HomeMy WebLinkAboutResolution No. 08-R1517 D&TORS" CoWs 1;IXIFDI=
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
AZUSA REQUESTING A LOAN FROM AZUSA LIGHT & WATER 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 Azusa Light & Water 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 f6r 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
AMOUNT
PROJECT/AFFECTED
FUND
INTEREST
RATE
TERM
BORROW
FROM
REPAYMENT
FUND SOURCE
$5,300,000
Electric Fund Balance
LAIF
Payable within
Azusa Light
Tax Increment,
(4.161%)
one year, callable
& Water:
Bonds, Agency
in the event of an
Electric Fund
Land Sale
emergency, or if
Balance
Proceeds
needed by Utility
Board
The loan listed herein is payable according to the terms of the Note. Payments will be made upon
demand from the Azusa Light & Water 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.
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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 Azusa Light & Water 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 24th day of March, 2008.
oseph R. Rocha, Chairperson
I HEREBY CERTIFY that the foregoing resolution No. 08-R15, was duly adopted by the
Redevelopment Agency of the City of Azusa at a regular meeting held on the 24`' day of March,
2008, by the following vote of the Agency Members:
AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
NOES: AGENCY MEMBERS: NONE
ABSTAIN: AGENCY MEMBERS: NONE
ABSENT: AGENCY MEMBERS: NONE
i
Vera Mendoza, Secretary
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EXHIBIT A
PROMISSORY NOTE
MERGED REDEVELOPMENT PROJECT AREA
AZUSA, CALIFORNIA
March 24, 2008
For value received, the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, a public body corporate and
politic ("Agency"), promises to pay the AZUSA LIGHT & WATER, a municipal utility organized and existing
under the laws of the State of California ("City"), the estimated sum of FIVE MILLION THREE HUNDRED
THOUSAND DOLLARS AND NO/1:00 ($5,300,000), 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 equivalent to the Local Agency Investment Fund rate, currently 4.161 %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. The interest
earned by the Utility Fund Reserve shall be transferred into the Utility mitigation fund
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 Utility Board has authorized the loan for purposes of funding property acquisitions, administrative expenses and
project related activities. 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:� /A �•/�✓a
oseph R. Rocha, Chairperson
PROPERTY ACQUISITION/CBD