(13)AR 091807 Rancho Mill Revelopment Area

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RESOLUTION NO. R-12 - 01 RESOLUTION OF THE CITY OF COLTON APPROVING A LOAN AGREEMENT BETWEEN THE CITY OF COLTON AND THE REDEVELOPMENT AGENCY FOR THE CITY OF COLTON AND A BUDGET ADJUSTMENT FOR FISCAL YEAR 2007/08 WHEREAS, the City of Colton, California (the "City") is a municipal corporation created and existing pursuant to the laws of the State of California; and WHEREAS, the Redevelopment Agency for the City of Colton (the "Agency"), is a redevelopment agency, a public body, corporate and politic of the State of California, organized and existing pursuant to the Community Redevelopment Law (Part 1 of Division 24) commencing with Section 33000 of the Health and Safety Code of the State of California; and WHEREAS, pursuant to the Redevelopment Plan for the Rancho/Mill Project Area ("Project Area"), the Agency is authorized and empowered to enter into agreements for the redevelopment of real property within the Project Area; and WHEREAS, the City has agreed to assist the Agency with redevelopment of the Project Area by loaning the Agency $500,000; and WHEREAS, the City has funds available to make such a loan the Agency from the City's Traffic Impact Fees Fund; and WHEREAS, the promissory note attached hereto as Exhibit "A" outlines the terms of the loan: $500,000 principal loan, four year repayment, with interest at current LAIF rate; and WHERAS, the Agency intends to use tax increment revenues generated from the Project Area to repay the loan; and WHEREAS, the Agency has determined that the use of tax increment from the Project Area for redevelopment purposes within the Project Area will be of benefit to the Project Area and will assist in the elimination of blighting conditions in and around the Project Area; and Page 1 of 2