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File Number: 15-725 <br />December 5, 2002 in the amount of the Plaza Project Loan (the “Original Note”); and <br />WHEREAS, the Original Note bears interest at the rate of six percent per annum; and <br />WHEREAS, the Original Note provides for interest-only payments, permits prepayment <br />of the principal balance at any time, and matures on July 5, 2038; and <br />WHEREAS, the current principal balance due pursuant to the Original Note is <br />$2,299,315 (the “Outstanding Balance”); and <br />WHEREAS, an Oversight Board for the Successor Agency was established pursuant to <br />the Dissolution Law (the “Oversight Board”); and <br />WHEREAS, pursuant to the Dissolution Law, on October 28, 2015 the Successor <br />Agency was granted a finding of completion from the California State Department of Finance <br />(the “DOF”), allowing loan agreements between the former redevelopment agency and <br />sponsoring entity to be placed on the ROPS; and <br />WHEREAS, pursuant to Section 34191.4(b) of the Dissolution Law, following the <br />receipt of a finding of completion from the DOF, the Plaza Project Loan shall be deemed to be <br />an enforceable obligation; subject to approval by the Oversight Board; and <br />WHEREAS, the City finds that the Plaza Project Loan was for legitimate redevelopment <br />purposes and will present the Plaza Project Loan to the Oversight Board for such finding; and <br />WHEREAS, pursuant to Section 34191.4(b)(3) of the Dissolution Law, the outstanding <br />interest shall be recalculated from the date of origination of the Plaza Project Loan on a <br />quarterly basis, at a simple interest rate of three percent (3%); and <br />WHEREAS, staff has prepared a defined schedule for repayment of the recalculated <br />loan over a reasonable amount of years with moneys repaid applied first to the principal and <br />second to the interest, at an interest rate of three percent (3%); and <br />WHEREAS, Section 34191.4(b)(3)(A) of the Dissolution Law provides that, the <br />maximum repayment amount authorized each fiscal year for repayments combined shall be <br />equal to one-half of the increase between the amount distributed to the taxing entities in that <br />fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the <br />2012-13 base year, provided, however, that calculation of the amount distributed to taxing <br />entities during the 2012-13 base year shall not include any amounts distributed to taxing <br />entities pursuant to the due diligence review process; and <br />WHEREAS, Section 34191.4(b)(3)(C) of the Dissolution Law provides that, twenty <br />percent of any loan payment made to the City shall be transferred to the Low and Moderate <br />Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income <br />Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund <br />have been paid; and <br />WHEREAS, the City and the Successor Agency have agreed to enter into a <br />Reinstated Loan Agreement to effect a payment plan for the repayment from the Successor <br />Page 2 City of San Leandro Printed on 1/12/2016