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1 <br /> CONSOLIDATED LOAN AGREEMENT <br /> This Consolidated Loan Agreement, dated as of December 1, 2003 is made by and <br /> between the City of Rancho Palos Verdes (the "City") and the Rancho Palos Verdes <br /> Redevelopment Agency(the"Agency"). For and in consideration of the mutual covenants <br /> and promises set forth herein, the parties agree as follows. <br /> RECITALS <br /> This Agreement is entered into with reference to the following facts: <br /> A. In furtherance of the objectives of the Redevelopment Law, the Agency has <br /> undertaken a program for the redevelopment of blighted areas in the City, and <br /> toward this end, has undertaken and is now carrying out the responsibility for the <br /> redevelopment of the Project Area pursuant to and in furtherance of the <br /> Redevelopment Plan. <br /> B. In compliance with all requirements of the Redevelopment Law,the Agency and the <br /> City Council adopted the Redevelopment Plan, which provides for the <br /> redevelopment of the Project Area by undertaking such actions as may be <br /> appropriate to abate the geologic hazards, install a sewer system, and facilitate <br /> other improvements in the Project Area. <br /> C. Prior to execution of this Agreement, the City previously advanced to the Agency's <br /> Portuguese Bend Fund $4,320,552, plus accumulated interest of$4,962,273 as of <br /> November 30, 2003, for a total outstanding balance of$9,282,825 as of November <br /> 30, 2003. <br /> D. Prior to execution of this Agreement, the City previously advanced to the Agency's <br /> Abalone Cove Fund $1,597,355, plus accumulated interest of $834,674 as of <br /> November 30, 2003, for a total outstanding balance of$2,432,029 as of November <br /> 30, 2003,which outstanding balance includes the required ERAF payment for Fiscal <br /> Year 2002-03 and administrative and over-head expenses for Fiscal Year 2002-03. <br /> E. During Fiscal Year 2003-04, the Redevelopment Law requires redevelopment <br /> agencies to pay certain amounts to the county auditor for deposit in the ERAF for <br /> the benefit of public schools,with the payment due to the county auditor by May 10, <br /> 2004. Redevelopment agencies may be required to make similar ERAF payments <br /> in future Fiscal Years. <br /> F. During Fiscal Year 2003-04, if a redevelopment agency determines that is unable to <br /> make the required ERAF payment, the agency may allocate to the county auditor <br /> less than the full required ERAF payment if the agency and city enter into an <br /> agreement providing for the city to fund the difference between the amount <br /> allocated by the agency and the full amount of the required ERAF payment. <br /> R6874\0001\751282.9 <br />