1993 R 52 - Laserfiche WebLink

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EXHIBIT "A" AGREEMENT FOR LOAN AND REPAYMENT COOLEY RANCH REDEVELOPMENT PROJECT AREA (City of Colton, California) 1. Parties and Date. 1.1 This Agreement is entered into this 6th day of July, 1993, by and between the City of Colton, a municipal corporation ("City") and the Redevelopment Agency for the City of Colton, a public body, corporate and politic ("Agency"). 2. Recitals. 2.1 The Agency is authorized to carry out redevelopment of six project areas (Downtown I, Downtown II, Mt. Vernon, Cooley Ranch, Santa Ana, and West Valley Redevelopment Project Areas) pursuantto the Redevelopment Plans for the Project Areas approved and adopted by the City Council of the City of Colton ("Redevelopment Plans"). 2.2 The Agency has entered into an Agreement for Purchase and Sale ("Acquisition Agreement") dated October 19, 1992 with Rancho Mediterrania Mobilehome Estates for the acquisition of Rancho Mediterrania Mobilehome Park ("the Park") in connection with the conversion of the Park from rental property to condominium property and has a need to fund the acquisition of and the expenses related thereto. 2.3 The California Community Redevelopment Law authorizes the Agency to borrow funds for redevelopment purposes from private and public sources. NOW, THEREFORE, BE IT RESOLVED, in consideration of the foregoing and the mutual promises and covenants contained therein, the parties hereto mutually agree as follows: 3. Terms. 3.1 Amount of Loan. The City agrees to loan the Agency an amount not to exceed $600,000.00 from the City's Electric Utility Fund ("Electric Utility Loan"). Said Loan shall be in addition to any and all amounts heretofore loaned to the Agency. 3.2 Disbursement of Funds. The City agrees to disburse loan proceeds to the Agency from the City's Electric Utility Fund upon receipt of a request in writing from the Agency. The Agency agrees to use such proceeds only for the purpose provided in State Law and within the City of Colton. 3.3 Debt to the Citv. In consideration of the Electric Utility Loan, the Agency acknowledges a debt to the City in the amount of Electric Utility Loan during the term of such loan. 3.4 Term. Agency agrees to pay the City any and all funds borrowed within six (6) months from the receipt of the Electric Utility Loan. Agency's obligation of repayment shall terminate when all sums allocated to the Agency from the Electric Utility Loan have been repaid with interest as provided by this Agreement. -1-