CITY COUNCIL AGENDA ITEM NO. 13
Meeting Date: February 27, 2001
Subject/Title: Consideration of a resolution authorizing a loan between the City of Brentwood and the Brentwood Redevelopment Agency to help fund an expansion of community room space within the Sycamore Place Apartments
Submitted by: Pam Ehler, Acting Finance Director
Approved by: Jon Elam, City Manager
Approve a resolution to accept a loan in the amount of $74,000 from the City’s General Fund to the Redevelopment Agency to help fund an expansion of community room space within the Sycamore Place Apartments.
On February 13, 2001, the Agency Board approved a request of $74,000 by Christian Church Homes, to help fund an expansion of community room space within the Sycamore Place Apartments and directed the Agency Attorney to draft an agreement to be recorded on the property, with the provision that these funds be reimbursed to the Agency, if the project is sold or refinanced.
The resolution accepts a loan from the City’s General Fund in the amount of $74,000 to the Brentwood Redevelopment Capital Project Fund to help fund an expansion of community room space within the Sycamore Place Apartments. The interest rate to be assessed by the City for this loan is six percent (6%), which is equivalent to the approximate rate currently earned by the investment of other City funds with the State of California Local Agency Investment Fund. It is anticipated that the tax increment revenues from the 20% set-aside funds for low-income housing will be sufficient to repay this loan by 6/30/01. This action will create debt, which is required in order to continue to generate RDA funds.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROPRIATING & AUTHORIZING A LOAN IN THE AMOUNT OF $74,000 FROM THE CITY GENERAL FUND TO THE BRENTWOOD REDEVELOPMENT AGENCY PROJECT FUND TO HELP FUND AN EXPANSION OF COMMUNITY ROOM SPACE WITHIN THE SYCAMORE PLACE APARTMENTS
WHEREAS, the Agency desires to help fund an expansion of community room space within the Sycamore Place Apartments, 1100 Sycamore Court, Brentwood, California, to expand and improve the adequacy of the community room; and
WHEREAS, the City Council of Brentwood appropriated and authorized the amount of $74,000, in the form of a loan to the Agency’s Capital Project fund for property construction expenditures for 1100 Sycamore Court, Brentwood, California; and
WHEREAS, the Agency desires to accept said loan on the terms and conditions set forth in said resolution; and
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF BRENTWOOD, DOES RESOLVE AS FOLLOWS:
Section 1. The sum of $74,000 is hereby appropriated and loaned to the Brentwood Merged Redevelopment Agency Capital Project Fund.
Section 2. Such appropriation is hereby authorized to be paid to the Agency as a loan to be repaid from any legally available funds of the Agency with interest from the date funds are actually transferred to the Redevelopment Agency by the City, to the date of repayment by the Agency (calculated on a 360 day year basis) at the rate of six percent (6%). The debt created hereby shall be subordinated to any other indebtedness of the Agency, presently existing or hereafter incurred, for the purpose of fulfilling the redevelopment activities of the Agency.
Section 3. This loan to the Brentwood Redevelopment Agency shall be repaid from Agency 20% Housing Tax Increment Revenues, no later than June 30, 2001.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held February 27, 2001 by the following vote: