Item 16 - Loan Guarantee Extension - ARTS ALIVE! Foundation AGENDA REPORT 0, MI
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CITY OF POWAY j"
This report is included on the Consent Calendar.There will be no separate discussion of the report prior to approval by the 1
City Council unless members of the Council,staff or public request it to be removed from the Consent Calendar and `c ���
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discussed separately.If you wish to have this report pulled for discussion,please fill out a slip indicating the report number '-. ,y E L-
and give it to the City Clerk prior to the beginning of the City Council meeting. -
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana All..
INITIATED BY: Robert L. Thomas, Director of Community Services ` �Lt.'
Michael J. Putnam, Performing Arts Manager
DATE: March 23, 1993
SUBJECT: Loan Guarantee Extension - ARTS ALIVE! Foundation
ABSTRACT
The ARTS ALIVE! Foundation Board of Directors is requesting that the City of
Poway extend for an additional 12 month period an existing loan guarantee in
the amount of $25,000 allowing the Foundation to draw down as needed on a line
of credit in that amount at San Diego Trust and Savings.
BACKGROUND
The City Council has previously acted to provide a loan guarantee in the
amount of $25,000 to allow the Foundation to have access to sufficient working
capital to plan and conduct its activities. The current loan guarantee
expires on March 28, 1993.
FINDINGS
The ARTS ALIVE! Foundation is planning a major fund-raising event on May 1,
1993. The requested loan guarantee renewal is a prudent request allowing the
Foundation access to required working capital .
FISCAL IMPACT
No immediate impact as funds set aside for this guarantee would remain in the
City's investment portfolio. Should the ARTS ALIVE! Foundation default on its
$25,000 line of credit, the City would be liable for the amount of the default
plus interest due.
ENVIRONMENTAL IMPACT REVIEW
Not applicable.
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ACTION: Approved staff recommendation.1/4-707 .
Marie Lofton, Deput City Clerk
I MAR 2 3 1993 ITEM 1 b
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Agenda Report
March 23, 1993
Page 2
PUBLIC NOTIFICATION AND CORRESPONDENCE
ARTS ALIVE! Foundation Board of Directors.
RECOMMENDATION
It is recommended that the City Council approve the extension of the existing
loan guarantee of $25,000 to the ARTS ALIVE! Foundation for another 12 months.
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MAR 2 3 1993 ITEM 16
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