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. otyceielet- <br /> 11 <br /> MEMORANDUM5RANCHO PALOS VERDES <br /> TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL <br /> FROM: DENNIS McLEAN, DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY <br /> SUBJECT: LOAN AGREEMENT BETWEEN THE CITY AND RDA <br /> DATE: JULY 1, 2003 <br /> Staff Coordinator: Gary Gyves, Senior Administrativ��ialyst <br /> UOPTED <br /> RECOMMENDATION: COUNCILCITY o�RANCHO <br /> LOS VERDES <br /> Authorize the Mayor and City Clerk to execute the attached Loan Agreementhe O 1003 <br /> e2City <br /> and the Rancho Palos Verdes Redevelopment Agency. JUL <br /> BACKGROUND AND ANALYSIS: /6'6444e° <br /> Portuguese Bend Fund Financing CITYCLERK <br /> io While the Abalone Cove fund of the Redevelopment Agency (the "Agency") has relied on <br /> bond proceeds to finance landslide abatement projects, the Portuguese Bend fund of the <br /> Agency relies on the City to finance its landslide projects. A sufficient fund balance will exist <br /> at June 30, 2003 to pay for all budgeted FY 2003-04 expenditures within the Portuguese Bend <br /> project area. The FY 2003-04 budget does not provide for any additional loan principal <br /> amounts to the Portuguese Bend fund of the Agency. <br /> The total principal loan owed the City by the Portuguese Bend fund is $4,320,552 as of June <br /> 30, 2003. Including accrued interest of$4,792,744, the total amount owed to the City by the <br /> Portuguese Bend fund is $9,113,296 as of June 30, 2003. <br /> Abalone Cove Fund Financing <br /> The Abalone Cove landslide abatement project of the Agency was initially financed by the <br /> issuance of $10 million of County Improvement District Bonds (the "Bonds") in 1991. The <br /> Bonds were issued as part of the Reimbursement and Settlement ("Horan") Agreement <br /> entered into between the County, City,Agency and the Horan litigants in 1987. After payment <br /> of amounts owed the County and the City, approximately $6.7 million of net bond proceeds <br /> were transferred to the Agency's Abalone Cove fund in 1991 to finance landslide abatement <br /> projects. <br /> Under the terms of the bond restructuring in 1997, the County Bonds were repaid through the <br /> Agency's issuance of $5,455,000 of tax allocation bonds and a lump sum payment of <br /> $4,545,000 to the County. The lump sum payment was funded with$2 million of accumulated <br /> tax increment, $1 million of fund reserves from the Abalone Cove fund and a loan to the <br /> Abalone Cove fund by the City in the amount of$1,545,00_0. <br /> e.� <br />