Rancho Palos Verdes Redevelopment Agency (Jan 15 1991) • • •
LRANCHO PALOS VERDES
LOAN AGREEMENT
This loan agreement, dated as of January 15, 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 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. Except for a previous loan agreement of $282,500, the Agency has
been advanced these funds without any agreement. Parties agree to
formalize these prior transactions with a Loan Agreement.
30940 HAWTHORNE BOULEVARD / RANCHO PALOS VERDES, CA 90274-5391 / (213)377-0360
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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 15, 1991, 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 has loaned to the Agency the sum
of One Million Four Hundred Seventy Nine Thousand Four Hundred
Eighty Four Dollars ($1,479,484) , including outstanding principal
and accrued interest. The unpaid principal and accrued interest
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balance of such loan amount shall continue to draw interest,
compounded annually, at the rate of ten percent (10%) per annum
commencing July 1, 1990, 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: By 111P
Mayor Pro Tem
/
City Clerk
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RANCHO PALOS VERDES
REDEVELOPMENT AGENCY
f,
ATTEST: By II _/4
Agency Chairperson
i
' Agency Secretary