AGENDA MEMORANDUM

Meeting Date:           August 23, 2010

From:                          Jerry Boop, Finance Director, CPA, CGFO

Subject:                      Resolution authorizing the Carver Heights/Montclair Area Community Redevelopment Agency to execute a First Amendment to the Loan Agreement with Wells Fargo Bank, NA., as successor by merger to Wachovia Bank, NA.

Staff Recommendation:

Staff recommends approval of the Carver Heights/Montclair Area Community Redevelopment Agency to execute the First Amendment to the Loan Agreement with Wells Fargo Bank. 

Analysis:

On December 23, 2008 the Carver Heights/Montclair Area Community Redevelopment Agency entered into an agreement with Wachovia Bank to fund certain projects of the CRA.  Article I, Definition of Terms, Section 1.01, Definitions provides general descriptions as to the meaning of terms which are embedded throughout the Loan Agreement.  Included in the Definition of Terms on the bottom of page three is the definition of the word “Project” which states, “Project shall have the meaning set forth in the “Whereas” clauses to this Agreement, and more specifically means the acquisition of lands for public purposes, the rehabilitation of certain public facilities, the undergrounding of certain City owned utility lines, improvements to a public park and sidewalk and lighting improvements within the Community Redevelopment Area of the Agency.”  The definition of the term “Project” under Section 1.01 was constricted in its meaning and not broad enough to encompass the uses of the loan proceeds in conformity with the Carver Heights Redevelopment Plan.  This amendment removes those constrictions and broadens the definition to include certain redevelopment projects and programs as described in the Carver Heights Redevelopment Plan by making direct reference to Chapter 163, Part III Florida Statutes.  Specifically, the amendment under Section I states that the term “Project” is amended to mean any “community redevelopment” within the meaning of Chapter 163, Part III Florida Statutes. 

Options:

1.  Approve the First Amendment to the Loan Agreement with Wells Fargo Bank; or,

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

None.  This amendment removes the constrictions imposed by the definition of terms embedded within the original Loan Agreement and broadens the definition to include certain redevelopment projects and programs as described in the Carver Heights Redevelopment Plan by making direct reference to Chapter 163, Part III Florida Statutes.  Specifically, the amendment under Section I states that the term “Project” is amended to mean any “community redevelopment” within the meaning of Chapter 163, Part III Florida Statutes. 

Submission Date and Time:    8/19/2010 3:15 PM____

Department: __Finance_____________ Prepared by:  __Jerry Boop________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ___JB___ Finance  Dept. ____________JB_____                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING AND APPROVING THE CARVER HEIGHTS/MONTCLAIR AREA COMMUNITY REDEVELOPMENT AGENCY TO EXECUTE A FIRST AMENDMENT TO THE LOAN AGREEMENT BETWEEN THE CARVER HEIGHTS/MONTCLAIR AREA COMMUNITY REDEVELOPMENT AGENCY AND WELLS FARGO BANK, AS SUCCESSOR TO WACHOVIA BANK; AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED by the City Commission of the City of Leesburg, Florida:

            That the Carver Heights/Montclair Area Community Redevelopment Agency is hereby authorized and directed to execute a First Amendment to Loan Agreement between the Carver Heights/Montclair Area Community Redevelopment Agency and Wells Fargo Bank, National Association.

THIS RESOLUTION shall become effective upon its passage and adoption according to law.

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida held on the 23^rd day of August, 2010.

                                                                                    THE CITY OF LEESBURG

                                                                                    By:________________________________

                                                                                                Mayor

ATTEST:

_______________________________________

   City Clerk