1986/06/27City Hall~ Anaheim, California - COUNCIL MINUTES - June 27, 1986, 10:00 A.M.
PRESENT
AB SF.,tI'T:
PRESENT
COUNCIL MEMBERS: None
COUNCILMEMBERS: Kaywood, Overholt, Bay, Pickler and Roth
CITY CLERK: Leonora N. Sohl
The Clerk called the regular meeting of the City Council to order and
adjourned same for lack of quorum to 1:00 p.m., Friday, June 27, 1986.
Adjourned: 10:01 a.m.
LEONORA N. SOHL, CITY
By
City Clerk
City Hall, Anaheim, California - COUNClL MINUTES - June 27, 1986, 10:00 A.M.
The City Council of the City of Anaheim met in regular session.
P~S~T:
~S~T:
P~S~T:
C0UNCILMEMBERS: Kaywood, 0verholt, Bay, Pickler and Roth
COUNCIL MEMBERS: None
CITY MANAGER: W. O. TALLEY
CITY ATTORNEY: Jack White
CITY CLERK: Leonora N. Sohl
FINANCE DIRECTOR: George Ferrone
Mayor Roth called the adjourned regular meeting to order at 1:00 p.m. The
City Council adjourned to this date (10:00 a.m.) from their June 24, 1986
meeting for the purpose of considering the request of the Freedom Bowl for a
loan.
123/101: REQUEST OF FREEDOM BOWL FOR CITY LOAN IN THE AMOUNT OF $125,000:
City Attorney Jack White reported that pursuant to direction given him at the
meeting of June 24, 1985, he had prepared a loan agreement between the City of
Anaheim and Freedom Bowl, Inc., the terms of which are as follows:
the loan is in the amount of $125,000 interest-free;
it will require as a condition of obtaining this money that the
Freedom Bowl will obtain an additional $432,000 on or before
June 30, 1986, as matching funds to be used for payments due to the
two participating schools in the previous Freedom Bowl game;
repayment will be in three equal installments, beginning in 1992, on
the following dates, June 30, 1992, June 30, 1993 and June 30, 1994;
this loan will be subordinated to no other loan except the existing
loan with Pacific Inland Bank;
in the event of any default, either on making payments or any other
terms, that the entire amount of the loan would become immediately
due and payable upon demand by the City.
Mayor Roth read a statement, which he indicated was necessitated by the
stories in the media relative to this particular transaction. The statement
reported that the Anaheim-Orange County economy is estimated to have received
more than twelve million dollars because of the students, players, families
and fans who stayed in the area and used dining and recreational facilities
while Anaheim was hosting the Freedom Bowl Game. The impact of such
tourist-related activities is important to the local economy and consequently
it is within the purview of the City to assist this organization in order to
assure that the Freedom Bowl will continue, as it will become one of the
outstanding bowl games in the United States.
503
City Hall, Anaheim~ California - COUNCIL MINUTES - June 27, 1986, 10:00 A.~7
Under discussion, in response to Councilman Overholt, Mr. Mel Miller, Chaiz~
of the Board, Pacific Inland Bank, Anaheim, advised that the terms of the loam
from Pacific Inland would not preclude that the loan under discussion not be
subordinated to the existing loan, but the situation is that the original loan
was secured by 27 guarantors, who were the original pledgees, and they were of
the understanding that this debt would be liquidated in five years and their
pro-rated guarantee would be resolved in that period of time. He explained
that he is requesting his bank to provide an extension of one year on the l~an
and postponing the first-year payment until May of 1987.
Councilman Overholt stated that the plan is to subordinate the City loan
because of the extension of the pay-off period on the original loan and not
calling the loan as they have the ability to do at this time. Mr. Miller
agreed.
MOTION: Mayor Roth moved that the City Council approve the loan agreement
between the City of Anaheim and Freedom Bowl, Inc. in the amount of $125,000~
in accordance with the terms and conditions as set forth by the City Attorney
and as written in the prepared agreement. Councilman Pickler seconded the
motion. MOTION CARRIED.
Mayor Roth stated that he had every confidence in the caliber of the people
involved with the Freedom Bowl to make this one of, if not the best, Bowl ga~e
in the United States. He wished them the best in accomplishing this and
pledged the City's cooperation, noting that the Freedom Bowl, Inc. received
unanimous 5-0 vote on this agreement today. He expressed that the City of
Anaheim in this venture, as in many others understands that there is a cer=ain
amount of risk involved, but that the Freedom Bowl and its sponsors inspire
his confidence.
There being no further business, Mayor Roth moved to adjourn. Councilman
Pickier seconded the motion. MOTION CARILIED.
ADJOURNED: 2: 40 p.m.
LEONORA N. SOHL, CITY CT.~.RK
504