2005 AGN SEP 06 I27 - Laserfiche WebLink

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APPROVED BY REDEVELOPMENT AG N Y Date �1 OS Item # 2�] 2005 REDEVELOPMENT COOPERATION LOAN AGREEMENT THIS 2005 REDEVELOPMENT COOPERATION LOAN AGREEMENT (this "Agreement") is made and entered into as of September 6, 2005, by and between the Redevelopment Agency for the City of Colton, a public body, corporate and politic (the "Agency"), and the Colton Utility Authority (CUA), with reference to the following recited facts: RECITALS WHEREAS, the Agency entered into that certain 2001 Redevelopment Cooperation Loan Agreement with the City of Colton (the "2001 Loan") and the City desires to have the loan repaid; and WHEREAS, the CUA is willing to lend funds to the Agency to repay the 2001 Loan on the terms and conditions set forth in this agreement. NOW, THEREFORE, THE AGENCY AND THE CUA AGREE AS FOLLOWS: SECTION 1. Subject to the terms and conditions of this agreement, the CUA hereby agrees to loan to the Agency Two Million Seventy -Three Thousand Dollars ($2,073,000) (the "CUA Loan") to repay the 2001 Loan. The proceeds of the CUA Loan shall be disbursed by the CUA to the Agency, upon the delivery by the Agency of a fully executed copy of the Agency promissory note described in Section 2, below. The Agency shall apply the proceeds of the CUA Loan solely for the purpose of repaying the 2001 Loan. SECTION 2. The proceeds of the CUA Loan to the Agency shall be evidenced by a promissory note in substantially the form attached to this agreement as Exhibit A. SECTION 3. The principal balance of the CUA Loan, together with accrued interest thereon shall be repaid by the Agency to the CUA solely from the proceeds of the sale of that certain Agency owned real property located at the northeast corner of Valley Blvd. and Meridian, APN 0162-281-56 and 66. SECTION 4. The Agency and the CUA hereby agree that the obligation of the Agency with respect to the repayment of the CUA Loan shall at all times be and remain subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness payable in whole or in part from the available tax increment revenues of the Agency from the West Valley Redevelopment Project Area or any other revenues of the Agency.