AgdaPkt 2009-01-12 clsd and reg - Laserfiche WebLink

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NO~E"18-.RELATED.PARTVTRANSACTioNS.:' :.).' In .June 2000, the City's Redevelopment.Agen~y authoriZed a First TIme Homebuyer Program targeted to City employees and school teachers from the Redwood City. Elementary School District. Under the program., the Agency .offers first time homebuyers financial assistance in. the purchase of a home within the City of Redwood: City. These loans bear no interest and :are secured by third deeds of trust on the propert)'..No,payrnents are due until five years 'after the 'date of purchase.. This loan 'program is extended. to City employees who meet the. (;riteria .of the progTarn. As of June 30,2008, one.employee had a loan., due tv the City.in the amount of $40,592. . . .. . .. . . . '" In August 2003, the City made a housing assistance loan to the City AUorney to acquire real property in. :; 'compliance with the employment agreement far $250,000 repayable ,in 30 years with an int~rest rate of .5.00%: per annum on theunpaid loan balance. ]nterest of 3.75% per annum shall be deferred (~on-. ' compounded) a?d payable on the earlier of: (1) the transfer of the fee title to the. property in whole or in parfby the sale or otherwise; (2) within 12 months of the termination of hIS employment for an~ reason . . with the City; (3) within six months after the property ceases to be:his prin~ipid r~sidence; or (4) 30 years . .; after the recordation of the deed of trust. . As of June 30, 2008,.:the outstanding balance of this loan receivable w~s'$147.206. . . i: ,. NOT.E 19 - SUBSEQUENT EVENT Th'e City parti~ipates i~ the .san .Mateo County i~vesirnent po~l and as of June .3.0,: 2008- the City had $42.954,333 (fair value of $42,682,432) invested in the poo~. On September '15, .,2008 Lehman Brothers;:. a ,finn in which the pool:has ~some holdings, ,J'iled for bankruptcy. .:~e poOl retained .the Lehlnan Securities but marked their value down to . zero . and., is carryIng them as a. non-performing asset until the bankruptcy proceedings are. completed. At that '!point, any proceeds would be credited back to the participanfs account including the City. Mar~ing the .vaJue of the. Lehman securities down to zero has a significant negative impa.ct on ,the . City. T'he,..City's' share.; of the .,loss is estimated to be around $1,633,884: . .. ":, ' .. .., .; :: i . . . . ,. ... ... roo . :.j ; ~~ . :; . . ..~ : , . . . 62 ... .. .