HomeMy WebLinkAbout00397C - CRA PROMISSORY NOTE FINANCING AGR r, CRA - Financing Agr &
Promissory Note
AGREEMENT #397C - R19673, #4169
R1086, 10-20-99
FINANCING AGREEMENT AND PROMISSORY -yu.rn; — - -
THIS FINANCING AGREEMENT W PROMISSO&Y NpTE ("Agreement")
made and entered into this day of �(� L� , 19"'LLs
("Effective Date") , by and between the CITY OF PALM SPRINGS
("City") , and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
PALM SPRINGS ("Agency") .
R E C I T A L S
A. city is a municipal corporation and a charter city of the
State of California.
B. Agency is a public body, corporate and politic, organized
and existing under the California Community Redevelopment Law
(Health & Safety Code §33000 et seq. ("CRL") .
C. City is authorized by the CRL to provide financial
assistance to the Agency, including in the form of a loan, and
Agency is authorized by the CRL to obtain loans from the City.
D. City and Agency mutually desire to enter into this
Agreement to effect a loan from the City to the Agency on the terms
hereinafter provided.
NOW, THEREFORE, in consideration of the mutual covenants and
promises hereinafter contained, and for good and valuable
consideration, the sufficiency and receipt of which are hereby
acknowledge, City and Agency agree as follows:
1. City Loan; Interest Rate. City hereby loans to Agency
the principal amount of SIXTY THOUSAND Dollars ($60, 000. 00) ("Loan
Principal") . Interest shall accrue on the outstanding Loan
Principal at the rate of six percent (6%) per annum from and after
the Effective Date. Interest shall be compounded annually.
2 . Agency Repayment. The Loan Principal and accrued
interest shall be repaid by Agency out of tax increment funds
allocated to and received by Agency. Agency shall make such
repayment (s) when feasible in the sole discretion of Agency;
provided, however, that the outstanding principal balance and
accrued interest shall be repaid in full no later than June 30,
2002 . All amount due shall be payable at the office of City at
3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262 , or at such
other address as City may designate to Agency.
3 . Indebtedness of Agency. The Loan Principal and accrued
interest described in this Agreement shall constitute an
indebtedness of Agency.
4 . Subordination. The repayment of Loan Principal and
accrued interest by Agency shall be junior and subordinate to (i)
394/014084-0006/3034575.1 .09/26/99 CRa. 3
all Agency tax allocation bonds or other direct long-term
indebtedness of Agency, (ii) all pledges by Agency of tax
increments for tax allocation bonds or other direct long-term
indebtedness of Agency, (iii) Agency financing agreements and other
contractual obligations of Agency whether entered into prior to or
after the Effective Date hereof, (iv) any contingent obligations of
Agency, and (v) all statutorily required or imposed payments,
repayments, charges, fees, penalties, and the like.
5 . Non-Recourse Obligation. No officer, official, member,
employee, agent, or representative of Agency shall be liable for
any amounts due hereunder, and no judgment or execution thereon
entered in any action hereon shall be personally enforced against
such officer, official, member, employee, agent, or representative.
6. Entire Agreement• Amendment. This Agreement shall
constitute the entire agreement of the parties with respect to the
subject matter hereof. This Agreement may be amended or modified
only by an agreement in writing signed by the parties after
authorization by the parties ' respective governing bodies as may be
required by law.
[end - signature page follows]
394/014084-0006/3034575.1 a09/28/99 -2-
IN WITNESS WHEREOF, the parties hereto have entered into this
Agreement as of the date first above written.
"CITY"
CITY
11O'F`,PALM fSPRINGS
By:
�M�+ --b y
Mayor
ATTEST:
APPROVED BY THE BYRES. NO. CITY COUNCIL
�j i�
City Clerk
APPROVED AS TO FORM
City Attorney
"AGENCY"
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
By: ,
Chairman
ATTEST: (�
Ali -C'vQVEU it lYHE COMMUNIYY REDEVr,
Assistant Secretary AGENCY BY RES. NO./
APPROVED AS TO FORM / 39
�e e G tz- ,�
Agency Counsel
394/014084-0006/30345/5.1 .09/26/99 -3- c `Ct - 5