CC Resolution 2003-020RESOLUTION NO. 2003-020
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA ESTABLISHING A LOAN TO THE LA QUINTA
REDEVELOPMENT AGENCY, AND MAKING CERTAIN
FINDINGS PURSUANT TO HEALTH AND SAFETY CODE
SECTION 33445(a)
WHEREAS, the activities of the La Quinta Redevelopment Agency (the
"Agency") Project Area No. 1 cause improvements to be done that are
beneficial to both the City of La Quinta (the City) and the Agency. and
WHEREAS, current Agency Project Area No. 1 revenues are of a
limited nature, although additional future revenues will be forthcoming as
development continues; and
WHEREAS, the City desires that the Agency Project Area No. 1
continues with such mutually beneficial improvements and particularly with
the publicly owned Capital Improvement projects, including library
construction, the La Fonda Street improvements, and the design of future
Eisenhower median improvements ("the Projects"); and
WHEREAS, the City has authority to provide a loan to the Agency as
an investment under Government Code Section 53601(d): and
WHEREAS, these projects are in the best interest of the public, are
located within the La Quinta Redevelopment Agency's Project Area No. 1,
and will enhance the public's use of Project No. 1; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of La Quinta as follows:
1. The Projects to be funded with Agency funds are of benefit to Project
Area No. 1 and no other reasonable means of financing such benefits are
available to the community at this time.
2. The attached Promissory Note with an interest rate of 7 %, between the
City and the Agency be approved in an amount of $6 million.
3. Pursuant to Health and Safety Code Section 33445 (a), the City Council
finds:
Resolution No. 2003-020
Loan / City to RDA / $6 million
RDA Project Area 1
Adopted: April 1, 2003
Page 2
(a) That the Projects will be of benefit to the Agency's Project Area No.
1.
(b) That no other reasonable means of financing the Projects are available
to the community at this time.
(c) That the payment of funds for the Projects will assist in the
elimination of one or more blighting conditions in the project area and
is consistent with the implementation plan adopted pursuant to
Section 33490.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
City Council held on this 1 st day of April, 2003, by the following vote:
AYES: Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
-1'hV
DON AD PH, Wyor
City of La Quinta, California
ATTEST:
JU . GREEK, CMC, City CWe
City of La Quinta, California
Resolution No. 2003-020
Loan / City to RDA / $6 million
RDA Project Area 1
Adopted: April 1, 2003
Page 3
APPROVED AS TO FORM:
M. KATHERINE JENSgW,, City Attorney
City of La Quinta, California
La Quinta Redevelopment Agency
Project Area No. 1
PROMISSORY NOTE
La Quinta, California
April 1, 2003
FOR VALUE RECEIVED, the undersigned promises to pay to the order of the City of La
Quinta, a municipal corporation, in lawful money of the United States of America, the principal sum
of Six Million dollars ($6,000,000) together with interest per annum on the principal balance from
time to time outstanding after the date hereof until paid in full.
1. Maturi : The principal amount of this Promissory Note, together with any accrued
but unpaid interest, shall be due and payable by November 29, 2033.
2. Interest: Interest on the unpaid principal balance hereof from time to time
outstanding shall accrue at the rate of seven percent (7%) per annum, commencing
on the date hereof.
3. Preaavment: The undersigned, at its option, shall have the right to prepay this
Promissory Note, in whole or in part, at any time and from time to time, without
penalty, provided that such optional prepayment shall be credited first to accrued
interest, if any, and then to unpaid principal.
4. Miscellaneous:
4.1 The undersigned hereby waives presentment, protest, notice of protest, notice
of dishonor, and notice of nonpayment on this Promissory Note.
4.2 The undersigned promises to pay cost of collection, including attorney's fees,
whether or not suit is filed under any instrument or obligations evidenced by
this Promissory Note, upon the occurrence of a default hereunder.
4.3 The undersigned promises to perform and comply with each of the obligations
of any and all of the undersigned set forth in every instrument evidencing this
Promissory Note.
4.4 This Promissory Note shall be governed by and construed according to the
laws of California.
4.5 The repayment of the loan principal and accrued interest by Agency shall be
junior and subordinate to (i) all existing and future Agency tax allocation bonds
or other direct long-term indebtedness of Agency, (ii) all existing and future
pledges by Agency of tax increments for tax allocation bonds or other direct
long-term indebtedness of Agency, (iii) existing and future Agency financial
agreements and other contractual obligations of Agency, and (iv) any
contingent obligations of Agency.
IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, has duly executed this Promissory
Note effective as to the day and year first written above.
REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA,
A public body, corporate and politic of the State of California
By: Tent' Henderson
Its: Chairperson