REDEVELOPMENT AGENDA ITEM NO. 2
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, Executive Director
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.
RESOLUTION NO. RA-
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD ACCEPTING A LOAN IN THE AMOUNT OF $74,000 FROM THE CITY GENERAL FUND TO THE BRENTWOOD MERGED 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 REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD, DOES RESOLVE AS FOLLOWS:
Section 1. The Agency board hereby accepts the loan in the amount as specified herein from the City of Brentwood, appropriated to the Brentwood Redevelopment Agency Capital Project Fund and agrees to be bound by the terms of the resolution with respect to the repayment thereof, including without limitation, the payment of interest on the unpaid principal balance of said loan.
Section 2. The Agency Board hereby authorizes and directs the appropriate officers and employees of the Agency to take whatever actions are required pursuant to this Resolution.
Section 3. The Agency Board authorized loan shall be repaid from Agency 20% Housing Tax Increment.
PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held February 27, 2001 by the following vote: