R-6416
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12/30/81
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coun~ Mtg: 1/12/82
RESOLUTION NO.
6416
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ESTABLISHING A TWELVE PERCENT
(12%) INTEREST RATE ON FUNDS ADVANCED BY
THE CITY OF SANTA MONICA TO THE AGENCY
WHEREAS, pursuant to the Implementation of the
Ocean Park Redevelopment project and the Downtown
Redevelopment project, the City of Santa Monica has, from
time to time, advanced certain funds to the Redevelopment
Agency for the purpose of paying administrative and other
expenses; and
WHEREAS, pursuant to the Implementation of the
Ocean Park Redevelopment Project, the Redevelopment Agency
has issued certain Project Notes; and
WH ERE AS, i nor d e r to ass i s t the Red eve lop men t
Agency with the obligations accruing under the proJect Notes,
the Ci ty 0 f Santa Mon ica has, from time to time, advanc ed
certain funds to the Redevelopment Agency for the purpose of
paying interest on said Notes; and
WHEREAS, the Downtown Redevelopment project and
Ocean Park Project, as of June 30, 1981, are in debt to the
City of Santa Monica in the amounts of S871,840 and S824,449
respectively; and
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WHEREAS, the Ocean Park Project debt was secured by
a one (1) year promissory note bearing annual interest at ten
percent (lO%); and
WHEREAS,. the City has, since 19'7fj, allocated
certain Community Development Block Grant funds for the
payment of outstanding Ocean Park Redevelopment project
Notes; and
WHEREAS, these advances total $1,057,975.87 and the
interest amount which has accrued through June ::l0, 1981,
totals $185,291.01 for a grand total of $1,243,2~~.AB; and
WHEREAS,. these advances are secured by a two (2)
year promi ssory note due June 30,. 1983 bear ing inter est at
ten percent (10%) ~ and
WHEREAS, effective January 1, 1982, the interest
rate ceiling on public agency debt has been changed from ten
percent (10%) to twelve percent (12%); and
WHEREAS, In consideration of not calling the
amounts due and in consideration of future advances, the
Agency agrees to pay interest cost for all advanced funds at
the rate of twelve percent (12%),
NOW, THEREFORE, THE CITY COUN'CIL OF THE CITY OF
SANTA MONICA RESOLVES AS FOLLOWS:
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SECTION 1. The City Council hereby authorIzes the
City to receIve from the Agency, promissory notes in the
amounts of Eight Hundred Seventy One Thousand, Eight Hundred
Forty Dollars ($B71,~40), Eight Hundred Twenty Four Thousand,
Four Hundred Forty Nine Dollars ($824,44G), and One Million,
Two Hundred Forty Three Thousand, Two Hundred Sixty Six
Dollars and EIghty Eight Cents (Sl ,243 ,2t:;f5.88) .
Such notes
shall bear Interest at twelve percent (12%) annually.
Such
notes shall be due on demand by the City. The City Manager
IS hereby authorized to demand payment of such notes on
behalf of the City.
SECTION 2. Any future advances by the City to the
Agency shall be reimbursed on a quarterly basis from
available funds. Such advances shall bear interest at twelve
percent (12%) annually.
Whether funds are available for
repayment or are required for current or future redevelopment
acti vi ties shall be determined by the Redevelopmen t Agency
Executive Director.
SECTION 3.
The City Clerk shall certify to the
adoption of this resolution, and thenceforth and thereafter
the same shall be in full force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS \j
City Attorney
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ADOPTED AND APPROVED THIS
12th
DAY
OF January
~ 1982.
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,Left. ~~dkk~
:/ MAYOR t?L U
I HEREBY CERTIFY THAT THE FOREGOING RESOLUTION
NO. 6416 (CCS)WAS DULY ADOPTED BY THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ~T A MEETING THEREOF HELD ON
January 12 ~ 1982 BY THE FOL LOvl! NG COUNCIL VOTE:
AYES: CDUNG I LMH1BERS: Conn~ Edlvards, Jennlngs, Press)
Reed, Zane, Mayor Yannatta Goldway
NOES: COUNCIlMEMBERS: None
ABSENT: COUNe ILMEMBERS: ~one
ABSTAIN:
COUNCILMEMBERS: ~one
ATTEST:
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CITY CLERK