For City Council Meeting [September 24, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM : Sean Grayson, Acting Public Works Director
Title
Request City Council to Receive and File the Statement of Income and Expense for July 2019 related to the Construction Loan Agreement with Ayala@210LLC for On-Site Improvements for the Renaissance Plaza Retail Center on Renaissance Parkway.
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 April 30, 2018, staff appropriated $3,700,000 to Account Number 010-500-2158-3001 to pay the authorized Developer expenses per the CLA ("City Account"). On June 25, 2018, the City also deposited $3,700,000 with Banner Bank pursuant to Sections 3.2 and 3.3 of the CLA ("Banner Account") as a fund guarantee for the benefit of the general contractor. The appropriations and deposits required represented contributions from the General Fund's non-operational reserve.
On June 14, 2019, the City Council approved CLA Amendment #1 increasing the Approved Budget by $300,000 to a maximum loan amount of $4,000,000.
Banner Bank holds the guarantee amount for the pro...
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