1993 AGN AUG 03 I10 - Laserfiche WebLink

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City Council for the City of Colton Agenda Report To: Mayor and City Council From: Hani Gabriel, Acting Economic Development Director Date: August 3, 1993 Subject: RESOLUTION APPROVING CITY LOAN FOR PREPARATION OF NEW REDEVELOPMENT PROJECT AREA AND PLAN (RANCHO/MILL REDEVELOPMENT PROJECT AREA) Background At its Regular Meeting of July 20, 1993, the Redevelopment Agency approved a long-term loan from the City in the amount of $150,000 to finance the preparation of a new redevelopment project area. To formalize this transaction, itis necessary that the City Council adopt the attached Resolution approving the Loan and Repayment Agreement .(Exhibit "A"). Discussion The loan, not to exceed $150,000, is from the City's Traffic Development Fees. The Agency has been contributing $640,000 in Traffic Development Fees to the City over the past two years in compliance with the Disposition and Development Agreement with Gatlin/Berger Development (Wal-Mart). Loan terms require that the loan be repaid in full to the City within three (3) years from the receipt of the loan funds, including four and one-half percent (4.5%) interest per annum. Loan repayment is from future tax increment revenues generated from the newly -created. Rancho/Mill Redevelopment Project Area. Financial Imnact The project area, once created, and as proven historically, will;not produce any significant revenue to the Agency for the first three to five years to begin 'repaying the loan. The new project area may also have to rely on future debt from other sources during that period to finance administrative costs and project activities. Recommendation Staff recommends adoption of the attached Resolution approving the Agreement for Loan and Repayment for $150,000 from the City's Traffic Development Fees. Report prepared by: Wendy Jo Holland,Project Manager Attachment: Resolution Exhibit "A" Agreement for Loan and Repayment ConcurroTce: T , City Ml�piag lshdwpw in\m"tinp\counc83.rp 1 July 27, 1993 its ' 1V