Laserfiche WebLink
<br />nATE:"' <br />~T <br /> <br />~ <br /><:5 <br />.1 ~ <br />~ <br />2:-6 <br />04 <br />~o <br />U <br />.- <br />U <br /> <br />INSURANCE NOT REQUIRED <br />WORK MAY PROCEED <br />CLERK OF COUNCIL <br />JUN 1 7 2009 <br /> <br />A-2009-055 <br /> <br />LOAN AGREEMENT <br /> <br />This AGREEMENT is entered into this 18th day of May, 2009 among the City of Santa <br />Ana, a charter city, duly organized and existing under the Constitution and laws of the State of <br />California, (hereinafter "City"), the Community Redevelopment Agency of the City of Santa <br />Ana, a public body, corporate and politic, and Downtown Incorporated, a California non-profit <br />corporation, (hereinafter "Downtown, Inc."). <br /> <br />RECITALS <br /> <br />A. On December 15,2008 the City Council of the City of Santa Ana established the <br />Downtown Community Management District (the "CMD") to promote economic <br />revitalization and physical maintenance of Downtown Santa Ana through the levy, <br />collection and expenditure of funds. <br /> <br />B. Pursuant to state law, governmental agencies such as the City and Agency which own <br />property within an assessment district must be assessed for special benefits conferred <br />upon such governmental properties. <br /> <br />C. The first assessments for the CMD will not be received and be available for use in <br />the district until January 2010 and is in the interest of the property owners in the <br />district that some of the programs called for under the Management District Plan <br />begin in the first half of Fiscal Year 2009-2010. <br /> <br />D. The board of directors of the CMD, including the City and Agency have been <br />requested to loan an amount equal to the estimated first year assessment to <br />Downtown, Inc., who shall be the management entity for the district under agreement <br />with the City (the "Management Agreement"). <br /> <br />E. The loans shall be repaid by Downtown, Inc in accordance with this Agreement and a <br />promissory note. <br /> <br />NOW THEREFORE, for good and valuable consideration the parties agree as follows: <br /> <br />I. Citv and Agencv Obligation. City and Agency shall loan to Downtown, Inc. the <br />sums of$22,304 (the "City Loan") and $95, 912 (the "Agency Loan") <br />(collectively, the "Loan Proceeds") secured by Downtown, Inc.'s execution of <br />the Promissory Notes attached hereto as Exhibit I & 2 and incorporated herein by <br />this reference. <br /> <br />2. Use of Funds. Repavment. Acceleration. The Loan Proceeds shall be used by <br />Downtown, Inc. for purposes consistent with the Management Agreement. <br />Downtown, Inc. shall repay City Loan and Agency Loan on or before June 30, <br />2014. Notwithstanding the foregoing, in the event the annual assessments for the <br /> <br />Page 1 <br />