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CITY OF COLTON <br />AGENDA REPORT <br />For Council Meeting of March 3 , 1992 <br />TO: Honorable Mayor and City Council <br />FROM: City Attorney <br />SUBJECT: Date: 2/26/92 <br />Agreement Of Indebtedness/ <br />Price Club/RDA <br />The Redevelopment Agency for the City of Colton has been allocated a <br />portion of the sales and use taxes that would otherwise have been paid to the City arising <br />from business and other activities generated by the Price Club project which is within the <br />West Valley Redevelopment Plan area. The purpose of this allocation of sales and use taxes <br />to the Agency is to enable the Agency to repay certain loans from the Price Company to the <br />Agency for redevelopment purposes. <br />That allocation of sales and use taxes from the City to the Agency is properly <br />subject to repayment to the City from other revenue sources available to the Agency. As <br />such, the attached agreement has been prepared acknowledging the indebtedness from the <br />Agency to the City for the sales and use tax allocation. That agreement . provides for <br />repayment to the City over time with interest at the rate of 8.5% as funds become available <br />to the Agency for such repayment. <br />The effect of this agreement will be to permit the Agency to reimburse the <br />City's general fund from other revenue sources for sales and use taxes that would otherwise <br />be available to the City. Such revenue sources include tax increment generated by the <br />JH897211 Item No. C 3 <br />A; <br />FILE NO— .................._,� <br />