Rancho Palos Verdes Redevelopment Agency (June 1996) • LOAN AGREEMENT
This loan agreement, dated as of June 30, 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 $2,485,552, plus accumulated interest for
a total outstanding balance of $3,464,066 as of June 30, 1995. 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
Total Portuguese Bend 2,485,552 978,514 3,464,066
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 $435,000 to its Portuguese Bend
Fund for the purpose of performing necessary activities of the Agency in Portuguese Bend
for FY 1995-96.
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 Four Hundred
Thirty-Five Thousand Dollars ($435,000) for fiscal year 1995-96. This amount is in addition
to the unpaid principal and accrued interest balance of $3,464,066 which was previously
advanced by the City to the Agency through June 30, 1995. Both the $435,000 and the
unpaid balance of$3,464,066 as of June 30, 1995 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.
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 1995-96 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 ,/]i. << . 4 .tet
f
ayor/
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At L
City Clerk
RANCHO PALOS VERDES
REDEVELOPMENT AGENCY
ATTEST: By ,//�
' A ency airper n
Is° .A.411.,AL
Agency Secretary
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