2003 AGN JAN 07 I13 - Laserfiche WebLink

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Item #13 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the City Council and Redevelopment Agency Board Meeting of January 7, 2003 TO: Honorable Mayor and Councilmembers Honorable Chairperson and Agency Boardmembers FROM: Candace Cassel, Redevelopment Manager f�� _ �,. �. �(� SUBJECT: Consideration and Approval of City Resolution and Agency Resolution No 808 Approving and Authorizing the Agency's Executive Director to Execute a Tax Allocation Loan Agreement with the California lnfrastructure and Economic Development Bank (CIEDB) as Matching Funds to the EDA Grant for the Cooley Ranch Public Infrastructure Improvement Project. DATE: December 23, 2002 Bacicaround On August 13, 1998, the Redevelopment Agency approved a Padicipation Agreement with East Valley Land Company ("EVLC") for the development of a 75-acre property in the Cooley Ranch Project Area. The EVLC Participation Agreement obligated the Agency and CiTy to make certain financial contributions toward the cost of public improvements related to the development of the site. These obligations included an up front cash payment of approximately $SOQ000, as well as an obligation to issue up to $2.7 million in bonds, secured by the land. In return, the Developer was obligated to secure commitments from commercial and industrial users and construct the necessary public and private improvements in a timely manner. On July 17, 2001, the City Council approved Amendment No. 1 to the EVLC Participation Agreement. The Amendment changed the definition of "public improvements" to include utility relocations and the construction of a rail spur and advanced the date of reimbursement for certain eligible expenses totaling $461,214. This up front cash payment was made in August 2001. As originally envisioned in the EVLC PaRicipation Agreement, the construction cost for the public improvements was to be funded from the issuance of land secured bonds, with each parcel encumbered with an annual assessment for its propoRionate share of the public improvements. These annual assessments would then be paid by the Developer using funds rebated by the City/Agency from a portion of the property tax increment from the project. When the first major user (Ashley Furniture) declined to accept the assessment liens on the property and instead paid cash for its share of the public improvements, this financing approach was no longer a feasible option Seeking alternative financing methods, the City submitted and was subsequently awarded, in May 2001, a$1 million EDA grant to help fund a poRion of the public improvements. The EDA Grant requires that the City/Agency match the $1 million grant with approximately $13 million, the remaining estimated cost of EDA eligible costs submitted under the grant application. To fund this match, the Agency adopted resolution 790 on November 6, 2001 authorizing the submittal of a loan application to the State of California lnfrastructure and Economic Development Bank (the "CIEDB"). The CIEDB approved the Agency's loan request on April 30, 2002. R:AMeetings�2003 MeetingsWanuary 7, 2003VCIEDB Loan Approval_doc