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HomeMy WebLinkAbout1998-06-23 - RESOLUTIONS - APPROVE RDA LOAN (2)RESOLUTION NO. 98-94 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING A LOAN TO THE SANTA CLARITA REDEVELOPMENT AGENCY The City Council of the City of Santa Clarita hereby resolves as follows: SECTION 1. The City Council does hereby approve the offer of a loan in the amount of Seven Hundred Fifty Thousand Dollars ($750,000.00) to the Santa Clarita Redevelopment Agency, which loan is authorized pursuant to the Community Redevelopment Law (Section 33000 et sea. of the Health and Safety Code). The City Manager 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 23 day of June ATTE City Clerk 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 23' day of June, 1998, by the following vote of the Council: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS pez:budget \ccresrda.doc Weste, Rlajic, Darcy, Ferry, Beldt None None Sharon Dawson, City Clerk 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 1" 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 By: Executive Director Date: ATTEST: By: Secretary Date: pez:budgeAcc623pro.doc