FROM:
Development Services
SUBJECT:
Title
Loan amendment from the City of Fontana to the Stage Red Enterprise
End
RECOMMENDATION:
Recommendation
Approve the Memorandum of Understanding (MOU) for the inter-city loan repayment of one million dollars ($1,000,000) from the City of Fontana General Fund to the Stage Red Enterprise Fund.
End
COUNCIL GOALS:
• Promote economic development by pursuing business attraction, retention, and expansion.
• Practice sound fiscal management by living within our means while investing in the future.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.
DISCUSSION:
On March 12, 2024, the City Council approved a five hundred-thousand-dollar ($500,000) loan from the General Fund to the Stage Red Account. On July 16, 2024, City Council approved a second loan for two hundred fifty thousand dollars ($250,000). On May 13, 2025, the City Council approved a third loan for one million dollars ($1,000,000). The City would like to amend the MOU concerning the repayment and schedule of the loan.
FISCAL IMPACT:
The $1,750,000 repayment of the loan will commence five (5) years from the Effective Date and Stage Red will repay one hundred and seventy-five thousand dollars ($175,000) annually beginning on or before June 30, 2029, with full repayment projected to occur on or before the date the agreement expires, which is June 30, 2038.
MOTION:
Approve amendment of the MOU.