HomeMy WebLinkAboutResolution No. 91-R410 0
RESOLUTION NO. 91-R41
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF AZUSA REQUESTING LOANS FROM THE CITY OF AZUSA FOR
PURPOSES OF THE MERGED REDEVELOPMENT PROJECT AREA
WHEREAS, the Redevelopment Agency of the City of Azusa
("Agency") is undertaking certain actions which are necessary and
incidental to the carrying out of the Redevelopment Plan which
has previously been adopted by the City of Azusa; and
WHEREAS, the Agency has incurred and will continue to incur
obligations for such purpose; and
WHEREAS, the City of Azusa is authorized, pursuant to
Section 33260, et. seq., of the Health and Safety Code of the
State of California to make loans to the Agency for the purposes
of defraying said expenses;
NOW, THEREFORE, BE IT RESOLVED by the Directors of the
Redevelopment Agency of the City of Azusa that:
Section 1. Pursuant to the provisions of said Section
33620, et. seq., of the Health and Safety Code, the Agency hereby
requests of the City of Azusa a loan for the Merged Redevelopment
Project.
Section 2. The Agency pledges to accept and administer any
funds loaned to it pursuant to this request in accordance with
the provisions of Section 33620, et. seq., of the Health and
Safety Code.
Section 3. The Agency requests that the City Council of the
City of Azusa require that said loan be evidenced by a secured
note of the Agency containing the following terms, in addition to
all usual and customary terms:
INT. PLEDGED REVENUE
LOAN AMOUNT RATE TERM BORROW FROM SOURCES
$2,300,000 Variable 5 Yr. Light Fund Tax Increment,
Land Sales
(a) Secured Loan Note is effective June 30, 1991.
(b) Interest payments shall be made annually on or before
May 31st of each year, beginning May 31, 1992.
(c) Interest rate for the May 31st payment shall be the
higher of 8% or the Local Agency Investment Fund (LAIF) rate in
effect on March 31st of the payment year. Interest rate shall
not exceed the maximum rate permitted by Section 53531 of the
Government Code (12% as of this date).
(d) Land sale proceeds from the sale of the property shall
be applied to the principal of the Note. The remaining unpaid
principal balance shall be paid in annual installments on May
31st, with the last installment payment due and payable on or
before May 31, 1996.
(e) Note is also payable from accumulated tax increment
funds in excess of those pledged for payment of Agency bonded
indebtedness, or from any other funds available to the Agency
from which such payment may legally be made.
(f) Note may be prepaid at any time without penalty.
Section 4. The Chairman of the Agency is hereby authorized
and directed to execute, on behalf of the Agency, the secured
Note to the City of Azusa in accordance with the provisions of
Section 3 hereof.
PASSED AND ADOPTED thislst day of July , 1991.
Chan
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Redevelopment Agency of the City of Azusa at a
regular meeting thereof, held on the Ast day of July
1991.
AYES: DIRECTORS: DANGLEIS, STEMRICH, NARANJO, ALEXANDER, MOSES
NOES: DIRECTORS: NONE
ABSENT: DIRECTORS: NONE
NOTE SECURED BY TAX INCREMENT AND LAND TO HE ACQUIRED
MERGED REDEVELOPMENT PROJECT AREA
AZUSA, CALIFORNIA
JUNE 30, 1991
For value received, the undersigned Agency promises to pay to the
City of Azusa Light and Water Department, on order at Azusa,
California, the sum of Two Million Three Hundred Thousand Dollars
($2,300,000) with interest at the rate of the higher of eight
(8%) percent or the Local Agency Investment Agreement (LAIF) rate
in effect as of March 31 of the payment year, not to exceed the
maximum rate permitted by Section 53531 of the Government Code.
Interest is payable annually on May 31, beginning May 31, 1992.
The Note is secured by the land to be acquired with the note
proceeds for the Casden Site Repossession Project. Land sale
proceeds shall be applied to the principal of the Note, with the
remaining unpaid principal balance to be paid in annual
installments on May 31, with the last installment due and payable
on or before May 31, 1996. The Note is also payable from pledged
tax increment revenue allocated to and received by the Agency for
the Merged Redevelopment Project Area, less any required set -
asides for low -and -moderate -income housing, and/or any other
available source of revenue. The Note may be prepaid at any time
without penalty. This Note is effective June 30, 1991.
This note is issued in connection with the provision of funds to
finance redevelopment activities of the Merged Redevelopment
Project Area. This note is issued under the authority and
pursuant to the Community Redevelopment Law, commencing with
Section 33000 of the Health and Safety Code of the State of
California, as amended.
The Merged Redevelopment Project
Each payment shall be credited first to principal due and the
remainder to interest; and interest shall thereupon cease upon
the principal so credited. Any unpaid interest shall accrue and
be added to the outstanding principal balance. Should default be
made in payment of interest when due the whole sum of principal
and interest shall become immediately due at the option of the
holder of this note, unless extended by said holder. Principal
and interest payable in lawful money of the United States. If
action be instituted on this note, the undersigned Agency
promises to pay such sum as the Court may fix as attorney's fees.
REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA
CASDEN SITE REPOSSESSION PROJECT