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HomeMy WebLinkAboutReso 1998-19270 RESOLUTION NO.19270 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE BOYS & GIRLS CLUB OF CHULA VISTA TO RESTRUCTURE THE REPAYMENT OF A LOAN IN THE AMOUNT OF $250,000 IN CONSIDERATION OF USE BY THE CITY OF CHULA VISTA OF BOYS & GIRLS CLUB FACILITIES WHEREAS, in a letter to the City Council dated September 11, 1998, the Boys & Girls Club of Chula Vista requested a full waiver from the obligation to repay a loan from the City of Chula Vista in the amount of $250,000; and WHEREAS, the repayment period of the loan is scheduled to commence on February 23, 1999; and WHEREAS, on August 19, 1986, the City Council approved an Agreement between the City and the Boys and Girls Club for a loan amount not to exceed $250,000 for the construction of a new Club facility; waived all permit fees; and approved a second amendment to the land lease agreement between the City and the Boys & Girls Club for a lease of park land in Greg Rogers Park; and WHEREAS, the park lease agreement was approved by the City Council in November 1977, and was for a term of 40 years commencing December 1, 1977 and ending November 30, 2017, and the second amendment to the land lease agreement provided for a 90 day notice to vacate the facility at Greg Rogers Park (the Club's Oleander site), should the City need for the park land for redevelopment; and WHEREAS, staff recommends restructuring the loan based on the Club's inability to absorb the debt into their operating costs and the belief that should the Club have additional debt, it may affect their ability to program recreation activities in the community and the likely impact such a reduction would have on the City's budgeted recreation programs which would need to be expanded to accommodate community needs. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve an Agreement, a copy of which is on file in the office of the City Clerk, known as Document Number CO98-232, between the City of Chula Vista and the Boys & Girls Club of Chula Vista to restructure the repayment of a $250,000 loan in consideration of the use of Boys & Girls Club facilities by the City of Chula Vista, in the form presented, with such minor modifications as may be required or approved by the City Attorney. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by "' Joh M Kaheny ~sCi ager ney Resolution 19270 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 24~h day of November, 1998, by the following vote: AYES: Councilmembers: Moot, Rindone, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: Padilia ABSTAIN: Councilmembers: None Shirley H~ort~,~Mayor ATTEST: ~Auth~let, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19270 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 24'h day of November, 1998. Executed this 24th day of November, 1998. ~elet,'City Clerk '