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Home My WebLink About96-52 loan and proceduresRESOLUTION NO. ~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING LOAN AGREEMENT B~EEN THE UKIAH REDEVELOPMENT AGENCY AND THE CITY OF UKIAH WHEREAS, the Ukiah Redevelopment Agency (Agency) was established by the Uklah City Council (City) in 1974, and adopted a Redevelopment Plan in 1989; and WHEREAS, the Uklah Redevelopment Agency performs duties and carries out plans and programs beneficial to the City and its environs; and WHEREAS, the City acknowledges the positive benefits of the Agency and desires that it remain a viable entity; and WHEREAS, the Agency, like all Redevelopment Agencies, must operate in a debt situation, precluding unencumbered fund balances; and WHEREAS, both the Agency and the City wish to formalize the loan procedures between the two parties. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Uklah that the Loan Agreement between the City of Ukiah and the Uklah Redevelopment Agency, attached hereto as Exhibit "A," is approved, and the Mayor is authorized to execute same. PASSED AND ADOPTED this 3rd day of April, 1996, by the following roll call vote: AYES: Councilmembers Mastin, Malone, Shoemaker, and Chairman Schneiter NOES: ABSENT: ABSTAIN: Councilmember Wattenburger None None ~atl~y~/~C K(~Y, ~/~ Clerk 4/Res: Loan Fred Schneiter, Mayor LOAN AGREEMENT BETWEEN THE UKIAH REDEVELOPMENT AGENCY THE CITY OF UKIAH This Agreement is made and entered in Ukiah, California, on /~-~J~ , 1996, by and between the City of Ukiah ("City") and the Ukiah '~edevelopment Agency ("Agency"), effective as of January 1, 1987. RECITALS' 1. City first formed the Agency in 1974. 2. In 1983 the City began to consider adopting a Redevelop-ment Plan. 3. Beginning in 1987 the Agency retained professional consultants to advise and assist it in the development of a redevelopment plan and associated documents, including environmental documents. These consultants included the law firm of McDonough, Holland and Allen, the planning firms of Wurster, Bernardi & Emmons, Inc., and John B. Dykstra & Associates as well as financial consultants. 4. In addition, the Agency incurred additional legal and administrative expenses in the course of developing and implementing its redevelopment plan. 5. The City has advanced funds to the Agency for all of these purposes periodically since February, 1983. 6. Not later than October 1 of each year, the Agency has filed annual statements of indebtedness with the County Auditor pursuant to the Health & Safety Code ~33675. 7. Periodically, the City will be required to advance funds to the Agency in the future for administrative and other expenses of the Agency. 8. Ail of these advances to the Agency were made as loans which the Agency is required to repay pursuant to resolutions of the City and the Agency. 9. The purpose of this Agreement is to memorialize the terms under which the City has and will loan funds to the Agency for costs of developing, implementing, revising and administering the redevelopment plan. AGREEMENT' In consideration of the above-recited facts and on the terms and conditions as further stated herein, the parties hereby agree as follows- 1. REPAYMENT OF PAST LOANS. To and including June 30, 1996, the City has or will have loaned the Agency for the development, implementation and administration of the Ukiah Redevelopment Plan, amounts as set forth in the attached Exhibit A which is incorporated herein by reference. The total amount of said loan equals $1,577,205.52 ("Loan Amount"). The Loan Amount is comprised of the following: TABLE I Date of Advance Amount Interest Rate Desiqnation 2/2/83 - 1/3/87 Fy 91/92 - 3/29/96 $ 152,110.00~ $1,379,331.522 10% Adjust. "Audited Loan" "Budget Deficit Loan" 3/5/96 - 6/30/96 $ 45,764.004 Adjust. "Projected Deficit Loan" Agency agrees to repay the Loan Amount as further provided in this paragraph. 1.1 Upon demand of the City, Agency shall repay all or part of the outstanding balance of the Loan Amount; provided, however, that the Agency shall only be obligated to repay the Loan Amount from unencumbered tax increment revenues actually available to the Agency and not required by the Agency to satisfy legally binding financial commitments arising prior to a demand for repayment by the City. 1.2 From the date of advance through June 30, 1996, the Agency shall pay annual interest on the Audited Loan, Budget Deficit Loan and Projected Deficit Loan at the interest rates stated in Table I, compounded annually. The Loan Amount already includes accrued interest at these rates to the dates stated in footnotes 1-2 and 4 of paragraph 1. After June 30, 1996, the Includes interest through 6/30/96 2 Includes accrued interest through March 5, 1996 Adjustable rate equal to the average interest rate earned by City on all its invested funds. 4 Includes accrued interest through June 30, 1996 s: \u\agrmt s 96\rda. In March 29, 1996 2 Agency shall pay annual interest on the entire unpaid balance of the Loan Amount, including accrued but unpaid interest at the rate of 6%, compounded annually. 1.3 The Agency shall continue to make payments on demand as provided in this paragraph until the total outstanding balance of the Loan Amount and accrued interest is paid in full. 2. REPAYMENT OF FUTURE BUDGETED LOANS. On and after June 30, 1996, the Agency may request the City to budget additional amounts to loan the Agency pursuant to the terms of this paragraph. 2.1 On or before May 15 of each year, the Agency may submit a request to the City to budget an amount of funds to loan the Agency for costs of revising, implementing and administering the redevelopment plan or performing a public function of the community. These purposes can include costs of City supplied personnel, equipment, overhead and supplies, costs associated with the officers and employees of the Agency, costs of outside contractors and consultants, and costs associated with the purchase of real or personal property. All amounts budgeted shall be a loan from the City to the Agency ("Budgeted Loan") which the Agency shall repay pursuant to the terms of this paragraph. 2.2 In addition to Budgeted Loans requested pursuant to paragraph 2.1, the Agency make request the City to budget additional amounts at any time for the purposes stated in paragraph 2.1. Any additional amounts so budgeted by the City shall also be considered Budgeted Loans subject to the terms of this paragraph 2. 2.3 Upon demand of the City, Agency shall repay all or part of the outstanding balance of the Budgeted Loan; provided, however, that the Agency shall only be obligated to repay the Budgeted Loan from unencumbered tax increment revenues actually available to the Agency and not required by the Agency to satisfy legally binding financial commitments arising prior to a demand for repayment by the City. 2.4 From the date of each advance of a Budgeted Loan to the Agency, the Agency shall pay annual interest on the entire unpaid balance of the Budgeted Loan, including accrued but unpaid interest, at the rate of 6%, compounded annually. 2.5 The Agency shall continue to make payments on demand as provided in this paragraph until the total outstanding balance of the Budgeted Loan and accrued interest are paid in full. 3. FINANCIAL REPORTS REQUIRED. As long as a Loan Amount, Budgeted Loan or accrued interest remain unpaid, Agency shall file annual financial statements with the City of all revenues and expenditures. s:\u\agrmts96\rda.ln March 29, 1996 3 4. AGENCY ADMINISTRATIVE FUND. Ail money loaned to Agency under this Agreement shall be kept by the treasury of the City in a special fund to be known as the "Ukiah Community Redevelopment Agency Administrative Fund" and money shall be drawn from the fund to meet the administrative and other approved expenses of the Agency in substantially the same manner as money is drawn by other departments and agencies of the City subject to budgetary control. 5. SUBORDINATION. The Agency's pledge of tax increment revenues and its obligation to repay the Loan Amount, a Budgeted Loan or accrued interest under the terms of this Agreement is subordinate to its pledge of tax increments for tax allocation bonds or other long-term indebtedness the Agency incurs to carry out a project. 6. SEVERABILITY. If any provision of the Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way. 7. INTEGRATION. This Agreement contains the entire agreement among the parties and supersedes all prior and contemporaneous oral and written agreements, understandings, and representations among the parties. No amendments to this Agreement shall be binding unless executed in writing by all of the parties. 8. WAIVER. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. 9. NOTICES. Whenever notice, payment or other communication is required or permitted under this Agreement it shall be deemed to have been given when personally delivered or when deposited in the United Sates mail with proper first class postage affixed thereto and addressed as follows: AGENCY CITY Executive Director Ukiah Civic Center 300 Seminary Ave. Ukiah, CA. 95482 City Manager Ukiah Civic Center 300 Seminary Ave. Ukiah, CA. 95482 10. PARAGRAPH HEADINGS. The paragraph headings contained herein are for convenience and reference only and are not intended to define or limit the scope of this agreement. s:\u\agrmts96\rda.ln March 29, 1996 4 11. DUPLICATE ORIGINALS. This Agreement may be executed in one or more duplicate originals bearing the original signature of both parties and when so executed any such duplicate original shall be admissible as proof of the existence and terms of the Agreement between the parties. WHEREFORE, the parties have entered this Agreement on the date first written above. CITY OF UKIAH Fred Schneiter, Mayor rk UKIAH REDEVELOPMENT AGENCY eiter~ Chairman ATTEST- K~reh Yoast, ¢" ~ s:\u\agrmts96\rda.ln March 29, 1996 EXHIBIT A RDA BORROWING Accumulated Balance Principal Interestto 6/30/95 Due 2/2/83 10,000.00 12,333.00 22,333.00 5/15/85 15,000.00 15,193.00 30,193.00 1/3/87 50,000.00 42,084.00 92,084.00 Audited balance 6/30/95 75,000.00 69,610.00 144,610.00 Interest 7/1/95 - 3/31/96 5,625.00 150,235.00 Interest 4/1/96 - 6/30/96 1,875.00 1 $2,1 '10.00 I Interest 7/1/96-6/30/97 7,500.00 159,610.00 I CASH FLOW DEFICIT DEBT SUMMARY Operating Cap. Project Original Combined Fund 960 Fund 965 Loans * Total Prior to FY 91/92 (34,060.73) (114,610.00) (148,670.73) FY 1991/92 (176,211.84) (7,500.00) (183,711.84) FY 1992/93 (21,696.99) (7,500.00) (29,196.99) FY 1993/94 (167,514.30) (7,500.00) (175,014.30) FY 1994/95 (585,542.46) (7,500.00) (593,042.46) FY 1995/96 YTD (204,178.29) (190,126.91) (5,625.00) (399,930.20) FY 1996 Projected to Apr- Jun 140,800.00 (186,564.00) (1,875.00) (47,639.00) TOTAL at June 30, 1996 (1,048,404.61)I (376,690.91) (152,110.00) (1,S77,20S.S2) IFY 1996/97 Projected I (20,595.39) (70,309.09)1 TOTAL (2,117,404.61) (823,690.91) (9,126.60) (100,031.08)1 (313,346.60)I (1,677,236.60)I Total debt, pre-existing loan (Principal & accrued interest), as of June 30, 1996 Total debt (Budget Deficit) incurred to March 29, 1996 Projected debt to be incurred to June 30, 1996 TOTAL Projected debt to be incurred in FY 1996/97 TOTAL * Includes accrued interest ** Includes $77,110 of accrued interest. (152,110.00) (1,379,331.52) (45,764.00) ,577,205.52) (100,031.08) (1,677,236.60) DEBTSUM.XLS 3/29/96 Page 1 April 3, 1996 Agenda