Loading...
HomeMy WebLinkAboutResolution No. 2024516H 0 • JHHW:ACH:ea 06/21/85 RESOLUTION NO. 202 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AUTHORIZING LITIGATION TO COMPEL THE EXECUTIVE DIRECTOR TO EXECUTE REIMBURSEMENT AGREEMENT WHEREAS, the City of Azusa (the "City") proposes to enter into a Lease -Purchase Agreement by and between the City and E M Leasing Corporation (the "Leasing Company") pursuant to which the City will undertake the construction of certain facilities and improvements (the "Municipal Facilities Project") to be located in or adjacent to the Azusa Central Business District Redevelopment Project and the Agency proposes to enter into a Reimbursement Agreement with the City providing for payment by the Agency of certain Tax Increment Revenues (as that term is defined in the Reimbursement Agreement) to offset lease payments to be made by the City under the Lease -Purchase Agreement; WHEREAS, the Executive Director of the Agency, although being in favor of the Agency proceeding with the issuance of the Certificates of Participation pursuant to the Trust Agreement by and between the City and the Leasing Company dated as of July 1, 1985, and with the execution of the Reimbursement Agreement, has respectfully refused to execute the Reimbursement Agreement on the ground that it may be invalid; NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED and ORDERED, as follows 1. Jones Hall Hill & White, A Professional Law Corporation, Bond Counsel to the Redevelopment Agency of the City of Azusa, is hereby authorized and directed to institute and carry to conclusion an appropriate legal action to compel the Executive Director of the Agency to execute the Reimbursement Agreement referred to herein. 2. This Resolution shall take effect from and after the date of its passage and adoption. 0 • PASSED AND ADOPTED on July 15 , 1985, by the following vote: AYES: Members: CRUZ, COOK, CAMARENA, MOSES NOES: Members: NONE ABSENT: Members: LATTA ( S E A L) Attes J J Secretary of the Redevelopment Agency of the City of Azusa APPROVED TO ORh1: eneral Counsel eow Cha rman of the Redevelopment Agency of the City of Azusa -2- 4514H • REIMBURSEMENT AGREEMENT by and between •JHHW:ACH:ea 06/21/85 REDEVELOPMENT AGENCY OF THE CITY OF AZUSA and CITY OF AZUSA Dated as of July 1, 1985 0 0 REIMBURSEMENT AGREEMENT THIS REIMBURSEMENT AGREEMENT, dated July 1, 1985, by and between the Redevelopment Agency of the City of Azusa (the "Agency") and the City of Azusa (the "City"); WITNESSETH: WHEREAS, the Agency is a duly constituted redevelopment agency under the laws of the State of California and pursuant to such laws has duly proceeded with the redevelopment of Azusa Central Business District Redevelopment Project (the "Project") within the City; and WHEREAS, the Redevelopment Plan, as amended, for said Project provides for tax increment financing in accordance with the provisions of Chapter 6, Part 1 of Division 24 of the Health and Safety Code of the State of California and Section 16 of Article XVI of the Constitution of the State of California; and WHEREAS, the Agency is authorized, with the consent of the City Council of the City, to pay all or part of the value of the land for and the cost of the installation and construction of any building, facility, structure or other improvements which are publicly owned within the Project Area, upon a determination by the Agency and said City Council that such buildings, facilities, structures or other improvements are of benefit to said Project Area; and WHEREAS, when the value of such land or the cost of the installation and construction of such building, facility, structure or other improvement, or both, has been or will be paid or provided for initially by the City, the Agency may enter into a contract with the City under which it agrees to reimburse the City for all or part of the value of such land or all or part of the cost of such building, facility, structure or other improvement, or both, by periodic payments over a period of years; and WHEREAS, the obligation of the Agency under such contract shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment project for such Project Area, which indebtedness may be made payable out of taxes levied in such Project Area and allocated to the Agency under subdivision (b) of Section 33670 of the Health and Safety Code of the State of California, or out of any other available funds; and WHEREAS, the City and the E M Leasing Corporation (the "Leasing Company") wish to undertake the construction of certain facilities and improvements (the "Municipal Facilities Project") to be located in or adjacent to the Project Area; and WHEREAS, to that end the City and the Leasing Company intend to enter into a Lease -Purchase Agreement providing for Lease Payments to be paid by the City to the Leasing Company, or the Leasing Company's assigns; and 0 0 WHEREAS, the parties hereto in consideration of their mutual undertakings, past and present, herein and otherwise, desire to provide for repayment to the City of all contributions from the City and moneys paid as rental under the Lease -Purchase Agreement; NOW, THEREFORE, in consideration of the mutual covenants herein contained it is agreed by and between the parties hereto as follows: Section 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall, for all purposes of this Reimbursement Agreement and of any amendment hereto, and of any certificate, opinion, estimate or other document herein mentioned, have the meanings herein specified. Agency "Agency" means the Redevelopment Agency of the City of Azusa, a redevelopment agency and public body, corporate and politic, duly organized and existing under and by virtue of the laws of the State of California. Certificates "Certificates of Participation" or "Certificates" means the not to exceed $4,360,000 aggregate principal amount of Certificates of Participation (Municipal Facilities Project) to be executed and delivered pursuant to the Trust Agreement and which evidence a right to receive a proportionate share of Lease Payments and proceeds received on account of this Agreement. City "City" means the City of Azusa, California, a municipal corporation organized and existing under and by virtue of the laws of the State of California. Contributions "Contributions" means all payments past and future, made or to be made by the City to meet the costs of acquisition and construction of the Project, including, without limitation, payment of architectural, engineering and legal fees and costs of Site preparation. Law "Law" means the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California and the acts amendatory thereof and in supplement thereto. Whenever reference is made in this Reimbursement Agreement to the Law, reference is made to the Law as in force on the date of the execution of this Reimbursement Agreement, unless the context otherwise requires. -2- 0 6 Lease Payments "Lease Payments" means all amounts paid by the City as lease payments pursuant to Section 4.5 of the Lease -Purchase Agreement. Lease -Purchase Agreement "Lease -Purchase Agreement" means that certain lease entitled "Lease -Purchase Agreement" by and between the Leasing Company as lessor and the City as lessee of the Project dated as of July 1, 1985. Leasing Company "Leasing Company" means the E M Leasing Corporation. Project "Project" means the Municipal Facilities Project to be constructed on the Sites pursuant to the Lease -Purchase Agreement, and to be located in or adjacent to the Project Area. Project Area "Project Area" means the Azusa Central Business District Redevelopment Project of the Agency. Site "Site" means certain parcels of real property situated in the City more particularly described in Exhibit C to be attached to the Lease -Purchase Agreement. Tax Increment Revenues "Tax Increment Revenues" means all taxes allocated to, and paid into a special fund of the Agency pursuant to Article 6 of Chapter 6 of the Law and Section 16 of Article XVI of the Constitution of the State of California, and as provided in the redevelopment plan for the Project Area, including all payments and reimbursements, if any, to the Agency specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations, but excluding any amounts required to be used to improve the community's supply of low or moderate income housing pursuant to Section 33334.2 of the Law and amounts required to be paid to other taxing agencies pursuant to Section 33401 of the Law. Trustee "Trustee" means the financial institution, its successors and assigns, acting as trustee under the Trust Agreement, or any other entity then performing the function of Trustee under the Trust Agreement. -3- CJ ! Trust Agreement 'l "Trust Agreement" Agreement" by and among as of July 1, 1985. 1 means that certain agreement entitled "Trust the City, the Leasing Company and the Trustee, dated Section 2. Reimbursement. The Agency and the City agree that to the extent necessary Tax Increment Revenues shall be used and applied to repay the City for all Lease Payments made by the City to the Leasing Company under the Lease -Purchase Agreement, and for all other Contributions. This Reimbursement Agreement shall be subordinate to to any other obligations issued or incurred or to be issued or incurred by the Agency. Section 3. Direct Obligation. Notwithstanding anything herein or in the Lease -Purchase Agreement to the contrary, in the event that Lease Payments or Contributions payable by the City pursuant to the Lease -Purchase Agreement are not paid when due, either because of legal or financial incapacity or inability of the City to make any such Lease Payment or Contribution or because of the abatement of any such Lease Payment for any reason pursuant to the terms of the Lease -Purchase Agreement, then the Agency shall have a direct obligation to,pay and shall timely pay the amount of any such Lease Payment or Contribution from then available Tax Increment Revenues, and any such Lease Payment or Contribution shall be deemed to be made in furtherance of the Agency's powers of redevelopment and shall not be repaid by the City or subject to set-off by the Agency. Section 4. Public Hearing.. No Tax Increment Revenues shall be used and applied pursuant to this Reimbursement Agreement unless and until there shall have been compliance with the public hearing requirements of Section 33679 of the Law. IN WITNESS WHEREOF, the parties hereto have executed this Reimbursement Agreement as of the day and year first above written. Attest: City Clerk Attest: 1 Secretary CITY OF AZUSA By 4411 J �2 d Mayo REDEVELOPMENT AGENCY OF THE CITY OF AZUSA B Axe6Mve Director -5-