RDA RES 1997-023 RESOLUTION NO. RDA 97-23
A RESOLUTION OF THE RANCHO PALOS VERDES
REDEVELOPMENT AGENCY AUTHORIZING AN AMENDMENT
TO A LOAN AGREEMENT WITH THE CITY OF RANCHO
PALOS VERDES IN CONNECTION WITH THE AGENCY'S
PROJECT AREA NO. 1
THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY HEREBY
FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The City of Rancho Palos Verdes and the
Rancho Palos Verdes Redevelopment Agency entered into a Loan
Agreement, dated as of June 30, 1997, pursuant to which Loan
Agreement the City loaned moneys to the Agency's Portuguese Bend
fund and all previous loans by the City to such fund were
consolidated and incorporated into such Loan Agreement.
Section 2 . Section 2 .03 of such Loan Agreement
provides that the obligation of the Agency to repay the loan may
be subordinated to any bonds, notes, or other obligations of the
Agency to the extent the City agrees.
Section 3 . The Agency and City desire that the
obligation of the Agency to repay such loan be 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, as such
terms are defined in the amended Loan Agreement, attached hereto
as Exhibit "A" .
Section 4. The amended Loan Agreement attached hereto
as Exhibit "A" is hereby approved and the Chairman is hereby
authorized and directed, for and in the name and on behalf of the
Agency, to execute the amended Loan Agreement and to deliver it
to the City of Rancho Palos Verdes in substantially the form
hereby approved, with such changes therein as the Chairman may
approve, such approval to be conclusively evidenced by his
execution and delivery thereof.
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Section 5. The members of the Agency 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 CHAIR McTAGGART
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
de A/V&A °
40, Chair F
ATTEST:
/ / ()
Agency Secretary
State of California )
County of Los Angeles ) SS
City of Rancho Palos Verdes )
I, JO PURCELL, Agency Secretary of the Rancho Palos Verdes
Redevelopment Agency hereby certify that the above Resolution No.
RDA 97-23 was duly and regularly passed and adopted by the said
Redevelopment Agency at an adjourned regular meeting thereof held
on November 18, 1997.
440'
Agency Secretary
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Exhibit "A"
IIIAMENDED LOAN AGREEMENT
This loan agreement, dated as of June 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 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. Prior to execution of this Loan .Agreement, the City
previously advanced the Agency $3 , 020, 552, plus accumulated
interest for a total outstanding balance of $4, 684, 855. 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 $1,279, 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
1994 133, 000 181, 315 2,754,261
1995 457, 000 252,805 3,464, 066
1996 435, 000 319, 086 4,218, 152
1997 (PriortothisAgreement) 100,000 366, 703 4, 684,855
Total Portuguese Bend 3, 370,552 1, 664, 303 4, 684,855
III
D. The City will loan the Agency an additional $150, 000 to the
Portuguese Bend fund of the Agency on June 30, 1997 for the
purpose of financing the dewatering well project appropriated by
Resolution No. RDA 97-07 as adopted on May 6, 1997 . The project
was begun in FY 1996-97 and was rebudgeted to FY 1997-98.
E. The City will loan the Agency an additional $200, 000 to the
Portuguese Bend fund of the Agency on or sometime after July 1,
1997 for the purpose of financing project activities included in
the FY 1997-98 budget. Therefore, the total additional amount
the City will loan the Agency is $350, 000 at the time of this
Loan Agreement.
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 . Bond. "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. ,County. "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.
Section 1. 06. dousing 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 Agreement. "Loan Agreement" means this
loan agreement entered into as of November 30, 1997 between the
City and Agency.
Section 1. 08. MOU. "MOU" means the Memorandum of
Understanding dated as of November 1, 1997, among the County, the
City and the Agency.
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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. Party. "Party" means any party to this
Agreement.
Section 1. 11. project Area. "Project Area" means the
territory included within Project Area No. 1 of the Agency.
Section 1. 12. 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. 13 . Redevelopment Law. "Redevelopment Law" means
the Community Redevelopment Law (California Health and Safety
Code Sections 33000, et. seq. )
Section 1. 14. Redevelopment Plan. "Redevelopment Plan"
means the Redevelopment Plan for the Project Area.
Section 1. 15. Settlement Date. "Settlement Date" means
December 2, 1997.
ARTICLE II
LOAN
Section 2.01. Loan. The City shall loan to the Agency the
additional sum of Three Hundred and Fifty Thousand Dollars
($350, 000) . This amount is in addition to the unpaid principal
and accrued interest balance of $4, 684,855 advanced by the City
to the Agency prior to this Loan Agreement. Both the $350, 000
and the unpaid balance of $4, 684,855 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
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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.
Section 2 . 04. Previous Loans Consolidated. All
previous loans made to the Agency's Portuguese Bend fund 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 Loan Agreement.
IN WITNESS HEREOF THE PARTIES HAVE CAUSED THIS LOAN AGREEMENT TO
BE EXECUTED.
CITY OF RANCHO PALOS VERDES
By
Mayor
ATTEST:
City Clerk
RANCHO PALOS VERDES
REDEVELOPMENT AGENCY
By
Chairman
ATTEST:
Agency Secretary
III
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