HomeMy WebLinkAboutResolution No. 08-R90 0
RESOLUTION NO. 08-R9
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
AMOUNT FUND
$11,000,000 Merged Project -CBD
. Capital Projects Fund
INTEREST TERM BORROW REPAYMENT
RATE FROM FUND
SOURCE
Payable by City: Tax Increment,
6.5% November General/Rosedale Bonds, Sales
30,2008 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 by November 30, 2008. 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.
9
PASSED AND ADOPTED this 3'd day of March, 2008.
J2 AA I
Aseph R( Rocha, Chairperson
0
I HEREBY CERTIFY that the foregoing resolution No. 08-R9, as duly adopted by the
Redevelopment Agency of the City of Azusa at a regular meeting held on the 3rd 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
era Mendoza Secretary '
PROMISSORY NOTE
MERGED REDEVELOPMENT PROJECT AREA
AZUSA, CALIFORNIA
March 3, 2008
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 ELEVEN MILLION DOLLARS
AND NO/100 ($11,000,000), 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 6.5%
which is approximately equivalent to the Local Agency Investment Fund rate, currently 4.62% per annum, plus 2%.
The principal and interest are 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 by November 30, 2008, 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 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:,�
/Joseph R. Rocha, Chairperson
PROPERTY ACQUISITION/CBD
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