HomeMy WebLinkAbout2000-06-27 - AGENDA REPORTS - BUDGET ADOPT/ACCEPT LOAN (2)CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS City Manager Approval
Item to be presented by
DATE: June 27, 2000
SUBJECT: REDEVELOPMENT AGENCY BUDGET ADOPTION
RDA RESOLUTION ACCEPTING A LOAN FROM THE CITY
RDA RESOLUTION ADOPTING THE ANNUAL BUDGET
DEPARTMENT: Redevelopment Agency
RECOMMENDED ACTION
The Redevelopment Agency Board Adopt RDA Resolution accepting a loan in the amount of
$445,000 from the City, and Adopt RDA Resolution authorizing the 2000-2001 Redevelopment
Agency Budget.
BACKGROUND
The proposed Redevelopment Agency budget for the upcoming fiscal year totals $420,395. The
proposed budget includes programming funds for the following: the fagade incentive program
($130,000), funding for a downtown manager ($45,000), a capital improvement grant for the
Canyon Theatre Guild ($100,000), a special event scheduled for late September ($16,000), and
other revitalization programs. Also included in the budget are costs associated with the
Redevelopment Committee, as well as necessary consultant services and funding for legal counsel.
Fiscal Year 1999-2000 marks the first year the RDA is projected to receive tax increment, which
is estimated at $74,500. Additionally, the Agency is projected to receive $77,175 in tax increment
for Fiscal Year 2000-2001. Although the Agency is now receiving tax increment funding it is not
sufficient to fund the entire operation. Given that the tax increment is not yet sufficient to fund
total appropriations, it is proposed that a loan for $445,000 from the City be authorized to
supplement the Agency. The loan will provide the funding for the remaining portion of Fiscal Year
1999-2000, as well as partial funding for Fiscal Year 2000-2001. If Council approves the
authorization of the loan, it will bring the total amount loaned to date to $3,195,000.
The loan would authorized based on the terms and conditions specified in the previously adopted
RDA Resolution 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 RDA Resolution, and the Promissory Note,
which is marked Exhibit A.
ATTACHMENTS
RDA Resolution - Adopting the Annual Budget for the Redevelopment Agency
RDA Resolution - Accepting a loan from the City w
Promissory Note i n
Adopted: +Atl `MO Agenda Itellf, L
Exhibit A
PROMISSORY NOTE
June 27, 2000
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, 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 Four Hundred and Forty Five Thousand Dollars ($445,000.00), 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 CITA REDEVELOPMENT AGENCY
ATTEST:
By: �X
Secretary
Date: 40Z - 100