2002 AGN AUG 21 I13 - Laserfiche WebLink

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REDEVELOPMENT AGENCY FOR THE Item #13 CITY OF COLTON For the City Council Meeting of August 21, 2001 TO: Honorable Mayor and City Councilmembers FROM: Robb Steel, Redevelopment Direct A SUBJECT: Consideration and Approval of a Resolution Approving a Redevelopment Cooperation Loan Agreement by and between the City of Colton and the Redevelopment Agency for the Purchase of Property Adjacent to and Within the West Valley Redevelopment Project Area (Sports Park Project). DATE: August 13, 2001 Background The City Council and Redevelopment Agency have directed staff to negotiate real estate option agreements for certain properties proposed for development of a sports park complex. The subject properties are either within or immediately adjacent to the West Valley Redevelopment Project Area. While the City of Colton principally sponsors the project, the Agency has been asked to complete the land acquisitions on behalf of the project. Because the West Valley Project Area does not have the financial resources to acquire the subject properties, a loan from the City of Colton is needed to fulfill the purchase obligations. By entering into the loan agreement, the Agency is able to conduct due diligence investigations, make initial purchase deposits, and eventually acquire the properties. It will also enable the Agency to repay the City at a later date as financial resources permit. Discussion/Analysis The Redevelopment Cooperation Loan Agreement is attached hereto as Exhibit A. The Agreement basically provides that the City of Colton will advance funds necessary for the Agency to undertake the land acquisitions contemplated for the sports park project. The Agency will repay the loans with 7% interest if and when the West Valley Redevelopment Project Area has sufficient financial resources. The maximum loan from the City of Colton is contemplated to be $5,120,000. This includes predevelopment expenses, on- site land purchases, off-site land purchases, and contingency allowances. Any land sales proceeds will first be used by the Agency to reduce the outstanding debt to the City.