STAFF REPORT
City of Lancaster
CC 7
9/9/2025
TN
Date:September 9, 2025
To: Mayor Parris and City Council Members
From: George N. Haris II, Senior Director/Treasurer – Administrative Services Subject: Consider approval of an Amendment to Loan Agreement and Restated Promissory Note Between the City of Lancaster and Friends of Antelope Valley, Inc. Extending the Maturity Date by Four Years.
Recommendation:
1. Approve the First Amendment to the Loan Agreement dated July 31, 2021, between the City of Lancaster (“Lender”) and Friends of Antelope Valley Fair, Inc. (“Borrower”), extending the loan maturity date from July 31, 2023, to July 31, 2027.
2. Approve the Amended Promissory Note memorializing the extended maturity date and interest calculation.
3. Authorize the City Manager, or his designee, to sign all documents related to the amendment, subject to City Attorney approval.
G.C. Section 84308: No
Fiscal Impact:
There is no change to the principal balance of $250,000.00. Interest will continue to accrue based on the average of the average monthly effective yields of the Local Agency Investment Fund (LAIF) as published by the California State Treasurer, consistent with the original agreement. The only modification is a four-year extension of the maturity date.
Background:
On July 31, 2021, the City of Lancaster entered into a Loan Agreement with Friends of Antelope Valley Fair, Inc., to provide $250,000 in funding for the construction of the Antelope Valley Rural Museum at the Antelope Valley Fairgrounds. Under the original Loan Agreement and Promissory 2 1
8 3
Note, the unpaid principal and all accrued interest were due on July 31, 2023. Borrower has requested an extension to allow additional time to meet repayment obligations. The proposed First Amendment to the Loan Agreement and accompanying Restated Promissory Note extends the maturity date by four years, to July 31, 2027, while preserving all other terms and conditions, including the interest calculation tied to LAIF yields and Borrower’s right to prepay without penalty.
Attachment:
A. Amendment No.1 (Friends of Antelope Valley Fair, Inc.) _Draft 9.3.25 B. Exhibit A - Restated Promissory Note (Friends of AV Fair) _ Draft 9.3.25