HomeMy WebLinkAboutRDA Reso 07-2008RI~SOLUTION NO. 07-2008
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION APPROVING A LOAN AGREEMENT IN
THE AMOUNT OF $120,000 WITH SOUTH CITY MOTORS,
INC. FOR IMPROVEMENTS TO THE COMMERCIAL FLEET
SALES FACILITY AT 315 AIRPORT BOULEVARD
WHEREAS, the Redevelopment Agency of the City of South San Francisco ("Agency")
is a redevelopment agency existing pursuant to the Community Redevelopment Law, California
Health and Safety Code Section 33000, et seq. (the "CRL"), and pursuant to the authority
granted thereunder, has the responsibility to carry out the Redevelopment Plan ("Redevelopment
Plan") for the Downtown/Central Redevelopment Project Area ("Project Area ");
WHEREAS, pursuant to CRI, Section 33444.5, the Agency has authority to provide loans
to owners or tenants for the purpose of rehabilitating commercial buildings or structures within
the Project Area;
WHEREAS, South City Motors, Inc., a Delaware corporation ("South City Motors")
subleases a building located in the Project Area at 315 Airport Boulevard (the "Building") at
which it operates a commercial fleet sales facility;
WHEREAS, South City Motors has requested a loan from the Agency in the amount of
One Hundred Twenty Thousand Dollars (the "Loan") for the purpose of constructing
improvements to the Building;
WHEREAS, South City Motors anticipates that the construction of improvements to the
Building will enable the company t:o increase sales volume thereby generating increased sales
tax revenue for the City;
WHEREAS, the Agency and South City Motors have negotiated a Loan Agreement
("Loan Agreement") and a Promissory Note ("Note") substantially in the forms on file with the
Agency Secretary;
WHEREAS, the Loan Agreement and the Note provide, among other things, that the
Loan will be forgiven in phases if South City Motors achieves specified levels of taxable sales
volume;
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NOW, THEREFORE, BE IT' RESOLVED by the Redevelopment Agency of the City of
South San Francisco that it hereby:
1. Finds that provision of the Loan to South City Motors pursuant to the terms of the Loan
Agreement will benefit the Project Area by providing for the improvement of the Building, and
because it is anticipated that such improvements will result in increased sales volume, potentially
increased employment opportunities, and increased tax revenue that can be used for services that
will benefit the Project Area.
2. Approves the provision of the Loan, and approves the Loan Agreement and the
Promissory Note.
3. Authorizes the Executive Director of the Agency (or his designee) to: (i) execute the
Loan Agreement substantially in the form on file with the Agency Secretary; (ii) subject to the
approval of Agency Counsel, to make revisions to the Loan Agreement and Promissory Note
which do not materially or substantially increase the Agency's obligations thereunder; and (iii) to
sign all documents and take all actions necessary or appropriate to carry out and implement the
intent of this Resolution.
I hereby certify that the forf;going Resolution was regularly introduced and adopted by
the Redevelopment Agency of t:he City of South San Francisco at a regular meeting held on
the 14th day of May 2008 by the following vote:
AYES: Boardmembers Mark NI Addiego Richard A Garbarino Kevin Mullin.
Vice Chair Karyl Matsumoto and Chair Pedro Gonzalez
NOES: Non
ABSTAIN:
ABSENT:
EST:
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