1994 AGN JUN 21 I13 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of June 21, 1994 TO: Honorable Mayor and City Council FROM: Hani W. Gabriel, Economic Development Director-NUY f SUBJECT: CONSIDERATION AND APPROVAL OF RENEGOTIATION OF CITY Date: June 21, 1994 LOAN FOR PREPARATION OF NEW REDEVELOPMENT PROJECT AREA AND PLAN (RANCHO/MILL REDEVELOPMENT PROJECT AREA) Background On August 3, 1993, the City Council adopted Resolution No. R-71-93 approving an Agreement for Loan and Repayment to the Redevelopment Agency from City Traffic Development Fees in the amount of $150,000 to fund plan preparation for the proposed Rancho/Mill Redevelopment Project Area. Based upon this action, the Redevelopment Agency proceeded with the new project area study. However, Agency staff was recently informed by the City's former Finance Director, Paula Chamberlain, that Traffic Development Fees are not available to fund Redevelopment activities as anticipated. Discussion Prior to close of the current fiscal year, it is necessary to have funds in place to finance the study and designation of the Rancho/Mill Redevelopment Project Area. The operating budget is now in a deficit position, and the Agency has entered into contractual obligations. Negotiations have taken place between Agency staff and the City's Electric Department, which has agreed to loan the Agency $150,000. The Electric Department has also agreed to amend the repayment section of the loan agreement to allow the Agency to repay both principal and accrued interest as such funds become available for such purposes. Otherwise, the terms of the original agreement remain the same. Financial Impact The Agency cannot proceed with plan adoption without the loan funds to reverse the project's current operating account deficit. Recommendation Staff recommends adoption of the attached Resolution rescinding Resolution No. R-71-93 and approving the Agreement for Loan and Repayment for $150,000 from the City's Electric Utility Fund. Report prepared by Wendy Jo Holland, Economic/Redevelopment Project Manager WConcurree: er Attachments: Resolution Exhibit "A" Agreement for Loan and Repayment Page 1 of 1 Ish Aw pw in\admin\meeting\coun0 621. rp2 June 7, 1994 -- 1001-47-03 Item No. 13