HomeMy WebLinkAboutContract 1565 •
ORIGINAL
INTERFUND LOAN AGREEMENT
ARTICLE I.
PARTIES AND EFFECTIVE DATE
1.1 Parties. This Interfund Loan Agreement ("Agreement") is reference dated as of
August 14, 2013. This Agreement is entered into between (1) the City of Cathedral City, a
California general law city and municipal corporation ("City") and(2) the City in its capacity as
the Housing Successor Agency to the Redevelopment Agency of the City of Cathedral City,
formed and existing in accord with Section 34176 of the California Community Redevelopment
Law("CRL") (Health& Safety Code Section 33000, et seq.) ("Housing Successor").
1.2 Effective Date. This Agreement will not become effective until the date
("Effective Date")all of the following have occurred:
A. This Agreement has been approved by the City Council as the City's
governing body and by the City Council in its capacity as the Housing Successor and has been
executed by the City's and the Housing Successor's authorized officials.
B. The Loan Agreement for Enforceable Obligations, Administrative Costs
and Project Related Expenses (For the Period July 1, 2013 —December 31, 2013, ROPS 13/14A)
approved by the City as the Successor Agency to the former Redevelopment Agency of the City
of Cathedral City, formed and existing in accord with Section 34173 of the California
Community Redevelopment Law (the "Successor Agency") op.August 14, 2014 (the "Successor
Agency") by adoption of Joint Resolution Noso/O/3-, S 4141.1/ (the "City/Successor
Agency Loan")has become effective. Shy,2D/3 —11o06
ARTICLE II.
RECITALS
2.1 Under the provisions of the CRL, the City Council of the City of Cathedral City
previously established the Redevelopment Agency of the City of Cathedral City, 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.
2.2 On February 1, 2012, the Agency was dissolved by operation of Assembly Bill
1X26 (Stats. 2011, lst 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)and to a"housing successor agency" (as defined in CRL Section 34176).
2.3 As provided by AB 26, the City Council took official action electing to become
the Agency's housing successor agency ("Housing Successor")under CRL Section 34176.
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2.4 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.
2.5 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.
2.6 In order for the City to honor its commitments under the City/Successor Agency
Loan, the City has requested that the Housing Successor loan the City's General Fund the
principal sum of Three hundred twenty-four thousand, two hundred eighty-six dollars ($324,286)
("Loan") from funds controlled by the Housing Successor. These funds will then be used to fund
the City/Successor Agency Loan and the proceeds will be used to assist the Successor Agency in
meeting its housing related obligations as identified on its Recognized Obligation Payment
Schedule 13/14A.
ARTICLE III.
TERMS
3.1 Loan Agreement. The Housing Successor agrees to disburse the Loan to the City
upon the City's request. The Loan will be disbursed to the City to be held in its accounts and
may be used fund the City/Successor Agency Loan.
3.2 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. The Loan will be repaid under the same terms and conditions as
the City/Successor Agency Loan within fourteen (14) calendar days after receipt by the City of
any payment due the City under the City/Successor Agency Loan.
3.3 Amendment or Modification. This Agreement and the Housing Successor's
obligations under it may be amended or modified only in response to any modifications approved
and effective under the City/Successor Agency Loan.
3.4 No Other City Income or Assets Subject to Repayment Obligation. No funds or
other assets of the City other than payments received by the City from the City/Successor
Agency loan may be used for the repayment of the City's obligations under this Agreement.
3.5 Remedies for Breach. If the City fails for any reason whatsoever to fulfill its
obligations under this Agreement, remedies shall be limited to those identified in the
City/Successor Agency Loan; however, the Housing Successor may demand that the City initiate
the remedy procedures identified in the City/Successor Agency Loan.
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SIGNATURE PAGE TO
INTERFUND LOAN AGREEMENT)
CITY
City of Cathedral City, a California general law city
and municipa ,orporation
By: _:..���t',.:r ,_
N. Kathy J.i'osa
Title: ayor
AT
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,e/ y i j Jerk
HOUSING SUCCESSOR
The City of Cathedral City in its capacity as the
Housing Successor to the former Redevelopment
Agency of the City of Cathedral City
By: 1 ; ''
Name: Andy H fl, City Manager
ATTEST: APPROVED AS TO FORM:
-.4r-,AL �) By: -
i uiiL' ty Clerk as Secretary i the Charles Green, City Attorney
ousi Successor Agency
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