HomeMy WebLinkAbout1998-03-24 - AGENDA REPORTS - RESO RDA 98 1 PAYBACK METHOD (2)AGENDA REPORT
Executive Director
Item to be presente
CONSENT CALENDAR
DATE: March 24,199Y
SUBJECT: RESOLUTION NO. RDA 98-1- REDEVELOPMENT AGENCY FORMALLY
ADOPTING THE PAYBACK METHOD FOR.THE LOAN FROM THE CITY
TO THE SANTA CLARITA REDEVELOPMENT AGENCY
DEPARTMENT: Santa Clarita Redevelopment Agency
Adopt Resolution No. RDA 98-1, formally adopting the payback method and interest rate for the
loan from the City to the Santa Clarita Redevelopment Agency.
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At its meeting of December 9, 1997, the City Council approved the payback method for the loan
from the City to the Agency. The Council directed staff to prepare the formal resolutions and
return to Council/Agency for adoption.
Since 1994, the City has loaned the Agency $2,000,000 for costs associated with the creation of
a project area. The payback method includes an interest rate of the prime rate minus one
percent retroactive back to 1994. Loan payments will begin in the year 2002, with 25% of the
increment received each year used to payoff the loan.
A similar agenda report and resolution has been prepared for Council consideration.
FISCAL IMPACT
Payback of loan to General Fund.
ATTACHMENTS
Resolution No. RDA 98-1
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RESOLUTION NO. RDA 98-1
A RESOLUTION OF THE CITY OF SANTA CLARITA
REDEVELOPMENT AGENCY APPROVING THE PAYBACK METHOD
FOR THE LOAN FROM THE CITY TO THE SANTA CLARITA
REDEVELOPMENT AGENCY
WHEREAS, the Redevelopment Agency of the City of Santa Clarita (the "Agency") is
a redevelopment agency and public body, corporate and politic, duly created, established and
authorized to transact business and exercise its powers, all under and pursuant to
Community Redevelopment Law and the powers of the Agency include the power to borrow
money from the City of Santa Clarita, California (the "City"), and to issue notes and other
instruments necessary or convenient to the exercise of such power; and
WHEREAS, the Agency borrowed a total of $2,000,000 from the City in three
separate installments to cover costs associated with the creation of a project area. The
promissory notes approved in conjunction with each loan provided that the interest rate
shallbethe prime rate plus one percent.
WHEREAS, the Agency and the City have the legal authority to amend or renegotiate
provisions of the loans, including the promissory notes issued in conjunction with said loans.
WHEREAS, a redevelopment plan for a redevelopment project known the Newhall
Redevelopment Project (the "Project") has been adopted and approved by Ordinance No. 97-
12 of the City adopted on July 8, 1997 (the "Plan") and all requirements of law for and
precedent to adoption and approval of the Plan have been complied with; and
WHEREAS, the Newhall Redevelopment Committee reviewed and recommended
approval of a loan payback method that provides as follows: l) a reduction in interest rate
from the prime rate plus one percent to the prime rate minus one percent retroactive to
1994, 2) loan payments will begin in the year 2002 and 3) 25% of the tax increment received
each year beginning in the year 2002 will be used to payoff the loan.
WHEREAS, the Redevelopment Agency/City Council at its meeting of December 9,
1997, adopted the Redevelopment Committee's recommended payback method directing staff
to prepare the formal resolutions for consideration.
NOW, THEREFORE, be it resolved by the Santa ClaritaRedevelopmentAgency as
follows:
Section 1. The Agency approves the reduction in interest rate from the prime plus
one percent to the prime rate minus one percent retroactive to 1994, which amends the
interest rate included in the promissory notes for the following resolutions: Resolution No.
RDA 94-4, RDA 95-5, and RDA 96-2.
Section 2. The Agency agrees to initiate payments on the loan beginning in the year
2002.
Section 3 The Agency agrees to use 25% of the tax increment received each year,
beginning in the year 2002, to make payments on the loan (ceasing upon payoff of the loan).
Section 4. 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
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:
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NOES:
ABSENT:
Secretary, Redevelopment Agency
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