Rancho Palos Verdes Redevelopment Agency (July 2003) 4110 •
LOAN AGREEMENT
This loan agreement, dated as of July 1, 2003 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:
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 re-development of the Project Area by undertaking such actions as
may be appropriate to abate the geologic hazards in the Project Area.
C. Prior to execution of this Loan Agreement, the City previously advanced
the Agency's Portuguese Bend fund $4,320,552, plus accumulated interest
of $4,792,744 as of June 30, 2003 for a total outstanding balance of
$9,113,296. The history of the loans made by the City to the Portuguese
Bend fund of the Agency is as follows:
Portuguese Bend:
As of June 30 Accrued Total
for the years: Principal Interest Outstanding
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 250,000 366,703 4,834,855
1998 200,000 423,681 5,458,536
1999 700,000 465,223 6,623,759
2000 250,000 579,431 7,453,190
2001 0 680,774 8,133,964
2002 0 523,014 8,656,978
2003 0 456,318 * 9,113,296
Total Portuguese Bend $ 4,320,552 $ 4,792,744
*Estimated-Interest will be recalculated when LAIF rates for May and June are released.
D. The City does not expect to make any loan advances to the Portuguese
Bend fund of the Agency during FY 2003-2004.
E. Prior to execution of this Loan Agreement, the City previously advanced
the Agency's Abalone Cove fund $1,557,000, plus accumulated interest of
$790,986 as of June 30, 2003 for a total outstanding balance of $2,347,986.
The history of the loans made by the City to the Abalone Cove fund of the
Agency is as follows:
Abalone Cove:
As of June 30 Accrued Total
for the years: Principal Interest Outstanding
1998 $ 1,545,000 $ 77,510 $ 1,622,510
1999 0 135,595 1,758,105
2000 0 152,357 1,910,462
2001 0 174,494 2,084,956
2002 0 134,063 2,219,019
2003 12,000 116,967 * 2,347,986
Total Abalone Cove $ 1,557,000 $ 790,986
*Estimated-Interest will be recalculated when LAIF rates for May and June are released.
F. The City does not expect to make any loan advances to the Abalone
Cove fund of the Agency during FY 2003-2004.
ARTICLE I
DEFINITIONS
Section 1.01. Agency. "Agency" means the Rancho Palos Verdes
Redevelopment Agency, a public body, corporate, and politic, organized and
existing pursuant to the Constitution and laws of the State of California.
Section 1.02. Abalone Cove fund. "Abalone Cove fund" means the
accounting entity used to account for the activities of Abalone Cove projects
of the Rancho Palos Verdes Redevelopment Agency.
Section 1.03. Portuguese Bend fund. "Portuguese Bend fund" means
the accounting entity used to account for the activities of Portuguese Bend
projects of the Rancho Palos Verdes Redevelopment Agency.
Section 1.04. 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 and repaid upon restructuring of the Bond
on November 1, 1997, including the issuance of the RDA Bond as described
in Section 1.14 of this Loan Agreement.
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Section 1.05. 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 1.06. County. "County" means the County of Los Angeles,
California.
Section 1.07. Fiscal Year. "Fiscal Year" means the fiscal year
beginning on July 1st and ending on the next following June 30th.
Section 1.08. Housing 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 1.09. Loan Agreement. "Loan Agreement" means this loan
agreement entered into July 1, 2003 between the City and Agency.
Section 1.010. MOU. "MOU" means the Memorandum of
Understanding, dated November 1, 1997, between the County, the City and
the Agency.
Section 1.11. 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 1.12. Party. "Party" means any party to this Agreement.
Section 1.13. Project Area. "Project Area" means the territory included
within Project Area No. 1 of the Agency.
Section 1.14. RDA Bond. "RDA Bond" means the tax allocation Bond
of the Agency in the principal amount of$5,455,000 issued by the Agency for
the corporate purposes of the Agency to aid in the financing and refinancing
of redevelopment activities of the Agency.
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Section 1.15. Redevelopment Law. "Redevelopment Law" means the
Community Redevelopment Law (California Health and Safety Code
Sections 33000, et. seq.)
Section 1.16. Redevelopment Plan. "Redevelopment Plan" means
the Redevelopment Plan for the Project Area.
ARTICLE II
LOAN
Section 2.01. Loan. The unpaid principal and accrued interest balance
advanced by the City to the Agency's Portuguese Bend fund totals
$9,113,296 as of June 30, 2003. This amount is in addition to the total
unpaid principal and accrued interest balance of$2,347,986 advanced to the
Abalone Cove fund of the Agency and still outstanding as of June 30, 2003.
The total unpaid balance of $11,461,282 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.
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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 2003-2004
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 by the City are now consolidated and incorporated within this
Loan Agreement. This Loan Agreement supersedes all previous loan
agreements between the City and Agency.
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IN WITNESS HEREOF THE PARTIES HAVE CAUSED THIS LOAN
AGREEMENT TO BE EXECUTED.
City Ranch. Palo erdes
Mayo
Attest:
City Clerk
Rancho Palos Verdes
R- eve : •ment ency
tA).
Agency ; airman
Attest:
Agency Secretary
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