2002 AGN MAY 21 I23 - Laserfiche WebLink

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Item #23 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the Redevelopment Agency Board Meeting of May 21, 2002 TO: Honorable Chairperson and Agency Boardmembers FROM: Candace Cassel, Redevelopment Manage((5 SUBJECT: Consideration and Approval of Redevelopment Agency Resolution 800 Approving a Redevelopment Cooperation Loan Agreement by and between the City of Colton and the Redevelopment Agency for the Purchase of Property Adjacent to and Within the West Valley Redevelopment Project Area (Sports Park Project). DATE: May 14, 2002 Backaround/Discussion On August 7, 2001, the Agency Board approved Resolution 788, which approved an Option to Purchase Agreement with the Vickers Family Trust for the acquisition of approximately 9.4 acres for the Sports Park project. A portion of the project lies within the West Valley Redevelopment Project Area. Development of the Sports Park project will provide additional recreational facilities for residents in the West Valley Project Area and it will serve as a catalyst for future development within the project area. To facilitate the property acquisition, the Agency agreed to serve as an "accommodator" for the City of Colton. In this capacity the City was to loan the Agency the funds necessary to perform under this Agreement. The loan agreement and promissory note were presented to the Agency Board on August 7th and it was indicated that the loan agreement would be "separately considered by the City and Agency." The stated intent "is to have the Agency establish a debt to the City of Colton that may be repaid if and when the Agency has the resources available in the West Valley Redevelopment Project Area." It was contemplated that the City would "advance funds necessary for the Agency to undertake the land acquisitions" necessary for the Sports Park Project. The acquisition, however, was accomplished by using funds drawn from an Agency account on or about January 31, 2002. In the City Council meeting of August 21, 2001 the Council adopted Resolution No. 84-01 approving a Cooperation Loan Agreement between the Redevelopment Agency and the City of Colton for the purchase of the above-described property. Adoption of this Resolution will permit the Agency to enter into the Loan Agreement with the City. Financial Impact The Loan Agreement will permit the City to transfer funds into the Redevelopment Agency account, thereby replenishing those drawn out on January 31, 2002. The maximum loan total from the City is projected to be $5,120,000, and the Redevelopment Agency is currently requesting $2,300,000. This amount covers the following items: closing and purchase costs - $2,123,000; Alta survey - $17,5000; site plan - $2,040; and Option payments - $80,000.