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1PPF ofqz <br /> z <br /> A 1111 111 <br /> MEMORANDUM \\ RANCHO PALOS VERDES <br /> AMR 1E <br /> TO: CITY COUNCIL <br /> HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL OF RANCHO RALG!VERDE <br /> F1ROM: JUN = 1994 <br /> FINANCE DIRECTOR, BRENT D. MATTINGLY <br /> DATE JUNE 21, 1994 SLEJECT: <br /> LOAN AGREEMENT BETWEEN CITY AND RDA - FY 1994-9t <br /> RECOMMENDATION: <br /> • <br /> Authorize the Mayor to execute the attached Loan Agreement between <br /> the City and the Rancho Palos Verdes Redevelopment Agency to fund <br /> Redevelopment Agency activities in fiscal year 1994-95 for the <br /> Portuguese Bend RDA Fund. The proposed loan will fund RDA <br /> activities in the amount of $300, 000 in FY 1994-95. <br /> BACKGROUND: <br /> On January 29, 1991, the RDA Board entered into a loan agreement <br /> with the City of Rancho Palos Verdes to fund RDA activities in the <br /> Redevelopment area. This agreement states that the loan shall <br /> mature concurrent with the close of the fiscal year. The purpose of <br /> this maturity date is so that the loan may be updated on an annual <br /> basis to consolidate loans in previous years with any repayments or <br /> additional loans. <br /> On July 25, 1991, the County of Los Angeles issued $10 million in <br /> County Improvement District Bonds as part of the Horan Settlement. <br /> A portion of these funds are available to fund activities in <br /> Abalone Cove. However, in the case of Portuguese Bend, the RDA does <br /> not currently have the resources to fund necessary projects; <br /> therefore, loans from the City are necessary. <br /> The interest rate charged on the loan is equal to the rate earned <br /> by the City on its LAIF deposits plus three percent. Currently, <br /> this would yield an interest rate of approximately 7 . 25%. The <br /> attached loan agreement includes the revised interest rate <br /> provision for future interest calculations. <br /> The details on the two separate RDA funds and the City loans made <br /> to them are as follows: <br /> Portuguese Bend Fund <br /> As per the fiscal year 1993-94 City budget, $133 , 000 was <br /> transferred to the RDA. The attached loan agreement incorporates <br /> all previous loans made by the City to the RDA's Portuguese Bend <br /> Fund into one loan agreement, and includes the additional $300, 000 <br />