HomeMy WebLinkAboutReso 1980-10261
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RESOLUTION NO. 10261
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING AN
AGREEMENT WITH 'IHE CHULA VISTA TOWN
CENTRE DEVELOPMENT CORPORATION
The City Council of the City of Chula Vista does
hereby resolve as follows:
WHEREAS, the City has received Community Development
Block Grant funds, and said funds may be used for the purpose of
economic development and for removing blighted conditions; and,
WEEf<EAS, the City has allocated $25,000 from the
1979-80 grant and $35,000 from the 1980-81 grant to the Chula Vista
Town Centre Development Corporation for the purpose of making low-
interest cormnercial loans; and,
WHEREAS, the City has negotiated an agreement whereby
$SO,OOO of Lhese funds can be used to make low-interest rehabilitation
loans on an interest subsidy or a collateralized basis; and,
WHEREAS, an Agreement between the City of Chula
Vista and the Chula Vista Town Centre Development Cor~oration is
attached as if fully set forth.
NOW, THEREFORE, BE IT RESOLVED that the Agreement is
hereby approved, and the Mayor is authorized and directed to execute
the Agreement for and on behalf of the City of Chula Vista.
pr~
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Paul G. Desrochers, Communlty
Development Director
Approved as to form by
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George r:5 ;' Lindberg, Ci ty Attorne'~i
ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHlLA VISTA, CALIFORNIA, this 16th day of SeDtember
I ~ 0 , by the following vote, to-wit:
AYES:
NAYES:
ABSTAIN:
ABSENT:
COtR:ilmen
Scott, Gi11ow, Hyde, Cox, McCand1iss
Ccudmen
ecu.cilmen
Councimen
None
None
None
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Mayor of the City of ChuIt' is a
STATE OF CALIFORNA )
COUNTY OF SAN DIEGO ) 55.
CITY OF CHULA VISTA )
I, JENNE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 10261
. and that the IOme has not been amended or repealed.
DATED
{ seal}
City Clerk
CC-660
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Jennie M. Fulasz, City Clerk
P. 0, Box J087
Chula VistJ, CJlifornia 92012
AGREH1ENT
THIS AGREEMENT is made and dated this 16th day of September, 1980, by
and between the City of Chula Vista (City) and the Chula Vista Town Centre
npvclopment Corporation (the Corporation).
R E C I TAL S
--------
A. City has authorized the Town Centre Redevelopment Project.
B. As part of the Project, a Local Development Corporation has been
established.
C. The City has approved an agreement with the Bank of America NT&SA
which provides for low-interest loans for the purpose of th~ rehabilitation
of commercial structures.
D. The City has allocated $50,000 of its Community Development Block
Grant to the Chula Vista Town Centre Development Corporation for the purpose
of commercial rehabilitation.
E. The City is willing to transfer these funds to the Corporation on
the terms and conditions contained herein, the parties hereto hereby agree as
follows:
1. The City of Chula Vista hereby commits $50,000 of Community
Development Block Grant funds to the Chula Vista Town Centre
Development Corporation for the purpose of making loans to
small businesses according to the Corporation's by-laws.
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2. As a condition precedent to the City's Dbligations hereunder,
the Corporation shall deposit with the Bank of America, Chula
Vista main branch all Block Grant funds allocated to the Cor-
poration by this Agreement (herein called Block Grant Account).
Said Block Grant Account may be an interest-bearing account if
the Corporation so desires. All interest earned on Block
Grant funds held in the Block Grant Account shall be usee only
to make additional loans.
3. Any loan principal repayments and all interest received from
loan payments shall be used only to make additional loans.
4. Upon dissolution of the Corporation: 1) funds on deposit in
the City Block Grant Account shall revert back to the City;
and, 2) payments previously made to the Corporation on out-
standing loans will now be rnde to the City.
5. Each quarter the Corporation shall provide to the City a
financial statement detailing all loans involving outstanding
Block Grant funds and the balance in the Block Grant Account.
6. The City shall be responsible for ensuring that Block Grant
funds are utilized by the Corporation in a manner consistent
with the requirements of the Housing and Community Development
Act of 1974 as amended.
IN WITNESS WHEREOF, this Agreement is executed by the City of Chu1a Vista
acting by and through its ~ayor and by the Corporation. Dated this l6thday of
September , 1980.
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CHULA V ISTA TO~IN CENTRE DEVELOPMENT
CORP~ ~
By: F------
CITY OF CHULA VISTA
Title: Mayor of the City of Title:
CHULA VISTA
Attesj#HIW /}Pixt~
, City Clerk ~
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President
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