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HomeMy WebLinkAboutC-3096 DEBT REPAYMENT PLAN 3 VC( 0 LOAN AGREEMENT This Agreement is entered into this 16th day of July, 1996 by and between the City of Arcadia ("City") and the Arcadia Redevelopment Agency ("Agency"). The City and Agency hereby agree as follows: SECTION 1. The City hereby agrees to lend to the Agency the sum of$1.2 million (the "Loan") which shall be disbursed to the Agency from time to time upon receipt by the Finance Director of written notice from the Executive Director that any portion or all of the remainder is needed from time to time. Any and all portions of the Loan shall bear interest calculated at the highest prevailing rate of interest being drawn on the City of Arcadia investments, in the State of California Local Agency Investment Fund (LAIF) calculated quarterly commencing at the date of disbursement of each loan as applicable. • SECTION 2. The Agency hereby agrees to repay the loan, plus interest, referred to in Section 1 above, within 10 working days of receipt of the land sale proceeds from the sale of the Agency-owned 4-acre Northwest Corner property located at East Huntington Drive and North Second Avenue. SECTION 3. The repayment obligation of the Agency hereunder is subordinate to the 1989 tax allocation bond financing of the Agency. Executed this 16th day of July, 1996. / `.// mayor, City of Arcadia ATTEST: vice Chairman, Arcadia Redevelopment Agency Ci lerk of the Cit • Arcadi Secretary, Arcadi 'edevelopme t Agency APPROVED AS TO FORM: Mic ael H. Miller, City Attorney and Agency General Counsel