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EXHIBIT A <br />PROMISSORY NOTE <br />RANCHO MILL PROJECT AREA <br />REDEVELOPMENT AGENCY FOR THE CITY OF COLTON <br />COLTON, CALIFORNIA <br />September 18, 2007 <br />For value received, the REDEVELOPMENT AGENCY FOR THE CITY OF <br />COLTON ("Agency") promises to pay the CITY OF COLTON ("City") from the <br />Agency's RANCHO MILL DEBT SERVICE FUND the principal sum of FIVE <br />HUNDRED THOUSAND DOLLARS ($500,000) with interest thereon from the date <br />of September 18, 2007 at the current LAIF rate per annum, principal and interest <br />payable annually on June 1 and due in full by June 1, 2011, as provided in Exhibit 1 <br />attached to this Note. The Agency shall utilize the funds in accordance with all legal <br />requirements. This Note is payable from all legally available revenues of the Agency's <br />Rancho Mill Debt Service Fund. In the event that insufficient revenues are available to <br />make annual payments, interest shall accrue and be capitalized. The term of the Note <br />shall be four (4) years, unless extended by mutual consent of both parties. <br />This Note is issued in connection with the provision of funds to finance authorized <br />redevelopment activities of the Agency in its Rancho/Mill Project Area. The Agency is <br />authorized, with the consent of the Board of Directors, to undertake certain actions <br />which are necessary and incidental to carrying out the Redevelopment Plan for its <br />Rancho/Mill Project Area. This Note is issued under the authority and pursuant to the <br />California Community Redevelopment Law, commencing with Section 33000 of the <br />California Health and Safety Code, as amended. <br />Each payment under this Note shall be credited first to interest due and the remainder to <br />principal; and interest shall thereupon cease upon the principal so credited. Any <br />interest not paid when due shall accrue and be added to the outstanding principal <br />balance. In event of default in payment of any amount as herein provided, then the <br />entire amount shall become due at the option of the City. Principal and interest shall be <br />payable in lawful money of the United States at Colton, California. Demand, <br />presentment for payment, protest and notice of protest are hereby waived. <br />REDEVELOPMENT AGENCY FOR THE <br />CITY OF COLTON <br />By: <br />KELLY J. CHASTAIN, Chairperson <br />