SR-CC/RA-2
~ . . CCIRA -,2
JAN 221m
FI:CMD:WJJ:gp
CounCll MeetJ.ng: 1/22/85 Santa Monica, Callfornia
TO: CITY COUNCIL AND REDEVELOPMENT AGENCY
FROM: Clty and Agency Staff
SUBJECT: EXTENSION OF TIME FOR OUTSTANDING PROMISSORY NOTES
Introduction
The City of Santa MonJ.ca holds sJ.x Promissory Notes, two for the
Downtown Project and four for the Ocean Park Project, for funds
loaned to the Redevelopment Agency by the City. The four
attached notes, last renewed by the Agency January 1, 1984, for
four of these loans need to be renewed for the 1985 calendar year
effectJ.ve January 1, 1985. Promissory Notes for the loans
entered J.nto by the Agency on September 13. 1983 and September
14, 1983 as part of the close out of the Ocean Park Federal Urban
Renewal Project, should also be renewed effective January 1, 1985
for the 1985 calendar year.
Background
The CJ.ty has loaned the Agency funds for var1.OUS adrninJ.strat1.ve,
operatlonal and miscellaneous expenses. These loans have been
formallzed ln the form of Promlssory Notes wJ.th payment due
annually. If payment J.n full 1.S not rece1.ved by the CJ.ty, lt J.S
necessary that the Notes be renewed. 51nee the Agency does not
have funds avaJ.lable at th1.s tEn e to meet payments due, the SlX
C,c. / l<A -;l
JAH 2 2 1985
. . .
Proffilssory Notes should be renewed effectlve January 1, 1985.
The attached notes lnclude the appropr~ate accrued lnterest.
Budget/Flnanclal Impact
There l5 no budgetary lmpact from the renewal of these Promlssory
Note s . The f~nanc1al lmpact 15 to lncrease the llabl.llty of the
Agency by $1,113,030.05 whlch represents accrued lnterest for the
perlod 1/1/84 - 12/31/84.
Recommendatl.on
It lS recommended that:
(A) the City Counell agree to renew the SlX loans to the
Redevelopment Agency and to accept the attached Promlssory
Notes: and
(B) the Redevelopment Agency approve and authorl.ze the
chalrperson to execute the SlX attached Promlssory Notes
between the Agency and the Clty, extendlng the loans for the
1985 calendar year.
Prepared by: C.M. Dennl.s, Agency Treasurer/Clty
Director of Flnance
IV . R . Ramsey, ASslstant Dl.rector of Flnance
-~
. .
City of Santa Monlca
Extension of Tlme for Outstanding Notes
12% per Annum*
Prom~ssory Accrued Promissory
. Note Interest Note
Prom~ssory Balance 1-1-84 to Balance
Note Number 1-1-84 12-31-84 1-1-85
l. Downtown $1,064,342.04 $127,721.04 $1,192,063.08
Redevelopment
Project**
2. Ocean Park 1,800,773.98 216,092.88 2,016,866.86
Federal
Allocatlon***
3. Ocean Park 1,059,077.47 127,089.30 1,186,166.77
Federal
Allocation**
. Prom1.ssory Note Accrued Prom~ssory
Balance Interest Note
9-13-83 9-13-83 to Balance
12-31-84 1-1-85
4. Ocean Park
Federal
Allocat1.on**** $ 772,568.08 120,393.62 892,961.70
Promlssory Note Accrued Promissory
Balance Interest Note
9-14-83 9-14-83 to Balance
12-31-84 1-1-85
5. Ocean Park
Federal
Allocat1.on***** 280,837.00 43,672.08 324,509.08
* Maximum ~nterest rate allowed by law.
** Reimbursement for var1.OUS adrnin1.stratlve support and service
costsi owed to City's General Fund.
*** Reimbursement of CDBG funds used to pay interest on
outstandlng Federal Urban Renewal Loan Note; owed to City's
CDBG Fund.
**** Close out of Ocean Park Federal Urban Renewal Project; to
the City's General Fund.
*****Close out of Ocean Park Federal Urban Renewal ProJect; owed
to the Clty'S CDBG Fund.
. .
Clty of Santa Monlca
Extenslon of Tlme for Outstand1ng Notes
7 3/4% per Annum*
Promlssory Accrued Promlssory
Note Interest Note
Balance 10-24-78 to Balance
IO-24-78 l2-31-84 1-1-85
Downtown $4,400,000.00 $2,246,591.84 $6,646,591.84
Redevelopment
ProJect
"
* Per Agency Resolutlon 352, October 24, 1978, lnterest on thlS
note shall be the same rate as pald to the purchasers of the
Agency's Downtown ProJect Lease/Revenue Bonds.
** Llabillty lncurred in conJunction wlth establishment of
Downtown Redevelopment Project; owed to the Clty'S General
Fund.