HomeMy WebLinkAbout2011/03/01 Item 10CITY COUNCIL &
REDEVELOPMENT AGENCY
~. AGENDA STATEMENT
A.------- ~3 ~ ~tv~
~ ~~~ CITY OF
"~-- = CHULA VISTA
MARCH 1, 2011, Item I O
ITEM TITLE: A. JOINT RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA AND THE
REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA AUTHORIZING THE EXECUTION OF
A LOAN AGREEMENT AND PROMISSORY NOTE
FOR THE MERGED BAYFRONT/TOWN CENTRE I
PROJECT AREA
B. JOINT RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA AND THE
REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA AUTHORIZING THE EXECUTION OF
A LOAN AGREEMENT AND PROMISSORY NOTE
FOR THE MERGED CHULA VISTA
REDEVELOPMENT PROJECT AREA
SUBMITTED BY: GARY HALBER~{j~SSISTANT CITY MANAGER/DIRECTOR OF
REVIEWED BY: CITY
4/STHS VOTE: YES ~ NO
SUMMARY
Over the past three years, the Agency has made significant efforts to reduce the debt owed to the
City, anticipating that by the end of fiscal yeaz 2010/11 the Redevelopment Agency will have
repaid, over the last three years, approximately $20 million, reducing the remaining debt to the City
to approximately $12.6 million.
These loans between the Redevelopment Agency and the City have never been documented through
a formal loan agreement. The Agency and City now desire to formalize the terms and repayment
schedule through loan agreements and promissory notes.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines because it involves a
governmental fiscal action which will not result in direct or indirect physical changes or impacts
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to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the
activity is not subject to CEQA. Thus, no environmental review is necessary.
RECOMMENDATION
That the City Council and the Redevelopment Agency approve the resolutions.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
At the close of fiscal year 2007/08 the Redevelopment Agency had an outstanding loan balance
owed to the City of Chula Vista of approximately $31 million. Approximately $11 million of the
outstanding loan balance was from loans made to the Agency for new project area start up costs
and interest accrued over the past thirty years. The remaining $20 million accrued as a result of
the Ciry making annual debt service payments on behalf of the Agency toward Certificates of
Participation (COPS) that were issued to build a parking structure for the expansion on the Chula
Vista Shopping Center in 1987. During the 1992 to 2007 period, the Agency was unable to
cover all of its outstanding debt obligations and continued borrowing a million dollazs each year
from the City. Fiscal year 2007/08 was the first time in over fifteen years that the Agency was
able to meet all of its annual debt service obligations.
By the close of fiscal year 2008/09 the Redevelopment Agency had an outstanding loan balance
owed to the City's General Fund of approximately $26 million. During this fiscal year, the
Agency was able to repay the City $4.1 million from a 2008 Tax Allocation Bond issuance, $1.1
million from unanticipated additional tax increment revenues and about $300,000 in budgetary
savings. The total loan repayment for fiscal year 2008/09 was approximately $5.5 million.
By the close of fiscal year 2009/10 the Agency repaid the General Fund neazly $2.8 million from
tax increment revenues.
By the end of fiscal year 2010/11 the Agency will have repaid the General Fund $1.5 million
from tax increment revenues, $1.0 million from bond proceeds, and $9.6 million from the sale of
the lower Sweetwater community park site. The total amount repaid by the end of this fiscal
year will be $12.1 million.
Over the last three fiscal yeazs, the Agency will have reduced the outstanding loan balance owed
to the City by approximately $20 million, resulting in a remaining balance of $12.6 million.
This debt between the Redevelopment Agency and the City has never been memorialized via a
formal loan agreement. The repayment and terms of the loans were agreed upon verbally,
however, based upon the Governor's proposal to eliminate all Redevelopment Agencies, it is
important to document the obligations of the Agency and preserve the fund to repay the City.
To continue to reduce the outstanding debt owed to the City, the Agency and City wish to enter
into a Loan Agreement for the Merged Bayfront/Town Centre I and Merged Chula Vista
redevelopment project areas. The Loan Agreements propose that the Agency will pay the City a
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~~~ ~ ~ T{e Nt to
total of approximately $1.5 million annually until the loans have been paid in full, which is
estimated to bean 8 yeaz period, based upon the proposed total loan payment.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that Councilman
Castaneda has property holdings within 500 feet of the boundaries of the Merged Bayfront/Town
Centre I and the Merged Chula Vista project azeas which is the subject of Resolutions A and B.
Staff has reviewed the property holdings of the
Ramirez has property holdings within 500 feet
project azea which is the subject of Resolution B.
City Council and has found that Councilman
of the boundaries of the Merged Chula Vista
CURRENT YEAR FISCAL IMPACT
By the end of fiscal year 2010/11, the Agency will have repaid the General Fund $1.5 million
from tax increment revenues, $1.0 million from bond proceeds, and $9.6 million from the sale of
the lower Sweetwater community pazk site. The total amount repaid by the end of this fiscal
year will be $12.1 million. These funds have already been allocated and are currently drawing
down the Agency's outstanding loan.
ONGOING FISCAL IMPACT
The terms of the loan agreements anticipate an approximate payment of $1.5 million beginning
fiscal year 2011/2012 until the loan balance of $12.6 million is paid in full.
ATTACHMENTS
A. Loan Agreement for Merged Bayfront/Town Centre I Project Area
B. Unsecured Promissory Note for Merged Bayfront/Town Centre I Project Area
C. Loan Agreement for Merged Chula Vista Project Area
D. Unsecured Promissory Note for Merged Chula Vista Project Area
Prepared by: Diem Do, Senior Project Coordinator, Development Services-Redevelopment and Housing
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Attachment A
LOAN AGREEMENT BETWEEN THE CITY OF CHULA
VISTA AND THE CHULA VISTA REDEVELOPMENT
AGENCY FOR MERGED BAYFRONT/TOWN CENTRE I
PROJECT AREA
This LOAN AGREEMENT BETWEEN CITY AND AGENCY ("Agreement") is
entered into this day of , 2011, by and between the CITY OF CHULA VISTA, a
California municipal corporation ("City"), and the CHULA VISTA REDEVELOPMENT
AGENCY, a public body, corporate and politic ("Agency").
RECITALS
A. City is a California municipal corporation operating under the general laws of the
State of California.
B. Agency is a public body, corporate and politic, exercising governmental functions
and powers and organized and existing under the Community Redevelopment Law of the State
of California (California Health and Safety Code Section 33000 et sec .).
C. Agency was established to exercise and undertake redevelopment activities for
purposes of implementing the Redevelopment Project Areas (the "Project Areas"), including
Merged Bayfront/Town Centre I Project Area (Bayfront and Town Centre I) and Merged Chula
Vista Project Area (Otay Valley, Southwest, Town Centre II, and Added Area).
D. In order to carry out its mandate and fund proposed and current redevelopment
projects and activities in the Merged Bayfront/Town Centre I Project Area (Bayfront and Town
Centre I), the Agency has borrowed, and Agency agrees it borrowed, from City (and/or the City
has advanced to Agency) the sum of Four Million Three Hundred Fifty Seven Thousand Four
Hundred Twenty Seven and 36/100 dollars ($4,357,427.36) ("City Loan"). Individual loans
(and/or advance) amounts that form the City Loan are described in Attachment 1.
E. The Agency and the City wish to memorialize the aforementioned City Loan and its
terms, including repayment schedule and interest due, by this Agreement.
AGREEMENT
Based upon the foregoing Recitals, which are acknowledged as true and correct by the
parties and incorporated herein by this reference, and for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, City and Agency agree as follows:
1. PRINCIPAL AMOUNT INTEREST AMOUNT. The principal amount of the City Loan
to Agency is Four Million Three Hundred Fifty Seven Thousand Four Hundred Twenty
Seven and 36/100 dollars ($4,357,427.36). Interest in the amount of the monthly rate
available through the Pooled Money Investment Account (PMIA) Average Month
Effective Yields in effect at the time the loan (and/or advance) was made shall accrue on
Exhibit " 2"
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the outstanding principal balance of the City Loan. The aforementioned interest shall not
be compounded.
2. REPAYMENT TERMS OF CITY LOAN.
2.1 Agency shall have the right to prepay all or any portion of the City Loan at any time without
penalty.
2.2 Agency shall make payments toward the loans/advances for the Merged Bayfront/Town
Centre I Project Area (Bayfront and Town Centre I) set forth in attachment 1, so that the
Principal owing shall be Four Million Three Hundred Fifty Seven Thousand Four Hundred
Twenty Seven and 36/100 dollars ($4,357,427.36) on or before June 30, 2011. Agency
warrants to City that it is currently making such payments and that the principal shall be as
set forth in this paragraph on or before June 30, 2011.
2.3 Agency shall repay the City Loan and accrued interest to City in eight annual installments of
Five Hundred Thousand Dollars ($500,000) each, commencing on June 30, 2012, and
continuing on seven anniversaries of such date until paid in full.
2.4 Agency and City may amend the above repayment schedule by written mutual agreement.
Such amendment(s) may include either an increase or decrease in the amount payable and/or
extend the time frames in which payments are payable.
2.5 City may demand payment in full, including any accrued and/or due interest, of the City
Loan if Agency is in default of this agreement and Agency shall make such payment when
demanded by the City.
3. ADDITIONAL TERMS
3.1 All payments shall be first credited to accrued interest, next to costs, charges, and fees that
may be owing from time to time, and then to principal. All payment shall be made in
lawful money of the United States. Payments shall be made to City.
3.2 The Agency's payments to City under this Agreement constitute an indebtedness of the
Agency within the meaning of the California Community Redevelopment Law (Health &
Safety Code §33000 et seq.). All amounts paid to City under this Agreement shall be
payable solely from "Net Tax Property Increment." As used herein, "Property Tax
Increment" means the amount of property tax revenues generated from within the Project
Area that are allocated to the Agency pursuant to Health and Safety Code Section 33670(b),
which amounts are attributable to increases in assessed valuation above the assessed
valuation of such properties in the year in which the redevelopment plan for the Project
Area was originally adopted (and, as to any geographic areas added by amendment, the
fiscal year in which said amendment(s) were adopted). As used herein the term "Net
Property Tax Increment" means the Property Tax Increment less amounts from such
Property Tax Increment the Agency is required to:
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a. Set aside into special set-aside accounts established by the State of California
("State"), whether existing now or in the future, including but not limited to the Low
and Moderate Income Housing Fund pursuant to Health and Safety Code Section
33334.2 et seq.;
b. Pay, repay, transfer to any special fund established by the State, including but not
limited to the Educational Revenue Augmentation Fund;
c. Pay to the State, County of San Diego, or other governmental entity for administering
distribution of the Property Tax Increment;
d. Pay to affected taxing agencies pursuant to tax sharing, pass through, cooperation, or
settlement agreements;
e. Pay as principal and/or interest on any bonded indebtness, existing on or before the
date of this Agreement, including any refunding or any bonded indebtedness; and
£ Pay any other indebtedness of Agency existing prior to the date of this Agreement.
4 MISCELLANEOUS
4.1 Entire Agreement. Waivers, and Amendments. This Agreement incorporates all of the
terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations
and previous agreements between the parties with respect to all or part of the subject matter
hereof. All waivers of the provisions of this Agreement must be in writing and signed by
the appropriate authorities of the party to be charged. Any amendment or modification to
this Agreement must be in writing and executed by City and Agency.
4.3 Bindin¢ Effect. The terms of this Agreement shall be binding upon the Agency's successors
and shall accrue to the benefit and be enforceable by the City and its successors, legal
representatives,and assigns.
4.4 Not Full Settlement. Agency agrees that this Loan Agreement is not and shall not be
construed as full settlement of all loans and/or advances by the City to Agency. Agency
agrees that it shall be required to pay and will pay any loans and/or advances made by the
City to Agency, including, but not limited to, amounts under this Loan Agreement in excess
of the principal due.
4.5 Promissory Note. Agency agrees to also abide by the terms of the Promissory Note executed
in connection with this Loan Agreement.
4.6 Lender's Indulgence. No relaxation, indulgence, waiver, release or concession of any terms
of this Agreement on one occasion shall be binding unless in writing and if granted shall not
be applicable to any other or future occasion.
4.7 Default. Should the Agency not make payment within 30 calendar days of due date for such
payment, Agency shall be in default of the agreement. City may then demand full payment
and begin collection of all amounts due, unless a lower amount is requested by the City, and
Agency agrees to pay all reasonable attorney's fees incurred by the City and collections
costs and charges, in addition to other amounts due or demanded.
3
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4.8 Severability. If any provision in this Agreement is held by a court of competent jurisdiction
to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in
full force without being impaired or invalidated in any way to the fullest extent permitted by
law.
4.9 Venue. Any action arising under or relating to this Agreement shall be brought only in the
federal or state courts located in San Diego County, State of California, and if applicable, the
City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and
performance, hereunder shall be the City of Chula Vista.
4.1 OExecution in Counterpart. This Agreement may be executed in several counterparts, and all
so executed shall constitute one agreement binding on both parties hereto, notwithstanding
that both parties are not signatories to the original or the same counterpart.
IN WITNESS WHERE OF, City and Agency have entered into this Agreement as of the date
first set forth above.
For City of Chula Vista:
By:
Jim Sandoval
City Manager
APPROVED AS TO FORM:
Glen R. Googins
City Attorney
For Chula Vista Redevelopment Agency:
By:
Gary Halbert, AICP, PE
Executive Director of the Chula Vista
Redevelopment Agency
ATTEST:
Donna R. Norris, CMC
City Clerk
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ADA ADVANCES FROM GENERAL FUND
PRIIJCIPAL ACCEIIED CORRENI TJITAL
AMOONTS ABDITIONS INTEREST INTEEEST YEAR PAYM1fENTSI PAYA$GE.(M1ipNlrt)
6]JW3010 OIELBTION9) W30 EE10 RATE INTEREST AN - bIRY901]
PY'JL-N Cxnl FwJlIDOnrete fos 96ABAG3J3@sA IUU 611 611,UIOAY (6001UA9) - 3G51,59 5385•/. - 1335159) - -
PY9]-98 GPTmnsfu for96 ADAq 3]APY 9JA80/8 IUII 611 53Q9J6 tl2 (2486)21%) J82j04b0 IR?9(.5.]tl 5,900% 16,655,90 (18].96598) 16,255,99 298960,66
PY 98-M GFTranefcr foo 96 ABAg3JAFY 98-99 D19 100 611 532,]TJ.BJ 92,)]9.0) 1'!3,61162 5431% 26,9352) 202,546 fl9 T532496
FY 99-00 gPTrensfa fos 96 ABAG3)AFY 99M DIS IUO 611 530.66]06 9gfi6).06 18].53'])4 5.09G'/u 31.35G29 216,N4 U3 )99,461,09
FY U0.U1 GPTmosfeo fos 96 ABAG l2AYV 0U-0ID/4 IUU 611 94.028.26 53Q02836 238,8)6.26 S,BJIP/o 31,34)AG 2]0213.92 604,25198
FY UIL2 GPTmnera fov 96 ABAq l9 AFY U1-02O/S 100 611 531496.16 533,296.16 254)8392 5382°/. 28,)0200 281,68592 816,90210
PY 02-03 gFTVws@s fve 96 ABAG l)A FY 02-01015 IOU 611 191,55180 191551,60 31,30399 2.08T/. 3,'%11.69 35301,61 22QBSi 4l
TOTAL TDWN Cf1I L0AN8 (ABAG I]A) 5 2,9ll,I]O.Jtl 5 (lOR,682.61)5 2,6Mb2105 5 hOYI,Ll0.85 S W0,119dfi9 5 (191,I1]d"O S 1.82}$03.1] 5 J.621A3fi.03
12-NOV-04 Oae FUOd Cavnm BRformalbn of 501c3 ResM2004-381 100 611 45,613W 45.813110 6.401,92 2.482'/. 1,13]08 ).539A0 53,35200
IS-Aps-0S Gen FUM lnnn to BFbuy back of 960 LVgoon p20Wd45 IW LII SJS 00000 5]S,W0.00 815)614 2)24•/. 1},66300 9223934 6)2,23')34
8 351).133.)0 5 (M8582.6J) 5 1,165b09.11 5 Ifl,69J]] 3 D91A1]311
30-Ivn-95 CenlPwd Cash Atlv TCII93 RPf COP IUU fi51 tl99,ID241 (P.992024?) - 490,112.20 SbST/ - (49811220) - -
30.hinAJ OenlPwd Gsh Ad~TC1193 RPPCOP 100 651 898,921,55 (0.9892255) - 629,39219 560D% - (6)9.399.19) - -
3U-lun-98 (kW Pwd GSh Adv TCII93 REP COP IUU 651 ]21,12058 022120.56) - 9835J.fiU 5.952% - (53835)60) - -
30.IUnJJ9 Cxnl Fond Cash MvTC1193 P.FF COP 100 651 I,ID4936.II (1.101?)6.JL) - ®058119 53JR% - (630.581.1 - -
3U-IOOJ10 Genl Fwd Cevh Adv TCll9i RDFCOP PY 99-00 IDU 251 R)Q2Ti 36 (M022336) - SII,T]I]5 5,8]1•/. - (SI I,A195j - -
l0.]un-01 Cxnl Fnnd Gsh AdvTG153 R0FCOP PY UU-01 IW 651 91Z3JQ25 (91],3)025) - S149W-U3 6130% - (94,909.03) - -
30-]w-02 CcN PUnd Cash Atlv TCII93 REFCOP PY 01-02 IOD 651 841,])86% (843,])068) - 92Q4D6tle g536Y. fi,63J35 (M204923) - -
30.1un-03 Ganl Rmd Cnsh Adv TGI93 REPCOP PY IR-03 100 651 834.165.0) (R3d.165.0'J) - 1420254) 3233%. IO 10859 (15133),06 - -
~J0.1w-09 Gnl PUnd Gsh ldv TCII93 P.EF COP FY OJ-09 IOU 651 265,19699 Q65,196J9) - 2A2)222 15]5% 16)39 (216]261) - -
~0.1an-05 GnIPwd Cash Adv TC1I9J RFFCOP FY W-US 100 651 RJJ, 190,59 (118995 D5) )58,195.59 106'JU2W 2'13)% 16,9]051 (IDfi.N1206J 1693051 9)5,126,05
10.1vn-06 Genl Pend Cash Adv TCII93 RPF COP FY 05-06 100 651 RRJ.48A00 80),48500 1)),050,29 4310% 3?363.12 214,)1361 I,1UL8)8p1
(bJU-IVnJb Geol Fwd CazM1 Adv TCII93 RDFCOP PY 06-0J 100 651 80J,T22J) 809,2124] ISR,)6J.Sfi 5199% 41,6}']52 2D0,602 Dtl IOU5,32Q55
lOdun-08 Cxd Fnnd CssA AJv TCII93 REFCOP FY U]-08 IW 651 - - - - lJJ6•/. - - -
TOTAL93BCFIINUDJGCOp S 99]d.355.09 5 (]53),95208) S Sp50A0JAI f 4p24553AJ 5 IO,JJLJR S 14,IUfi,vJ].Yp f 431,9.16Ap f E,Bg2,3J9.0
30-10o-96 Genf FUM GsX AdvTGI93 COP PARKNG 100 651 248,3311p 248,}1100 20JA81,9R 5,65T/. 14,W8,08 212,550,06 9LS 861 U6
30-IUnM CUN Fwd GSh AdvTG193 COP PARKING IUD fi51 246,41} J4 248911]4 163,80822 5600'/. IJ,911.1) 201,)1939 450,13113
]0-1uv-98 Genl PUnd Gsh MvTC1193 COP PARKMC IUD fi51 20),550 IU 20),550,30 155.044.96 5952% 1215339 16),3)).85 3149)815
3U-]nn-99 Genf PwW Cnsh Adv TCII93 COP PARKING 100 fi51 301,821.30 301,821JD 132005.15 5338'/. 16,231,95 I86,IIJ.10 )90,058411
]0.1vvM CvnI PmN Cesh Adv TGI93 CDP PARKING FY 99-00 100 fi51 24665451 N6,654,51 141,9939 S.tlJI'/. IQ981W 159,414.'+8 406088 fl9
30.1un-01 Genl Pond Cash Adv TCII93 COP PARKING FY qMI 100 651 249,28)0 244.21330 19249458 6.130"h 149)0.55 1A,465.13 40168263
3U-]un-D2 GnIFmd Cash Adv TCIIW COP PARKING FY 01-02 IUO 651 29399A80 243,94380 114,653,6) 5336°/ 1150f ]3 12815860 3R,1112A0
30.1uv-0] Oenl PUnd Cash Adv TCII93 COP PARKMOFY 02-0i 100 fi51 234, 140.18 234,1)0.18 1A58935 2233% 5,32835 dd,e1J90 2JB.9528P
30.1un-04 Genl Pund CUSh Adv TCII93 COP PARKIND PY D3-04 100 651 81,835,69 81,83569 842409 1}36% ($5361 868165 91$5].34
3LLlun-Oi CvnlPwd Ced MVTC119J CDP PARKING FY D4-05 IOU 231 2335.13 232855.13 30.660.80 1.965: 1,63145 2411425 26216238
30.1uv-06 OeN Pnnd Cash Adv TCII93 COP PARKING FY DS-06 IOU 651 299.913.00 N9,913,00 981 /i5J 1991% 9,9TI 03 5815220 3ptlA65.60
30-tun-03 Gvvl Fwd CVSh Adv TCII93 COP PARKIN0 FY 060] 100 651 222199.)5 221,IP395 43.SW.11 5.199'/. 11,499.14 55,116325 2)6,2}}0]1
30.1unD8 Gnl FUntl Gsh Adv TCII93 COP PAPKMGFY UJ-08 100 651 - - - 1396% - -
TOTAL93COl S 2,]65,896.10 f - 5 1,)65,096.10 4 1,380,P4tlg2 3 1)1,11X.9 S - 5 1A11,966.96 5 4,1]]A6306
30.1un-DD GFTSansfu fos 96 ABAO 33APY W-UO 100 651 92520,35 JJ,52895 2362469 5.8)1% 2.TJD39 24915W J19J138
30.1un-01 GFTmnsfee ras 96 ABAG 3Jq FY 110-01 IUO 6A ISS,MO4J ISS,M0.4J ]0.38582 58]1'/. 9,10243 6388824 242.')28)1
30.1un-U2 GF9wfes 6s 96 ABAG3JAFY 01iR IUO fi51 154,82]92 154K2392 ].3.819.29 5.366%. 8,30803 82123,35 2369553)
3Uluv-0l GFTraosfer for'J6 ABAG 3]AFY 02-0J IW 651 LQtl`l6W 608'M 00 995180 2DRT/. 1,2J09D 11222 JU ]2.116 JO
TOTALABAG 3]A f 418391]4 5 - f 410$93]4 f 10G}BLSd S 21,d)1.]0 f - 5 303,fAJ3 f 625,9Jfi.06
TOTAL TOWN CIRII COP ADV FAGENERAL FUND S 1),1:94).91 S (]533,951.110) f 5,6)4$%285 f 5,691 GX1.J0 5 Sfi6,OJ1.tl0 S 0.106,0)].921 5 2851566.38 $ ],686,150.1)
FY71 (Year-Entl EST)
tore
2rz92011
Attachment 1
PRINCIPAL ACCRUED CURRENT TQTA4
FNDB AMUUNTS ADDITIONS INTEREST INTEREST YEAR PAYMENTSI PAYAH4&(Pe~p+InU -
DATE DESCRIPTION FROM TO N3N2Np (DELETION51 N31USp10 RATE INTEREST ADJ 613N1011
PY 01-02 Gcn Funtl CVSL Atlr for Cypress Crk D/S 11111 L51 122,20510 122,ID5]0 3484100 SJfl9Y 6,]J123 41,IA4.23 16]389.53
PY 03AY3 Cmn PUnd Cssh AJv for Cypm5s Cn4 Dl8 100 fi51 II?4JI,00 119AJ1,00 1610EOfi 1890% 221?R3 IE42169 135 pfi869
4V 03JIJ Gv'nFwW Cash AAv Ge Cypress (3k D/3 100 fi51 13J,598,62 134,59pb2 12866LK 1301% 2,tr20,33 14,88fi,3') 149p8501
FY 04-05 Oen FwW CssM1 Atlv fur CypasS Csk D/S IW 651 IW,4Y133 10],42133 12010.25 2108% L,36388 I4.12J.13 IIG]95,J6
TOTAL 6OVFDWEBT MVfoS CITAES3 CRE Dl3 8 J]g666.25 3 3 416,66635 3 ]592].l] 3 1E,9J[0] 5 - 3 68gR.Ji 3 565,STp.69
TOTAL 8f1UTHWFST ADVANCES FR GENERAL FIINII 3 d]6,Rfi6.35 S 3 4]6,fi6R.35 5 ]5,92?3] 3 II,9J5.0] 3 3 E8.8]E.if 3 5(.f,V8.69
13,fi15,210.1tl (]$2195S,OB) 5,96]$09.]) 3]8,9]6.8] (4.IM,b4L911 !. ~~
etfA TJdnl Corns fY GF ^,169,333.66 (],832,694.]1) -9,376.64&93^. 9,133,118.88 936,671.64 (4,299,36529) 3y9Z.425Z3 126U9,124.48.~
r
CO
FV11 (Year-Entl EST) 2pr2 922/2on
Attachment B
UNSECURED PROMISSORY NOTE
$4,357,427.36 Chula Vista, California
Date:
This Promissory Note ("Note") is executed on herewith by and between
CITY OF CHULA VISTA, a California municipal corporation ("Lender'), and the
CHULA VISTA REDEVELOPMENT AGENCY, a public body, corporate and
politic ("Debtor'). Debtor is executing this Note in connection with and in
consideration of Lender's loan to Debtor of Four Million Three Hundred Fifty Seven
Thousand Four Hundred Twenty Seven and 36/100 dollars ($4,357,427.36) for
loans and/or advances made so that Debtor could carry out its mandate under the
California Redevelopment Law (CRL) and fund proposed and current
redevelopment projects and activities in the Merged Bayfront/Town Centre I
Project Area (Bayfront and Town Centre I). For value received, Debtor Agrees to
the following:
1. For value received, Debtor promises to pay to Lender the principal amount of
Four Million Three Hundred Fifty Seven Thousand Four Hundred Twenty Seven
and 36/100 dollars ($4,357,427.36). Interest in the amount of the monthly rate
available through the Pooled Money Investment Account (PMIA) Average Month
Effective Yields in effect at the time the loan (and/or advance) was made shall
accrue on the outstanding principal balance of the City Loan. The
aforementioned interest shall not be compounded.
2. Debtor promises to make payment as stated in and abide by the terms of the Loan
Agreement, incorporated by reference into this Promissory Note, between the
Debtor and Lender for the Merged BayfronUTown Centre I Project Area.
3. Debtor waives any right of offset it now has or may hereafter have against the
holder hereof and its successors and assigns. Debtor waives presentment,
demand, protest, notice of protest, notice of nonpayment or dishonor and all other
notices in connection with the delivery, acceptance, performance, default or
enforcement of this Note. Notwithstanding any provision herein or in any
instrument now or hereafter securing this Note the total liability for payments in
nature of interest shall not exceed the limits imposed by the applicable usury laws.
4. Debtor expressly agrees to any extension or delay in the time for payment or
enforcement of the Note, to renewal of this Note and to any substitution or release
of any of the Property, all without any way affecting the liability of Debtor
hereunder. Any delay on City's part in exercising any right hereunder shall not
operate as a waiver. City's acceptance of partial or delinquent payments or the
failure of City to exercise any rights shall not waive any obligation of Debtor or
any right of City, or modify this Note, or waive any other similar default.
10-10
5. Debtor agrees to pay all costs of collection when incurred and all costs incurred
by the holder hereof in exercising or preserving any rights or remedies in
connection with the enforcement and administration of this Note or following a
default by Debtor, including but not limited to, reasonable attomey's fees. If any
suit or action is instituted to enforce this Note, Debtor promises to pay, in addition
to the costs and disbursements otherwise allowed by law, such sum as the court
may adjudge reasonable attorney's fees in such suit or action.
6. This Note shall be governed by and construed according to the laws of the State
of California.
7. Time is of the essence for each and every obligation under this Note.
For Lender (City of Chula Vista):
By:
Jim Sandoval
City Manager
APPROVED AS TO FORM:
Glen R. Googins
City Attorney
For Borrower (Chula Vista Redevelopment
Agency):
By:
Gary Halbert, AICP, PE
Executive Director of the Chula Vista
Redevelopment Agency
ATTEST:
Donna R. Norris, CMC
City Clerk
~~-~~
Attachment C
LOAN AGREEMENT BETWEEN THE CITY OF CHULA
VISTA AND THE CHULA VISTA REDEVELOPMENT
AGENCY FOR MERGED CHULA VISTA PROJECT AREA
This LOAN AGREEMENT BETWEEN CITY AND AGENCY ("Agreement") is
entered into this day of , 2011, by and between the CITY OF CHULA VISTA, a
California municipal corporation ("City"), and the CHULA VISTA REDEVELOPMENT
AGENCY, a public body, corporate and politic ("Agency").
RECITALS
A. City is a California municipal corporation operating under the general laws of the
State of California.
B. Agency is a public body, corporate and politic, exercising governmental functions
and powers and organized and existing under the Community Redevelopment Law of the State
of California (California Health and Safety Code Section 33000 et sue.).
C. Agency was established to exercise and undertake redevelopment activities for
purposes of implementing the Redevelopment Project Areas (the "Project Areas"), including
Merged Bayfront/Town Centre I Project Area (Bayfront and Town Centre I) and Merged Chula
Vista Project Area (Otay Valley, Southwest, Town Centre II, and Added Area).
D. In order to carry out its mandate and fund proposed and current redevelopment
projects and activities in the Merged Chula Vista Project Area (Otay Valley, Southwest, Town
Centre II, and Added Area), the Agency has borrowed, and Agency agrees it borrowed, from
City (and/or the City has advanced to Agency) the sum of Eight Million Two Hundred Fifty One
Thousand Six Hundred Ninety Six and 82/100 dollars ($8,251,696.82) ("City Loan"). Individual
loan(s) (and/or advance(s)) amounts that form the City Loan are described in Attachment 1.
E. The Agency and the City wish to memorialize the aforementioned City Loan and
its terms, including repayment schedule and interest due.
AGREEMENT
Based upon the foregoing Recitals, which are acknowledged as true and correct by the
parties and incorporated herein by this reference, and for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, City and Agency agree as follows:
1. PRINCIPAL AMOUNT INTEREST AMOUNT. The principal amount of the City Loan
to Agency is Eight Million Two Hundred Fifty One Thousand Six Hundred Ninety Six
and 82/100 dollazs ($8,251,696.82). Interest in the amount of the monthly rate available
through the Pooled Money Investment Account (PMIA) Average Month Effective Yields
in effect at the time the loan (and/or advance) was made shall accrue on the outstanding
principal balance of the City Loan. The aforementioned interest shall not be
compounded.
10-12
2. REPAYMENT TERMS OF CITY LOAN.
2.1 Agency shall have the right to prepay all or any portion of the City Loan at any time without
penalty.
2.2 Agency shall make payments towazd the loans/advances for the Merged Chula Vista Project
Area (Otay Valley, Southwest, Town Centre II, and Added Area) set forth in attachment 1, so
that the principal owing shall be Eight Million Two Hundred Fifty One Thousand Six
Hundred Ninety Six and 82/100 dollars ($8,251,696.82) on or before June 30, 2011. Agency
warrants to City that it is currently making such payments and that the principal shall be as
set forth in this paragraph on or before June 30, 2011.
2.3 Agency shall repay the City Loan and accrued interest to City in eight annual installments of
One Million Dollars ($1,000,000) each, commencing on June 30, 2012, and continuing on
seven anniversazies of such date until paid in full.
2.4 Agency and City may amend the above repayment schedule and amounts due by written
mutual agreement. Such amendment(s) may include either an increase or decrease in the
amount payable and/or extend the time frames in which payments are payable.
2.5 City may demand payment in full, including any accrued and/or due interest, of the City
Loan if Agency is in default of this agreement and Agency shall make such payment when
demanded by the City.
3. ADDITIONAL TERMS
3.1 All payments shall be first credited to accrued interest, next to costs, charges, and fees that
may be owing from time to time, and then to principal. All payment shall be made in
lawful money of the United States. Payments shall be made to City.
3.2 The Agency's payments to City under this Agreement constitute an indebtedness of the
Agency within the meaning of the California Community Redevelopment Law (Health &
Safety Code §33000 et seq.). All amounts paid to City under this Agreement shall be
payable solely from "Net Tax Property Increment." As used herein, "Property Tax
Increment" means the amount of property tax revenues generated from within the Project
Area that are allocated to the Agency pursuant to Health and Safety Code Section 33670(b),
which amounts aze attributable to increases in assessed valuation above the assessed
valuation of such properties in the year in which the redevelopment plan for the Project
Area was originally adopted (and, as to any geographic areas added by amendment, the
fiscal yeaz in which said amendment(s) were adopted). As used herein the term "Net
Property Tax Increment" means the Property Tax Increment less amounts from such
Property Tax Increment the Agency is required to:
a. Set aside into special set-aside accounts established by the State of California
("State"), whether existing now or in the future, including but not limited to the Low
2
10-13
and Moderate Income Housing Fund pursuant to Health and Safety Code Section
33334.2 et seq.;
b. Pay, repay, transfer to any special fund established by the State, including but not
limited to the Educational Revenue Augmentation Fund;
c. Pay to the State, County of San Diego, or other governmental entity for administering
distribution of the Property Tax Increment;
d. Pay to affected taxing agencies pursuant to tax sharing, pass through, cooperation, or
settlement agreements;
e. Pay as principal and/or interest on any bonded indebtness, existing on or before the
date of this Agreement, including any refunding or any bonded indebtedness; and
£ Pay any other indebtedness of Agency existing prior to the date of this Agreement.
MISCELLANEOUS
4.1 Entire Agreement, Waivers, and Amendments. This Agreement incorporates all of the
terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations
and previous agreements between the parties with respect to all or part of the subject matter
hereof. All waivers of the provisions of this Agreement must be in writing and signed by
the appropriate authorities of the party to be charged. Any amendment or modification to
this Agreement must be in writing and executed by City and Agency.
4.3 Bindine Effect. The terms of this Agreement shall be binding upon the Agency's successors
and shall accrue to the benefit and be enforceable by the City and its successors, legal
representatives, and assigns.
4.4 Not Full Settlement. Agency agrees that this Loan Agreement is not and shall not be
construed as full settlement of all loans and/or advances by the City to Agency. Agency
agrees that it shall be required to pay and will pay any loans and/or advances made by the
City to Agency, including, but not limited to, amounts under this Loan Agreement in excess
of the principal due.
4.5 Promissory Note. Agency agrees to also abide by the terms of the Promissory Note executed
in connection with this Loan Agreement.
4.6 Lender's Indulgence. No relaxation, indulgence, waiver, release or concession of any terms
of this Agreement on one occasion shall be binding unless in writing and if granted shall not
be applicable to any other or future occasion.
4.7 Default. Should the Agency not make payment within 30 calendar days of due date for
payment, Agency shall be in default of the agreement. City may then demand full payment
and begin collection of all amounts due, unless a lower amount is requested by the City, and
Agency agrees to pay all reasonable attorney's fees incurred by the City and collections
costs and charges, in addition to other amounts due or demanded.
4.8 Severability. If any provision in this Agreement is held by a court of competent jurisdiction
to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in
3
10-14
full force without being impaired or invalidated in any way to the fullest extent permitted by
law.
4.9 Venue. Any action arising under or relating to this Agreement shall be brought only in the
federal or state courts located in San Diego County, State of California, and if applicable, the
City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and
performance, hereunder shall be the City of Chula Vista.
4.10 Execution in Counternart. This Agreement may be executed in several counterparts, and all
so executed shall constitute one agreement binding on both parties hereto, notwithstanding
that both parties are not signatories to the original or the same counterpart.
IN WITNESS WHERE OF, City and Agency have entered into this Agreement as of the date
first set forth above.
For City of Chula Vista,
Bv:
Jim Sandoval
City Manager
APPROVED AS TO FORM:
Glen R. Googins
City Attorney
For Chula Vista Redevelopment Agency,
By:
Gary Halbert, AICP, PE
Executive Director of the Chula Vista
Redevelopment Agency
ATTEST:
Donna R. Noms, CMC
City Clerk
10-15
RDA ADVANCES FROM GENERAL FUND
PRINCIPAL ACCRUED CURRENT i~ TU?A4
FNDU AMOUNTS ADDITIONS INTEEEST INTEREST YEAR PAYMENTS( PAYABLC (hmilnQ ~'
BROM TO 6130(2010_ IDELkT'IONSt tl NSOh010 PATE INTERE~9T ADJ _ ~.C. d 6ISd3U1]
FY 96A] GeN Pwd hwsfen'foo 96 pBpGI]BereeA 100 611 60,01049 (6U.01049) - 335159 5385% - (3,351,593 - -
PY9]-96 GPTmnsW fns 96 ABAG3]AFY 9]1)8 D/S 100 411 53139]6X2 (248 b]L43 28230448 16]965.18 5900Y. IE,G5,9B (IB]9Gf]g3 IQfi5598 29Q9L0,66
FY 98-99 GFTmnsfe1 Po196 ABAGl]AFV 98-?J O/S ILb LII 532,T19.0] 533 ]M,B] 1T3611.62 5,491Y. 28,9352] 2U2.546,B9 T5326I6
FV 99-00 GFTmnsfee for 96 ADAG 3]A FY 99-0OD/S
FY 00-01 GFTmmftt fw 96 ABAG 3]AFY UII-0ID/S
FY OIA2 GFTmnsfertor 96 ADAG 30A FY 01-020/5
PY 02JY' 0P TSwsDs bo Y6 ABAG 3'IAFY 02113 D/5 100
100
100
100 611
411
611
611 53066]06
534028.26
533,296.18
191,55180 90,66206
94028.24
313,296.18
191,55180 IB],53]W
238,8]626
254,98192
SI,SOJ 99 5890%
58]0%
VN2%
2.OPN. 3125629
31,]4>46
28,]0200
1,9926'1 218,]94.03
2]0,223. T2
283,683 92
35,10163 ]49.4LI L9
80425198
816,9X2.IU
226,053,43
TOTAL TOWN CFR (LOANS (ABAGflA)
12-NOVL`4 Gen FUntl loan to DF-foemalion of S01e3 Resp2004d81
IS-Aps-0S fkn PUnd lnen lu BP-0vY bazk o[980 Lagoon g2004d45
100
100 5
611
fill 29O,Il0.Jtl P
45,81] 00
313,000 CO (308,682.63) S 2bOJ,62]AS S
45,81300
5]S,W000 Ip]],630.P5
fi40192
813]634 P
2AP2'/.
2.@4Y. 1M.B9169 8
I,UJ.OX
15,663,W (191A23]) 5 1,02Iy0P.1] S
],53900
9].23939 3,631,836.02
5315200
6P_E1934
5 J$IJ,121JY 5 SOP6PLL3) 8 1 165b0Y.11 P IS],69J.A S (191,11 ].3)I .',,,_., ., ` ~ '
30-tun-95 GeN Fwd CasM1 Adv TCII93 REFCOP
30-IUnA] Gcnl Fwd Cnsh Adv TCII93 REFCOP
30.1wAR GeN Fmtl Cmh Adv TCII93 REFC0P
30don-99 Cenl Fwtl Cash Adv TCII93 AEFC0P
30-lun-OD Genl Flmd CUh Adv TCII93 REPC0P FY J3-00
J0.1ur.01 Geol Pnotl Gsh Atlv TCII93 RHPC0P PY 00-01
3D-Iwo-02 GeN FUnd Cavh Adv TCII93 REFC'OP FY DI-02
X30-tun-0] GeN Fwd Cash Adv TC1I 93 REFC0P FY 02-03
Q90-1un-09 CcN FUrd Cash Adv TCII93 RSFC0P FY DJ{F1
30Jua-05 CeN Flmtl Cash AJv TC119l REFC0P FY 04+15
JJO-lun-06 CnN Fund Cash Pdv TCII93 REFC0P FY 05-04
~JhLm-0] Genl Flind Cexh Atlv TCII93 REFCOP FY OL-0]
30.hm-08 Gcnl Fund CasM1 Atlv TG193 RGPCOP FY O]-08
]'OTAL 93 /1EFUNDINC COP
3D-lun-96 Genl Fund CmM1 Adv TCE 93 C0P PARKING
3U-IunJYI Crznl Fwd Gsh Adv tC1193 C0P PARKING
30-Jnn-98 Qnl Fund Gxh Adv TCII93 C0P PARKING
30-Jnn-99 @nl Fwtl Cash Advt'C1193 C0P PARKING
30-]un-DO Cxnl Fnnd Cexh AM TCII93 COP PARYJNG FY 99-0D
30-hm-01 Gehl Fund Ca9h Adv TCII93 COP PARKING PY 00-01
30.Jun-D2 CxN Fwd Cash Adv TCII93 COP PARKING FY Ula12
30.1un-03 Genl Fund CasM1 Adv TCII93 COP PAXKING IN 02A3
30.1un-04 Gcnl Rmtl Cnsh Adv TCII93 C0P PARKM0PY 03-09
J0.lun-OS Genl Fnnd Cash Adv TCD 93 C0P PARKING FY 04-05
3D-Inn-Ofi GenlFwd Cmh Adv TCU 93 C0P PARKING FY 05-06
30.1un-0] Genl Fund Cash Adv TCII93 C0P PARKNG FY D6-0]
311-1 -0X Gc IF'wd Cesh Adv TCII93 C0P PARKING FY D]-0N
100 651 899,20243 (899,202,43) - 49811220 5.6SA/ - (49N,11220)
IDO 651 N98,921,55 (89tl,921,55) - 6]9399.19 56U~ - (6'19.31% - -
100 651 ]21,12050 (]21,1205P) - 53&351 fi0 5,952% - (53P.3A,Lb) - -
100 fi5I I,IU1936R (1.104936'8) - 610,581.19 53]bY. - (630.581.191 - -
IW 651 8]0,2T,36 (8ID,2]3pb) - 511.]]1]5 SB]I'/. - (511,]]195) - -
IDO 651 91],l]0.25 (9123]025) - 534.909.03 6.130% - (5399P1,LL31
100 651 N93,]]06b (N93.]]OLB) - 420,4U488 SS36°/. 6.G]i5 (42],0442]) - -
100 651 834,1650] (834,1650'p - 141,0259] 2.233% 10,30X.59 (151,31408) - -
100 651 265,19639 Q65,196J9) - 21222.22 1535% 36439 Q26366q - -
100 fi5I 8]].19059 (11899505) ]58193.54 1069028fi 2233% 16,Y3051 (IOfi902.D6) 16.93051 ]]5,12605
IW 651 881,48500 881,48500 IT,05029 4310°/ 3]363.12 214,91341 I,IOI,fl9841
IW 451 N04,R2A] BD4,]II,4] ISPJ64.56 5.199•/. 41,63],52 20gfi0208 1,005324.55
100 651 - - - - JW6'/. -
N 99]4,155.09 8 (],SZ1952.OP1 S 1ASOA03.01 N 442J.SS2.W S II3,JJL4X 5 (J,IW,D1].92) 5 431.916,00 5 3,883$19.01
100 631 248,33L00 21N,i31A0 20i4P1,98 5,65M 14048,08 212530Ofi 165,86104
100 651 248,41])4 248,41394 18'1,808 22 S60U/. 13911.1] 201]19,39 9511,133.13
100 651 202330.30 201.550,90 155-044.96 5,952% 12353,39 16'1,39]85 394,948.15
100 fi5I JOL82130 301 B21,J0 1]2,005.15 53]8°/. 1623195 1X8,21].10 490,058,40
IDO fi5I 24(.,65151 216,65451 144,95339 SX21Y. 14,481 119 159,43438 40606889
IW L51 244,21]]0 244,21]10 142494.SN 6.130% 14.9]055 15],163.13 JOIb82Pl
IW 651 243.94380 N3,M380 114b53 B] 5534'/. 13,504.0 128,13660 IY1.10240
IDD 651 234.140.18 234,140.16 39,584.35 2233Y. 5,12835 44.812]0 2I0,952Pb
100 651 RI 8]569 818]569 8,42401 1536'/. 1,35]61 9,6ft165 9155]34
100 651 23]833.11 23].85513 2466000 IS3L% 3,653,45 24.11925 262,1693N
100 651 249,913,00 249,913.00 48,IT3.5] 3933% 9,9'19.0] 56, 15]60 308.065.LU
100 631 221,1]9.]3 221,IM95 43.561.11 5.199°/ ^A99.14 15,06325 216.24] 00
nn
T(ITAL93COP 5 2,]65,P9410 5 - 5 ;]65,P96.10 3 1,280,8JPA2 5 131,118.51 Y - 5 IA11,966.94 5 J,l]1863.06
3U-IUniNI GF-ansfes loe 96 ABAG3]AFY 99-00 100 651 429835 4252835 2362464 S.N]I% 2,]90.3'1 2641503 ]391338
30-lun-DI GFTmnsfer foe 96 AllAG 3]AFY 00-01 100 fi5I 155,0104] 155,M0.0 ]8]NS R2 58]1% 9,10243 NgRNN24 242,92X]1
30.Jun-02 GPTmnsfer for9fi ABAG 3]APY 01-02 IW 651 154.82292 154.82292 ]381929 5366% b,308,0] 8212235 069552]
I0.1un-03 GF TnmSce fur 96 ADAG 3]AFY W-03 IDD 451 60,8')600 LU,B'J600 '1.95180 208TH 12]0.90 11222]0 II,IIR]0
T0TALABAC 3]A 5 118,393.]4 5 - 5 I18j92.]4 5 IPl.,1b1.51 S 21,JT]0 S - 5 20],65111 S fi?594fi.W
TOTALTOWN LTRIILOP ADV FP CENEPAL FUND
5
I1,15b$J3.91 S
(l Gi],•152.OR1 5
5,6.31$9185 S
5A91$b2.J11
5
266,NLP0 S
IJ.106,flJ].921 5
E,M1,56618 5 100 651 3]46% -
],fitl6,158.IJ
FY11 (Year-End EST)
1 oft
]/22/2011
Attachment 1
pRINCIpAL ACCRUED CURRENT TOTA4
FNDp AMOUNTS ADDITIONS INTEREST INTEREST YEAR PAYMENTS/ PAYARLE'(Ps~D+Inll .'
FROM TO fiON1D10 /DELETIONS] fi/IO@MO RATE INTEREST API - 6(J&]DII
FY DIL2 Cren Fund COxh Adv lw Cyryesv Gk D/S 100 651 155.20530 133.2D530 1J 813.00 S.IBT/. 6.191- 41.Ifl121 16]38953
FY D2-03 Oen FUnd CusL Adv for Cypmss Gk O/S IDD L51 11],311.00 11 ],411 D0 Ifi200.D6 IP9U/ $21963 18,4SZfi9 135.866 fig
FY OI-04 Gen Fnnd Cuh Advlos Cypass Gk D/S 100 651 13a 590,62 U4,596b3 12,8E6.P5 1301% 5,02033 14.B06,i9 199A%501
PY 03-05 Ccn Fund CmM1 Adv luv Cypvns Gk D/S 100 651 102,J2133 102,421,33 Q,DID.55 2_l08•/. 2,363,08 19,1]9.13 II6,T)5.96
TOTAL SOI(1'9M65'f ADV fos'CITRFSB CRK DI3 5 4]6,664.15 S - 5 d]6b66.25 P ]5,92).fl 5 6,9J5.0] S - S BtlyR.0.1 5 565,538.69
TOTAL SOUTHWEST ADVANCES PR GENERAL FUND S J]6,666.1.5 5 B J]6,fi66.15 Y t5,Y1L1] S L,9J5.% S S BB,tl]2.4J 5 Sfi5$38.fi9
0,615,110]8 (I SD952081 5969~09.TI 218,916.6] (4,106,04].YS)
RPA TAfaI LOan6GOP' 19,169,43J.66 (9,834,63491) i9,334,498.93:~ 0,133,118.88 436,691.64 (4,199,36529) 3,1]2,425 Z3 12,@09.184.1$,
0
FV71 (Year-Entl EST) z or 2 v2v2m t
Attachment D
UNSECURED PROMISSORY NOTE
$8,251,696.82 Chula Vista, California
Date:
This Promissory Note ("Note") is executed on herewith by and between
CITY OF CHULA VISTA, a California municipal corporation ("Lender'), and the
CHULA VISTA REDEVELOPMENT AGENCY, a public body, corporate and
politic ("Debtor'). Debtor is executing this Note in connection with and in
consideration of Lender's loan to Debtor of Eight Million Two Hundred Fifty One
Thousand Six Hundred Ninety Six and 82/100 dollars ($8,251,696.82) for loans
(and/or advances) made so that Debtor could carry out its mandate under the
California Redevelopment Law (CRL) and fund proposed and current
redevelopment projects and activities in the Merged Chula Vista Project Area
(Otay Valley, Southwest, Town Centre II, and Added Area). For value received,
Debtor Agrees to the following:
1. For value received, Debtor promises to pay to Lender the principal amount of
Eight Million Two Hundred Fifty One Thousand Six Hundred Ninety Six and
82/100 dollars ($8,251,696.82). Interest in the amount of the monthly rate
available through the Pooled Money Investment Account (PMIA) Average Month
Effective Yields in effect at the time the loan (and/or advance) was made shall
accrue on the outstanding principal balance of the City Loan. The
aforementioned interest shall not be compounded.
2. Debtor promises to make payment as stated in and abide by the terms of the Loan
Agreement, incorporated by reference into this Promissory Note, between the
Debtor and Lender for the Merged Chula Vista Project Area.
3. Debtor waives any right of offset it now has or may hereafter have against the
holder hereof and its successors and assigns. Debtor waives presentment,
demand, protest, notice of protest, notice of nonpayment or dishonor and all other
notices in connection with the delivery, acceptance, performance, default or
enforcement of this Note. Notwithstanding any provision herein or in any
instrument now or hereafter securing this Note the total liability for payments in
nature of interest shall not exceed the limits imposed by the applicable usury laws.
4. Debtor expressly agrees to any extension or delay in the time for payment or
enforcement of the Note, to renewal of this Note and to any substitution or release
of any of the Property, all without any way affecting the liability of Debtor
hereunder. Any delay on City's part in exercising any right hereunder shall not
operate as a waiver. City's acceptance of partial or delinquent payments or the
failure of City to exercise any rights shall not waive any obligation of Debtor or
any right of City, or modify this Note, or waive any other similar default.
10-18
5. Debtor agrees to pay all costs of collection when incurred and all costs incurred
by the holder hereof in exercising or preserving any rights or remedies in
connection with the enforcement and administration of this Note or following a
default by Debtor, including but not limited to, reasonable attorney's fees. If any
suit or action is instituted to enforce this Note, Debtor promises to pay, in addition
to the costs and disbursements otherwise allowed by law, such sum as the court
may adjudge reasonable attorney's fees in such suit or action.
6. This Note shall be governed by and construed according to the laws of the State
of California.
7. Time is of the essence for each and every obligation under this Note.
For Lender (City of Chula Vista):
By:
Jim Sandoval
City Manager
APPROVED AS TO FORM:
Glen R. Googins
City Attorney
For Borrower (Chula Vista Redevelopment
Agency):
By:
Gary Halbert, AICP, PE
Executive Director of the Chula V ista
Redevelopment Agency
ATTEST:
Donna R. Norris, CMC
City Clerk
10-19
RESOLUTION N0.201 I-
JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA AUTHORIZING THE
EXECUTION OF A LOAN AGREEMENT AND PROMISSORY
NOTE FOR THE MERGED BAYFRONT/TOWN CENTRE I
PROJECT AREA
WHEREAS, the City of Chula Vista is a California municipal corporation operating
under the general laws of the State of California; and
WHEREAS, the Chula Vista Redevelopment Agency is a public body, corporate and
politic, exercising governmental functions and powers and organized and existing under the
Community Redevelopment Law of the State of California (California Health and Safety Code
Section 33000 et se .); and
WHEREAS, the Chula Vista Redevelopment Agency was established to exercise and
undertake redevelopment activities for purposes of implementing the Redevelopment Project
Areas (the "Project Areas"), including Merged Bayfront/Town Centre I Project Area (Bayfront
and Town Centre I) and Merged Chula Vista Project Area (Otay Valley, Southwest, Town
Centre II, and Added Area); and
WHEREAS, in order to carry out its mandate and fund proposed and current
redevelopment projects and activities in the Merged Bayfront/Town Centre I Project Area
(Bayfront and Town Centre I), the Redevelopment Agency has borrowed, and the
Redevelopment Agency agrees is has borrowed, from City (and/or the City has advanced to
Agency) the sum of Four Million Three Hundred Fifty Seven Thousand Four Hundred Twenty
Seven and 36/100 dollars ($4,357,427.36) ("City Loan") (Individual loan(s) (and/or advance(s))
amounts which form the City Loan are described in Exhibit 1); and
WHEREAS, the Redevelopment Agency and the City wish to memorialize the
aforementioned City Loan and its terms, including repayment schedule and interest due, by
entering into a Loan Agreement and Promissory Note, attached as Exhibit 2.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula
Vista and the Redevelopment Agency of the City of Chula Vista that:
The City Council of the City of Chula Vista authorizes the City Manager to enter
into and execute the aforementioned Loan Agreement and Promissory Note in the
principal amount of Four Million Three Hundred Fifty Seven Thousand Four
Hundred Twenty Seven and 36/100 dollars ($4,357,427.36) and in substantially
the same form as attached in Exhibit 2.
10-20
Resolution No.
Page 2
2. The Redevelopment Agency of the City of Chula Vista authorizes the Executive
Director of the Redevelopment Agency or his designee to enter into and execute
the aforementioned Loan Agreement and Promissory note in the principal amount
of Four Million Three Hundred Fifty Seven Thousand Four Hundred Twenty
Seven and 36/100 dollars ($4,357,427.36) and in substantially the same form as
attached in Exhibit 2.
3. The City Manager and Executive Director of the Redevelopment Agency or their
designees are hereby authorized to do all acts and things which may required of
them by this Resolution or which may be necessary or desirable to carry out the
issuance or execution of the Loan Agreement and Promissory Note as provided by
this Resolution and all matters incidental thereto. All such acts and things
heretofore done are hereby approved, ratified, and confirmed.
Presented by:
Gary Halbert, AICP, PE
Assistant City Manager/Director of
Development Services
Approved as to form by:
Glen R. Googins
City Attorney
10-21
RESOLUTION NO. 2011-
JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA AUTHORIZING THE
EXECUTION OF A LOAN AGREEMENT AND PROMISSORY
NOTE FOR THE MERGED CHULA VISTA
REDEVELOPMENT PROJECT AREA
WHEREAS, the City of Chula Vista is a California municipal corporation operating
under the general laws of the State of California; and
WHEREAS, the Chula Vista Redevelopment Agency is a public body, corporate and
politic, exercising governmental functions and powers and organized and existing under the
Community Redevelopment Law of the State of California (California Health and Safety Code
Section 33000 et sec .); and
WHEREAS, the Chula Vista Redevelopment Agency was established to exercise and
undertake redevelopment activities for purposes of implementing the Redevelopment Project
Areas (the "Project Areas"), including Merged Bayfront/Town Centre I Project Area (Bayfront
and Town Centre I) and Merged Chula Vista Project Area (Otay Valley, Southwest, Town
Centre II, and Added Area); and
WHEREAS, in order to carry out its mandate and fund proposed and current
redevelopment projects and activities in the Merged Chula Vista Project Area (Otay Valley,
Southwest, Town Centre II, and Added Area), the Redevelopment Agency has borrowed, and the
Redevelopment Agency agrees is has borrowed, from City (and/or the City has advanced to
Agency) the sum of Eight Million Two Hundred Fifty One Thousand Six Hundred Ninety Six
and 82/100 dollars ($8,251,696.82) ("City Loan") (Individual loan(s). and/or advance(s) amounts
which form the City Loan are described in Exhibit 1); and
WHEREAS, the Redevelopment Agency and the City wish to memorialize the
aforementioned Ciry Loan and its terms, including repayment schedule and interest due, by
entering into Loan Agreement and Promissory Note.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula
Vista and the Redevelopment Agency of the City of Chula Vista that:
The City Council of the City of Chula Vista authorizes the City Manager to enter
into and execute the aforementioned Loan Agreement and Promissory Note in the
principal amount of Eight Million Two Hundred Fifty One Thousand Six
Hundred Ninety Six and 82/100 dollars ($8,251,696.82) and in substantially the
same form as attached in Exhibit 2.
10-22
Resolution No.
Page 2
2. The Redevelopment Agency of the City of Chula Vista authorizes the Executive
Director of the Agency or his designee to enter into and execute the
aforementioned Loan Agreement and Promissory Note in the principal amount of
Eight Million Two Hundred Fifty One Thousand Six Hundred Ninety Six and
82/100 dollars ($8,251,696.82) and in substantially the same form as attached in
Exhibit 2.
3. The City Manager and Executive Director of the Redevelopment Agency or their
designees are hereby authorized to do all acts and things which may required of
them by this Resolution or which may be necessary or desirable to carry out the
issuance or execution of the Loan Agreement and Promissory Note as provided by
this Resolution and all matters incidental thereto. All such acts and things
heretofore done are hereby approved, ratified, and confirmed.
Presented by:
Gary Halbert, AICP, PE
Assistant City Manager/Director of
Development Services
Approved as to form by:
i'~~ V°~IJC'~1
Glen R. Googins
City Attorney
10-23