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COMMUNITY REDEVELOPMENT AGENCYu • cop Exhibit "A" CITY/AGENCY LOAN AGREEMENT SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT THIS AGREEMENT is entered into this 15th day of December, 1992, by and between the SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), and the CITY OF SAN JUAN CAPISTRANO, a municipal corporation (the "City"). RECITALS: A. By Ordinance No. 488 adopted July 12, 1983, Ordinance No. 509 adopted on May 15, 1984, Ordinance No. 547 adopted on July 16, 1985 and Ordinance Nos. 582 and 583 adopted on August 19, 1986, the City Council of the City of San Juan Capistrano (the "City Council") approved and amended the Redevelopment Plan (the "Pian") for the San Juan Capistrano Redevelopment Project (the "Project Area") of the San Juan Capistrano Community Redevelopment Agency (the "Agency"). B. Pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et. seq., the Agency is carrying out the Redevelopment Plan for the Project in the redevelopment project area (the "Project Area"). C. Under the State Budget Act, Chapter 700 (SB 844) the Agency shall shift $303,506.35 of tax increment revenue to the Educational Revenue Allocation Fund (ERAF) by May 15, 1993. 0 G D. The Agency has determined by resolution its inability to allocate the full amount required and the City and the Agency desire to enter into an agreement under which the City will loan to the Agency an amount not to exceed $100,000.00. AGREEMENT The Agency and the City hereby agree as follows: 1. Loan. The City loans to the Agency the amount not to exceed One Hundred Thousand Dollars ($100,00.00) (the "Loan Amount), which the Agency shall use to meet its required property tax shift (ERAF). 2. Repayment by the Agency. The Agency shall repay to the City the Loan Amount, plus interest at the average rate earned by the City investments during the term of this loan all due and payable ten years from the date hereof. 3. Indebtedness of Agency. This Agreement constitutes an indebtedness of the Agency incurred in carrying out the Project, and a pledging of tax allocations from the Project to repay such indebtedness, under the provisions of Section 16 of Article XVI of the California Constitution and Section 33670-33674 of the Health and Safety Code; provided, however, that such pledge of tax allocations shall always be subordinate and subject to the right of the Agency pledge or commit tax allocations from the Project to repay bonds or other indebtedness incurred by the Agency in carrying out the Project. 0 0 IN WITNESS WHEREOF, the Agency and the City have executed this Agreement as of the date first above written. ATTEST: Cheryl Johnsor�yS­eVtary ATTEST: y C eryl Johnsa , Cj Clerk SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY CITY OF SAN JUAN CAPISTRANO APPROVED AS TO FORM IIU A Richa Kdr Denhalter, City Attorney 0 0 PROMISSORY NOTE SECURED BY DEED OF TRUST OCC.(C San Juan Capistrano, California I t1 0 , 199,E 39f The undersigned, SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and politic created under the laws of the State of California ('Borrower"), promises to pay to the order of the CITY OF SAN JUAN CAPISTRANO, a municipal corporation organized and existing under the laws of the State of California ("Lender"), at 32400 Paseo Adelanto, San Juan Capistrano, California, or at such other place as ma be�signated in writing by Lender, the principal sum of �'/G�ITY-i7Vl T�IGU�ZN/� Ay "L/Q'DOLLARS with interest at the average rate earned by the City investment over the term of the note. Interest shall be due and payable in one installment on the Maturity Date (as hereinafter defined). The outstanding principal balance of this note, together with any accrued and unpaid interest, shall be due and payable in one installment on or before the tenth anniversary date of this note ("Maturity Date"). Notwithstanding the foregoing sentence, the principal balance of this note, together with accrued and unpaid interest, is payable at any time upon demand by Lender. All sums owing hereunder are payable in lawful money of the United States of America. All or any portion of the principal balance of this note may be prepaid at any time without penalty or premium. In the event any payments are made by the. Borrower in payment of the note, such payments shall be applied first to the interest then accrued and due on the unpaid principal balance under this note, and the remainder of any such payment shall be applied to the reduction of the unpaid principal. Neither this note nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by the Borrower and the Lender hereof. No delay or omission on the part of the Lender hereof in exercising any right hereunder shall operate as a waiver of such right or of any right under this note. This note shall be construed according to and governed by the Laws of the State of California and the parties hereto agree to submit to the jurisdiction of the courts of the State of California in the event any litigation arises concerning the terms of this note. "Borrower" SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and politic created under the laws of the State of California By:_ Chairmaii, Board of Directors ATTEST: City Clebk - Agency ret • 0 035 RESOLUTION NO. 92-12-15-3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING A LOAN AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY AND APPROVING AND AUTHORIZING THE EXECUTION OF A PROMISSORY NOTE FOR THE REPAYMENT THEREOF WHEREAS, by Ordinance No. 488, adopted July 12, 1983, Ordinance No. 509 adopted May 15, 1984, Ordinance No. 547, adopted on July 16, 1985, and Ordinance Nos. 582 and 583 adopted on August 19, 1986, the City Council of the City of San Juan Capistrano (the "City Council") approved and amended the Redevelopment Plan (the "Plan") for the San Juan Capistrano Redevelopment Project (The "Project Area") of the San Juan Capistrano Community Redevelopment Agency (the "Agency"); and, WHEREAS, the State of California adopted the 1992 Budget Act and related legislation, Chapter 700 (Senate Bill 8454) of which requires the Agency to shift $303,506.35 of tax increment to the Educational Revenue Allocation Fund ("ERAF"); and, WHEREAS, the Agency has demonstrated and certified its inability to meet its entire obligation from tax increment available; and, WHEREAS, the City must enter into an agreement with the Agency to provide the funds necessary to assist the Agency in its allocation to avoid the County Auditor from transferring the necessary amount from the City's property tax allocation. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Juan Capistrano as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The execution and delivery of the Loan Agreement and Promissory Note is in the best interest of the Agency and will promote the public health, safety and welfare. SECTION 3. The Loan Agreement, attached hereto as Exhibit "A", is hereby approved. The Mayor and City Manager are hereby authorized to execute the Loan Agreement on behalf of the City, together with such changes thereto as are approved by the City Manager, execution thereof being conclusive evidence of the City's approval of such changes. -1- LI • 0 0 SECTION 4. The Promissory Note, attached hereto as Exhibit "B", is hereby approved. The City hereby authorizes and directs the City Manager and Director of Administrative Services to execute the Note, providing for the repayment by the Agency to the City of the Note amount plus interest thereon, in substantially the form attached hereto, on behalf of the city at such time as the funds are necessary to fulfill the Agency's obligation, together with such changes thereto as are approved by the City Manager of the City, execution thereof being conclusive evidence of the City's approval of such changes. PASSED, APPROVED, AND ADOPTED this 15th day Of December , 1992. ATTEST: STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 92-12-15-3 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 15th day Of December , 1992, by the following vote: AYES: Council Members Nash, Hausdorfer, Campbell, Vasquez and (SEAL) CHERYL JOHNSON, CPY CLERK -2- Mayor Jones NOES: None ABSTAIN: None ABSENT: None (SEAL) CHERYL JOHNSON, CPY CLERK -2- • 0317 Exhibit "A" CITY/AGENCY LOAN AGREEMENT SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT THIS AGREEMENT is entered into this 15th day of December, 1992, by and between the SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), and the CITY OF SAN JUAN CAPISTRANO, a municipal corporation (the "City"). RECITALS: A. By Ordinance No. 488 adopted July 12, 1983, Ordinance No. 509 adopted on May 15, 1984, Ordinance No. 547 adopted on July 16, 1985 and Ordinance Nos. 582 and 583 adopted on August 19, 1986, the City Council of the City of San Juan Capistrano (the "City Council") approved and amended the Redevelopment Plan (the "Plan") for the San Juan Capistrano Redevelopment Project (the "Project Area") of the San Juan Capistrano Community Redevelopment Agency (the "Agency"). B. Pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et. seg., the Agency is carrying out the Redevelopment Plan for the Project in the redevelopment project area (the "Project Area"). C. Under the State Budget Act, Chapter 700 (SB 844) the Agency shall shift $303,506.35 of tax increment revenue to the Educational Revenue Allocation Fund (ERAF) by May 15, 1993. 038. • • D. The Agency has determined by resolution its inability to allocate the full amount required and the City and the Agency desire to enter into an agreement under which the City will loan to the Agency an amount not to exceed $100,000.00. AGREEMENT The Agency and the City hereby agree as follows: 1. Loan. The City loans to the Agency the amount not to exceed One Hundred Thousand Dollars ($100,00.00) (the "Loan Amount), which the Agency shall use to meet its required property tax shift (ERAF). 2. Repayment by the Agency. The Agency shall repay to the City the Loan Amount, plus interest at the average rate earned by the City investments during the term of this loan all due and payable ten years from the date hereof. 3. Indebtedness of Agency. This Agreement constitutes an indebtedness of the Agency incurred in carrying out the Project, and a pledging of tax allocations from the Project to repay such indebtedness, under the provisions of Section 16 of Article XVI of the California Constitution and Section 33670-33674 of the Health and Safety Code; provided, however, that such pledge of tax allocations shall always be subordinate and subject to the right of the Agency pledge or commit tax allocations from the Project to repay bonds or other indebtedness incurred by the Agency in carrying out the Project. • • 039 IN WITNESS WHEREOF, the Agency and the City have executed this Agreement as of the date first above written. SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY By: -a 112sh Carolyn Nas , Chairman By: /s/ George Scarborough George Scarborough, Executive Director ATTEST: /a/ Cheryl Johnson Cheryl Johnson, Secretary CITY OF SAN JUAN CAPISTRANO By: /s/ Gil Jones Gil Jones, Mayor By: /s/ George Scarborough George Scarborough, City Manager ATTEST: /s/ Cheryl Johnson Cheryl Johnson, City Clerk APPROVED AS TO FORM /s/ Richard K. Denhalter Richard K. Denhalter, City Attorney Exhi* B PROMISSORY NOTE SECURED BY DEED OF TRUST San Juan Capistrano, California , 1992 The undersigned, SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and politic created under the laws of the State of California ('Borrower"), promises to pay to the order of the CITY OF SAN JUAN CAPISTRANO, a municipal corporation organized and existing under the laws of the State of California ("Lender"), at 32400 Paseo Adelanto, San Juan Capistrano, California, or at such other place as may be designated in writing by Lender, the principal sum of (insert amount, not to exceed $100,00 DOLLARS with interest at the average rate earned by the City investment over the term of the note. Interest shall be due and payable in one installment on the Maturity Date (as hereinafter defined). The outstanding principal balance of this note, together with any accrued and unpaid interest, shall be due and payable in one installment on or before the tenth anniversary date of this note ("Maturity Date"). Notwithstanding the foregoing sentence, the principal balance of this note, together with accrued and unpaid interest, is payable at any time upon demand by Lender. All sums owing hereunder are payable in lawful money of the United States of America. All or any portion of the principal balance of this note may be prepaid at any time without penalty or premium. In the event any payments are made by the Borrower in payment of the note, such payments shall be applied first to the interest then accrued and due on the unpaid principal balance under this note, and the remainder of any such payment shall be applied to the reduction of the unpaid principal. Neither this note nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by the Borrower and the Lender hereof. No delay or omission on the part of the Lender hereof in exercising any right hereunder shall operate as a waiver of such right or of any right under this note. This note shall be construed according to and governed by the Laws of the State of California and the parties hereto agree to submit to the jurisdiction of the courts of the State of California in the event any litigation arises concerning the terms of this note. "Borrower" SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and politic created under the laws of the State of California /s/ George Scarborough By: BY: _/s/ Carolyn Nash Executive Director Chairman, Board of Directors ATTEST: /s/ Cheryl Johnson City Clerk /s/ Cheryl .Johnson Agency Secretary Mechelle Lawrence, Assistant Planner, explained that the focus of the proposed Ordinance was on large areas of landscaping in industrial, commercial, public, and institutional projects and not single-family residences. Council Member Nash expressed concern about the potential appearance of drought - tolerant landscaping. Ms. Lawrence explained that certain types of turf grass would be allowed and more trees would be required in parking lots. Aesthetics would still be an important criteria when reviewing landscaping plans. She noted that there is a long list of drought -tolerant plants and the new regulations will help promote native California plants. Public Hearin¢: Notice having been given as required by law, Mayor Jones opened the Public Hearing, and there being no response, closed the hearing with the right to reopen at any time. Introduction of Ordinance Establishing Water Conservation Landscape Standards: The City Clerk read the title of the Ordinance next in order. Further reading of all Ordinances had been waived earlier in the meeting. It was moved by Council Member Nash, seconded by Council Member Hausdorfer, that the following Ordinance be introduced: ESTABLISHING WATER CONSERVATION LANDSCAPE STANDARDS - AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, ESTABLISHING WATER CONSERVATION LANDSCAPE STANDARDS IN ACCORDANCE WITH ASSEMBLY BILL 325 The motion carried by the following vote: AYES: Council Members Campbell, Hausdorfer, Nash, Vasquez, and Mayor Jones NOES: None ABSENT: None Council recessed at 8:27 p.m. to convene the San Juan Capistrano Community Redevelopment Agency, and reconvened at 8:34 p.m. UDIMICNItIX, \L lLu�. Written n m unicafinn' I Report dated December 15, 1992, from the Interim Director of Administrative Services, recommending that a loan agreement between the City and the Community Redevelopment Agency be approved transferring funds from the City to the State's Educational Revenue Allocation Fund. The Community Redevelopment Agency determined that it was unable to transfer the full allocation of 5303,506.35 in tax increment funds to the Educational Revenue Allocation fund, as required by the 1992 Budget Act and related legislation, and requested that the City provide the balance through a loan agreement and the execution of a promissory note over a ten-year period City Council Minutes -8- 12/15/92 Resolution Approving the Execution of Loan Agreement and Promissory Note: It was moved by Council Member Hausdorfer, seconded by Council Member Nash, that the following Resolution be adopted: RESOLUTION NO, 92-12-15-3. APPROVING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT AND APPROVING AND AUTHORIZING THE EXECUTION OF A PROMISSORY NOTE - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPRO VING A LOAN AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, AND APPROVING AND AUTHORIZING THE EXECUTION OF A PROMISSORY NOTE FOR THE REPAYMENT THEREOF The motion carried by the following vote: AYES: Council Members Campbell, Hausdorfer, Nash, Vasquez, and Mayor Jones NOES: None ABSENT: None s lt_ •il• : • W _ evil •I _ , �.Yt,TiY•1 ic1' • •47A UWAA IEO)' ut clt • t t 2. Written Communication: Report dated December 15, 1992, from the Planning Director, advising that no new development applications were received by the City since the last report of November 17, 1992. It was moved by Council Member Hausdorfer, seconded by Council Member Nash, that the Report be received and filed. Written Communication Report dated December 15, 1992, from the Planning Director, requesting that an amendment to Title 9 of the Municipal Code be initiated to consider a Historic Preservation Ordinance. The ordinance would assist the City in its eligibility to receive financial and administrative support from the State and federal government for historic preservation projects and would provide guidelines for the preservation of historic structures within the City. Resolution Initiating Consideration Historic Preservation Or ' an It was moved by Council Member Nash, seconded by Council Member Vasquez, that the following Resolution be adopted: City Council Minutes -9- 12/15/92 E L AGENDA ITEM: December 15, 1992 TO: George Scarborough, City Manager FROM: Cynthia L. Pendleton, Interim Director of Administrative Services SUBJECT: Resolution Approving Loan Agreement Between the City and the Community Redevelopment Agency and Approving and Authorizing the Execution of a Promissory Note -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- RECOMMENDATION: By motion, approve and adopt the resolution approving the loan agreement and approving the execution of a promissory note. SITUATION: The Redevelopment Agency adopted a Redevelopment Plan for the Central Project Area under Health and Safety Code Section 33000 and the City adopted several ordinances approving and amending the Plan. Under the redevelopment plan the City shall aid and cooperate with the Agency in carrying out the obligations of the Project. During its 1992-93 budget process the State of California adopted the 1992 Budget Act and related legislation. Chapter 700 (SB 844) requires the Agency to shift $303,506.35 of its tax increment to the Educational Revenue Allocation Fund. The Agency's inability to make its full allocation requires it to enter into an agreement with the City to fund the unfunded balance of the allocation amount. The Finance Officer has demonstrated and certified that it will be unable to make its full allocation and has prepared for the Board of Directors consideration an agreement (Exhibit "A") to provide for the balance of the allocation to be funded by the City. COMMISSION/BOARD REVIEW, RECOMMENDATION: N/A FINANCIAL CONSIDERATIONS: The Agency has made an additional appropriation to fund the required allocation and will be unable to fund the entire obligation until funds are transferred from the City. NOTIFICATION: N/A FOR CITY COUNCIL AGE I D L /, 0 0 AGENDA ITEM -2- December 15, L992 ALTERNATE ACTIONS: 1. By motion, approve and adopt the resolution approving the loan agreement and approving and authorizing the execution of a promissory note. 2. Adopt the resolution with modifications. 3. Do not adopt the resolution causing the County Auditor to transfer the necessary amount from the City's property tax allocation. RECOMMENDATION: By motion, approve and adopt the resolution approving the loan agreement and approving and authorizing the execution of a promissory note. Respectfully submitteda Cyr y hia L�ton�/� CLP:ja Attachments RESOLUTION NO. 92-12-15-3 Y A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING A LOAN AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY AND APPROVING AND AUTHORIZING THE EXECUTION OF A PROMISSORY NOTE FOR THE REPAYMENT THEREOF WHEREAS, by Ordinance No. 488, adopted July 12, 1983, Ordinance No. 509 adopted May 15, 1984, Ordinance No. 547, adopted on July 16, 1985, and Ordinance Nos. 582 and 583 adopted on August 19, 1986, the City Council of the City of San Juan Capistrano (the "City Council") approved and amended the Redevelopment Plan (the "Plan") for the San Juan Capistrano Redevelopment Project (The "Project Area") of the San Juan Capistrano Community Redevelopment Agency (the "Agency"); and, WHEREAS, the State of California adopted the 1992 Budget Act and related legislation, Chapter 700 (Senate Bill 8454) of which requires the Agency to shift $303,506.35 of tax increment to the Educational Revenue Allocation Fund ("ERAF"); and, WHEREAS, the Agency has demonstrated and certified its inability to meet its entire obligation from tax increment available; and, WHEREAS, the City must enter into an agreement with the Agency to provide the funds necessary to assist the Agency in its allocation to avoid the County Auditor from transferring the necessary amount from the City's property tax allocation. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Juan Capistrano as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The execution and delivery of the Loan Agreement and Promissory Note is in the best interest of the Agency and will promote the public health, safety and welfare. SECTION 3. The Loan Agreement, attached hereto as Exhibit "A", is hereby approved. The Mayor and City Manager are hereby authorized to execute the Loan Agreement on behalf of the City, together with such changes thereto as are approved by the City Manager, execution thereof being conclusive evidence of the City's approval of such changes. 0 0 SECTION 4. The Promissory Note, attached hereto as Exhibit "B", is hereby approved. The City hereby authorizes and directs the City Manager and Director of Administrative Services to execute the Note, providing for the repayment by the Agency to the City of the Note amount plus interest thereon, in substantially the form attached hereto, on behalf of the city at such time as the funds are necessary to fulfill the Agency's obligation, together with such changes thereto as are approved by the City Manager of the City, execution thereof being conclusive evidence of the City's approval of such changes. PASSED, APPROVED, AND ADOPTED this 15th day of December , 1992. MAYO ATTEST: STATE OF CALIFORNIA ) COUNTY OF ORANGE ) as CITY OF SAN JUAN CAPISTRANO ) 1, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 92-12-15-3 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 15th day Of December , 1992, by the following vote: AYES: Council Members Nash, Hausdorfer, Campbell, Vasquez and �,�•-- C. - CLERK -2- Mayor Jones NOES: None ABSTAIN: None ABSENT: None �,�•-- C. - CLERK -2- Exhibit "A" CITY/AGENCY LOAN AGREEMENT SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT THIS AGREEMENT is entered into this 15th day of December, 1992, by and between the SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), and the CITY OF SAN JUAN CAPISTRANO, a municipal corporation (the "City"). RECITALS: A. By Ordinance No. 488 adopted July 12, 1983, Ordinance No. 509 adopted on May 15, 1984, Ordinance No. 547 adopted on July 16, 1985 and Ordinance Nos. 582 and 583 adopted on August 19, 1986, the City Council of the City of San Juan Capistrano (the "City Council") approved and amended the Redevelopment Plan (the "Plan") for the San Juan Capistrano Redevelopment Project (the "Project Area") of the San Juan Capistrano Community Redevelopment Agency (the "Agency"). B. Pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et. seq., the Agency is carrying out the Redevelopment Plan for the Project in the redevelopment project area (the "Project Area"). C. Under the State Budget Act, Chapter 700 (SB 844) the Agency shall shift $303,506.35 of tax increment revenue to the Educational Revenue Allocation Fund (ERAF) by May 15, 1993. 0 0 0 D. The Agency has determined by resolution its inability to allocate the full amount required and the City and the Agency desire to enter into an agreement under which the City will loan to the Agency an amount not to exceed $100,000.00. AGREEMENT The Agency and the City hereby agree as follows: 1. Loan. The City loans to the Agency the amount not to exceed One Hundred Thousand Dollars ($100,00.00) (the "Loan Amount), which the Agency shall use to meet its required property tax shift (ERAP). 2. Repayment by the Agency. The Agency shall repay to the City the Loan Amount, plus interest at the average rate earned by the City investments during the term of this loan all due and payable ten years from the date hereof. 3. Indebtedness of Agency. This Agreement constitutes an indebtedness of the Agency incurred in carrying out the Project, and a pledging of tax allocations from the Project to repay such indebtedness, under the provisions of Section 16 of Article XVI of the California Constitution and Section 33670-33674 of the Health and Safety Code; provided, however, that such pledge of tax allocations shall always be subordinate and subject to the right of the Agency pledge or commit tax allocations from the Project to repay bonds or other indebtedness incurred by the Agency in carrying out the Project. IN WITNESS WHEREOF, the Agency and the City have executed this Agreement as of the date first above written. SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY By: Carolyn Nas , Chairman By: /s/ George Scarborough George Scarborough, Executive Director ATTEST: /a/ Cheryl Johnson Cheryl Johnson, Secretary CITY OF SAN JUAN CAPISTRANO By: /s/ Gil Jones Gil Jones, Mayor By: /s/ George Scarborough George Scarborough, City Manager ATTEST: /s/ Cheryl Johnson Cheryl Johnson, City Clerk APPROVED AS TO FORM /s/ Richard K. Denhalter Richard K. Denhalter, City Attorney • E0it B PROMISSORY NOTE SECURED BY DEED OF TRUST Sart Juan Capistrano, California , 1992 The undersigned, SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and politic created under the laws of the State of California ('Borrower"), promises to pay to the order of the CITY OF SAN JUAN CAPISTRANO, a municipal corporation organized and existing under the laws of the State of California ("Lender"), at 32400 Paseo Adelanto, San Juan Capistrano, California, or at such other place as may be designated in writing by Lender, the principal sum of (insert amount, not to exceed $100,00 DOLLARS with interest at the average rate earned by the City investment over the term of the note. Interest shall be due and payable in one installment on the Maturity Date (as hereinafter defined). The outstanding principal balance of this note, together with any accrued and unpaid interest, shall be due and payable in one installment on or before the tenth anniversary date of this note ("Maturity Date"). Notwithstanding the foregoing sentence, the principal balance of this note, together with accrued and unpaid interest, is payable at any time upon demand by Lender. All sums owing hereunder are payable in lawful money of the United States of America. All or any portion of the principal balance of this note may be prepaid at any time without penalty or premium. In the event any payments are made by the Borrower in payment of the note, such payments shall be applied first to the interest then accrued and due on the unpaid principal balance under this note, and the remainder of any such payment shall be applied to the reduction of the unpaid principal. Neither this note nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by the Borrower and the Lender hereof. No delay or omission on the part of the Lender hereof in exercising any right hereunder shall operate as a waiver of such right or of any right under this note. This note shall be construed according to and governed by the Laws of the State of California and the parties hereto agree to submit to the jurisdiction of the courts of the State of California in the event any litigation arises concerning the terms of this note. "Borrower" SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and politic created under the laws of the State of California /s/ George Scarborough By: By: /s/ Carolyn Nash Executive Director Chairman, Board of Directors ATTEST: /s/ Cheryl Johnson City Clerk /s/ Cheryl Johnson gency ecretary September 25, 1998 MEMORANDUM TO: File (600.30) FROM: Edna L. Guadiana SUBJECT: ITEM: COMMUNITY REDEVELOPMENT AGENCY LOAN AGREEMENT 1992 Loan Agreement 1992 COMMUNITY REDEVELOPMENT AGENCY Promissory Note