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Resolution - 7226RESOLUTION NO. 7226 • A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA ESTABLISHING TERMS AND CONDITIONS RELATIVE TO THE APPROPRIATIONS TO THE CITY OF WEST COVINA REDEVELOPMENT AGENCY • WHEREAS, the City Council of the City of West Covina (the "City") may, pursuant to Article 3 of the California Community Redevelopment Law and Statues, Sections 33622 and 33623, appropriate funds from the redevelopment revolving fund to the City of West Covina Redevelopment Agency (the "Agency") for acquisition of real property in any project area, the clearance of any project area for redevelopment, or any expenses necessary or incidental to the carrying out of a redevelopment plan which has been adopted by the legislative body; and • WHEREAS, the City Council desires to establish terms and conditions relative to such appropriated funds; NOW, THEREFORE, THE CITY.COUNCIL OF THE CITY OF WEST COVINA DOES RESOLVE AS FOLLOWS: Section 1. The appropriation of funds from the redevelopment revolving fund of the City to the Agency capital improvement account (the "112 Account") shall be subject to the following: (a) All funds appropriated to the 112. Account shall be deemed part of any annual loan made by the City to the Agency for capital improvements and other improvements necessary for the completion of redevelopment projects. (b) Simple interest shall be charged on the accumulated funds appropriated to the 112 Account, at a rate that is equal to the Bank of America s base/prime rate; (the "prime rate"); the interest rate shall be adjusted annually to reflect the prime rate in effect on December 31st. -1- (c) Repayment of the appropriated funds shall • commence on July-1, 1991 and shall, continue annually -thereafter in the sum of $300,000.00 plus interest per payment, said repayment schedule to be reviewed on July 1, 1991 for possible adjustment contingent on the financial status of the Agency. • Section 2. The appropriation of funds from the redevelopment revolving fund of th.e City to the Agency administration 110 account (the 11110 Account") shall be subject to the following: (a) All funds appropriated to the 110 Account shall be deemed part of any annual loan made by the City to the Agency for administration of the capital improvements and other improvements necessary to the completion of redevelopment projects. (b) Simple interest shall be charged on the accumulated funds appropriated to the 110 Account, commencing December 31, 1986, at a rate that is equal to the Bank of America's base/prime rate; (the "prime rate"); the interest rate shall be adjusted annually to reflect the prime rate in effect on December 31st. (c) Repayment of the appropriated funds shall commence on July 1, 1991 and shall continue annually thereafter in the sum of $300,000.00 plus interest per payment, said repayment schedule to be reviewed on July 1, 1991 for possible adjustment contingent on the financial status of the Agency. Section 3. The provisions of this resolution shall be applicable to all funds theretofore and hereinafter appropriated from the redevelopment revolving fund to both the 112 Account and the 110 Account. -2- Section 4. The City Clerk shall certify to the adoption of this resolution by not less than a two-thirds vote of the City Council. APPROVED AND ADOPTED THIS 14th day of July , 1986. • Mayor ATTEST: I HEREBY CERTIFY that the foregoing Resolution No. 7226 was duly adopted by the City Council of the City of West Covina at a regular meeting thereof held on the 14th day of July , 1986, by the following vote: AYES: Tennant, Bacon, Manners, Chappell, Shearer NOES: None ABSENT: None ABSTAIN: None APPROVED AS TO FORM: fit Atto ney i City Clerk -3-