Laserfiche WebLink
File Number: 16-688 <br />sign near the intersection of East 14th St. and Davis St. and a bocce ball court at Root Park. <br />Because the District is still relatively new, the SLIA has not amassed sufficient capital <br />reserves to fund these improvements in the near term without an advance from the City. The <br />remaining funds from the loan would be use to enhance the District’s ongoing placemaking <br />efforts, with tables and chairs, planters, and enhanced cleaning equipment. <br />Discussion <br />The projected allocation of funds from the City loan would be as follows: <br />Landmark sign - $170,000 (design/build plus plans and permits). The sign would be located <br />near the intersection of East 14th St. and Davis St. <br />Bocce Ball court - $ 90,000. The bocce ball court would be located in Root Park. <br />Small capital improvements and equipment for use in the Downtown: $25,000 <br />a. Pressure Washer Trailer and Equipment - $10,000 <br />c. Additional public amenities (Tables, chairs, umbrellas, concrete planters) - $15,000 <br />Total: $285,000 <br />Terms: Paid back over 10 years commencing December 1, 2017 <br />Annual payments are due on December 1 in the amount of $33,411. The final <br />payment is due December 1, 2026; <br />The source of repayment is the mandated assessments paid annually into the SLIA <br />Community Benefit District by property owners, including the City. Annual revenues would be <br />set-aside, on a priority basis, to make the debt service payment; the coverage would be 10 <br />times the annual debt service ($375,000 available to pay $33,411 annual debt service). <br /> <br />Legal Analysis <br /> <br />The City Attorney drafted the Loan Agreement and Promissory Note in compliance with all <br />generally and specifically applicable laws and regulations. <br /> <br />Fiscal Impact <br /> <br />$285,000 is available from the General Fund unrestricted assets. Currently, these assets, if <br />invested in the Local Agency Investment Fund (LAIF), yield 0.68%. The 3% interest rate for <br />the Loan would provide a favorable rate of return for the City's investment. <br /> <br />ATTACHMENTS <br /> <br />Attachments to Resolution <br />· Promissory Note <br />· Loan Agreement <br /> <br />Page 2 City of San Leandro Printed on 12/13/2016