AgdaPkt 2016-01-11 Closed and Joint SA PFA

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City of Redwood City 6.1.E. - Page 78 Notes to the Basic Financial Statements For the year ended June 30, 2015 NOTE 3-LOANS RECEIVABLE(CONTINUED) E. Housing Rehabilitation Loans The City and former Redevelopment Agency have outstanding loans for housing rehabilitation in the amount of$1,449,543. F. Shores Childcare Loan The City entered into an agreement with Shores Childcare, LLC whereby $3,200,000 was loaned to Shores Childcare, LLC for construction of a childcare facility on City-owned land in the Redwood Shores area. The term of the loan is 20 years maturing January 2023, with interest payable quarterly and calculated based on the quarterly rate of the State of California Local Agency Investment Fund plus 250 basis points. The outstanding balance of the loan at June 30, 2015 was $1,371,874. G. First Community Housing Loan The City entered into an agreement with First Community Housing whereby$2,627,000 ($200,000 from Community Development Block Grant, $1,927,000 from the former Redevelopment Agency low and moderate housing fund, $500,000 pass-through from County of San Mateo) was loaned to First Community Housing for construction of the Villa Montgomery housing development at El Camino and Vera Avenue. The portion of the loan attributable to the former Redevelopment Agency has been transferred to the City's Low and Moderate Income Housing Asset fund. The loan bears interest at 3% for 40 years. The loan will be repaid annually from 70% of the project's net cash flow. The outstanding balance of the loan at June 30, 2015 was $2,627,000. H. Police Activities League Loan In March 2006, the City paid off a construction loan in the amount of $1,500,000 that the Police Activities League (PAL), a separate, private, non-profit agency, entered into with Bay Area Bank to partially finance the construction of the new PAL community center at Taft School. The City Council and PAL agreed that one-half of the amount, or $750,000, will be paid back to the City by PAL over a period of 15 years. The outstanding balance of the loan at June 30, 2015 was $214,286. I. Kainos Home and Training Center Loan In 1989-90, the City entered into an agreement with Kainos Home and Training Center whereby $548,000 from Community Development Block Grant was loaned to acquire and rehabilitate property at 2555 Middlefield Road. In 2013-14, Kainos Home and Training Center sold 2555 Middlefield Road, and used the proceeds from the sale to purchase 2761 Fair Oaks Avenue. The current City loan is structured as a lien transfer of the original amount plus the shared equity of $437,722 from 2555 Middlefield Road to 2761 Fair Oaks Avenue, totaling $985,722. The loan bears no interest and is due and payable on March 29, 2039. In 1997-98,the City entered into an agreement with Kainos Home and Training Center whereby$57,500 from Community Development Block Grant was loaned to acquire property at 2033 Jefferson Avenue for Kainos Home and Training Center. The loan is deferred and payable upon the sale of the property, 49