Agmt 2016 San Leandro Successor Agency

Home

WHEREAS, the Successor Agency is the successor in interest to the Agency under the Dissolution Law; and WHEREAS, pursuant to Section 34191.4 of the Dissolution Law, following the receipt of a finding of completion from the California State Department of Finance (the "DOF"), the Loan Agreement shall be deemed to be an enforceable obligation; subject to approval by the oversight board, and provided further that the oversight board make a finding that the Loan was for legitimate redevelopment purposes; and WHEREAS, upon the finding of the oversight board that the Loan is an enforceable obligation, the interest on the Outstanding Balance of the Loan shall be recalculated from origination at the rate of 3%; and WHEREAS, Pursuant to Section 34191.4(b) of the Dissolution Law, repayment of the Loan is subject to the following restrictions: (a) the Loan must be repaid over a reasonable term of years at an interest rate not to exceed 3%; and (b) the maximum repayment amount authorized each fiscal year for repayment of the Loan cannot exceed one-half of the increase between the amount distributed to the taxing entities in that fiscal year and the amount distributed to taxing entities in fiscal year 2012-2013; and (c) twenty percent of any Loan repayments shall be deducted from the amount repaid and transferred to the Low and Moderate Income Housing Asset Fund (as defined in the Dissolution Law); and WHEREAS, the Successor Agency has prepared a repayment schedule that reflects the requirements of Section 34191.4(b). NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties to this Agreement agree as follows: ARTICLE 1 REPAYMENT TERMS 1.1 Repayment Terms. (a) Repayment Amount. Successor Agency agrees to repay to City, the principal amount of the Loan of Two Million Two Hundred and Ninety-Nine Thousand Three Hundred and Fifteen Dollars ($2,299,315.00) plus interest, calculated as set forth in Section 1.1(b).