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1110 1110 <br /> MEMORANDUMRANCHO PALOS VERDES <br /> TO: HONORABLE MAYOR & CITY COUNCIL <br /> FROM'. CITY MANAGER <br /> DATE: MAY 27 1992 <br /> SUBJECT: RDA LOAN REPAYMENT TO CITY <br /> Recently questions have been raised concerning timing of the <br /> repayments on City loans made to the Redevelopment Agency. The <br /> questions arise in part because there are different repayment <br /> provisions for the three separate types of loans or advances made <br /> to the RDA. These are: City loans for Portuguese Bend, City loans <br /> for Abalone Cove and County loans for Abalone Cove. This issue has <br /> been reviewed and the Staff believes the City's position has been <br /> consistent from the beginning. <br /> The specific issue being raised by some residents in the landslide <br /> area is whether the City should be paid back at this time for its <br /> advances (loans) made against the $10 million bond Horan settlement <br /> or wait until the bond debt is fully paid or secured. This <br /> question appears to be based on the recollections of some residents <br /> that statements were made indicating City debt would be "junior" to <br /> other loan obligations. The attached minutes from the December 19, <br /> 1989 RDA meeting are also referenced to further that position. The <br /> minutes read in part; "Another discussion ensued regarding the City <br /> loan to the agency and the fact that it is junior to other loans; <br /> that the City's loan does not get paid until all other Agency debt <br /> is paid or the Agency gets funds from some other sources" . <br /> To understand that statement and put it in proper context, it is <br /> important to understand that the only outstanding City loan to the <br /> Agency as of December 19, 1989 was a loan for work done in the <br /> Portuguese Bend area. The City had no outstanding Abalone Cove <br /> area loans at that time. Lacking any evidence or information to <br /> the contrary and having discussed the matter with various <br /> individuals who were on the RDA Board at that time, staff believes <br /> the minutes could only have been referring to Portuguese Bend loans <br /> - not to Abalone Cove loans. <br /> To my knowledge, there has never been any question that loans for <br /> the Portuguese Bend area would not be paid back immediately and <br /> further that such Portuguese Bend loans could not be repaid from <br /> the $10 million County Bond proceeds. In fact, no repayment for <br /> Portuguese Bend loans has been made nor is any repayment currently <br /> anticipated. <br />