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Home My WebLink AboutAGENDA REPORT 1994 0803 CC REG ITEM 08GCity of Moorpark Agenda Report TO: The Honorable City Council FROM: Richard Hare, Deputy City Mana e DATE: July 22, 1994 (CC Mtg. 8/3/94) / - ITEM - C7. SUBJECT: Consider Boys and Girls Club Funding Request NP.�IGL The Boys & Girls Club has requested either direct annual funding support from the City, or deferral of the $100,000 loan second installment of $50,000 plus interest of $2,500, which is due September 1, 1994. The City Council provided a loan to the Boys & Girls Club of $150,000 to assist with the purchase of their present facility on Casey Road from the school district. The loan agreement called for the repayment of $100,000 by the Club in two installments. The first was due on September 1, 1992, and the second was due on September 1, 1993. The remaining $50,000 was designated as a grant funded from GANN funds. The Club paid the first installment early. The second installment was deferred until September 1, 1994, by Council action at the City Council meeting of August 18, 1993, with a simple interest charge of 5 percent. By September 1, 1994, the Club will owe the City $52,500. The Budget and Finance Committee has met with Club representatives regarding their current ability to repay the loan. The Committee was impressed by the Club's efforts to generate revenue to fund their operation and programs. It is apparent that the repayment of the loan will jeopardize efforts to place the Club on sound financial footing, therefore, the Committee recommended deferral of the loan repayment for another two years at the same simple interest rate of 5 percent. Staff concurs with the Committee's recommendation. The Boys & Girls Club will owe the City $52,500 September 1, 1994; $55,000 September 1, 1995, and $57,500 September 1, 1996. If the second installment is repaid early, the interest will be prorated. Recommendation Council is asked to authorized the City Manager to revise the loan agreement with the Boys and Girls Club deferring the repayment of the second installment of $50,000 plus $2,500 interest until September 1, 1996, with simple annual interest of 5 percent for the term of the deferral ($5,000).