2005 AGN SEP 06 I27 - Laserfiche WebLink

Browse Search

ITEM #27 COLTON UTILITY AUTHORITY AND REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the Meeting of September 6, 2005 TO: Honorable President and Boardmembers Honorable Chairperson and Boardmembers FROM: Candace E. Cassel, Economic Development Director SUBJECT: Consideration and Approval of Colton Utility A ' Resolution No. CUA 2005-02 and Agency Resolution No. 846 which Authorizes a Redevelopment Cooperation Loan from the Colton Utility Authority to the Redevelopment Agency for the City of Colton. DATE: August 25, 2005 BACKGROUND/DISCUSSION On June 6, 1986, the Redevelopment Agency adopted Ordinance 0-10-86, which established the West Valley Redevelopment Project Area. On August 7, 2001 the Agency Board adopted Resolution No. 788 which directed staff to negotiate a real estate option agreement for certain properties located at the northeast corner of Valley Blvd. and Meridian for the development of a Big League Dreams Sports Park. While the City of Colton was the principal sponsor of the project, the Agency completed the land acquisitions on behalf of the project. The City loaned the Agency the funds necessary to acquire the property. On August 21, 2001 the Council adopted Resolution R-84-01 approving a Cooperation Loan Agreement between the Redevelopment Agency and the City of Colton for the purchase of the above described property. Subsequently, on May 21, 2002 the Agency Board adopted Resolution No. 800 wherein the Agency approved the Cooperation Loan Agreement with the City to pay for the purchase of said property effectuating a loan from the City in the amount of $2,073,000. The Agency closed escrow on the 9.1 acres, formerly known as the Frontiertown property, on January 30, 2002. As part of its due diligence efforts, the Agency commissioned a second year protocol study for the Delhi Sands Flower Loving Fly in August 2002. The biologist conducting the study observed the endangered species on the property. As a result, development of the Big League Dreams Sports complex was transferred to another location in the City. In February 2005, Fish and Wildlife completed its Section 7 Consultation on the property and the Agency issued an RFP for the development of the property. Unfortunately, given the obstacles the Agency has had to overcome to develop and sell the property, it has not been able to repay the City loan for acquisition of the property in a timelier manner. Therefore, in order to repay the City, the Agency is requesting a loan from the Colton Utility Authority. The loan date will be effective as of June 30, 2005. R: Adiulnistration Meet in'-sv200>-\41"I'l`IN( S,Scptc mbcr O. 2005 rater Loan Stal'I' Report 090005.cloc