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BACKGROUND <br /> The VBP is responsible for maintaining the three median islands on Valley Avenue <br /> between Quarry Lane and Santa Rita Road. City staff and VBP agree that those <br /> median islands require significant renovation and have worked together to develop <br /> a landscaping plan that is expected to cost $48,000 to install. VBP has insufficient <br /> reserves to cover the $48,000 and asked the City to provide a loan to fund the <br /> project. Since the median islands are in the City's right-of-way, the improvements <br /> would benefit the City's residents and visitors that use Valley Avenue between <br /> Quarry Lane and Santa Rita Road. As such, it is in the City's interests to provide a <br /> loan to VBP to fund the landscaping improvements on those three median islands. <br /> DISCUSSION <br /> The attached Agreement sets out the terms of the proposed loan to the VBP from <br /> CIPR funds, summarized as follows: <br /> 1. VBP will contract with a landscaper to install improvements that the City has <br /> approved in the three median islands on Valley Avenue between Quarry <br /> Lane and Santa Rita Road. <br /> 2. VBP will execute the Agreement and Promissory Note for the $48,000 loan. <br /> 3. Annual interest rate of 1.9% <br /> 4. Payments due monthly commencing on November 1, 2018 and continuing <br /> for 50 months. <br /> 5. 5% penalty for payments not made within 30 business days of the due <br /> date. <br /> 6. No prepayment penalty. <br /> Staff recommends that the City Council approve the Agreement and Promissory Note, <br /> direct the City Manager to execute the documents in generally the form as shown in <br /> the attached, and appropriate the loan funds from the CIPR. <br /> Jointly Submitted by: Approved by: <br /> /(1( 7, <br /> Tina Olson Steve Kirkpatrick Nelson Fialho <br /> Director of Finance Director of Engineering City Manager <br /> Attachments: <br /> 1. Valley Business Park Median Island Agreement <br /> 2. Promissory Note <br />