1994 AGN AUG 16 I18 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of August 16, 1994 TO: Honorable Mayor and City Council FROM: Hani W. Gabriel, Economic Development Director flw(� SUBJECT: CONSIDERATION AND ADOPTION OF A RESOLUTION APPROVING Date: August 16, 1994 A LOAN TO THE REDEVELOPMENT AGENCY AND AUTHORIZING THE MAYOR TO EXECUTE THE LOAN AGREEMENT FOR PREPARATION OF A FEASIBILITY STUDY AND PLAN FOR THE PROPOSED LA CADENA CORRIDOR REDEVELOPMENT PROJECT AREA Background At its meeting of August 2, 1994, the Redevelopment Agency authorized the expenditure of $5,000 to conduct a feasibility study for the future preparation of a new redevelopment project area (La Cadena Corridor Redevelopment Project Area). The study will include all remaining non-residential, non -redevelopment designated parcels which appear to meet both the definition of blight and the 80% urbanization requirement of the Community Redevelopment Law. To formalize the expenditure of funds, it is necessary that the City Council approve a long-term loan to the Redevelopment Agency to finance the feasibility study. Discussion The loan, not to exceed $5,000, is from the City's Electric Utility Fund. Loan terms require that the loan be repaid in full to the City within five (5) years from the receipt of the loan funds. Loan repayment is from future tax increment revenues generated from the newly -created La Cadena Corridor Redevelopment Project Area. Financial Impact Once the feasibillity study is complete and upon authorization to commence an actual project formation study, the Redevelopment Agency will return with an amended loan agreement requesting an additional $145,000 to finance the formation study. The new 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. However, if the actual project formation study is not authorized, or should the project area formation process not be successful, the A( ency will not have the ability to repay any loan proceeds. Recommendation Staff recommends adoption of the attached Resolution approving the Agreement for Loan and Repayment for $5,000 from the City's Electric Utility Fund for preparation of a feasibility study for the proposed La Cadena Corridor Redevelopment Project Area. Report prepared by "Iendy Jo Holland, Project Manager Concurrence: Cit a ger Attachments: Resolution Exhibit "A" Agreement for Loan and Repayment Page 1 of 1 Item No.� Ish:\wpwin\admin\meeting\coun08l 6/rpt August 10, 1994