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HomeMy WebLinkAboutReso 1980-10261 ...... 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~ ~. Paul G. Desrochers, Communlty Development Director Approved as to form by [J~// . f:'Y"\-y~) d /\. .':'.-' ,.,/ ,,,-----/1)' / ._ \. //,-4__...,.7- 'LL~../"-'1'./ ,~ "--_____ ~._~ ,,/,::____;/ .....-/~!' I-/~/"~_.;'~./ '" ,1--- / --'( m_~'- -.- ;:;.-" 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 L !\." /<.'"" II ",<, /' , - F, ,J ,: J ~(' ,! c:P . "-.J "-"---" 1- l~~ 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 and that the IOme has not been amended or repealed.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 Ib'Z(Pf ~--""'._.M P!",-,'r, t; ~ -- I~ ~~-:. :" ~ ;-~~ TO. '" ~C ...!,.,..'\ ~ i i 1 . 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. ~. ... 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. \ 'r\ '" By : ~. ',t,)'" \ ') I! r l' ~'Jlk.{ 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 ~ z01 / President ID2"-{ k.~ - ! 'j ./_ (, /