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HomeMy WebLinkAboutCC RESO 14,059C RESOLUTION NO. 14, 059 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA AUTHORIZING EXECUTION OF AN AGREEMENT FOR LOAN AND REPAYMENT WITH THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY FOR THE NATIONAL CITY DOWNTOWN REDEVELOPMENT PROJECT WHEREAS, the Community Development Commission, in its capacity as Redevelopment Agency, is in need of a loan for project operations; and WHEREAS, the City desires to assist the Commission in such need; and WHEREAS, the California Community Redevelopment Law authorizes the City to make a loan to the Commission; and WHEREAS, an Agreement for Loan and Repayment and a Promissory Note have been prepared for said Loan; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute, on behalf of the City, an Agreement for Loan and Repayment with the Community Development Commission of the City of National City for the National City Downtown Redevelopment Project in the amount of $600,000. PASSED AND ADOPTED this 14th day of June, 1983. ATTEST: Ion" Campbell, Ci' Clerk Kile Morgan, Mayor AGREEMENT FOR LOAN AND REPAYMENT NATIONAL CITY DOWNTOWN REDEVELOPMENT PROJECT THIS AGREEMENT entered into as of this 14th day of June, 1983, by and between the City of National City, California, a municipal corporation, hereinafter called "City", and the Community Development Commission of the City of National City, California, hereinafter called "Commission"; and WHEREAS, the Commission has a need for funding certain redevelopment activities in the National City Downtown Redevelopment Project adopted by City Council Ordinance No. 1762 on December 1, 1981; and WHEREAS, the City desires to assist the Commission in such need; and WHEREAS, the California Community Redevelopment Law authorizes the City to make a loan to the Commission. NOW, THEREFORE, BE IT RESOLVED, that the parties hereto do mutually agree as follows: 1. AMOUNT OF LOAN: The City agrees to loan the Commission an amount not to exceed $600,000. Said loan shall be in addition to any and all amounts heretofore loaned to the Commission. 2. DISBURSEMENT OF LOAN PROCEEDS: The City agrees to disburse loan proceeds to the Commission upon receipt of a request in writing from the Commission. The Commission agrees to use such proceeds only for the purposes provided for in State law and in connection with the National City Downtown Redevelop- ment Project. 3. INTEREST: The Commission agrees to pay the City interest on funds borrowed at the time of the repayment of the loan. The interest shall be seven percent (7%) per year and calculated upon the amount of funds actually borrowed from the date borrowed to the date paid. 4. REPAYMENT: The Commission agrees to repay any and all funds borrowed as soon as possible but not later than June 30, 1984. IN WITNESS WHEREOF the Commission and the City have executed this Agreement as of the date first above written. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, a municipal corporation CITY OF NATIONAL CITY, CALIFORNIA Kile Morgan, C airman Kile Morgan, 'ayor ATTEST: ATTEST: Arnold A. Peterson, Secretary Ion e Campbell, City74lerk Approved as to legal form and adequacy: Approved as to legal form and adequacy: Donald F. McLean, Jr., Commission Donald F. McLean, Jr., City Attorney June 14, 1983 PROMISSORY NOTE $600,000 National City Downtown Redevelopment Project The Community Development Commission of the City of National City, California, hereinafter called "Commission" for value received, promises to pay to the City of National City, California, a municipal corporation, hereinafter called "City" the sum of $600,000 with interest, as spelled out in the loan agreement for the National City Downtown Redevelopment Project dated June 14, 1983 until paid with said $600,000 plus said interest to be paid not later than June 30, 1984. This Promissory Note is executed in compliance with and is intended to incorporate all terms and conditions of that certain "Agreement for Loan and Repayment, National City Downtown Redevelopment Project", entered into the 14th day of June, 1983. Approved as to form: Donald F. McLean, Jr., Counsel COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA Kile MYrgan,Chama ATTEST: Arnold A. Peterson, Secretary