REPORT TO THE CITY COUNCIL FROM: SANTINO DANISI, Finance Director/City Controller Finance Department BY: PHILLIP HARDCASTLE, Principal Accountant - Debt Administration Finance Department SUBJECT ..Title ***RESOLUTION - Approving the payoff of the Roeding Business Park Loan in the amount of $1,220,801.51 between the City of Fresno and the California Infrastructure and Economic Development Bank (Subject to Mayor's Veto.) ..Body RECOMMENDATION Staff recommends the Council approve the accompanying resolution to pay off the Roeding Business Park Loan in the amount of $1,220,801.53 plus interest through the payoff date. EXECUTIVE SUMMARY In March of 2004, the City of Fresno (the "City") acquired a loan in the amount of $2,441,100 through the California Infrastructure and Economic Development Bank (the "CIEDB") to assist the Redevelopment Agency of the City of Fresno with development of the Roeding Business Park. This loan has a provision in the Facilities Lease that requires the City to provide Annual Comprehensive Financial Report ("ACFR") to the CIEDB no later than January 27 of each year. This provision has consistently presented a challenge to the City. Any circumstances that may delay the issuance of the ACFR past January 27 presents a technical default which could impact the City's credit rating. Additionally, the City continues to incur debt service costs at approximately $135,000 annually, which will be avoided once this loan is paid in full. Staff recommends utilizing one-time funds to pay off this loan in its entirety. BACKGROUND In March of 2004, the City of Fresno (the "City") acquired a loan in the amount of $2,441,100 through the California Infrastructure and Economic Development Bank (the "CIEDB") that assisted the Redevelopment Agency of the City of Fresno with development of the Roeding Business Park. This loan has a provision in the Facilities Lease that requires the City to provide Annual Comprehensive Financial Report ("ACFR") to the CIEDB no later than January 27 of each year. This provision has consistently presented a challenge to the City. Any circumstances that may delay the issuance of the ACFR past January 27 presents a technical default which could impact the City's credit rating. Staff has identified available appropriations in the General City Purpose Department's Animal Control Services budget to fund this payoff. The Animal Center opened in July of 2022 and due to current constraints including labor shortages impacting staffing, vehicle order delays and delays in project completions, staff does not expect to fully expend the allocated budget this fiscal year. ENVIRONMENTAL FINDINGS This approval is not a project for the purposes of CEQA Guidelines section 15378. LOCAL PREFERENCE Local preference was not considered because this resolution does not include a bid or award of a construction or service contract. FISCAL IMPACT Sufficient appropriations exist in the General Fund General City Purpose Department's Animal Control Services budget due to anticipated savings this fiscal year. Attachments: Resolution