HomeMy WebLinkAboutAGENDA REPORT 2001 0718 CC REG ITEM 11M • r , a I RI Iii' L®
ITEM ! ( • /VI •
Ci ;r. AnaF�o-.=,F�#� e. � �,€ TsIm-y\TTA
of 'l 8-a00 1 -ACTIO? ; '..P "o 5+circ r gnn r
Irlr lucltnrj c«lopilori Cc.Reo
HONORABLE CITY COUNCIL 2Col- X811. 3-0
AGENDA REPORT
TO: Honorable City Council ' S)LzkS:L./
From: Dana Shigley, Administrative Services Direc
Date: July 11, 2001 (City Council meeting of July 18, 2001)
Subject : CONSIDER LOAN AGREEMENT BETWEEN THE CITY OF MOORPARK
AND THE MOORPARK REDEVELOPMENT AGENCY
BACKGROUND
In the last year, the Redevelopment Agency Board has authorized
the purchase of several properties to be used for a variety of
public purposes, including a proposed new Police Facility.
These purchases, and others currently pending, have affected the
cash available to the Agency. Community Development Law allows
Redevelopment Agencies to borrow funds from the City in support
of the Agency' s mission and goals . Several times since the
creation of the Redevelopment Agency, the City has loaned funds
to the Agency for specific purposes . All loans have been repaid
at this time .
DISCUSSION
In the coming year, the Agency has budgeted approximately $3 . 4
million in expenditures, including $1 . 3 million for capital
improvements to Spring Road and for the construction of a new
Public Works yard. In addition, while not yet budgeted, the
Council has considered other proposals including the
construction of a Police Facility and Civic Center.
While the Agency' s annual revenues are sufficient to finance on-
going operations, the Agency does not currently have sufficient
cash available to finance these special projects . If the City
Council chooses to proceed with design and construction of the
Police Facility and Civic Center, then long-term financing will
Honorable City Council
July 11, 2001
Page 2
have to be arranged. However, in the mean time, staff is
recommending a loan from the City to the Agency in the amount of
$5, 000, 000 to assist the Agency with project development in
anticipation of a longer-term financing plan later in the year.
The Agency would be charged a rate equal to the rate earned on
investments (the "LAIF" rate) plus 1%; currently this would be
approximately 6% . The loan would be provided by the City
General Fund, which currently has sufficient cash available, and
would be due no later than or June 30, 2002, when other
financing arrangements should be in place.
RECOMMENDATION
Staff recommends that the City Council take the following
action:
1 . Adopt Resolution No. 2001- , approving a Loan Agreement
with the Moorpark Redevelopment Agency.
Attachment: Resolution No. 2001-
Loan Agreement
0,." ,"7F:r^9
RESOLUTION 2001-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF MOORPARK, CALIFORNIA, ADOPTING A
REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF
MOORPARK AND THE MOORPARK REDEVELOPMENT
AGENCY
WHEREAS, the City of Moorpark has agreed to advance funds
to the Moorpark Redevelopment Agency in accordance with the
terms of a Loan Agreement dated July 18, 2001; and
WHEREAS, the Moorpark Redevelopment Agency has agreed to
accept the terms and conditions of the Loan Agreement dated July
18, 2001 .
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1 . The Loan Agreement between the City of Moorpark
and the Moorpark Redevelopment Agency dated July 18, 2001, and
attached as Exhibit "A" to this resolution, is hereby adopted.
SECTION 2 . The City Clerk shall certify to the adoption of
this resolution and shall cause a certified resolution to be
filed in the book of original Resolutions .
PASSED AND ADOPTED this 18th day of July, 2001 .
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
LOAN AGREEMENT
THIS LOAN AGREEMENT is entered into this 18th day of July, 2001,
by and between the City of Moorpark ("City") and the Moorpark
Redevelopment Agency ("Agency") .
RECITALS
WHEREAS, the Agency was created by Ordinance 87, adopted by
the City Council on March 18, 1987, for the purpose of
eliminating blighted conditions within specified project areas;
and
WHEREAS, in support of its mission, the Agency is
developing and implementing plans to acquire and construct
certain public facilities; and
WHEREAS, the Agency has determined that, in order to
undertake this redevelopment project, temporary financial
assistance in the form of a loan is required from the City of
Moorpark; and
WHEREAS, Section 33600 et. seq. of the California Community
Redevelopment Law authorizes the Agency to borrow money or
accept financial or other assistance from the City.
COVENANTS
NOW, THEREFORE, THE CITY AND AGENCY AGREE AS FOLLOWS :
SECTION 1 . Amount and Use of Loan. The City, from its
General Fund, will advance to the Agency the amount of
$5, 000, 000 (five million dollars) . Agency agrees to use such
loan proceeds only for those purposes set forth in the Health
and Safety Code and approved by the Agency.
SECTION 2 . Repayment of Funds . The Agency will repay this
loan, both principal and interest, in full on or before June 30,
2002, unless extended by amendment to this Agreement .
SECTION 3 . Interest Payment . This loan will bear interest
at a rate equivalent to the rate earned by City investments in
the Local Agency Investment Fund, plus one percent.
SECTION 4 . Obligation Constitutes Indebtedness . This loan
agreement shall constitute an obligation and debt of the Agency
to use all available increment revenue to repay the City. Such
Loan Agreement, Page 2
July 18, 2001
indebtedness shall be subordinate to any and all other Agency
indebtedness incurred by the Agency, including indebtedness
incurred through the issuance of tax allocation notes or bonds
or any other bonds of the Agency.
IN WITNESS WHEREOF, the parties have executed this Agreement as
of the date first written above.
MOORPARK REDEVELOPMENT AGENCY CITY OF MOORPARK
Patrick Hunter, Chair Steven Kueny, City Manager
ATTEST:
Deborah S . Traffenstedt, Deborah S . Traffenstedt,
Agency Secretary City Clerk