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CC RES 1997-103RESOLUTION NO. 97 -103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AUTHORIZING A LOAN AGREEMENT WITH THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY IN CONNECTION WITH THE AGENCY'S PROJECT AREA NO, 1 THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1, The Loan Agreement attached hereto as Exhibit "A" is hereby approved and the Mayor is hereby authorized and directed, for and in the name and on behalf of the City, to execute the Loan Agreement and to deliver it to the Rancho Palos Verdes Redevelopment Agency in substantially the form hereby approved, with such changes therein as the Mayor may approve, such approval to be conclusively evidenced by his execution and delivery thereof. Section 2. The members of the City and its officers, employees and counsel are hereby authorized to do all acts and things which may be required of them by this Resolution. All such acts and things heretofore done are hereby approved, ratified and confirmed. PASSED, APPROVED AND ADOPTED this 18th day of November, 1997. AYES: FERRARO, BYRD, HOLLINGSWORTH, LYON AND MAYOR McTAGGART NOES: NONE ABSENT: NONE ABSTAIN: NONE r Ma ATTEST: �yto City Clerk State of California County of Los Angeles )SS City of Rancho Palos Verdes I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes hereby certify that the above Resolution No. 97 -103 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on November 18 , 19/970 CITY CLERK 971111 R6876 -00001 pjn 1673073 1 LOAN AGREEMENT (ABALONE COVE FUND) This loan agreement, dated as of November 30, 1997 is made by and between the City of Rancho Palos Verdes (the "City ") and the Rancho Palos Verdes Redevelopment Agency (the "Agency ") . For and in consideration of the mutual covenants and promises set forth herein, the parties agree as follows. R E C I T A L S This Loan Agreement is entered into with reference to the following f acts : 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 will loan the Agency $1,545,000 to the Abalone Cove Fund of the Agency on November 30, 1997 to aid in the financing and refinancing of redevelopment activities of the Agency. ARTICLE I DEFINITIONS Section 1.01. Aaency. "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. mod_. "Bond" means the CI 2651 -M, 1915 Act Limited Obligation Improvement Bonds (Abalone Cove) issued by the County in the principal amount of $10,000,000. Section 1.03. 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 1.04. Coup. "County" means the County of Los Angeles, California. Section 1.05. Fiscal Year. "Fiscal Year" means the fiscal year beginning on July 1st and ending on the next following June 30th. 971112 R6876 -00001 rdh /gp 1673076 1 Section 1.06. Housina Fund. "Housing Fund" means the Project Area Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the Redevelopment Law and held by the Agency. Section 1.07 . Loan Aexreement l . "Loan Agreement" means this Loan Agreement (Abalone Cove Fund) entered into as of November 30, 1997 between the City and Agency. Section 1.08. MOST. "MOU" means the Memorandum of Understanding dated as of November 1, 1997, among the County, the City and the Agency. Section 1.09, Net Tax Increment. "Net Tax Increment" means, for each Fiscal Year, the taxes (including all payments, reimbursements and subventions, if any, specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations) eligible for allocation to the Agency pursuant to the Redevelopment Law in connection with the Project Area (excluding (a) amounts, if any, received by the Agency pursuant to Section 16111 of the Government Code; (b) amounts payable to the Consolidated Fire Protection District of Los Angeles County pursuant to Section 8B of that certain Reimbursement and Settlement Agreement dated October 13, 1987 among the County, the Agency and the City; and (c) amounts deposited by the Agency in the Housing Fund pursuant to Section 33334.2 of the Redevelopment Law, as provided in the Redevelopment Plan. Section 1.10. Project .Are4. "Project Area" means the territory included within Project Area No. 1 of the Agency. Section 1.11. RDA Bond, "RDA Bond" means the tax allocation Bond of the Agency in the principal amount of $5,455,000 to be .issued by the Agency for the corporate purposes of the Agency to aid in the financing and refinancing of redevelopment activities of the Agency. Section 1.12. Redevelopment Law. "Redevelopment Law" means the Community Redevelopment Law (California Health and Safety Code Sections 33000, et. Section 1.13. Redevelopment Plan. "Redevelopment Plan" means the Redevelopment Plan for the Project Area. Section 1.14. Settlement Date. December 2, 19979 ARTICLE 11 LOAN "Settlement Date" means Section 2.01. Logan. The City shall loan to the Agency the sum of One Million, Five Hundred Forty Five Thousand Dollars ($115451000) . 971112 R6876 -00001 rdh /gp 1673076 1 — 2 Section 2.02. Interest Payable. Interest shall be payable on the unpaid principal of such loan, 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. Section 2.03. Terms of Repayment. Agency shall repay the loan from Net Tax Increment and any other legally available monies of the Agency. The loan will mature concurrently with the close of the City's 1997 -98 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 is subordinate to the payment of the RDA Bond and the unpaid interest on the Bond as of the Settlement Date, all in accordance with the MOU. In addition, the obligation of the Agency to repay this loan may be subordinated to any other bonds, notes or other obligations of the Agency to the extent that the City agrees. IN WITNESS HEREOF THE PARTIES HAVE CAUSED THIS LOAN AGREEMENT TO BE EXECUTED. ATTEST: City Clerk ATTEST: CITY OF RANCHO PALOS VERDES By Mayor RANCHO PALOS VERDES REDEVELOPMENT AGENCY By Chairman Agency Secretary 971112 86876 -00001 rdh /gp 1673076 1 — 3