2004 AGN APR 20 I10 - Laserfiche WebLink

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March 17, 2004 Mr. Al Holliman City of Colton 650 North La Cadena Drive Colton, CA 92324 Internet wTvw.crfusa.com SUBJECT: LOAN TO THE CITY OF COLTON (BIG LEAGUE DREAMS COLTON) California Office 550 Bercut Drive Suite G Sacramento, CA 95814 Dear Mr. Holliman: Phone — 916498-3764 Fax —.916448-3811 Email — ned@crfusa.com Community Reinvestment Fund, Inc. (CRF), is pleased to provide the City of Colton Southwest Office (the City), with this commitment to provide a loan(s) in the total amount of P.O. Box 552 $3,000,000 evidenced by the Note(s) (described below), and secured by the Deed of Clifton, CO 81520 Trust (described below) and other loan documents executed in connection with the Phone 970 434-5318 Fax — 970434-5317 Note(s) (collectively Loan Documents) to be executed by the City for the purpose of Email — claudette@crfusa.com providing permanent financing for the property located at the southeast corner of Cooley Drive and Drivers World Parkway, Colton, CA 92324 (the Property). The terms and conditions of CRF's commitment are described below. CRF agrees to provide the loan to the City, provided that all of the following terms and conditions have been met: 1) The amount of the Note(s) shall not exceed $3,000,000. The term and amortization of the Note(s) shall be ten years. 2) Should the loan be placed within a CRF security offering (see paragraph three below), the interest rate on the Note(s) shall be equal to a rate that is 300 basis points over the seven-year U.S. Treasury Obligation. The rate may be fixed up to ten days prior to the funding of the note by notice from the City to CRF. Once the notice to fix is received by CRF, the rate of the most current quote on the seven-year Treasury as published on the Federal Reserves web site: http://-,v,,vw.federalresen,e.V,ov/releases/h15/update/ shall be used to determine the interest rate on the Note. 3) In an effort to provide the City with the best possible pricing, CRF will be pursuing two avenues of funding for the CRF loan: 1) a direct placement with an institutional investor(s) and, 2) placement within CRFs periodic security offerings. The following describes each method and the anticipated timing of each. Direct Placement with an Institutional Investor Over the next several weeks, CRF will use its best efforts to place a senior interest in the City of Colton Note with an institutional investor(s) interested in community development in the Colton area. CRF believes such a placement will provide the City with the best possible pricing and terms for the proposed community development as the investment will be held by an investor with a direct interest in the community. EXHIBIT 1