Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 18, 2008 <br />TITLE: <br />TERMINATE AGREEMENT WITH SOUTHLAND <br />ECONOMIC DEVELOPMENT CORPORATION <br />FOR THE EMPOWERMENT ZONE WORKING <br />CAPITAL LOAN PROGRAM <br />,~~~~2. <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Terminate the agreement with <br />for the Empowerment Zone <br />understanding that any net <br />accounts receivables would <br />Corporation. <br />Southland Economic Development Corporation <br />Working Capital Loan program with the <br />proceeds from the judgment and any other <br />be returned to the Santa Ana Empowerment <br />SANTA ANA EMPOWERMENT CORPORATION BOARD ACTION <br />At its regular meeting of July 23, 2008, by a vote of 12:0 (Arjonilla, <br />Carricchi, Martinez, Medrano, Price, Rama, Reyna, absent), the Santa Ana <br />Empowerment Corporation Board recommended that the City of Santa Ana <br />terminate its agreement with Southland Economic Development Corporation <br />for the Working Capital Loan program with the understanding that any net <br />proceeds of the judgment, and any other accounts receivables would be <br />returned to the Santa Ana Empowerment Corporation. <br />DISCUSSION <br />On April 19, 1999, prior to the creation of the Santa Ana Empowerment <br />Corporation (SAEC), the City Council authorized the funding of a Working <br />Capital Loan program utilizing Federal Empowerment Zone funds. An <br />agreement for $250,000 was executed by the City with Southland Economic <br />Development Corporation to develop and administer a revolving working <br />capital loan program for businesses located in the Empowerment Zone. <br />Southland drew down $199,357.97 of the $250,000 available pursuant to the <br />agreement for three loans. <br />All but one loan have been repaid in full, and no new loans have been <br />issued since 2004. The loan pool experienced one default. Southland was <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1S` Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />25R-1 <br />