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HomeMy WebLinkAboutMINUTES - 07071987 - 1.112 TO: REDEVELOPMENT AGENCY FROM: Phil Batchelor, Executive Director DATE: June 16, 1987 SUBJECT: Repayment Agreement with the County Flood Control and Water Conservation District. SPECIFIC REQUEST(S). OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Approve the repayment agreement with the County Flood Control and Water Conservation District and authorize the Executive Director or his designee to execute the Agreement. FISCAL IMPACT The Agency will incur a debt of $50,000 to the Flood Control District, at an annual interest rate of 8 1/2 %. The loan is to be paid back from future tax increments generated in the North Richmond and West Pittsburg Redevelopment Project Areas. BACKGROUND/REASONS FOR RECOMMENDATIONS The Redevelopment Agency has been moving forward with the adoption of Redevelopment Plans in both North Richmond and West Pittsburg. The process of adopting Redevelopment Plans is normally financed by loans from the legislative body or special districts governed by the legislative body. This is so because Redevelopment Law does not allow the expenditure of tax increment funds in other than the project area in which it is generated; nor the lending of tax increments from one project area to another. To date, the Agency has utilized a $60,000 loan from the Flood Control District to finance plan adoption. It has become apparent that the cost of adopting two plans will easily exceed this initial loan. On June 2, the Board authorized the loan of $50,000 from the Flood Control Districts Revolving Fund to the Redevelopment Agency. , The Repayment Agreement specifies that this loan is to be split between the North Richmond and West Pittsburg Redevelopment Project Areas; that it will have an annual interest rate of. 8 1/20; and that it is to be paid back from future tax increments from-.the 'two.- r `ect areas. CONTINUED ON ATTACHMENT: YES SIGNATURE- RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATIO F fGE1#CY COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF AGENCY ON July 7 , 1987 APPROVED AS RECOMMENDED x OTHER _ VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. cc: Redevelopment Agency ATTESTED July 7 . 1987 Public Works Flood Control PHIL BATCHELOR, Auditor-Controller AGENCY SECRETARY County Counsel BY AA �Av , DEPUTY GR:krc