1988 AGN OCT 26 I11 - Laserfiche WebLink

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CITY OF COLTON ARENA REPORT For Council Meeting of OCTOBER 26, 1988 TO: Honorable Mayor and City Council FROM: JENNIFER THORNBERRY, ECONOMIC DEVELOPMENT DIRECTOR _j4 SUBJECT: LOAN AND PLF= AGREEMENT BETWEEN THE CITY OF Date: OCTOBER 20, 19 88 COLTON AND THE REDEVE.LOPI-1ENT AGENCY FOR THE CITY OF COLTON (STORM DRAIN PROJECT No. 3=6) BACKGROUND The City of Colton and the City of San Bernardino have entered into an agreement dated April 19, 1988, which provides for the financing and construction of a storm drain within Mill Street. There are areas within the cities of Colton and San Bernardino which will be served by the storm drain which are currently experience flooding because of the lack of such storm drain. The City of San Bernardino will fund fifty percent of the actual cost incurred for design and installation to a maximum of $211,000. The agreement states that San Bernardino will make payments in two annual installments to Colton; one payment 90 days - _after the acceptance of the installation of the storm drain and the secondinstallment within fifteen months following the date of the first installment. -- The City of Colton currently does not have adequate funds available to finance the City of San Bernardino's share until such payments are received by Colton. The City is therefore requesting a loan from the Redevelopnent Agency. DISCUSSION Attached for your review is an Agreement for Loan and Repayment which creates an obligation between the Redevelopment Agency and the City of Colton with respect to a short term loan of $2.11,000 needed by the City to cover the City of San Bernardino's agreed upon contribution of 50% of the cost of this storm drain project prior to the expected receipt of funds from San Bernardino. In the. Agreement the City agrees to repay all funds borrowed from the Agency in accordance with the terms of repayment agreed to by San Bernardino. No interest shall accrue for the benefit of the Agency by reason of this loan. RECON3NIENDATION: Staff reccirtrends that the City Council by simple motion authorize the Mayor to sign the attached Agreen-ent for Loan and Repayment. Attachments: Agreement Page 1 of__ -1-- Item No.%