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Rancho Palos Verdes Redevelopment Agency (Sept 1996) • LOAN AGREEMENT This loan agreement, dated as of September 17, 1996 is made by and between the City of Rancho Palos Verdes and the Rancho Palos Verdes Redevelopment 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. The City has previously loaned the Agency $2,920,552, plus accumulated interest for a total outstanding balance of $4,218,152 as of June 30, 1996. 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 Total Portuguese Bend 2,920,552 11297,600 4,218,152 Abalone Cove 1990 200,332 - 0 - 200,332 1991 499,025 38,209 737,566 1992 - 0 - 49,774 787,340 1992 repayment - 699,357 - 87,983 - 0 - Total Abalone Cove - 0 - - 0 - - 0 - Agency Totals 2,485,552 978,514 3,464,066 D. The City is willing to loan the Agency an additional $100,000 to its Portuguese Bend Fund for the purpose of performing necessary activities of the Agency in Portuguese Bend for FY 1996-97. E. 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 May 2, 1995 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 sum of One Hundred Thousand Dollars ($100,000) for fiscal year 1996-97. This amount is in addition to the unpaid principal and accrued interest balance of $4,218,152 which was previously advanced by the City to the Agency through June 30, 1996. Both the $100,000 and the unpaid balance of$4,218,152 as of June 30, 1996 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 r 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 1996-97 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 Agreement. IN WITNESS HEREOF THE PARTIES HAVE CAUSED THIS LOAN AGREEMENT TO BE EXECUTED. CITY OF RANCHO PALOS VERDES ATTEST: By Ai/, , //9 ayor / 111. ICity Clerk RANCHO PALOS VERDES REDEVELOPMENT AGENCY ATTEST: By ency hairper:�%n l� 111 Agency Secretary loando .•7