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HomeMy WebLinkAboutResolution No. 483RESOLUTION NO. 483 RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING AN AGREEMENT WITH THE CITY OF AZUSA RE TRANSFERRED SALES AND USE TAXES WHEREAS, the City of Azusa (the "City") and the Redevelopment Agency of the City of Azusa (the "Agency") need an Agreement as to how certain of the Transferred Sales and Use Taxes are to be used. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF AZUSA AS FOLLOWS: SECTION 1. That certain Agreement set forth on Exhibit A, entitled "Agreement Between the City of Azusa and the Redevelopment Agency of the City of Azusa re Certain Sales and Use Taxes", attached hereto and made a part hereof, is hereby adopted and approved and the Mayor of the City is hereby authorized to execute the Agreement on behalf of the City, in substantially the form of Exhibit "A". ADOPTED AND APPROVED this 18th day of July , 1988. CERTIFICATION: I HEREBY CERTIFY that the above and foregoing resolution was duly passed and adopted by the Board of Directors of the Redevelopment Agency of the City of Azusa at its regular meeting held on the 18th day of July 1988, by the following vote: AYES: BOARD MEMBERS AVILA, STEMRICH, NARANJO, LATTA, MOSES NOES: BOARD MEMBERS NONE ABSENT: BOARD MEMBERS NONE Se etary , ugene F. Moses Chairman PMT/RES8482 6/27/88 9 0 AGREEMENT BETWEEN CITY OF AZUSA AND REDEVELOPMENT AGENCY OF THE CITY OF AZUSA RE CERTAIN SALES AND USE TAXES THIS AGREEMENT is made as of July 18, 1988 by and between the CITY OF AZUSA, a municipal corporation duly incorporated and existing under the laws of the State of California (the "City") and the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, a public body, corporate and politic, duly created, established and authorized to transact business and exercise its powers all under the Community Redevelopment Law, Part 1 of of Division 24, commencing with §33000 of the Health & Safety Code of the State of California (the "Agency"). Section 1. Facts. This Agreement is made with reference to the following facts: A. Pursuant to Revenue and Taxation Code Section 7202.6, the Agency has enacted Ordinance No. 1, and the City has enacted Ordinance No. 2372 providing for the imposition of a sales and use tax upon retail sales within a certain project area; B. So far as material here, the purpose of the above two Ordinances is to transfer from the City to the Agency the sales and use tax collected within the West End Redevelopment Project Area and as further described in said Ordinance (the "Transferred Sales and Use Taxes"). C. On July 18, 1988 the Agency adopted Resolution No. 481 approving an Owner Participation Agreement between the Agency and the Price Company. Said Agreement is incorporated herein by reference. By Resolution No. 8474 of the same date the City consented to the PMT/AGR7912 6/27/88 9 0 Agency entering into the agreement with Price Company and made certain findings concerning the project's benefit to the community. The Price Company Agreement provides that the Agency will acquire certain property and sell it to the Price Company and the Price Company will redevelop and construct certain buildings on the property. Agency will also construct certain public improvements for the project. Price Company will loan to Agency certain funds, with interest, to enable Agency to perform its obligations under the Price Company Agreement. Such loan will be evidenced by a promissory note to be executed by the Agency ("Note"). Repayment of the Note will be secured by the Transferred Sales and Use Taxes pursuant to said Agreement. The Price Company Agreement provides that the Note will be repaid by certain sales and use tax revenues from the Price Club Project and that a portion of said revenues will be transferred from the Agency to the City for the benefit of the community. This Agreement between the Agency and City is necessary to implement the Price Company Agreement and to secure the benefits of that agreement for the Agency and City. D. All of the Transferred Sales and Use Taxes collected pursuant to said ordinances and not required for repayment of the Note or for other required purposes shall be transferred back to the City. Section 2. Pledge of Transferred Sales and Use Taxes. Pursuant to Revenue Taxation Code Section 7202.8 and Health and Safety Code Section 33641, the Transferred Sales and Use Taxes are pledged to the payment of the principal on the Note. Such pledge shall constitute the obligation of contract between the Agency and the holders of the Note and shall be protected from impairment by the United States and -2- PMT/AGR7912 6/27/88 0 California Constitutions 0 Pursuant to the provisions of Revenue and.Taxation Code Section 7202.8, Ordinance No. 1 of the Agency and Section 3.28.170 of the Azusa Municipal Code may not be repealed during the time that the Note remains outstanding. I Section 3. Payment of Notes. It is the intention of the parties hereto that the Note be payable from the Transferred Sales and Use Taxes. Section 4. Use of Transferred Sales and Use Taxes. The Transferred Sales and Use Taxes shall only be used to the extent necessary to pay the amounts due on the Note, to pay a certain amount per year to the City pursuant to Section 5, hereof. Such Transferred Sales and Use Taxes as are not needed for such purposes, if any, shall be transferred back to the City to be placed in its General Fund. Section 5. Payment to City. In consideration of the City's agreement to allow sales and use tax revenues to be transferred to the Agency in order to secure and repay the Note, the Agency agrees to pay the City an amount equal to the Agency's share of the "Allocated Sales Tax Revenues" as described in Section 4.2.F. of the said Owner Participation Agreement between the Agency and the Price Company on or before July 1, for so long as the Note is outstanding. Unless otherwise decided by the City Council, in its sole discretion, the amount due to the City pursuant to this Section shall be a cumulative debt of the Agency to the City and shall be repaid to the City from Agency revenues bearing interest at the rate of 78 per annum from -3- PMT/AGR7912 6/27/88 0 0 the date when such payment is due to the date of repayment by Agency to the City. IN WITNESS WHEREOF the City and the Agency have caused this Agreement to be executed this 18th day of July, CITY: Eug a F. Moses Ma or of the City of Azusa City Clerk of the City of Azusa, California AGENCY: Eug a F. Moses Ch irman of the Azusa Redevelopment Agency Adolph Solis Secretary of the Redevelopment Agency of the City of Azusa APPROVED AS TO FORM: Peter M. Thorson City Attorney Agency Counsel -4- PMT/AGR7912 6/27/88