Rancho Palos Verdes Redevelopment Agency (1997) • 1111
f s f.
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:
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
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(Prior to this Agreement) 100,000 366,703 4,684,855
Total Portuguese Bend 3,020,552 1,664 303 4684,855
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. 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 30, 1997 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 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.
.
0 0
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.
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 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 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 Loan
Agreement.
IN WITNESS HEREOF THE PARTIES HAVE CAUSED THIS LOAN AGREEMENT TO BE
EXECUTED.
CITY OF RANCHO PALOS VERDES
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ATTEST: By A I ,4Ic/.vb
OF Mayor dr ii
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City Clerk
RANCHO PALOS VERDES
REDEVELOPMENT AGENCY
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ATTEST: B ��
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A gency Secretary
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