HomeMy WebLinkAbout00350C - CRA REDEVELOPMENT LOAN CBD TAHQUITZ ANDREAS I Loan Agr btwn CRA & City
• i Financing Proj in CBD &
Tahquitz Andreas Proj Area
AGREEMENT #350C
R976, 5-3-95
LOAN AGREEMENT
This LOAN AGREEMENT (herein referred to as the "Loan Agreement"), made and
entered into as of May 3, 1995, by and between the COMMUNITY DEVELOPMENT
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 & 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 funds to assist in the financing of public capital improvements related to the Central
Business District Project Areas, the Ramon-Bogie Project Area, the Oasis Project Area and the
Highland Gateway Project Area (the "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, for
use in the Project Areas in the amounts specified in Section 1.02, the aggregate principal amount
of One Million Dollars ($1,000,000.00) all under and subject to the terms of this Loan
Agreement (the "Loan"). This Loan Agreement constitutes a continuing agreement with the
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Agency to secure the full and final payment of the Loan, subject to the covenants, agreements,
provisions and conditions herein contained.
Section 1.02. Terms of the Loan. The Loans shall be paid in one installment of
principal and interest (the "Loan Payment") on the expiration date of the Redevelopment Plan
for each of the Project Areas, or on any prior date without premium or penalty upon the election
of the Agency, in the principal amount and from the Project Areas as follows:
(a) Central Business District Project Area: $400,000.00
(b) Ramon-Bogie Project Area: 500,000.00
(c) Oasis Project Area: 50,000.00
(d) Highland Gateway Project Area: 50,000.00.
Interest shall be calculated at the simple rate of 6.00% per annum.
Interest on each installment of the principal of a 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 Subrogation. 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,
from each project area specified in Section 1.02 above, sufficient surplus tax increment after all
other legal obligations and debts of the Agency have been applied to repay the Loan from each
Project Area in the amounts, plus interest, specified in Section 1.02 above.
ARTICLE II.
LOAN EVENTS OF DEFAULTS 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 of or interest on the Loan made
hereunder when and as the same shall be come due and payable (a "Loan Default").
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LOAN AGREEMENT
Dated as of May 3, 1995
by and between the
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS
and the
CITY OF PALM SPRINGS
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• r
(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
Authority 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 or successor statute.
If a Loan Default has occurred and is continuing with respect to any 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 as of the date and year first above
written.
ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY O SPRINGS
By:
Ass'i-sl—an t Secretaryt� — Its: Ex cW e Dnrector
ATTEST: CITY M SPR
By:
City-Perk Its: City anger
AfM�C)VED BYTHECITYCOUNCK
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