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HomeMy WebLinkAbout18125 - RESOLUTIONS - 6/23/1993 RESOLUTION NO. 18125 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A LOAN TO THE VALLEY PLAYERS GUILD FROM THE DOWNTOWN PROPERTY IMPROVEMENT PROGRAM IN THE AMOUNT OF $25, 000 AT 6% INTEREST TO BE REPAID WITHIN 36 MONTHS. ---------------------- WHEREAS, The City Council has established and funded the Downtown Property Improvement Program for the purpose of making low-interest loans to downtown tenants or property owners, in order to encourage exterior property improvements and the revitalization of Downtown Palm Springs; and WHEREAS, the Valley Players Guild, as a tenant;, and the Desert Fashion Plaza, as a landlord, are working together to develop an outdoor garden amphitheater as .a new and expanded facility for the Palm Springs Playhouse; and WHEREAS, the Valley Players Guild has submitted an application to the City for a $25, 000 loan at 6e interest to be repaid within 36 months, as provided for in the Downtown Property Improvement Program; and WHEREAS, the loan application to the City meets the criteria for a Tenant Improvement. Loan, except that it exceeds the $5, 000 current limit for the principal amount and, therefore, requires City Council action; and WHEREAS, the Valley Players Guild is to receive rent concessions and financial assistance from the Desert Fashion Plaza (DeBartolo Corporation) and owns theater equipment, the combination of which can be used to secure the City loan; and WHEREAS, the Valley Players Guild has a 30-year operating history in Palm Springs and has submitted a Business Plan, which shows the ability to repay the loan from the City within the terms of the proposed loan agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Springs as follows: SECTION 1. That a loan in the principal amount of $25, 000, at an annual interest rate of 6% , to the: Valley Players Guild from funds available in the Downtown Property Improvement Program account is hereby approved. SECTION 2 . That the loan is to be repaid in 36 equal monthly payments of $760.55 each, allowing for early pay- off without penalties. SECTION 3 . That the loan documents, in a form approved by the City Attorney, provide that the :Loan is secured by equipment liens and assignment of the: Valley Players Guild leasehold interest at the Desert Fashion Plaza. ADOPTED this 23rd day of June , 1993 . AYES, Members Hodges, Lyons, Reller-Spurgin, Schlendorf and Mayor Maryanov None ABSENT: None ATTEST: CITY�F P SP NG�, ALIFORNIA By - • City Clerk City M ager REVIEWED & APPROVEDF^-- _