A.
On June
8, 1984, the city received approval from the United States Department
of Housing and Urban Development ("HUD") of an eight million dollar
Urban Development Action Grant ("UDAG"). Pursuant to the grant agreement,
said funds were to be utilized in the renovation and expansion of
the South Bay Galleria ("Galleria") by the owner, South Bay Associates.
Said funds were loaned by the city to South Bay Associates pursuant
to a promissory note dated January 11, 1985, and a deed of trust which
was recorded on April 11, 1985. Pursuant to the loan documents, the
city was entitled not only to repayment of the loan but also participation
in the excess proceeds from the operation and sale or refinancing
of the Galleria. On March 16, 1989, the city and South Bay Associates
agreed to South Bay Associates' acquisition of all of the city's right,
title and interest in the Galleria, including the repayment of the
note and reconveyance of the deed of trust, for the sum of ten million
dollars.
B.
The
purpose of this chapter is to explain the origin of these funds and
limits on how the assets may be expended.
(Ord. 617-89 § 1; Ord. 1149-18 § 1)
There is created in the city treasury a special fund to be known
as the Urban Development Action Grant (UDAG) fund. This special fund
shall be accounted for in conformance with generally accepted accounting
principles (GAAP) for governmental entities.
(Ord. 617-89 § 1; Ord. 1149-18 § 1)
All moneys in the UDAG fund shall be invested in conformance
with the city's current investment policy.
(Ord. 617-89 § 1; Ord. 1149-18 § 1)
The UDAG funds shall be used for one-time expenses, not operational
expenses, at the discretion of the city council. Expenditures from
this fund shall be made in the same manner as general fund expenditures
such as capital.
(Ord. 617-89 § 1; Ord. 725-93 § 1; Ord. 730-93 § 1; Ord. 1149-18 § 1)
