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HomeMy WebLinkAboutCC RESO 13,066RESOLUTION NO. 13,066 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA AUTHORIZING AND ALLOCATING $96,000 FOR A LOAN TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA FOR THE CENTER CITY PROJECT, NATIONAL CITY, CALIFORNIA WHEREAS, the Community Development Commission of the City of National City is the owner of streets, drainage facilities and other public works which were recently built by R.E. Hazard Contracting Company, San Diego, California, and WHEREAS, the Community Development Commission needs $96,000 loan to solve its cash flow problem in connection with the final payment to R.E. Hazard for con- struction of said improvements; and WHEREAS, the Community Development Commission has a feasible method of repayment for such loan, namely the proceeds from the sale of the Elizur-Steele, Crandall, Ennis House and the Proctor House located within the Center City Project; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that it hereby allocates and appropriates $96,000 to be loaned to the Community Develop- ment Commission of the City of National City for the period June 20, 1979 to September 20, 1979, at an interest rate of 8% per a num. PASSED AND ADOPTED this 19th day of June, 1979. ATTEST: IONE CAMPBELL Ione Campbell, City Clerk BY: DEPUTY CITY CLERK Kile Morgan, Mayor AGREEMENT FOR LOAN AND REPAYMENT CITY OF NATIONAL CITY, CALIFORNIA AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA THIS AGREEMENT entered into as of this 19th day of June, 1979, by and between the CITY OF NATIONAL CITY, CALIFORNIA, a municipal corporation, herein- after 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 $96,000 to pay R. E. Hazard Contracting Company, San Diego, California for public works completed by Hazard within the area bounded by llth Street, 15th Street, "D" Avenue and "G" Avenue, Center City Redevelopment Project, National City, California; and WHEREAS, the Commission will be able to repay said $96,000 with funds in the following amounts and from the following sources: (1) Sale of Proctor House, 939 "A" Avenue $ 80,500. (2) Sale of Elizur-Steele, Crandall Ennis House, 907 "A" Avenue 95,000: $175,500; 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 $96,000. 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 execution of this Agreement. The Commission agrees to use such proceeds only for the pruposes provided for in State law and in connection with payment of $96,000 to the R. E. Hazard Contracting Company, San Diego, California. 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 eight (8) percent per year and calculated upon $96,000 borrowed from the date borrowed to the date paid. 4. REPAYMENT: The Commission agrees to repay said $96,000 as soon as possible but not later than September 20, 1979. 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, CALIFORNIA By ' ;%� Kile Morgan,bChairman ATTEST: Arnold A. Peterson, Secretary Approved as to legal form and adequacy: nal'd F.A%tear, Jr. City and Community Development &ommission Legal Counsel CITY OF NATIONAL CITY, a municipal corporation By 7 Ki l e M`organ, Mayor ATTEST: Ione Campbell Ione Campbell, City Clerk By: Muriel Kulikowski, Acting City Clerk PROMISSORY NOTE $96,000 Public Works llth-15th, "D" Ave. "G" Ave. National City, California 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 $96,000 with interest, as spelled out in the loan agreement between the City of National City and the Community Development Commission of the City of National City dated June 19, 1979 until paid with said $96,000 plus said interest to be paid not later than September 20, 1979. This Promissory Note is executed in compliance with and is intended to in- corporate all terms and conditions of that certain "Agreement for Loan and Repayment, City of National City and Community Development Commission of the City of National City" entered into the 19th day of June, 1979 by Commission and City. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA Kiie Morgan, Chairman ATTEST: _ nold A. Peterson, Secretary proved as to form: Donald F. McLean, Jr., Counsel