Rancho Palos Verdes Redevelopment Agency (1993) a i
LOAN AGREEMENT
This loan agreement, dated as of June 15, 1993 is made by and
between the City of Rancho Palos Verdes and the Rancho Palos Verdes
Redevelopment Agency. For and in consideration of the mutual
covenants and promises set forth herein, the parties agree as
follows:
RECITALS
This loan agreement is entered into with reference to the following
facts:
A. In furtherance of the objectives of the Redevelopment Law, the
Agency has undertaken a program for the redevelopment of blighted
areas in the City, and in this connection, has undertaken and is
now carrying out the responsibility for the redevelopment of the
Project Area pursuant to and in furtherance of the Redevelopment
Plan.
B. The Agency and the City have adopted the Redevelopment Plan
providing for the redevelopment of the Project Area by undertaking
such actions as may be appropriate to abate the geologic hazards in
the Project Area and to relocate, reconstruct, and repair Palos
Verdes Drive South.
C. The City has previously loaned the Agency $1,895,552, plus
, accumulated interest for a total outstanding balance of $2 ,439,946
as of June 30, 1993 . The history of the loans made by theCity to
the two funds of the Agency are as follows:
As of June 30 Accrued Total Balance
for the years: Principal Interest Outstanding
Portuguese Bend
1990 1, 279, 152 - 0 - 1,279, 152
1991 318,400 148, 229 1,745,781
1992 165, 000 180, 901 2, 091, 682
1993 133,000 215,264 2, 439,946
Total Portuguese Bend 1,895, 552 544, 394 2,439, 946
Abalone Cove
1990 200, 332 - 0 - 200, 332
1991 499, 025 38,209 737, 566
1992 - 0 - 49, 774 787, 340
1992 repayment ( 699, 357) ( 87, 983) - 0 -
Total Abalone Cove - 0 - - 0 - - 0 -
Agency Totals 1, 895,552 544, 394 2, 439, 946
a.
D. The City is willing to loan the Agency an additional .$133 , 000 to
its Portuguese Bend Fund for the purpose of performing necessary
activities of the Agency in Portuguese Bend for fiscal year 1993-
94 .
E. Each Party agrees to consolidate all prior transactions within
this Loan Agreement.
ARTICLE I
DEFINITIONS
Section 1. 01. Agency. "Agency" means the Rancho Palos Verdes
Redevelopment Agency, a body public, corporate, and politic,
organized and existing pursuant to the Constitution and laws of the
State of California.
Section 1. 02 . City. "City" means the City of Rancho Palos
Verdes, a municipal corporation, organized and existing pursuant to
the Constitution and laws of the State of California.
Section 1. 03 . Loan Agreement. "Loan Agreement" means this loan
agreement entered into June 15, 1993 between the City and Agency.
Section 1. 04 . Party. "Party" means any party to this
Agreement.
Section 1. 05. Project Area. "Project Area" means the territory
included within Project Area No. 1 of the Agency.
Section 1. 06. Redevelopment Law. "Redevelopment Law" means the
Community Redevelopment Law (California Health and Safety Code
Sections 33000, et. seq. )
Section 1. 07. Redevelopment Plan. "Redevelopment Plan" means
the Redevelopment Plan for the Project Area.
ARTICLE II
LOAN
Section 2 . 01. Loan. The City shall loan to the Agency the sum
of One Hundred Thirty Three Thousand Dollars ($133, 000) for fiscal
year 1993-94. This amount is in addition to the unpaid principal
and accrued interest balance of $2,439,946 which was previously
advanced by the City to the Agency through June 30, 1993 . Both the
$133, 000 and the unpaid balance of $2,439,946 as of June 30, 1993
shall constitute the balance owed under the Loan Agreement.
Section 2 . 02 . Interest Payable. Interest shall be payable on
the unpaid principal of such new loan and all prior loans
incorporated herein, shall draw interest, compounded annually on a
360 day year, at a rate calculated as the rate earned on the City's
LAIF deposits plus three percent per annum commencing on the date
or dates said funds are transferred, and continuing until principal
and interest are paid in full.
. 411 410
Section 2 . 03 . Terms of Repayment. Agency shall repay the loan
from any legally available monies of the Agency. The loan will
mature concurrently with the close of the City's 1993-94 fiscal
year, provided, however, that the maturity date will be extended to
the degree that the Agency has insufficient funds to repay the
loan. To the extent that the Agency is able to repay any portion of
the outstanding principal or interest and fails to do so, the City
may exercise any appropriate remedy to enforce payment by the
Agency hereunder. The obligation of the Agency to repay this loan
may be subordinated to any bonds, notes, or other obligations of
the Agency to the extent that the City agrees.
• Section 2 . 04 . Previous Loans Consolidated. All previous loans
made to the Agency by the City are now consolidated and
incorporated within this Loan Agreement. All previous loan
agreements between the City and Agency are superseded by this
Agreement.
IN WITNESS HEREOF THE PARTIES HAVE CAUSED THIS LOAN AGREEMENT TO BE
EXECUTED.
CITY OF RANCHO PALOS VERDES
v �LP
ATTEST: B
Mayor
City Clerk
RANCHO PALOS VERDES
REDEVELO' ENT AGENCY
IP
ATTEST: By 4,4
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'4.117Tency hairperson
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ifAgency Secretary
loan93.rda