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HomeMy WebLinkAboutResolution No. 95-R670 0 RESOLUTION NO. 95—R67 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AUTHORIZING A REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF AZUSA AND THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA FOR PURPOSES OF THE MERGED REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency of the City of Azusa ("Agency") is authorized to undertake 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, for purposes of the Merged Redevelopment Project Area; and WHEREAS, the City Council has authorized an exchange of Community Development Block Grant (CDBG) funds with the City of Walnut for purposes of funding eligible projects essential to redevelopment of areas included in the Merged Redevelopment Project Area, and of general benefit to the City and its residents; and WHEREAS, the Agency has agreed to reimburse the City General Fund for debt service payments paid by the City pursuant to the Promissory Note between the City General Fund and the City Light Fund, established for the purpose of funding the CDBG Fund Exchange with the City of Walnut. 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 Sections 33600 and 33601 of the California State Health and Safety Code, the Board of Directors hereby authorizes the Redevelopment Agency of the City of Azusa to enter into the Reimbursement Agreement with the City of Azusa for reimbursement to the City for debt service payments paid by the City pursuant to a Promissory Note between the City of Azusa General Fund and the City of Azusa Light Fund, benefitting the Merged Redevelopment Project. Section The Agency requests that authorization for such payments shall be evidenced by a Reimbursement Agreement (in the form attached as Exhibit A) between the City of Azusa and the Redevelopment Agency of the City of Azusa containing the following terms, in addition to all usual and customary terms: REIMB AMT INT RATE TERM R -V .N 1 . SO IR .E $202,330 5.784% 3 Years Tax Increment, Other Payments will be made annually on or before December 31st of each term year beginning December 31, 1996, until paid in full. The amounts listed herein are payable according to the terms of the Reimbursement Agreement, and are payable fiom accumulated tax increment funds in excess of those pledged for payment of Agency bonded indebtedness, and/or from any other funds available to the Agency from which such payment may legally be made. The Reimbursement Agreement may be prepaid at any time without penalty. Section 3. The Chairman of the Agency is hereby authorized and directed to execute, on behalf of the Agency, the Reimbursement Agreement between the City of Azusa and the Redevelopment Agency of the City of Azusa in accordance with the provisions of Section 2 hereof. PASSED AND ADOPTED this 20th day of November 1995. Chairman c�oa��wwocyccnxesn��wcomr�rnocwslww 0 0 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? day of November , 1995. AYES: BOARDMEMBERS: HARDISON, MADRID, BEEBE NOES: BOARDMEMBERS: NARANJO, ALEXANDER ABSTAIN: BOARDMEMBERS: NONE ABSENT: BOARDMEMBERS: NONE O\OMMWPp)CICCRpE9I %AfB \RBC.P®.WM EXHIBIT "A" REIMBURSEMENT AGREEMENT THIS REIMBURSEMENT AGREEMENT, dated as of 1995, is entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, a public body corporate and politic ("Agency"), and the CITY OF AZUSA, a municipal corporation and general law city organized and existing under the laws of the State of California ("City"). 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 redevelopment activities necessary for the implementation of the Merged Redevelopment Project under the provisions of the California Community Redevelopment Law, The Agency may accept financial assistance from the City pursuant to Health and Safety Code Sections 33600 and 33601. The Merged Project provides for tax increment financing in accordance with the provisions of the California Health and Safety Code. The Agency is authorized, with the consent of the Board of Directors, to undertake certain actions which are necessary and incidental to carrying out the Redevelopment Plan which has previously been adopted by the City of Azusa, for purposes of the Merged Redevelopment Project Area. The City Council has authorized an exchange of Community Development Block Grant (CDBG) funds with the City of Walnut for purposes of funding eligible projects essential to redevelopment of areas included in the Merged Redevelopment Project Area, and of general benefit to the City and its residents. The Agency agrees to reimburse the City General Fund for those debt service payments paid from the City General Fund pursuant to the Promissory Note between the City General Fund and the City Light Fund, in the amount of TWO HUNDRED TWO THOUSAND THREE HUNDRED THIRTY DOLLARS ($202,330.00) together with interest at the rate of 5.784% per annum, in annual payments detailed as follows: Pmt # Date Yr Rate P&I Payment Principal Interest New Balance 12/31/95 5.784% ------- ------- ------- S202,330.00 12/31/96 5.784% $73,625.88 $63,591.36 $10.034.52 $138.738.64 12/31/97 5.784% $73,625.88 $67,368.59 $6,257.29 571,370.05 12/31/98 5.784% $73.625.77 $71,370.05 $2.255.72 $0.00 5220.877.53 $202,330.00 $18.547.53 The term of the Reimbursement Agreement shall commence December 31, 1995, and shall end on December 31, 1998, unless extended by mutual consent of both parties. Reimbursement to the City General Fund is payable from available tax increment in excess of those pledged for Agency bonded indebtedness and/or any other resources available to the Agency from which such payment may legally be made, and may be prepaid at any time without penalty. In event of default in payment of any amount as herein provided, then the entire amount shall become due at the option of the City of Azusa. Principal and interest shall be payable in lawful money of the United States at AZUSA, CALIFORNIA. Demand, presentment for payment, protest and notice of protest are hereby waived. REDEVELOPMENT AGENCY OF THE CITY OF AZUSA 1 Signed: Chairman CITY OF WALNUT CDBG FUND EXCHANGE