HomeMy WebLinkAboutResolution No. 07-R48RESOLUTION NO. 07-R48
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
AUTHORIZING A LOAN FROM THE 20% LOW -TO -MODERATE INCOME HOUSING SET
ASIDE FUND TO THE MERGED PROJECT CAPITAL PROJECTS FUND 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 implementation of the Block 36 Mixed -Use Project is necessary and incidental to
carrying out the Redevelopment Plan and will increase, improve, and preserve the community's supply of
available affordable market rate housing; and
WHEREAS, the Agency has incurred and will continue to incur obligations for such purpose; and
WHEREAS, the Agency Board is authorized, pursuant to Section 33600, et. seq., of the Health and
Safety Code of the State of California to make loans for the purposes of defraying said expenses; and
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 33600, et. seq., of the California State Health and
Safety Code, the Agency Members hereby authorize the Redevelopment Agency of the City of Azusa Merged
Project Capital Project Fund to request a Loan from the Redevelopment Agency of the City of Azusa 20%
Low -to -Moderate Income Housing Set Aside Fund 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 33600, 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
INT.
BORROW
PLEDGED REVEN
AMOUNT PROJECT
RATE
TERM
FROM
SOURCES
$1,350,000 Block 36
5% Simple Interest
June 30,
20% Set
Tax Increment,
Mixed Use
2011
Aside Fund
Property Sales
Proceeds, Other
The loan listed herein is payable according to the terms of the Note. Payments will be made in full on or
before June 30, 2011. The Note is payable from accumulated tax increment funds in excess of those pledged
for payment of Agency bonded indebtedness, property sales proceeds, 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 20% Low -to -Moderate Income Housing Set Aside Fund in
accordance with the provisions of Section 3 hereof.
0
0
Section 5. The Agency Secretary shall certify the adoption of this Resolution.
PASSED AND ADOPTED this 17`s day of December, 2007.
e
doseph R. Rocha, Chairperson
I HEREBY CERTIFY that the foregoing resolution No. 07-R48, was duly adopted by the
Redevelopment Agency of the City of Azusa at a regular meeting held on the 17`s day of December, 2007.
AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCRA
NOES: AGENCY MEMBERS: NONE
ABSTAIN: AGENCY MEMBERS: NONE
ABSENT: AGENCY MEMBERS: NONE
Vera Mendoza, SEcfetary
"EXHIBIT A"
PROMISSORY NOTE
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
CENTRAL BUSINESS DISTRICT AND WEST END MERGED PROJECT
CAPITAL PROJECT FUND
AZUSA, CALIFORNIA
DECEMBER 17, 2007
For value received, the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA CENTRAL BUSINESS
DISTRICT AND WEST END MERGED PROJECT CAPITAL PROJECT FUND, ("Capital Project Fund"),
promises to pay the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA 20% LOW -TO -MODERATE
INCOME HOUSING SET ASIDE FUND, ("20% Set Aside Fund"), the sum of ONE MILLION THREE
HUNDRED FIFTY THOUSAND DOLLARS AND NO/100 ($1,350,000) ("Loaned Funds"), with interest thereon
from the date of disbursement to the Capital Project Fund, at the simple interest rate of FIVE PERCENT (5%) per
annum. Principal and interest is payable in full by JUNE 30, 2011, as provided herein. This Note is a subordinate
lien and is payable from tax increment revenues in excess of those pledged for Agency bonded indebtedness and any
other superior debt, and/or payable from 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 begin on the date of disbursement and is due in full by June 30, 2011, unless extended by the Agency
Board.
This note is issued in connection with the provision of funds to finance redevelopment activities of the Merged
Redevelopment Project Area, and specifically the Block 36 Mixed Use Project. 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 Agency Board has authorized the loan for purposes of
funding property acquisition and offsite improvements pertaining to the Block 36 Project. 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 the event of any legal or financial obligation incurred by the 20% Set Aside Fund which requires immediate
repayment of the Loaned Funds, the Capital Project Fund will immediately repay said Loaned Funds from any other
resources available to the Agency from which such payment may legally be made. 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: k
oseph R. Rocha, Chairperson
BLOCK 36 MIXED USE PROJECT
DOCUMENT IN C:IDOCUMENTS AND SETTWGSWZUSAUSERIIDESKMMWDECEMEER 17,20]E[ MDEODOC