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HomeMy WebLinkAboutResolution No. 94-R560 0 RESOLUTION NO. 94-x56 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA REQUESTING A LOAN 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 the following 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 the following loan be evidenced by a secured note of the Agency containing the following terms, in addition to all usual and customary terms: INT. LOAN AMOUNT RATE $ 2,000,000 5.25% TERM BORROW FROM 10 Yrs. . Light Fund PLEDGED REVENUE SOURCES Developer Lease Payments, Tax Increment The loan listed herein is payable on or before June 30 of the term year due. The Note is payable from accumulated tax increment funds in excess of those pledged for payment of Agency bonded indebtedness, developer lease payments, and/or from any other funds available to the Agency from which such payment may legally be made. Notes 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 this 3rd Chairman day of October 1994. 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 3rd day of October 1994. AYES: BOARDMEMBERS: HARDISON, MADRID, NARANJO, BEEBE NOES: BOARDMEMBERS: ALEXANDER ABSTAIN: BOARDMEMBERS: NONE ABSENT: BOARDMEMBERS: NONE C:\WPROC\CORRF31'O\AU (X.OAH.CRA 0 0 MERGED REDEVELOPMENT PROJECT AREA AZUSA, CALIFORNIA 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 Dollars ($2,000,000) with fixed interest at the rate of five and one quarter (5.25%) percent. Interest is payable annually on June 30, beginning June 30,1995. Interest shall begin accruing on the actual day loan proceeds are received. The principal balance is to be paid in annual installments on June 30, with the last installment due and payable on or before June 30, 1996. The Note is secured by developer lease payments and tax increment revenues. The Note may also be repaid with any other funds available from which such payment may legally be made. The Note may be prepaid at any time without penalty. This note is issued in connection with the provision of funds to finance redevelopment activities of the Merged Redevelopment Project Area and, in particular, acquisition of Rogers Jeep/Eagle auto dealership. 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. REFERENCE: 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 By: 'S" �- Chairman AUTO DEALERSHIP RETENTION PROJECT c\wex0c\C0RRE e0�UMrio1T-wro