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WHEREAS, pursuant to the Dissolution Law, on October 28, 2015 the Successor Agency was granted a finding of completion from the California State Department of Finance (the "DOF"), allowing loan agreements between the former redevelopment agency and sponsoring entity to be placed on the ROPS; and WHEREAS, pursuant to Section 34191.4(b) of the Dissolution Law, following the receipt of a finding of completion from the DOF,the Plaza Project Loan shall be deemed to be an enforceable obligation; subject to approval by the Oversight Board; and WHEREAS,the City finds that the Plaza Project Loan was for legitimate redevelopment purposes and will present the Plaza Project Loan to the Oversight Board for such finding; and WHEREAS,pursuant to Section 34191.4(b)(3) of the Dissolution Law,the outstanding interest shall be recalculated from the date of origination of the Plaza Project Loan on a quarterly basis, at a simple interest rate of three percent(3%); and WHEREAS, staff has prepared a defined schedule for repayment of the recalculated loan over a reasonable amount of years with moneys repaid applied first to the principal and second to the interest, at an interest rate of three percent(3%); and WHEREAS, Section 34191.4(b)(3)(A) of the Dissolution Law provides that, the maximum repayment amount authorized each fiscal year for repayments combined shall be equal to one-half of the increase between the amount distributed to the taxing entities in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 2012-13 base year, provided, however,that calculation of the amount distributed to taxing entities during the 2012- 13 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process; and WHEREAS, Section 34191.4(b)(3)(C) of the Dissolution Law provides that, twenty percent of any loan payment made to the City shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid; and WHEREAS, the City and the Successor Agency have agreed to enter into a Reinstated Loan Agreement to effect a payment plan for the repayment from the Successor Agency to the City(the "Restated Loan Agreement"); and WHEREAS, the Restated Loan Agreement includes terms that are consistent with the Dissolution Law; and WHEREAS, the execution of the Restated Loan Agreement was approved by the governing board for the Successor Agency by resolution adopted on January, 19, 2016; and WHEREAS,the Restated Loan Agreement will be presented to the Oversight Board for consideration. RESOLUTION NO.2016-008 2