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3. PUBLIC COMMENT - None <br />4. STAFF REPORT <br />A. State take away of local revenues. Loan from the City of Redwood City to the <br />Redwood City Redevelopment Agency and Agreement for the Provision of <br />Administrative Services by the City of Redwood City to the Redwood City <br />Redevelopment Agency; <br />Director of Finance and Financial Planning /Assistant City Manager Ponty explained the <br />loan agreement and contract before the Council and Redevelopment Agency. He <br />stated that the action is being recommended due to the possibility of eminent State <br />action that will result in Redevelopment Agency property tax revenues being diverted to <br />the State and /or the State implementing a state -wide moratorium on Redevelopment <br />Agencies incurring any new debt. Mr. Ponty pointed out that the Administrative <br />Services agreement contains a typographical error under the effective date. The <br />effective date should be retroactive to July 1, 2002. <br />Council Members asked various questions. <br />Public Comment: <br />John Dempsey asked if the housing funds could be placed in the loan. <br />Financial Services Director Ponty stated that the reason the proposal is limited to the <br />Redevelopment funds is that there is an actual project attached. The Disposition and <br />Development Agreement has been signed and requires an expenditure of $20M for a <br />parking facility. There is no such project for the housing. <br />Judy Buchan, speaking on behalf of the Redwood City Downtown Business group, <br />stated that a meeting with more than half of the membership present, discussion <br />occurred and a unanimous vote to support this topic took place. <br />M/S Ruskin /Hartnett to: <br />1) Approve a loan agreement between the City of Redwood City (City) and the <br />Redwood City Redevelopment Agency (Agency) under which the City will loan the <br />Redevelopment Agency $20 million (revised exhibit "A" with revised interest rate to <br />be used); <br />2) Approve a long -term contract for the City to provide administrative services to the <br />Agency; <br />SPECIAL MEETING <br />MINUTES <br />JANUARY 8, 2003 <br />PAGE 2 <br />MINUTES Book No. 59 <br />Page No. 351 <br />