HomeMy WebLinkAbout2015-02-24 - AGENDA REPORTS - RDA REPAYMENT LOANS (2)0
Agenda Item: 4
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: February 24, 2015
SUBJECT: AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND
THE SUCCESSOR AGENCY TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA
AUTHORIZING THE REPAYMENT OF LOANS MADE FROM THE
CITY TO THE REDEVELOPMENT AGENCY
DEPARTMENT: Community Development
PRESENTER: Jason Crawford
RECOMMENDED ACTION
1. City Council adopt a resolution approving an "Agreement Regarding Reinstatement of
Loan," and direct the City Manager to execute the agreement; and
2. Successor Agency Board adopt a resolution approving an "Agreement Regarding
Reinstatement of Loan," direct staff to bring this action to the Oversight Board for their
approval, and upon concurrence from the Oversight Board and the Department of
Finance, direct staff to execute the agreement.
BACKGROUND
Throughout the course of the existence of the Redevelopment Agency, the City has loaned funds
to the Redevelopment Agency for administrative purposes and to fund redevelopment projects
undertaken by the Agency, such as streetscape design and construction, the preparation of the
Old Town Newhall Specific Plan, the preparation of the North Newhall Specific Plan, and
property acquisition.
When the Redevelopment Agency was dissolved in February 2012, the legislation that caused for
the dissolution of Redevelopment Agencies throughout the state (AB X 1 26) made it so that all
loans made by cities to former Redevelopment Agencies were no longer eligible for repayment.
In June 2012, the dissolution law substantially changed with the passage of AB 1484. AB 1484
provided a mechanism by which these loans could be repaid as long as the Successor Agency to
the former Redevelopment Agency (Successor Agency) took a number of administrative steps to
obtain a Finding of Completion. The Successor Agency received its Finding of Completion on
June 20, 2013.
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In addition to obtaining a Finding of Completion, AB 1484 outlined the following repayment
criteria:
• Interest rates have to be recalculated from origination at the interest rate earned by funds
deposited into the Local Agency Investment Fund (LAIF);
• Loans have to be repaid in accordance with a defined schedule over a reasonable tern of
years at an interest rate not to exceed the interest rate earned by funds deposited into
LAIF;
• The annual amount of repayments are subject to specified limitations outlined in a
complex formula; and
• Twenty percent of repaid amounts have to be deposited into the City Housing Successor
Agency's housing fund.
To date, there are a total of 15 loans between the City and the former Redevelopment Agency, of
which 14 remain outstanding. Using the interest rate required by AB 1484, the total amount due
to the City is $13,402,810. A breakdown of each of those loans is shown in the attached table
entitled "Loan Summary." Following the complex formula to determine annual repayment
amounts, the Successor Agency may pay $357,387 in fiscal year 2015-16, of which $285,910
would be used to reimburse the General Fund and Developer Fee Fund that made the loans
originally, and $71,477 is legislatively mandated to be deposited in to the City's Housing
Successor Agency fund to be utilized to further affordable housing efforts in the City.
The amount anticipated to be available in future fiscal years to repay the loan will vary, as it is
subject to the repayment formula outlined in the law. This takes into account whether former tax
increment amounts increase or decrease, enforceable obligations are reduced or eliminated, and
also any legislative changes that may occur. The proposed loan reinstatement agreement takes
these unknowns into account and allows for accelerated repayments to be made consistent with
the law in effect at the time.
Additionally, the anticipated payoff year also varies. The year 2043 is the year the
redevelopment plan states that no further tax may be collected to pay debts, including any
balance on these loans. If that sunset were to apply, given the formulas that dictate how much
the Successor Agency can pay the City back per fiscal year as outlined above, the City could
potentially not be fully repaid using the current legislative framework that dictates repayment.
The Department of Finance has previously made statements indicating that such sunset would
not apply to obligations reinstated after issuance of a Finding of Completion. However, recently
proposed "clean up" legislation indicates that only repayment of bonded indebtedness would
be exempt from the sunset.
Upon approval by the City Council and the Successor Agency Board, the Successor Agency
must present this item to the Oversight Board. An Oversight Board meeting is scheduled for
February 25, 2015, to consider this item. The Oversight Board must find that these loans were
originally made for legitimate redevelopment purposes and approve the repayment agreement.
After the Oversight Board has approved, the agreement must be provided to the Department of
Finance, who has the ultimate approval authority. This will then allow the Successor Agency to
list these loans as enforceable obligations on the six-month Recognized Obligation Payment
Schedules (BOPS) and receive future allocations from the County Auditor -Controller's
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Redevelopment Property Tax Trust Fund (which was formally redevelopment tax increment) so
that these loans can be repaid.
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL IMPACT
This action by the City Council and the Successor Agency Board will provide repayment to the
City in the amount of $357,387 in Fiscal Year 2015-16, of which $285,910 would be used to
reimburse the General Fund and Developer Fee Fund that made the loans originally, and $71,477
would be required to be deposited in to the City's Housing Successor Agency fund to be utilized
to further affordable housing efforts in the City. Repayment is anticipated to begin in Fiscal
Year 2015-16.
ATTACHMENTS
Resolution - City Council
Resolution - Successor Agency
Agreement Regarding Reinstatement of Loans
Loan Summary
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RESOLUTION 15-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA APPROVING AN AGREEMENT
REGARDING REINSTATEMENT OF CITY LOANS MADE TO
THE FORMER REDEVELOPMENT AGENCY
WHEREAS, pursuant to authority granted under Community Redevelopment Law
(California Health and Safety Code Section 33000 et seq.) ("CRL"), the former Redevelopment N
Agency of the City of Santa Clarita ("Redevelopment Agency") had responsibility to implement
the Redevelopment Plans for the Newhall Redevelopment Project Area ("Project Area"); and
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WHEREAS, the City of Santa Clarita ("City") agreed to serve as the successor agency to
the Redevelopment Agency ("Successor Agency") commencing upon dissolution of the v
Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill X1 26; and
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WHEREAS, pursuant to Health and Safety Code Section 33220, the City was authorized d
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to assist the Redevelopment Agency for the purpose of aiding and cooperating in the planning, a
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undertaking, construction, and operation of redevelopment projects located within the
jurisdiction of the City, upon the terms and with or without consideration as the City determined;
and
WHEREAS, pursuant to Health and Safety Code Section 33445, the Redevelopment
Agency was authorized to enter into agreements with the City pursuant to which the
Redevelopment Agency would agree to reimburse the City for funds provided by the City for the —
cost of installation and construction of public improvements, structures and facilities located
within or outside the Project Areas; and 0
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WHEREAS, pursuant to Health and Safety Code Sections 33132 and 33601, the
Redevelopment Agency was authorized to borrow money and accept financial assistance from e
the City for redevelopment projects located within the Redevelopment Agency's jurisdiction; and .2
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WHEREAS, consistent with the foregoing authority, the City made the following loans
(collectively, the "Loans") to the Redevelopment Agency:
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(a) a loan in the original principal amount of $500,000, in accordance with the
terms set forth in City Council Resolution No. 96-101 and Redevelopment S
Agency Resolution No. 96-2, each dated July 9, 1996 for the purpose of a
advancing funds to assist in the redevelopment of the Project Area, including
the funding operating costs for the Redevelopment Agency (Loan A); and
(b) a loan in the original principal amount of $750,000, in accordance with the
terms set forth in City Council Resolution No. 98-94 and Redevelopment
Agency Resolution No. 98-2, each dated June 23, 1998, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency (Loan B); and
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(c) a loan in the original principal amount of $445,000, in accordance with the
terns set forth in City Council Resolution No. 00-95 and Redevelopment
Agency Resolution No. 00-1, each dated June 27, 2000, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency (Loan C); and
(d) a loan in the original principal amount of $50,000, in accordance with the
terms set forth in City Council Resolution No. 03-48 and Redevelopment
Agency Resolution No. 03-1, each dated April 8, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape along San Fernando Road (Loan D); and
(e) a loan in the original principal amount of $160,000, in accordance with the
terms set forth in City Council Resolution No. 03-85 and Redevelopment
Agency Resolution No. 03-3, each dated June 24, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape design (Loan E); and
(f) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan (Loan F); and
(g) a loan in the original principal amount of $335,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan (Loan G); and
(h) a loan in the original principal amount of $845,000, in accordance with the
terms set forth in City Council Resolution No. 05-13 and Redevelopment
Agency Resolution No. 05-1, each dated January 25, 2005, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24513 San Fernando Road (Loan H);
and
(i) a loan in the original principal amount of $770,000, in accordance with the
terms set forth in City Council Resolution No. 06-4 and Redevelopment
Agency Resolution No. 06-2, each dated January 10, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24158 San Fernando Road (Loan I); and
(j) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 06-3 and Redevelopment
Agency Resolution No. 06-1, each dated January 10, 2006, for the purpose of
Packet Pg. 27
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advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan (Loan ,n; and
(k) a loan in the original principal amount of $439,400, in accordance with the
terms set forth in City Council Resolution No. 0640 and Redevelopment
Agency Resolution No. 06-3, each dated May 9, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding the North Newhall Specific Plan and Environmental Impact
Report (Loan K); and
(1) a loan in the original principal amount of $5,000,000, in accordance with the
terms set forth in City Council Resolution No. 06-71 and Redevelopment
Agency Resolution No. 06-5, each dated June 27, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape and striping projects (Loan L); and
(m)a loan in the original principal amount of $2,550,000, in accordance with the
terms set forth in City Council Resolution No. 09-105 and Redevelopment
Agency Resolution No. 9-15, each dated December 8, 2009, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase II of the streetscape project (Loan M); and
(n) a loan in the original principal amount of $2,309,886, in accordance with the
terms set forth in City Council Resolution No. 10-42 and Redevelopment
Agency Resolution No. 10-5, each dated June 22, 2010, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase II of the streetscape project (Loan N); and
WHEREAS, pursuant to Health and Safety Code Section 34191.4(b), once a successor
agency has received a Finding of Completion pursuant to Health and Safety Code Section
34179.7, loan agreements entered into between the redevelopment agency and the entity that
created the redevelopment agency ("Sponsoring Jurisdiction Loans") shall be deemed to be
enforceable obligations provided that the successor agency's oversight board makes a finding
that the Sponsoring Jurisdiction Loans were for legitimate redevelopment purposes; and
WHEREAS, the Successor Agency received a Finding of Completion on June 20,2013;
and
WHEREAS, on February 25, 2015, the Successor Agency's Oversight Board ("Oversight
Board') will consider Resolution No. 2015-01 pursuant to which the Oversight Board will be
asked to adopt findings determining that the Loans were made for legitimate redevelopment
purposes as authorized by and consistent with the CRL, and to approve repayment of the Loans
in accordance with the Agreement (defined below), which findings are necessary for final
approval of the Agreement; and
WHEREAS, Health and Safety Code Section 34191.4(b)(2) provides that: (i) the
accumulated interest on Sponsoring Jurisdiction Loans shall be recalculated from origination at
Packet Pg. 28
the interest rate earned by funds deposited into the Local Agency Investment Fund ("LAIF"), (ii)
Sponsoring Jurisdiction Loans shall be repaid to the sponsoring jurisdiction in accordance with a
defined schedule over a reasonable tern of years at an interest rate not to exceed the interest rate
earned by funds deposited into LAIF, and (iii) the annual amount of repayments on Sponsoring
Jurisdiction Loans provided for in the Recognized Obligation Payment Schedule C"ROPS") is
subject to specified limitations; and
WHEREAS, Successor Agency staff have prepared an Agreement Regarding
Reinstatement of Loans (the "Agreement") which provides for repayment of the Loans in
accordance with the requirements of Health and Safety Code Section 34191.4(b) and commits w
the City to use the Loan repayment proceeds in accordance with Health and Safety Code Section
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34191.4(b).
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NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as
follows:
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SECTION 1. The City Council hereby finds that the facts set forth in the recitals to this d
Resolution are true and correct, and establish the factual basis for the City Council's adoption of
this Resolution. o
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SECTION 2. The Agreement is approved, and the City Manager or his designee is v
authorized to execute the Agreement on behalf of the City substantially in the form presented co
with the staff report accompanying this Resolution.
SECTION 3. The City Manager and his designees are authorized to take such further
actions as may be necessary to carry out the intent of this Resolution.
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SECTION 4. The City Clerk shall certify to the adoption of the Resolution. T
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PASSED, APPROVED, AND ADOPTED this 24a' day of February 2015.
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MAYOR
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ATTEST: a
CITY CLERK
DATE:
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Kevin Tonoian, 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`h day of February 2015, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
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RESOLUTION SA 15-
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE
FORMER REDEVELOPMENT AGENCY OF THE CITY OF
SANTA CLARITA APPROVING AN AGREEMENT
REGARDING REINSTATEMENT OF CITY LOANS MADE TO
THE FORMER REDEVELOPMENT AGENCY
WHEREAS, pursuant to authority granted under Community Redevelopment Law
(California Health and Safety Code Section 33000 et seq.) ("CRL'), the former Redevelopment
Agency of the City of Santa Clarita ("Redevelopment Agency") had responsibility to implement
the Redevelopment Plans for the Newhall Redevelopment Project Area ("Project Area"); and
WHEREAS, the City of Santa Clarita ("City") agreed to serve as the successor agency to
the Redevelopment Agency ("Successor Agency") commencing upon dissolution of the
Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill X1 26; and
WHEREAS, pursuant to Health and Safety Code Section 33220, the City was authorized
to assist the Redevelopment Agency for the purpose of aiding and cooperating in the planning,
undertaking, construction, and operation of redevelopment projects located within the
jurisdiction of the City, upon the terms and with or without consideration as the City determined;
and
WHEREAS, pursuant to Health and Safety Code Section 33445, the Redevelopment
Agency was authorized to enter into agreements with the City pursuant to which the
Redevelopment Agency would agree to reimburse the City for funds provided by the City for the
cost of installation and construction of public improvements, structures and facilities located
within or outside the Project Areas; and
WHEREAS, pursuant to Health and Safety Code Sections 33132 and 33601, the
Redevelopment Agency was authorized to borrow money and accept financial assistance from
the City for redevelopment projects located within the Redevelopment Agency's jurisdiction; and
WHEREAS, consistent with the foregoing authority, the City made the following loans
(collectively, the "Loans") to the Redevelopment Agency:
(a) a loan in the original principal amount of $500,000, in accordance with the
terms set forth in City Council Resolution No. 96-101 and Redevelopment
Agency Resolution No. 96-2, each dated July 9, 1996 for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding operating costs for the Redevelopment Agency (Loan A); and
(b) a loan in the original principal amount of $750,000, in accordance with the
terms set forth in City Council Resolution No. 98-94 and Redevelopment
Agency Resolution No. 98-2, each dated June 23, 1998, for the purpose of
4.b
Packet Pg. 31
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency (Loan B); and
(c) a loan in the original principal amount of $445,000, in accordance with the
terms set forth in City Council Resolution No. 00-95 and Redevelopment
Agency Resolution No. 00-1, each dated June 27, 2000, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency (Loan C); and
(d) a loan in the original principal amount of $50,000, in accordance with the
terms set forth in City Council Resolution No. 03-48 and Redevelopment
Agency Resolution No. 03-1, each dated April 8, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape along San Fernando Road (Loan D); and
(e) a loan in the original principal amount of $160,000, in accordance with the
terms set forth in City Council Resolution No. 03-85 and Redevelopment
Agency Resolution No. 03-3, each dated June 24, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape design (Loan E); and
(f) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan (Loan F); and
(g) a loan in the original principal amount of $335,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan (Loan G); and
(h) a loan in the original principal amount of $845,000, in accordance with the
terms set forth in City Council Resolution No. 05-13 and Redevelopment
Agency Resolution No. 05-1, each dated January 25, 2005, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24513 San Fernando Road (Loan H);
and
(i) a loan in the original principal amount of $770,000, in accordance with the
terms set forth in City Council Resolution No. 06-4 and Redevelopment
Agency Resolution No. 06-2, each dated January 10, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24158 San Fernando Road (Loan I); and
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Packet Pg. 32
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(j) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 06-3 and Redevelopment
Agency Resolution No. 06-1, each dated January 10, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan (Loan .n; and
(k) a loan in the original principal amount of $439,400, in accordance with the
terms set forth in City Council Resolution No. 0640 and Redevelopment
Agency Resolution No. 06-3, each dated May 9, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding the North Newhall Specific Plan and Environmental Impact
Report (Loan lid; and
(1) a loan in the original principal amount of $5,000,000, in accordance with the
terms set forth in City Council Resolution No. 06-71 and Redevelopment
Agency Resolution No. 06-5, each dated June 27, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape and striping projects (Loan L); and
(m)a loan in the original principal amount of $2,550,000, in accordance with the
terms set forth in City Council Resolution No. 09-105 and Redevelopment
Agency Resolution No. 9-15, each dated December 8, 2009, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including o
the funding of phase II of the streetscape project (Loan M); and
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(n) a loan in the original principal amount of $2,309,886, in accordance with the
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terms set forth in City Council Resolution No. 10-42 and Redevelopment
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Agency Resolution No. 10-5, each dated June 22, 2010, for the purpose of
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advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase II of the streetscape project (Loan N); and
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WHEREAS, pursuant to Health and Safety Code Section 34191.4(b), once a successor
agency has received a Finding of Completion pursuant to Health and Safety Code Section °
34179.7, loan agreements entered into between the redevelopment agency and the entity that o
created the redevelopment agency ("Sponsoring Jurisdiction Loans") shall be deemed to be
enforceable obligations provided that the successor agency's oversight board makes a finding
that the Sponsoring Jurisdiction Loans were for legitimate redevelopment purposes; and E
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WHEREAS, the Successor Agency received a Finding of Completion on June 20,2013;
and a
WHEREAS, on February 25, 2015, the Successor Agency's Oversight Board ("Oversight
Board") will consider Resolution No. 2015-01 pursuant to which the Oversight Board will be
asked to adopt findings determining that the Loans were made for legitimate redevelopment
purposes as authorized by and consistent with the CRL, and to approve repayment of the Loans
in accordance with the Agreement (defined below), which findings are necessary for final
approval of the Agreement; and
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WHEREAS, Health and Safety Code Section 34191.4(b)(2) provides that: (i) the
accumulated interest on Sponsoring Jurisdiction Loans shall be recalculated from origination at
the interest rate earned by funds deposited into the Local Agency Investment Fund ("LAIF"), (ii)
Sponsoring Jurisdiction Loans shall be repaid to the sponsoring jurisdiction in accordance with a
defined schedule over a reasonable term of years at an interest rate not to exceed the interest rate
earned by funds deposited into LAIF, and (iii) the annual amount of repayments on Sponsoring
Jurisdiction Loans provided for in the Recognized Obligation Payment Schedule ("ROPS") is
subject to specified limitations; and
;
WHEREAS, Successor Agency staff have prepared an Agreement Regarding
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Reinstatement of Loans (the "Agreement") which provides for repayment of the Loans in
accordance with the requirements of Health and Safety Code Section 34191.4(b) and commits
the City to use the Loan repayment proceeds in accordance with Health and Safety Code Section
34191.4(b).
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NOW, THEREFORE, the Governing Board of the Successor Agency to the Former
Redevelopment Agency of the City of Santa Clarita does hereby resolve as follows:
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SECTION 1. The Governing Board hereby finds that the facts set forth in the recitals to
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this Resolution are true and correct, and establish the factual basis for the adoption of this
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Resolution.
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SECTION 2. The Agreement is approved contingent on the approval of the Oversight
Board, and consistent with the Oversight Board approval the Executive Director of the Successor
Agency or her designee is authorized to execute the Agreement on behalf of the Successor
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Agency substantially in the form presented with the staff report accompanying this Resolution.
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SECTION 3. Contingent on and consistent with the Oversight Board approval, the
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Successor Agency is authorized and directed to list the Agreement and the repayment of the
Loans on the Successor Agency's ROPS for the July 1 to December 31, 2015 period ("ROPS 15-
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16A") and for each succeeding ROPS period until the Loans are repaid in full in accordance with
the Agreement.
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SECTION 4. The Executive Director and his designees are authorized to take such further
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actions as may be necessary to carry out the intent of this Resolution.
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SECTION 5. The Secretary shall certify to the adoption of this Resolution.
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PASSED, APPROVED, AND ADOPTED this 24w day of February 2015.
AGENCY BOARD CHAIR
ATTEST:
SECRETARY
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Kevin Tonoian, Secretary of the Governing Board of the Successor Agency, do hereby
certify that the foregoing Resolution was duly adopted by the Successor Agency Board of the
former Redevelopment Agency of the City of Santa Clarita at a regular meeting thereof, held on
the 2e day of February 2015, by the following vote:
AYES: BOARDMEMBERS:
NOES: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
SECRETARY
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AGREEMENT REGARDING REINSTATEMENT OF LOAN
(City of Santa Clarita/Successor Agency to the former Redevelopment Agency of the City of
Santa Clarita)
THIS AGREEMENT REGARDING REINSTATEMENT OF LOAN (this
"Agreement") is entered into effective as of , 2015 ("Effective Date") by and
between the Successor Agency to former Redevelopment Agency of the City of Santa Clarita
("Successor Agency") and the City of Santa Clarita, a municipal corporation ("City"). The
Successor Agency and the City are hereinafter collectively referred to as the "Parties."
RECITALS
A. Pursuant to authority granted under Community Redevelopment Law (California
Health and Safety Code Section 33000 et seq.) ("CRL"), the former Redevelopment Agency of
the City of Santa Clarita ("Redevelopment Agency") had responsibility to implement the
Redevelopment Plans for the Newhall Redevelopment Project Area ("Project Area").
B. The City Council of the City of Santa Clarita ("City Council") agreed to serve as
the successor agency to the Redevelopment Agency commencing upon dissolution of the
Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill xl 26.
C. Pursuant to Health and Safety Code Section 33220, the City was authorized to
assist the Redevelopment Agency for the purpose of aiding and cooperating in the planning,
undertaking, construction, and operation of redevelopment projects located within the
jurisdiction of the City, upon the terms and with or without consideration as the City determined.
D. Pursuant to Health and Safety Code Section 33445, the Redevelopment Agency
was authorized to enter into agreements with the City pursuant to which the Redevelopment
Agency would agree to reimburse the City for funds provided by the City for the cost of
installation and construction of public improvements, structures and facilities located within or
outside the Project Areas.
E. Pursuant to Health and Safety Code Sections 33132 and 33601, the
Redevelopment Agency was authorized to borrow money and accept financial assistance from
the City for redevelopment projects located within the Redevelopment Agency's jurisdiction.
F. Consistent with the foregoing authority, the City made the following loans (the
"Loans") to the Redevelopment Agency:
(a) a loan in the original principal amount of $500,000, in accordance with the
terms set forth in City Council Resolution No. 96-101 and Redevelopment
Agency Resolution No. 96-2, each dated July 9, 1996 for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding operating costs for the Redevelopment Agency (Loan A); and
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(b) a loan in the original principal amount of $750,000, in accordance with the
terms set forth in City Council Resolution No. 98-94 and Redevelopment
Agency Resolution No. 98-2, each dated June 23, 1998, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency (Loan B); and
(c) a loan in the original principal amount of $445,000, in accordance with the
terms set forth in City Council Resolution No. 00-95 and Redevelopment
Agency Resolution No. 00-1, each dated June 27, 2000, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including y
the funding of operating costs for the Redevelopment Agency (Loan C); and d
a:
(d) a loan in the original principal amount of $50,000, in accordance with the �
terms set forth in City Council Resolution No. 03-48 and Redevelopment
m
Agency Resolution No. 03-1, each dated April 8, 2003, for the purpose of
a
advancing funds to assist in the redevelopment of the Project Area, including
0
the funding of streetscape along San Fernando Road (Loan D); and
d
(e) a loan in the original principal amount of $160,000, in accordance with the
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7
terms set forth in City Council Resolution No. 03-85 and Redevelopment
Agency Resolution No. 03-3, each dated June 24, 2003, for the purpose of
v
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape design (Loan E); and
o
0
(f) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
d
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
v
advancing funds to assist in the redevelopment of the Project Area, including
a
the funding of the Downtown Newhall Specific Plan (Loan F); and
5
(g) a loan in the original principal amount of $335,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
E
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
m
d
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan (Loan G); and d
(h) a loan in the original principal amount of $845,000, in accordance with the
terms set forth in City Council Resolution No. 05-13 and Redevelopment
Agency Resolution No. 05-1, each dated January 25, 2005, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24513 San Fernando Road (Loan H);
and
(i) a loan in the original principal amount of $770,000, in accordance with the
terms set forth in City Council Resolution No. 06-4 and Redevelopment
Agency Resolution No. 06-2, each dated January 10, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24158 San Fernando Road (Loan I); and
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(j) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 06-3 and Redevelopment
Agency Resolution No. 06-1, each dated January 10, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan (Loan J); and
(k) a loan in the original principal amount of $439,400, in accordance with the
terms set forth in City Council Resolution No. 06-40 and Redevelopment
Agency Resolution No. 06-3, each dated May 9, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding the North Newhall Specific Plan and Environmental Impact
Report (Loan K); and
(1) a loan in the original principal amount of $5,000,000, in accordance with the
terns set forth in City Council Resolution No. 06-71 and Redevelopment
Agency Resolution No. 06-5, each dated June 27, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape and striping projects (Loan L); and
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(m)a loan in the original principal amount of $2,550,000, in accordance with the
terms set forth in City Council Resolution No. 09-105 and Redevelopment W
Agency Resolution No. 9-15, each dated December 8, 2009, for the purpose of o
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase II of the streetscape project (Loan M); and
(n) a loan in the original principal amount of $2,309,886, in accordance with the
terms set forth in City Council Resolution No. 10-42 and Redevelopment
Agency Resolution No. 10-5, each dated June 22, 2010, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase Il of the streetscape project (Loan N); and
G. Pursuant to Health and Safety Code Section 34191.4(b), once a successor agency
has received a Finding of Completion pursuant to Health and Safety Code Section 34179.7, loan
agreements entered into between the redevelopment agency and the entity that created the
redevelopment agency ("Sponsoring Jurisdiction Loans") shall be deemed to be enforceable
obligations provided that the successor agency's oversight board makes a finding that the
Sponsoring Jurisdiction Loans were for legitimate redevelopment purposes.
H. The Successor Agency received a Finding of Completion on June 20, 2013.
1. Health and Safety Code Section 34191.4(b)(2) provides that: (i) the accumulated
interest on Sponsoring Jurisdiction Loans shall be recalculated from origination at the interest
rate earned by funds deposited into the Local Agency Investment Fund ("LATE"), (ii)
Sponsoring Jurisdiction Loans shall be repaid to the sponsoring jurisdiction in accordance with a
defined schedule over a reasonable term of years at an interest rate not to exceed the interest rate
earned by funds deposited into LAIF, and (iii) the annual amount of repayments for Sponsoring
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Jurisdiction Loans provided for in the Recognized Obligation Payment Schedule ("ROPS") is
subject to specified limitations.
J. This Agreement provides for repayment of the Loans in accordance with the
requirements of Health and Safety Code Section 34191.4(b), and commits the City to use the
Loan repayment proceeds in accordance with Health and Safety Code Section 34191.4(b).
K. On February 25, 2015, the Oversight Board for the Successor Agency
("Oversight Board") adopted Resolution No. 15-01 pursuant to which the Oversight Board
adopted findings determining that the Loans were made for legitimate redevelopment purposes
as authorized by and consistent with the CRL, authorized the Successor Agency to enter into this
Agreement, and authorized the Successor Agency to list this Agreement and repayment of the
Loans on the ROPS.
NOW, THEREFORE, the Successor Agency and the City agree as follows:
1. Reinstatement of Loans. The Parties acknowledge and agree that pursuant to the facts d
stated in the foregoing Recitals, which by this reference are incorporated into this Agreement, the U
Loans constitute enforceable obligations, eligible to be listed on the Successor Agency's ROPS N
and repaid pursuant to and in accordance with Health and Safety Code Section 34191.4(b). In
accordance with Health and Safety Code Section 34191.4(b)(2), the interest accumulated on the
outstanding principal balance of the Loans from origination through the Effective Date
("Accumulated Interest") is as set forth below, based upon application of the applicable LAIF o
Rates. The Parties acknowledge and agree that as of the Effective Date, the outstanding principal
0
balance and accumulated interest of the Loans are as follows: 0
(a) The Accumulated Interest on Loan A equals $280,730. When added to the $500,000
principal amount, taking in to account a payment made of $133,128, the total due to
the City for the Loan A as of the Effective Date is $647,602.
(b) The Accumulated Interest on Loan B equals $329,925. When added to the
outstanding $750,000 principal amount, the total due to the City for Loan B as of the
Effective Date is $1,079,925.
(c) The Accumulated Interest on Loan C equals $56,559. When added to the outstanding
$202,409 principal amount, the total due to the City for Loan C as of the Effective
Date is $258,968.
(d) The Accumulated Interest on Loan D equals $12,156. When added to the outstanding
$50,000 principal amount, the total due to the City for Loan D as of the Effective
Date is $62,156.
(e) The Accumulated Interest on Loan E equals $31,015. When added to the outstanding
$160,000 principal amount, the total due to the City for Loan E as of the Effective
Date is $191,015.
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(f) The Accumulated Interest on Loan F equals $48,460. When added to the outstanding
$250,000 principal amount, the total due to the City for Loan F as of the Effective
Date is $298,460.
(g) The Accumulated Interest on Loan G equals $64,937. When added to the outstanding
$335,000 principal amount, the total due to the City for Loan B as of the Effective
Date is $399,937.
(h) The Accumulated Interest on Loan H equals $153,185. When added to the
outstanding $843,760 principal amount, the total due to the City for Loan H as of the
Effective Date is $996,944.
(i) The Accumulated Interest on Loan I equals $91,165. When added to the outstanding
$770,000 principal amount, the total due to the City for Loan I as of the Effective
Date is $861,165.
(j) The Accumulated Interest on Loan J equals $9,481. When added to the outstanding
$89,060 principal amount, the total due to the City for Loan J as of the Effective Date
is $98,541.
(k) The Accumulated Interest on Loan K equals $19,583. When added to the outstanding
$212,890 principal amount, the total due to the City for Loan K as of the Effective
Date is $232,473.
(1) The Accumulated Interest on Loan L equals $716,096 When added to the $5,000,000
principal amount, taking in to account a repayment made in the amount of
$2,385,673, the total due to the City for Loan L as of the Effective Date is
$3,330,423.
(m)The Accumulated Interest on Loan M equals $48,504. When added to the
outstanding $2,550,000 principal amount, the total due to the City for Loan M as of
the Effective Date is $2,598,504.
(n) The Accumulated Interest on Loan N equals $36,812. When added to the outstanding
$2,309,886 principal amount, the total due to the City for Loan N as of the Effective
Date is $2,346,698.
Commencing upon the Effective Date, interest shall accrue on the outstanding principal balance
of the Loans and the interest accrued thereon (including the Accumulated Interest) at a rate equal
to the Local Agency Investment Fund Quarterly Apportionment Rate (the "LAIF Rate") in
effect from time to time as posted on the State Treasurer's website
(http://www.treasurer.ca.gov/pmia-laif/historical/quarterly.asp). The interest rate applicable to
any payment due on the Loans, shall be the LAIF Rate in effect from time to time immediately
prior to the date on which a ROPS that includes a payment hereunder is prepared and submitted
to the Oversight Board for approval. Interest shall accrue in accordance with this Section until
the Loans are repaid in full. Interest shall be calculated on the basis of a year of 365 days and
charged for the actual number of days elapsed.
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2. Repayment Term. The Loans shall be repaid in annual or semi-annual installments in an
amount not to exceed the sum determined pursuant to Health and Safety Code Section
34191.4(b)(2)(A) (i.e., in the aggregate, the payments made in each fiscal year shall not exceed
one-half of the increase between the amount distributed to the taxing entities pursuant to
paragraph (4) of subdivision (a) of Section 34183 in each fiscal year and the amount distributed
to the taxing entities pursuant to that paragraph in the 2012-13 base year) until repaid in full.
Payments shall be applied first to accrued interest, and then to outstanding principal.
Notwithstanding the foregoing, if the amount of funds available to be distributed by the Los
Angeles County Auditor -Controller from the Redevelopment Property Tax Trust Fund for any
ROPS period is not sufficient to fully fund the superior enforceable obligations on the Successor
Agency's ROPS, payments due on the Loans, then the amount of the Loan payments due shall be
reduced to the extent necessary to fully fund the superior enforceable obligations. The reduced
Loan payments shall be applied first to accrued interest and then to outstanding principal.
3. Use of Loan Repayment Funds. The City shall use the Loan repayments in accordance
with the requirements of Health and Safety Code Section 34191.4(b)(2)(B) and (C) to repay any
amounts previously borrowed from the Low and Moderate Income Housing Fund of the
Redevelopment Agency (if any) and to fund the City's Low and Moderate Income Housing
Asset Fund established by the City in its capacity as the housing successor to the Redevelopment
Agency. Any repayment amounts remaining after the foregoing obligations are satisfied may be
used by the City for purposes identified in the discretion of the City Council.
4. Subordination. Notwithstanding any contrary provision hereof, the Parties agree that the
Successor Agency's obligation to repay the Loans shall be subordinate to the pledge of tax
increment revenue for the payment of debt service on tax allocation bonds or other indebtedness
issued by the Redevelopment Agency and the payment of the Successor Agency's other
enforceable obligations.
5. Amendments. No amendment to or modification of this Agreement shall be effective
unless and until such amendment or modification is in writing, properly approved in accordance
with applicable procedures, and executed by the Parties. Notwithstanding the foregoing, in the
event of subsequently -enacted legislation that would facilitate an accelerated repayment of the
Loans on the same or more favorable terms to the City, the Parties intend that such accelerated
repayment will occur consistent with the requirements of such legislation and agree to amend
this Agreement if necessary under that legislation to effectuate such accelerated payments.
6. Severability. If any term, provision, covenant, or condition set forth in this Agreement is
held by the final judgment of a court of competent jurisdiction to be invalid, void, or
unenforceable, the remaining provisions, covenants, and conditions shall continue in full force
and effect to the extent that the basic intent of the Parties as expressed herein can be
accomplished. In addition, the Parties shall cooperate in good faith in an effort to amend or
modify this Agreement in a manner such that the purpose of any invalidated or voided provision,
covenant, or condition can be accomplished to the maximum extent legally permissible.
7. No Third -Party Beneficiaries: Assignments. Nothing in this Agreement is .intended to
create any third -party beneficiaries to this Agreement, and no person or entity other than the
Successor Agency and the City, and the permitted successors and assigns of either of them, shall
be authorized to enforce the provisions of this Agreement.
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8. Further Assurances. Each Party agrees to execute, acknowledge and deliver all additional
documents and instruments, and to take such other actions as may be reasonably necessary to
carry out the intent of the transactions contemplated by this Agreement.
9. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of California.
10. Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original and all of which shall constitute but one and the same instrument.
SIGNATURES ON FOLLOWING PAGES.
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IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the
date first written above.
CITY:
CITY OF SANTA CLARITA
By:
City Manager
Attest:
City Clerk
Approved as to form:
By:
City Attorney
OAK #4842.9646.9025 A
SUCCESSOR AGENCY:
SUCCESSOR AGENCY TO THE
FORMER REDEVELOPMENT AGENCY
OF THE CITY OF SANTA CLARITA
Executive Director
Attest:
Secretary
Approved as to form:
Successor Agency Counsel
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ADVANCES FROM CITY TO REDEVELOPMENT AGENCY
iENERAL FUND
Resol.
Date
City Council
Resolution No.
RDA
Resolution
No.2/24/15
Loan Purpose
Loan Amount
Authorized
Principal
Advanced
Payments
Accumulated
Interest through
Balance as of 02-24-15
(LAIF Quarterly Rate
from Loan Origination)
LOAN A
7/9/1996
96-101
96-2
Operating Budget
$ 7,833,128 $
2,077,933 $
13,402,81(
$ 500,000
$ 500,000
$ 133,128
$ 280,730
$ 647,602
LOAN B
6/23/1998
98-94
98-2
Operating Budget
750,000
750,000
329,925
1,079,925
LOAN C
6/27/2000
00-95
00-1
Operating Budget
445,000
202,409
56.559
258,968
LOAN D
4/8/2003
03-48
03-1
San Fernando Road Streetscape
50,000
50,000
12.156
62,156
LOAN E
6/24/2003
03-85
03-3
Streetscape Design
160,000
160,000
31,015
191,015
LOAN F
6/8/2004
04-74
04-2
Downtown Newhall Specific Plan
250,000
250,000
48,460
298,46D
LOAN G
6/8/2004
04-74
04-2
Downtown Newhall Specific Plan
335,000
335,000
64,937
399,937
LOAN H
1/25/2005
05-13
05-1
Acquisition of 24513 San Fernando Rd
(APN#2831-006-008)
845,000
843,760
153,185
996,944
LOAN 1
1/10/2006
06-4
06-2
Acquisition of 24158 San Fernando Rd
770,000
770,000
91,165
861,165
LOAN J
1/10/2006
06-3
06-1
Downtown Newhall Specific Plan
250,000
89,060
9,481
98,541
LOAN K
5/9/2006
06-40
06-3
North Newhall Specific Plan & EIR
439,400
212,890
19,583
232,473
LOAN L
6/27/2006
06-71
06-5
Streetscape and Striping Projects
5,000,000
5,000,000
2,385,673
716,096
3,330,423
5/13/2008
08-36
08-4
5,135,000
5,135,000
5,314,327
179,327
-
LOAN M
12/8/2009
09-105
09-15
Newhall Streetscape Phase It Completion
2,550,000
2,550,000
48,504
2,598,504
LOAN N
6/22/2010
10-42
10-5
Newhall Streetscape Phase II Completion
2,309,886
2,309,886
36,812
2,346,698
"TOTALS:
$ 19,158,005
$ 7,833,128
$ 2,077,933
$ 13,402,810
iENERAL FUND
$ 13,838,119
$ 7,833,128 $
1,900,986 $
7,905.97;
)EVELOPER FEES
5,319,886
176,947
5,496,83:
'OTAL
$ 19,158,005
$ 7,833,128 $
2,077,933 $
13,402,81(
S. CD\Rerb Wmant mcnsor ApenewRDA Loans\City Council Aga a XaftROA l n Balances 234-15 LAW
Attachment: Loan Summary (1185 : Successor Agency - Reinstate Loans)