Rancho Palos Verdes Redevelopment Agency (1992) •
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LOAN AGREEMENT
This loan agreement, dated as of June 1, 1992 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. I
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 2,296,909, plus
accumulated interest for a total outstanding balance of $2,507,491
as of June 30, 19 91. The history of the loans made by the City 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 1,239,650 - 0 - 1,239,650
1991 357,902 148,229 1,745,781
Abalone Cove Fund
1990 239,834 - 0 - 239,834
1991 459,523 38,209 737,566
Totals 2,296,909 186,438 2,483 , 347
D. The City is willing to loan the Agency an additional $165,000 to
its Portuguese Bend Fund for the purpose of performing necessary
activities of the Agency in Portuguese Bend for fiscal year 1991-
92.
E. The Agency is willing to repay the City $787,340 in principal
and accrued interest (through May 31, 1992) for loans which were
advanced to the Agency to fund activities in the Abalone Cove area
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until County Improvement District funds were made available to the
Agency.
F. 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 1, 1992 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 Sixty Five Thousand Dollars ($165,000) . This amount
is in addition to the unpaid principal and accrued interest balance
of $2,483,347 which was previously advanced by the City to the
Agency through June 30, 1991. Both the $165,000 and the unpaid
balance of $2,483 , 347 as of June 30, 1991 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 the rate of ten percent (10%) per annum for loans
made to the Portuguese Bend Fund, and seven point three six two
percent (7. 3 6 2%) per annum for the Abalone Cove Fund commencing on
the date or dates said funds are transferred, and continuing until
principal and interest are paid in full.
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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 1991-92 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.
ARTICLE III
REPAYMENT OF ABALONE COVE LOANS
Section 3 .01. Repayment of Abalone Cove Loans. Agency shall
repay to the City the amount of $787, 340 for amounts previously
loaned to the Agency for activities in Abalone Cove. Accrued
interest of $87,983 through May 31, 1992 and unpaid principal of
$699,357 shall be reduced with this repayment.
Section 3 .02. Outstanding Balances. As of June 30, 1992, the
balances owed by the two funds of the Agency to the City as a
result of the Loan Agreement, and any repayments provided for
herein, shall be as follows:
As of Accrued Total Balance
June 30, 1992 Principal Interest Outstanding
Portuguese Bend
1992 1,762,552 329,130 2 ,091,682
Abalone Cove Fund
1992 - 0 - - 0 - - 0 -
IN WITNESS HEREOF THE PARTIES HAVE CAUSED THIS LOAN AGREEMENT TO BE
EXECUTED.
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CITY OF RANCHO PALOS VERDES
ATTEST: By (. iiii //,f,4
Mayor
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City Clerk
RANCHO PALOS VERDES
REDEVELOPMENT AGENCY
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ATTEST: By - it. Ael!/ '
Agency Chairpe �w7,
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Agency Secretary
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