HomeMy WebLinkAboutAgenda Report - February 18, 1998 E-16AGENDA TITLE: Old Lodi Union High School Site Foundation Loan Repayment Incentive
MEETING DATE: February 18, 1998
SUBMITTED BY: City Manager
RECOMMENDED ACTION: That Council approve offsetting the Old Lodi Union High School
Site Foundation loan payments on a dollar -for -dollar amount
beginning March 1, 1998 ending March 1, 2001. Beginning March 1, 2001, the offset will decrease to SO
cents on the dollar until March 1, 2004.
BACKGROUND INFORMATION: The Old Lodi Union High School Site Foundation has partnered
with the City to build a $10 million Performing Arts and
Conference Center at Hutchins Street Square. The Foundation relies on donations and fund-raisers to
generate revenues for repayment to the City.
To encourage the Foundation to pay off the loan in a timely fashion, staff is recommending that the Council
approve the offsetting dollars as noted in the Recommended Action. The Foundation is not required to pay
interest on the outstanding debt, so it is therefore advantageous to the City to collect present day dollars
whose value will be greater than dollars collected in the future. The Foundation, with this new marketing
tool of a "dollar -for -a -dollar" should be extra motivation to conduct a fundraising campaign soliciting
contributions for the loan repayment.
FUNDING: None
HDF:br
cc: Dennis Bennett
Foundation Chairperson
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Respectfully sub d,
l H. Dixon Flynn
City Manager
APPROVED:
H. Dixon Flynn -- City Manager
RESOLUTION NO. 98-30
A RESOLUTION OF THE LODI CITY COUNCIL SETTING
FORTH THE TERMS OF THE REPAYMENT BY THE OLD
UNION HIGH SCHOOL SITE FOUNDATION OF THE $10
MILLION LOAN FOR THE RENOVATION AND
CONSTRUCTION OF THE PERFORMING ARTS AND
CONFERENCE CENTER
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WHEREAS, the Old Union High School Site Foundation and the City of Lodi
partnered to renovate and construct a Performing Arts and Conference Center; and
WHEREAS, the project will be completed on April 26, 1998 with all facilities
available for community activities and performances, and
WHEREAS, the Foundation is the fundraising arm of the project and is working to
repay a $10 million loan made by the City of Lodi; and
WHEREAS, the City desires to maintain its existing partnership with the
Foundation by continuing to provide financing mechanisms for the project; and
WHEREAS, the City is motivated to encourage the Foundation to pay off the loan
in a timely fashion in present value dollars.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve a dollar -for -dollar offset including in kind services and products, of the loan
beginning March 1, 1998 through March 1, 2001 and a 50 cents on the dollar offset
including in kind services and products of the loan beginning March 1, 2001 through
March 1, 2004. The offsets will be used for only those projects included in the $10 million
capital improvement project plan for Hutchins Street Square.
Dated: February 18, 1998
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I hereby certify that Resolution No. 98-30 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held February 18, 1998, by the following
vote:
AYES:
COUNCIL MEMBERS - Land, Mann, Pennino and Sieglock (Mayor)
NOES:
COUNCIL MEMBERS - None
ABSENT:
COUNCIL MEMBERS - None
ABSTAIN:
COUNCIL MEMBERS - None
J / l ov64
ALICE. M. REIMCHE
City Clerk
98-30