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HomeMy WebLinkAbout00356C - CRA LOAN VINEYARD PARKING LOT IMPROVEMENT Loan Agreement btwn CRA & City - Parking Lot Improve Adjacent to "The Vineyard" AGREEMENT #356C R985, 9 6-95 LOAN AGREEMENT --- This LOAN AGREEMENT (herein referred to as the "Loan Agreement"), made and entered into as of June 21, 1995, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body corporate and politic duly organized and existing under the laws of the State of California (the "Agency"), and the CITY OF PALM SPRINGS, a municipal corporation organized and existing under the laws of the State of California (the "City"). WITNESSETH: WHEREAS, the Agency is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Redevelopment Law"), and has the power under Section 33601 of the Redevelopment Law to borrow money for any of its corporate purposes; and WHEREAS, the Agency has determined to borrow amounts hereunder for the purpose of raising fiords to assist in the financing of public capital improvements related to the Central Business District Project Area; and WHEREAS; in order to establish and declare the terms and conditions upon which the Loan is to be made and secured, the Agency and the City wish to enter into this Loan Agreement; and WHEREAS, all acts and proceedings required by law necessary to make this Loan Agreement, when executed by the Agency, and the City, the valid, binding and legal obligations of the Agency and the City, and to constitute this Loan Agreement a valid and binding Agreement-for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution and delivery of this Loan agreement have been in all respects duly authorized; NOW THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto do hereby agree as follows: ARTICLE I THE LOAN: ESTABLISHMENT OF FUNDS Section 1.01. Authorization. The City hereby agrees to loan to the Agency the principal amount of NINETEEN THOUSAND DOLLARS ($19,000.00), for use in making improvements to the Agency-owned parking lot adjacent to "The Vineyard" commercial center located within the Central Business District Project Area, under and subject to the terms of this Loan Agreement (the "Loan"). This Loan Agreement constitutes a continuing agreement with the Agency to secure the full and final payment of this Loan, subject to the covenants, agreements, provisions and conditions herein contained. -1- Section 1.02. Terms of the Loan. The Loan shall be paid in one installment of principal and interest (the "Loan Payment") on the expiration date of the Redevelopment Plan for the Central Business District Project Area, or on any prior date without premium or penalty upon the election of the Agency in the principal amount of $19,000.00. Interest shall be calculated at the simple rate of 6.00% per annum. Interest on each installment of the principal of the Loan will be calculated on the basis of a 360-day year of twelve 30-day months. Any installment of principal and interest which is not paid when due will continue to accrue interest from and including the Interest Payment Date with respect to which such principal or interest is payable to but not including the date of actual payment. Loan Payments shall be payable by the Agency to the City in immediately available funds which constitute lawful money of the United States of America. Section 1.03. Loan Subro ag tion. The obligation of the Agency to make the Loan Payment is, and shall be, subordinate to all pre-existing and future bonded indebtedness of the Agency and the Agency is not required to make any Loan Payment hereunder unless there exists, within the Central Business District Project Area, sufficient surplus tax increment after all other legal obligations and debts of the Agency have been applied to repay the Loan from the Central Business District Project Area in the amount, plus interest, specified in Section 1.02 above. ARTICLE II LOAN EVENTS OF DEFAULT AND REMEDIES Section 2.01. Loan Events of Default and Acceleration of Maturities. The following events will constitute Events of Default under the Loan Agreement: (a) Failure by the Agency to pay the principal or interest on the Loan made hereunder when and as the same shall be come due and payable (a Loan Default"). (b) Failure by the Agency to observe and perform any of the covenants, agreements or conditions on its part contained in this Loan Agreement, other than as referred to in the preceding clause (a), for a period of sixty (60) days after written notice specifying such failure and requesting that it be remedied has been given to the Agency by the City; provided, however, that in the reasonable opinion of the Agency the failure stated in such notice can be corrected, but not within such sixty (60) day period, the City will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by the Agency within such sixty (60) day period and diligently pursued until such failure is corrected. c) The Agency commenced a voluntary action as a debtor under Title 11 of the United States Code or any substitute of successor statute. -2- If a Loan Default has occurred and is continuing with respect to this Loan, the City may (a) declare the principal of the Loan, together with accrued interest on all unpaid installments thereof, to be due and payable immediately, and upon any such declaration the same will become immediately due and payable, anything in this Loan Agreement to the contrary notwithstanding, and (b) exercise any other remedies available in law or at equity. IN WITNESS WHEREOF, the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS and the CITY OF PALM SPRINGS have caused this Loan Agreement to be signed by their respective officers, all of the date and year first above written. ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE C SP GS By: UASSistant Secretary Its: Executive irector APPROVED AS TO FORPI -- CITY (1F ALM SPRIN .Attarney pp � Date t d By: Its: City M is er ATTEST: City Clerk l�_- �- aSZaa�_ -3-