 100% of an Economic Development Associate's salary, and 50% of a Secretary's salary. Also included in the budget are costs associated with the Redevelopment Committee, as well as necessary consultant services and funding for legal counsel. Given that the tax increment is not yet sufficient to fund the Redevelopment Agency, it is proposed that a loan for $750,000 from the City be utilized to fund the Agency. Specifically, $500,000 will be used to fund the Agency's operations over the next three years, and $250,000 will be to fund theater arts efforts within the project area. As specified in the previously adopted Resolution RDA 98-1: • The interest rate on the loan will be the prime rate minus one percent, • Loan payments will begin in the year 2002, and • 25% of the tax increment received each year will be used to pay off the loan. More'details on the loan may be found in the attached Resolution RDA 98-2, and the Promissory Note, which is marked Exhibit A. ATTACHMENT RDA 98-2 Accepting a loan from the City and authorizing the execution of a promissory note RDA 98-3 Adopting the Annual Budget for the Redevelopment Agency pa: budget \ cc623rda. doc Adopted: Agenda Item: A RESOLUTION OF THE CITY OF SANTA CLARITA REDEVELOPMENT AGENCY ACCEPTING THE OFFER OF A LOAN BY THE CITY OF SANTA CLARITA AND AUTHORIZING THE EXECUTION OF A PROMISSORY NOTE The Board of the Santa Clarita Redevelopment Agency does resolve as follows: SECTION 1. The Agency does hereby accept. the offer of a loan in the amount of Seven Hundred Fifty Thousand Dollars ($750,000.00) by the City of Santa Clarita, which loan is authorized pursuant to the Community Redevelopment Law (Section 33000 et sea. of the Health and Safety Code). The Executive Director is hereby authorized and directed to execute a Promissory Note evidencing such loan, in substantially the form attached as Exhibit A to this Resolution incorporated herein by this reference, in favor of the City of Santa Clarita. SECTION 2. The Secretary shall certify to the passage and adoption of this Resolution, and it shall thereupon take effect and be in force. PASSED, APPROVED AND ADOPTED this - day of 19— Chairp&soii, Redevelopment Agency ATTEST: Secretary, Redevelopment Agency Chairp&soii, Redevelopment Agency ATTEST: Secretary, Redevelopment Agency STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, Secretary of the City of Santa Clarita Redevelopment Agency, do hereby certify that the foregoing Resolution was duly adopted by the Redevelopment Agency of the City of Santa Clarita at a regular meeting thereof, held on the day of , 19_ by the following vote of Council: AYES: NOES: ABSENT: Secretary, Redevelopment Agency EXHIBIT A PROMISSORY NOTE JUNE 23, 1998 The City of 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, in accordance with the term requirements established by City Council Resolution No. 98-34, to the City of Santa Clarita, a municipal corporation ("City"), at Santa Clarita, California, 91355, the sum of Seven Hundred Fifty Thousand Dollars ($750,000.00), together with interest per annum, at a rate equal to the prime rate minus one percent; prime rate as used herein shall mean the prime rate of interest quoted in the greater Los. Angeles area as of July ls` of each calendar year during the term thereof, by the Valencia National Bank, or its successor. Loan payments will begin in the year 2002, and twenty-five percent (25%) of the tax increment received each year by the Redevelopment Agency will be used to pay off the loan. 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 M Date: ATTEST: am pevbudgefax623pro.doc Executive Director Secretary RESOLUTION NO. RDA 98-3 A RESOLUTION OF THE CITY OF SANTA CLARITA REDEVELOPMENT AGENCY ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 1998-99 AND MAKING THE APPROPRIATIONS FOR THE AMOUNT BUDGETED WHEREAS, a proposed annual budget for the Santa Clarita Redevelopment Agency for the fiscal year commencing on July 1, 1998, and ending on June 30, 1999, was submitted to the Redevelopment Agency Board and is on file in the City Clerk's office, and WHEREAS, proceedings for adoption of said budget have been duly taken. NOW, THEREFORE, THE REDEVELOPMENT AGENCY BOARD OF THE CITY OF SANTA CLARITA DOES RESOLVE AS FOLLOWS: Section 1. The budget, incorporated herein by reference, is adopted by Resolution as the Annual Budget for the City of Santa Clarita Redevelopment Agency for the fiscal year commencing on July 1, 1998, and ending on June 30, 1999. Section 2. There is hereby appropriated to each account set forth in said budget, incorporated herein by reference, the sum shown for such account in the 1998-99 budget, and the Executive Director/City Manager is authorized and empowered to expend such sum for the purpose of such account but no expenditure by any office or department for any items within an account will exceed the amount budgeted without prior approval of the City Manager. PASSED, APPROVED AND ADOPTED this day of 19 Chairperson, Redevelopment Agency ATTEST: Secretary, Redevelopment Agency STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, Secretary of the City of Santa Clarita Redevelopment Agency, do hereby certify that the foregoing Resolution was duly adopted by the Redevelopment Agency of the City of Santa Clarita at a regular meeting thereof, held on the day of 19_ by the following vote of Council: AYES: NOES: ABSENT: Secretary, Redevelopment Agency GEAo.oh1ydv\.,dz989