Rancho Palos Verdes Redevelopment Agency (Jan 29 1991) w w
LOAN AGREEMENT
1990-91
This loan agreement, dated as of January 29, 1991, 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 advanced the Agency approximately $1.25
million, plus accumulated 8% interest for a total outstanding
advance of $1 ,479,484 as of June 30, 1990.
D. The City is willing to loan the Agency an additional $364,400
for the purpose of performing necessary activities of the Agency.
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 dated as of January 29, 1991, between the City and
Agency.
Section 1.04 . Party. "Party" means any party to this
Agreement.
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411 411
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 Three Hundred Sixty Four Thousand Four Hundred Dollars
($364,400) . This amount is in addition to the unpaid principal and
accrued interest balance of $1,479,484 which was previously
advanced by the City to the Agency through June 30, 1990. The
unpaid principal of such new loan shall draw interest, compounded
annually, at the rate of ten percent (10%) per annum commencing on
the date or dates said funds are transferred, and continuing until
principal and interest are paid in full. 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 1990-91 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 subordinated to any existing obligations of the Agency and may
be subordinated to any bonds, notes, or other obligations of the
Agency to the extent that the City agrees.
IN WITNESS HEREOF THE PARTIES HAVE CAUSED THIS LOAN AGREEMENT
TO BE EXECUTED.
CITY OF RANCHO PALOS VERDES
ATTEST: B v
Y
/ .
Mayor Pro Tem
44
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Cit Clerk
Cit/
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RANCHO PALOS VERDES
REDEVELOPMENT AGENCY
ATTEST: By (i4tI & iJ..
Agency Chairperson
91T- -19
Agency Secretary