HomeMy WebLinkAbout0004_3_LOAN AGREEMENT FOR Admin Shortfall1
LOAN AGREEMENT FOR ADMINISTRATIVE COSTS
(FOR THE PERIOD JANUARY 1, 2018 – JUNE 30, 2018, ROPS 17-18B)
This Loan Agreement for Administrative Costs (for the Period January 1, 2018 –
June 30, 2018, ROPS 17-18B) (“Agreement”) is reference dated as of January 23, 2018. This
Agreement is entered into between (1) the City of Lake Elsinore, a California general law city
and municipal corporation (“City”) and (2) the Successor Agency of the Redevelopment Agency
of the City of Lake Elsinore, formed and existing in accord with Section 34173 of the California
Community Redevelopment Law (“CRL”) (Health & Safety Code Section 33000, et seq.)
(“Successor Agency”).
RECITALS
Whereas,under the provisions of the CRL, the City Council of the City of Lake
Elsinore previously established the Redevelopment Agency of the City of Lake Elsinore, a
public body, corporate and politic (“Agency”), to carry out the purposes of and exercise the
powers granted to community redevelopment agencies under the CRL;
Whereas, on February 1, 2012, the Agency was dissolved by operation of Assembly Bill
1X26 (Stats. 2011, 1st Ex. Sess., Ch. 5) (“AB 26”), and its rights, powers, duties and obligations
were transferred to a “successor agency” (as defined in CRL Section 34171(j) and Section
34173);
Whereas,as provided by AB 26, the City Council took official action electing to become
the Agency’s successor agency (“Successor Agency”) under CRL Section34173;
Whereas,on or about June 27, 2012, the provisions of Assembly Bill 1484 (“AB 1484”)
became law. AB 1484 modified the CRL and AB 26 in various ways. As used herein, the term
“CRL” means Health & Safety Code Section 33000, et seq., as modified by AB 26 and AB 1484.
Specific terms used and not otherwise defined in this Agreement will have the meanings given
to those terms in the CRL;
Whereas CRL Section 34173(h) permits the City, as the former Agency’s creating
authority, to loan or grant funds to the Successor Agency to pay for enforceable obligations,
administrative costs, and project-related expenses.
Whereas,the Successor Agency received an insufficient distribution from the
Redevelopment Property Tax Trust Fund (established pursuant to CRL Section 34170.5 and
administered by the County Auditor-Controller in accord with CRL Sections 34182 and 34183)
maintained by the Riverside County Auditor-Controller (“RPTTF”) to fully fund administrative
costs identified on its Recognized Obligation Payment Schedule for the period of January 1,
2018 through June 30, 2018 as approved by the Oversight Board and DOF (“ROPS 17-18B”);
and
Whereas,the Successor Agency has requested that the City loan it the principal sum
of One Hundred Fifty-Nine Thousand Seven Hundred Sixty-Five Dollars ($159,765) (“Loan”)
so that the Successor Agency may pay its administrative costs set forth in the ROPS 17-18B.
The City is willing to make the Loan under the authority of CRL Section 34173(h) on the terms
set forth in thisAgreement.
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AGREEMENT
NOW THEREFORE, in consideration of the foregoing Recitals and the terms
contained herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties do hereby agree as follows:
1.Effective Date. This Agreement will not become effective until the date
(“Effective Date”) all of the following haveoccurred:
(a)This Agreement has been approved by the City Council as the City’s
governing body and by the Successor Agency and has been executed by
the City’s and the Successor Agency’s authorizedofficials.
(b)This Agreement has been approved by the Oversight Board to the
Successor Agency formed in accord with CRL Section34179.
2.Loan Agreement. The City agrees to disburse the Loan to the Successor
Agency upon the Successor Agency’s request. The Loan will be disbursed to the Successor
Agency to be held in its accounts and may be used to pay any of the Successor Agency’s
administrative costs set forth in the ROPS 17-18B.
3.Interest and Repayment Terms. All disbursed and outstanding Loan amounts
will accrue interest at the rate earned by funds deposited by the City into the Local Agency
Investment Fund, as it may be adjusted from time-to-time (“LAIF Rate”), from the date of
disbursement until fully repaid.
4.Use of the Loan. The Successor Agency shall utilize the proceeds of the Loan
to pay for the administrative expenses of the Successor Agency in light of the fact that the
monies received by the Successor Agency as of January 1, 2018 as the remittance from the
Redevelopment Property Tax Trust Fund are not estimated to be sufficient when added to
other available funds of the Successor Agency, to fully pay for administrative costs of the
Successor Agency for the period January 1, 2018 through June 30, 2018.
5.Source of Repayment of the Loan. The Loan shall be repaid by the Successor
Agency from revenues available to the Successor Agency.
6.Inclusion on Recognized Obligation PaymentSchedule.
(a)The Successor Agency will identify this Agreement as an enforceable
obligation under CRL 34173(h) on the Recognized Obligation Payment Schedule to be
submitted by the Successor Agency to the Department of Finance for the period covering July
1, 2018 through June 30, 2019 (“ROPS 18-19”). The Successor Agency will request an
allocation of property taxes from the “RPTTF on the ROPS 18-19 and each subsequent
Recognized Obligation Payment Schedule (“ROPS”) covering any fiscal period in which the
Successor Agency has a Loan repayment obligation under this Agreement. If, for any reason
whatsoever, the Successor Agency does not receive sufficient allocations of property taxes
from the RPTTF so as to fully repay the Loan and accrued interest, the Successor Agency will
continue to make allocation requests on all subsequent ROPS until the Loan and all accrued
interest has been fully repaid. The amount of each allocation request will be equal to the sum
of the Successor Agency’s repayment obligation arising during the period covered by the
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ROPS plus the remaining balance (if any) of any repayment due during a prior ROPS period
which was not fully paid.
(b)The Successor Agency will prepare each ROPS as required by the
CRL and submit it to the Oversight Board and such other governmental agencies as the CRL
may require from time-to-time. The Successor Agency will take all other actions as required by
the CRL or other applicable authority to ensure that the Successor Agency receives an
allocation of taxes from RPTTF in the amounts necessary to satisfy the Successor Agency’s
payment obligations under this Agreement.
7.Amendment or Modification. This Agreement and the Successor Agency’s
obligations under it may be amended or modified only in the followingways:
(a)By the mutual written agreement of the City and the Successor Agency,
following all notices, hearings and approvals required by then-applicable provisions of the CRL
and other legal authority.
(b)As required to conform to future changes in the CRL, other applicable
legal authority, or pursuant to an order or judgment of a court of competentjurisdiction.
8.No Other Successor Agency Income or Assets Subject to Repayment
Obligation. No funds or other assets of the Successor Agency other than property tax
allocations from the RPTTF may be used for the repayment of the Successor Agency’s
obligations under this Agreement.
9.Remedies for Breach. If the Successor Agency fails for any reason whatsoever
to fulfill its obligations under this Agreement, the City may, without notice or demand,
accelerate all payments to become due under this Agreement and declare the entirety of the
unpaid Loan principal and accrued interest immediately due and payable.
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SIGNATURE PAGE TO
LOAN AGREEMENT FOR ADMINISTRATIVE COSTS
(FOR THE PERIOD JANUARY 1, 2018 – JUNE 30, 2018, ROPS 17-18B)
ATTEST:
By: __________________________
Susan M. Domen, MMC City Clerk,
CITY
City of Lake Elsinore, a California municipal
corporation
By:
Name:
Title: Mayor
ATTEST:
SUCCESSOR AGENCY SECRETARY
By: __________________________
Susan M. Domen, MMC
SUCCESSOR AGENCY
The Successor Agency to the
Redevelopment Agency of the City of Lake
Elsinore, a public entity created and existing
under the authority of CRL Section 34173
By:
Name:
Title: Chair
APPROVED AS TO FORM:
By:
Barbara Leibold, City Attorney
Successor Agency Counsel