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HomeMy WebLinkAboutResolution No. 06-R500 0 RESOLUTION NO. 06-1150 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 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 Agency has incurred and will continue to incur obligations for such purpose; and WHEREAS, the City of Azusa is authorized, pursuant to Section 33620, 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 Agency Members of the Redevelopment Agency of the City of Azusa that: Section 1. Pursuant to the provisions of said Section 33620, et seq., of the California State Health and Safety Code, the Agency Members hereby authorize the Redevelopment Agency of the City of Azusa to request a Loan from the City of Azusa for purposes of 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 authorization for repayment of the loan shall be evidenced by a Note (in the form attached as Exhibit A) of the Agency containing the following terms, in addition to all usual and customary terms: LOAN PROJECT/AFFECTED INTEREST TERM BORROW REPAYMENT AMOUNT FUND RATE FROM FUNDSOURCE $10,215,000 Merged Project -CBD Payable City: Tax Increment, 7% per Upon on General/Rosedale Bonds, Sales Capital Projects Fund Annu demand Funds Proceeds The loan listed herein is payable according to the terms of the Note. Payments will be made upon demand from the City to the Agency.. Any unpaid amounts will accrue annually and be added to principal. The Note is payable from 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 Note may be prepaid at any time without penalty. Section 4. The Chairperson of the Agency or his/her designee is hereby authorized and directed to execute, on behalf of the Agency, the Note to the City of Azusa in accordance with the provisions of Section 3 hereof. Section 5. The Agency Secretary shall certify the adoption of this Resolution. PASSED AND ADOPTED this 4'" day of December, 2006. Chairperson I HEREBY CERTIFY that the foregoing resolution no. 06-R50, was duly adopted by the Redevelopment Agency of the City of Azusa at a regular meeting held on the 4b day of December, 2006. AYES: AGENCY MEMBERS: HARDISON, CARRILLO, ROCHA, HANKS NOES: AGENCY MEMBERS: NONE ABSTAIN: AGENCY MEMBERS: CHAGNON ABSENT: AGENCY MEMBERS: NONE i e retary! 0 6 PROMISSORY NOTE MERGED REDEVELOPMENT PROJECT AREA AZUSA, CALIFORNIA DECEMBER 4, 2006 For value received, the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, a public body corporate and politic ("Agency"), promises to pay the CITY OF AZUSA, a municipal corporation and general law city organized and existing under the laws of the State of California ("City"), the estimated sum of TEN MILLION TWO HUNDRED EIGHTEEN THOUSAND DOLLARS AND NO/100 ($10,218,000), revised as necessary to reflect actual expenditures, with interest thereon from the date of actual receipt of loan proceeds as evidenced by warrant date of disbursement, at the annual interest rate of 7% per annum, principal and interest payable annually. Any unpaid amounts will accrue annually and be added to principal. The Note is payable from tax increment revenues in excess of those pledged for Agency bonded indebtedness, property sales proceeds, bond proceeds designated to repay this note, and/or any other resources available to the Agency from which such payment may legally be made, allocated to and received by the Agency for the Merged Redevelopment Project Area. The term of the note shall be payable upon demand, unless extended by mutual consent of both parties. This note is issued in connection with the provision of funds to finance redevelopment activities of the Merged Redevelopment Project Area. 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 the loan for purposes of funding property acquisition obligations for the acquisition of 110-190 West 9'" Street, 809 North Azusa Avenue, and 800-802 North San Gabriel Avenue. This note is issued under the authority and pursuant to the Community Redevelopment Law, commencing with Section 33600 of the Health and Safety Code of the State of California, as amended. 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. 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 By: Vyl x i V �it i 1nM �� Chairperson PROPERTY ACQUISITION/CBD DOCUMENT M C:IDOCUMENTS AND SETTINGS USAUSERIOESKTOMW ECEM1 4.2006E EDDED.DOC