For City Council Meeting [August 14, 2018]
TO: Honorable Mayor and City Council
FROM: Ahmad R. Ansari, Interim City Administration
APPROVAL: Robb R. Steel, Assist. City Administrator/Development Services Director
Title
Request City Council to Receive and File the Statement of Income and Expense for June 2018 related to the Construction Loan Agreement with Ayala@210LLC for On-site Improvements for the Renaissance Plaza Retail Center on Renaissance Parkway.
(ACTION)
Body
BACKGROUND:
On March 14, 2017, the City Council approved an Option to Purchase and Develop Site Agreement ("PDS Agreement") by and between the City of Rialto and Ayala@210LLC ("Developer") for a commercial development known as the Renaissance Plaza on an 8-acre site situated east of Ayala Avenue and north of Renaissance Parkway/Easton Avenue for the proposed Cracker Barrel, Sonic, and hotel ("Project").
On April 24, 2018, the City Council approved a Purchase and Sale Agreement that replaced the PDS Agreement and a Construction Loan Agreement (CLA) by and between the City of Rialto and Developer for a maximum loan amount of $3,700,000 ("Approved Budget"). The CLA funds the on-site improvements in the Project that includes contractor and consultant costs for grading, asphalt, curb, gutter, and landscaping using City's General Fund non-operation reserves ("On-Site Improvements").
On May 25, 2018, the City deposited $3,700,000 with Banner Bank pursuant to Sections 3.2 and 3.3 of the CLA ("Fund"). The deposit represented contributions from the General Fund's non-operational reserve. Banner Bank will hold the funding for the project, subject to periodic releases by the City to pay for authorized Project related expenses ("Escrow Activity").
ANALYSIS/DISCUSSION:
The City had $1,083,585.59 of expenditures from this account during June 2018 as follows:
$ 161,600.68 Kimberly Horn and Associates for engineering services
$ 903,942.24 Green Mountain for on-site construction
$ 17,973.00 N...
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