SIMI VALLEY : City to Lend Manager Money to Buy House
With the help of the Simi Valley City Council, City Manager Mike Sedell is about to become the proud owner of two homes, at least temporarily.
Part of the hiring agreement when Sedell was picked in June to replace former City Manager Lin Koester was that he relocate from Thousand Oaks to Simi Valley. Since then he has been looking for a new home in Simi Valley and trying to sell his Thousand Oaks property.
Five months later, he has found a home in Simi he wants to buy, but has no takers for his Thousand Oaks residence. He asked the council to approve a short-term $85,000 loan--the amount of equity he still has in the Thousand Oaks property--so that he can buy the Simi Valley home.
The council unanimously approved the loan Monday night.
The terms of the loan include repayment within one year, or as soon as Sedell finds a buyer for his Thousand Oaks property, whichever comes first.
Interest on the loan will accumulate monthly, based on the average rate of return the city has on its investment portfolio. Laura Herron, the city’s director of general services, said that rate will probably hover around 6%.
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