SR-413-002 (7)
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REVISED
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Council Meeting:
1/10/84
Santa Monica, Cal~forn~a
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To: Redevelopment Agency
From: City Staff
SUbJect: Extension of Time for Outstandlng Promlssory Notes
Introduction
The Redevelopment Agency has five Prom~ssory Notes, two for the
Downtown ProJect and three for the Ocean Park Project, covering
funds loaned to the Agency by the City. The four attached notes,
last renewed by the Agency January 1,
1983, need to be renewed
for the 1984 calendar year effectlve January 1, 1984. A f~fth
Promissory Note executed by the Agency on September 13, 1983 as
part of close out of the Ocean Park Federal Urban Renewal
ProJect, need not be renewed unt~l September 13, 1984.
Background
The Clty has loaned the Agency funds for varlOUS adminlstratlve,
operational and m~scellaneous expenses. These loans have been
formalized ~n the form of Promissory Notes with payment due
annually.
If payment ln full is not received by the Clty, the
Clty Attorney recommends that the Notes be renewed on an annual
basis.
since the Agency does not have funds available at thlS
tlme to meet payments due, four of the five oustandlng Promissory
Notes should be renewed effective January 1, 1984. The attached
notes lnclude the appropriate accrued lnterest.
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These Notes are very important to the Agency since they establ1sh
debt,
and the debt 15 necessary to 1nsure that the Agency
receives the maX1murn allocatlon of tax 1ncrement available to 1t.
Budget/F1nancial Impact
As a result of renew1ng these notes, the General Fund will
underrealize $45,800 in budgeted revenue. Within the context of
the overall General Fund revenue account, th1S change lS not
slgnif1cant enought to warrant a budget reV1S10n at this t1me.
Recommendation
It ls recommended that the Redevelopment Agency approve the four
attached Prom1ssory Notes between the Agency and the City,
extending the loans for the 1984 calendar year.
Prepared by: C. M. Dennis, D1rector of Flnance
W. R. Ramsey, Ass1stant Director of Finance
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Clty of Santa Monica
Extension of Time for Outstanding Notes
12% per Annum*
Pr-omlssory
Note
Balance
1-1-83
Accrued
Interest
1-1-83 to
12-31-83
Promissory
Note
Balance
1-1-84
Downtown
Redevelopment
Project**
$ 950,305.39
$ 114,036.65
$ 1,064,342.04
Ocean Park
Federal
Allocation***
1,607,833.91
192,940.07
1,800,773.98
Ocean Park
Federal
A11ocation**
945,604.88
113,472.59
1,059,077.47
* Maximum lnterest rate allowed.
**
Relmbursement
service costs.
for
various administrative support and
***
Reimbursement of CDBG funds used to pay interest on
outstandlng Federal Urban Renewal Loan Note.
~ . '. Ci ty of Santa Monica .
Extension of Time for Outstanding Notes
7 3/4% per Annum*
Prom~ssory
Note
Balance
10-24-78
Accrued
Interest
10-24-78 to
12-31-83
Promissory
Note
Balance
1-1-84
Downtown $ 4,400,000.00
Redevelopment
ProJect
$ 1,768,530.71
$ 6,168,530.71
*
Per Agency Resolution 352, October 24, 1978, ~nterest on
th~s note shall be the same rate as pa~d to the purchasers
of the Agency's Downtown Project Lease/Revenue Bonds.