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HomeMy WebLinkAboutResolution No. 632 (2)RESOLUTION NO. 632 A RESOLUTION OF THE CITY OF AZUSA REDEVELOPMENT AGENCY APPROVING AN AGREEMENT WITH THE CITY OF AZUSA RE TRANSFERRED SALES AND USE TAXES (RANCH CENTER PROJECT) WHEREAS, the Azusa Redevelopment Agency (the "Agency") and the City of Azusa (the "City") entered into an Agreement on August 7, 1989 regarding how certain of the Transferred Sales and Use Taxes are to be used; and NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT AGENCY 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 Chairman of the Agency is hereby authorized to execute the Agreement on behalf of the Agency, in substantiallly the form of Exhibit "A". ADOPTED AND APPROVED this 5th day of October , 1989. Eug F. Moses, Chairman I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Board of Directors of the City of Azusa Redevelopment Agency, at a regular meeting thereof held on the 5th day of October , 1989. AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: AVILA, STEMRICH, NARANJO, LATTA, MOSES NONE NONE EXHIBIT A AGREEMENT BETWEEN CITY OF AZUSA AND REDEVELOPMENT AGENCY OF THE CITY OF AZUSA RE CERTAIN SALES AND USE TAXES (AZUSA RANCH CENTER) THIS AGREEMENT is made as of August 7, 1989 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. 3, and the City has enacted Ordinance No. 2406 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 a portion of the Ranch Center Redevelopment Project Area known as the Azusa Ranch Center Project and as further described in said Ordinance (the "Transferred Sales and Use Taxes"). C. On September 19, 1988 the Agency adopted Resolution No. 504 approving an Owner Participation Agreement between the Agency and West Venture Development Company. Said Agreement is incorporated herein by reference. By Resolution No. 8515 of the same date the City FJN/AGR9111 07/27/89 consented to the Agency entering into the agreement with West Venture Development Company and made certain findings concerning the project's benefit to the community. On November 21, 1988, the Agency adopted Resolution No. 526 revising certain terms of the Agreement. Said Agreement is hereby incorporated herein by reference. (West Venture Development Company assigned all its right, title and interest in and to the Owner Participation Agreement to West Land Reserves, Inc. in accordance with said Agreement. The Agreement with West Venture Development Company will hereinafter be referred to as the "West Land Reserves Agreement".) The West Land Reserves Agreement provides that the Agency will acquire certain property and sell it to West Land Reserves and West Land Reserves will redevelop and construct certain buildings on the property. Agency will also construct certain public improvements for the project. West Land Reserves will loan to Agency certain funds, with interest, to enable Agency to perform its obligations under the West Land Reserves 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 West Land Reserves Agreement provides that the Note will be repaid by certain sales and use tax revenues from the Azusa Ranch Center 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 West Land Reserves 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 -2- FJN/AGR9111 07/27/89 repayment of the Note or for other required purposes shall be transferred back to the City. The Agency may utilize all available resources including tax increments to repay the debt on the Note. 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 and interest 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 California Constitutions. Pursuant to the provisions of Revenue and Taxation Code Section 7202.8, Ordinance No. 2 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. 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, although the Agency may utilize any and all resources available to repay the Note. 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 and 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 should Agency resources be inadequate for same, the -3- FJN/AGR9111 07/27/89 Agency agrees to pay the City an amount equal to the Agency's share of the "Allocated Sales Tax Revenues" as described in Section 7.4.C. of the.said Owner Participation Agreement between the Agency and West Land Reserves 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 otherwise due to the City pursuant to this Agreement 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 7% per annum from 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 7th day of August, 1989. Atte Adolph 'A,'. Sol City Clerk of the City of Azusa, California CITY: r. Moses of the City of Azusa I AGENCY: EugenVIF. Moses ChaiVffian of the Azusa /i Redevelopment Agency A'olph A�Solis Secretary of the Redevelopment Agency of the City of Azusa APPROVED AS TO FORM: A. eter M. Thorson City Attorney Agency Counsel -4- FJN/AGR9111 07/27/89