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• <br /> /3Jf <br /> a,./44.41-1-4;& <br /> 1111 406- r <br /> 1) <br /> MEMORANDUM RANCHC - <br /> ,p 2, <br /> TO: Redevelopment Agency Board of Directors <br /> --- --- -- - --� -----T <br /> FROM: Mark A. Rohlof f, Deputy Executive Director--- <br /> • -- --- - <br /> DATE: January 15, 1991 - ---- - _- T <br /> Loan Agreement Between Agency and City—for—F.. • , . <br /> . - • <br /> SUBJECT' <br /> Prior to June 30, 1990 / <br /> d de / Agency Sao,. <br /> RECOMMENDATION <br /> Authorize the Agency Chairperson and Agency Secretary to execute <br /> the attached Loan Agreement between the Redevelopment Agency and <br /> the City of Rancho Palos Verdes for funds advanced to Agency <br /> through June 30, 1990. <br /> BACKGROUND <br /> On June 20, 1985, the Agency entered into an agreement with the <br /> City whereby the City loaned the Agency $282,500 to assist the <br /> Agency in landslide abatement activities in the Redevelopment <br /> Project Area. Since that time, the Agency has used various funding <br /> sources, including state grants, Community Development Block Grant <br /> funds, developer contributions, and County advances, to finance <br /> such activities. These cumulative sources, however, have not been <br /> adequate to fund all activities of the Agency. City funds have <br /> been used to cover the gap not funded with available resources. <br /> Staff has worked with independent auditors to determine the actual <br /> amount of funds advanced to the Agency through June 30, 1990. The <br /> total outstanding amount of principal and accrued interest owed the <br /> City as of June 30, 1990 is $1,479,484. Because $282,500 of this <br /> amount has already been formally loaned as- shown above, a loan <br /> agreement in the amount of $1,193,984 is appropriate to acknowledge <br /> the additional indebtedness of the Agency to the City. <br /> Because this loan agreement is being proposed after City funds have <br /> already been spent by the Agency, approval of this loan agreement <br /> does not necessarily indicate concurrence with previous decisions <br /> regarding such expenditures. Approval of this loan agreement will, <br /> however, enable the City to legally bind the Agency to repay its <br /> indebtedness to the City once funds are avilable. <br /> FISCAL IMPACT <br /> Approval of this loan agreement will place the Agency's outstanding <br /> principal and accrued interest owed to the City at $1,479,484. As <br /> stated in the loan agreement, the Agency may repay the loan from <br /> COFES : <br />