CC - Item 5B - Loan to the Rosemead CDC• •
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'~ STAFF REPORT
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TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER CHI, CITY MANAGER ~~~~..-
DATE: OCTOBER 28, 2008
SUBJECT: ADVANCE OF $3,055,000 FOR A LOAN TO THE ROSEMEAD
COMMUNITY DEVELOPMENT COMMISSION
SUMMARY
On June 10, 2008 the Rosemead Community Development Commission ("RCDC") held
a regular budget meeting. At that meeting, by a unanimous vote, the RCDC
Commissioners approved the budget totaling $5,544,450. Subsequently, it became
necessary for the RCDC to purchase a parcel of real property in order to complete a
redevelopment project. Inasmuch as the RCDC does not have enough cash to
purchase the property, it is necessary for the City to loan RCDC the cash to make the
purchase. The details of the property purchase can be found in a RCDC staff report
presented at the RCDC meeting held on 10/28/08. This report is to request an advance
of $3,055,000.
STAFF RECOMMENDATION
Staff recommends that Council approve the attached resolution which will provide an
advance of $3,055,000 to the RCDC and direct staff to execute the loan documents
between the City and RCDC.
ANALYSIS
The loan will reduce the unreserved, undesignated fund balance in the City's General
Fund and make it possible for the RCDC to execute an agreement with a major retail
store. It is expected that the store will return a material increase to the City's Sales Tax
revenue.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
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Steve Brisco
Finance Director
Attachment: Resolution 2008-71
APPROVED FOR CITY COUNCIL AGENDA: O
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RESOLUTION NO. 2008-71
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
AUTHORIZING THE ADVANCE OF $3,055,000 FROM THE UNRESERVED,
UNDESIGNATED FUND BALANCE OF THE CITY'S GENERAL FUND FOR A LOAN ,
TO THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
WHEREAS, the Rosemead Community Development Commission ("RCDC") has
requested a loan of $3,055,000 from the City; and
WHEREAS, the proceeds of the loan are to be used by RCDC for the purchase
of real property; and
WHEREAS, it is the desire of the Rosemead City Council to authorize a loan
between the City and RCDC; and
WHEREAS, a loan is accounted for as an advance in the City's general ledger.
NOW THEREFORE, $3,055,000 shall be advanced to RCDC using unreserved,
undesignated fund balance in the City's General Fund (account no. 01-1710).
PASSED, APPROVED and ADOPTED this 26th day of August, 2008.
JOHN TRAN, MAYOR
ATTEST:
GLORIA MOLLEDA, CITY CLERK