AgdaPkt 2006-02-27 - Laserfiche WebLink

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7A Page 1 I REPO RT TO THE HONORABLE MAYOR AND CITY COUNCIL February 27, 2006 Subject Police Activities League loan guarantee and proposed long term plan for repayment by PAL. Recommendation The City Council authorize the City to payoff the outstanding loan prior to March 19th, 2006, not to exceed $1.5 million dollars, that PAL now carries with Bay Area Bank. Furthermore, the City Council direct staff to enter into a long term loan pay back agreement with PAL wherein PAL agrees to pay back half of the loan amount to the City over a period of 22 years. The actual agreement, including all terms and conditions, would be prepared by outside legal counsel retained by the City Attorney's Office to avoid any potential conflict of interest and thereafter submitted to the City Council for approval. Background The Police Activities League (PAL) is an independent non-profit organization, founded to provide services, opportunities and role modes for youth, particularly those at risk, and. in an environment in which the youth develop a positive relationship with police in the community. The City has historically assisted PAL by subsidizing the compensation of a sworn police officer who is the Executive Director and another police department employee who functions as the Director of Programming in addition to other cooperative activities. The City acquired the Way to Go Building in Downtown as part of the Redevelopment efforts and provided PAL temporary use of the building while PAL was looking for a permanent site and the City was assembling other sites to complete the retail/Cinema project. During this time a site was identified at the Taft School in the Redwood City School District. As a result of the excellent relationship between the School District, PAL and the City, agreement was reached whereby the School District would provide the land at Taft for the project at no cost to PAL and PAL would raise the funds to design and construct the building. PAL put together a project and fundraising plan to build what is now the current building on that site. At PAL's request and as part of the fundraising plan, the City granted PAL $356,000 in Capital Project Funds and another $44,000 in Community Development Block Grant (CDBG) funds. The $400,000 was a substantial contribution by the City and represented approximately 16% of the total final cost which PAL estimated would be necessary for completion of the project. Prior to the beginning of construction, PAL received an estimate from its architect, confirmed by its contractor, that $2.5 million dollars would be sufficient to build the community center at Taft School. The City has remained extremely supportive of PAL throughout its history. PAL provides an array of services that bolster the City's efforts to provide a safe and nurturing environment for the youth of Redwood City-always one of the City Council's highest priorities. Through its collaboration with the Redwood City School District, the Police Department, and the Parks, Recreation, and Community Services Department, PAL has worked to provide needed services to youths which the City might not .-," .---.--.--