RDA Resolution 2003-07RESOLUTION NO. RA 2003-07
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY ACCEPTING A LOAN FROM THE CITY OF LA
QUINTA 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 with
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 La Quinta Redevelopment Agency
of the City of La Quinta, California as follows:
The Projects to be f unded with Agency f unds are of benef it to Project Area No -
1 and o other reasonable means of financing such benefits are available to the
community at this time.
2. The attached Promissory Note with no specified repayment date and 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 Agency Board
Members find:
(a) That the Projects will be of benefit to the Agency's Project Area No. 1.
Resolution No. RA 2003-07
Loan / City to RDA / $6 million
RDA Project Area No. 1
Adopted: April 1, 2003
Page 2
(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
Redevelopment Agency held on this 1 st day of April, 2003, by the following vote:
AYES: Members Adolph, Osborne, Perkins, Sniff, Chair Henderson
NOES: None
ABSENT: None
ABSTAIN: None
---------------
- , LAA=:�� �
TERRY �NDERSON, Chair
La Quint Redevelopment Agency
ATTEST:
JUNOS'. G'REEK, CMC, Citi':6terk
City of La Quinta, California
(CITY SEAL)
Resolution No. RA 2003-0
Loan / City to RDA / $6 Ilion
RDA ProJect Area No. 1
Adopted: April 1, 2003
Page 3
APPROVED AS TO FORM:
M. KATHEF"E JENSON y Attorney
City of La Quinta, Calif r,�'�a'
La Quinta Redevelopment Agency
Project Area No. 1
PROMISSORY NOTE
La Quinta, Califomia
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 Maturily: 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. Prepayfflent: 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 attorneys 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
B Terry Henderson
I : Chairperson