HomeMy WebLinkAbout1998-03-24 - RESOLUTIONS - PAYBACK METHOD FOR SCRDA LOAN (2)RESOLUTION NO. 98-34
A RESOLUTION OF THE CITY OF SANTA CLARITA
CITY COUNCIL APPROVING THE PAYBACK METHOD
FOR THE LOAN FROM THE CITY TO THE SANTA CLARITA
REDEVELOPMENT AGENCY
WHEREAS, the City of Santa Clarita (the "City") loaned the Santa Clarita
Redevelopment Agency (the "Agency") a total of $2,000,000 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 shall be the 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: 1) 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 City Council of the City of Santa Clarita as
follows:
Section 1. The City Council 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 City Council agrees to allow the Agency to initiate payments on the
loan beginning in the year 2002.
Section 3. The City Council agrees to allow the Agency to use 25% of the tax
increment received each year, beginning in the year 2002, to make payments on the loan
o (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 24th day of March
19 98
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do 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 24 t:r day of
March , 19 9 g_ by the following vote of Council:
AYES: COUNCILMEMBERS: Darcy, Smyth, Boyer, Kl.ajic, Heidt
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
CITY CLERK
GEA:
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