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City of Redwood City 7.1.G. - Page 76 <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2013 <br /> NOTE 3 - LOANS RECEIVABLE (CONTINUED) <br /> G. Parking Fund Loan <br /> The capital outlay fund has a loan receivable in the amount of $1,300,000 from the parking fund. <br /> Additional details of this loan agreement are outlined in Note 7. <br /> H. First Community Housing Loan <br /> The City entered into an agreement with First Community Housing whereby $2,627,000 ($200,000 from <br /> Community Development Block Grant, $1,927,000 from the former Redevelopment Agency low and <br /> moderate housing fund, $500,000 pass- through from County of San Mateo) was loaned to First <br /> Community Housing for construction of the Villa Montgomery housing development at El Camino and <br /> Vera Avenue. The portion of the loan attributable to the former Redevelopment Agency has been <br /> transferred to the City's Low and Moderate Income Housing Asset fund. The loan bears interest at 3% <br /> for 40 years. The loan will be repaid annually from 70% of the project's net cash flow. The outstanding <br /> balance of the loan at June 30, 2013 was $2,627,000. <br /> 1. Police Activities League Loan <br /> In March 2006, the City paid off a construction loan in the amount of $1,500,000 that the Police <br /> Activities League (PAL), a separate, private, non - profit agency, entered into with Bay Area Bank to <br /> partially finance the construction of the new PAL community center at Taft School. The City Council and <br /> PAL agreed that one -half of the amount, or $750,000, will be paid back to the City by PAL over a period <br /> of 15 years. The outstanding balance of the loan at June 30, 2013 was $242,857. <br /> J. Kainos Home and Training Center Loan <br /> In 1997/98, the City entered into an agreement with Kainos Home and Training Center whereby <br /> $57,500 from Community Development Block Grant was loaned to acquire property for Kainos Home <br /> and Training Center. The loan is deferred and payable upon the sale of the property, at which time the <br /> City would receive repayment of the loan plus any accrued equity based on the prorated City share. <br /> In 2012/13 the City entered into a second agreement with Kainos Home and Training Center whereby <br /> $450,000 from HOME grant was loaned to acquire property located at 1033 Redwood Avenue for <br /> special needs housing. The loan is deferred for a term of 30 years at 0% interest. <br /> 48 <br />