1999 AGN MAR 16 I14 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For the City Council Meeting of March 16, 1999 TO: Honorable Mayor and City Councilmembers APPROVAL: Henry Garcia, City Manag 41 FROM: Robb Steel, Redevelopment Director SUBJECT: Consideration and Approval of Resolution Approving Redevelopment Cooperation Loan Agreement by and Between the Redevelopment Agency for the City of Colton and the City of Colton Related to the Community Reinvestment Loan to the Agency. DATE: March 8, 1999 Background On March 2, 1999 the Agency Board approved the loan documents related to funding of a loan principally secured by the MAP portfolio. To ensure timely repayment in the event that the cashflow from the MAP portfolio and other Agency resources are insufficient, CRF requested a pledge from the City of Colton. Because the City cannot legally enter into long term debt contracts, this pledge must be represented by an agreement between the City and the Agency to loan the necessary funds to make the monthly debt service payments. This loan would be predicated upon the City of Colton making an annual appropriation as part of its budget process. Discussion The Agency does not anticipate having to call upon the City to make any advances under the subject reimbursement agreement but it is a condition of loan closing that both parties approve the reimbursement agreement. The Agency has pledged revenue from the MAP portfolio, the Rancho Mill project area, and the'low/mod fund before it would need to consider a City loan. In the event that an advance is made, the Agency has agreed to repay it with seven percent interest. The anticipated closing date on this loan is on or before March 30, 1999. Environmental Impact Not Applicable. Item # 14