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HomeMy WebLinkAboutResolution No. 08-R320 • RESOLUTION NO. 08-R32 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 (California Redevelopment Law) 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 INT. BORROW PLEDGED REVENUE AMOUNT PROJECT RATE TERM FROM SOURCES $1,283,070 Administration Variable Based on LAM Avg. 1 Year General Fund Tax Increment, Other Monthly Yields The loan listed herein is payable according to the terms of the Note. Payments will be made at least annually, and will be paid in full on or before June 30, 2009. 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 21" day of July, 2008. Jos ph R. ocha, Chairperson I HEREBY CERTIFY that the foregoing resolution No. 08-R32, was duly adopted by the Redevelopment Agency of the City of Azusa at a regular meeting held on the 21' day of July, 2008. AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: AGENCY MEMBERS: NONE ABSEN iAG�a�// RS: NONE Vera Mendoza, Secretary 61 0 "EXIIMIT A" • PROMISSORY NOTE MERGED REDEVELOPMENT PROJECT AREA AZUSA, CALIFORNIA JULY 1, 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 ONE MILLION TWO HUNDRED EIGHTY-THREE THOUSAND SEVENTY DOLLARS AND NO/100 ($1,283,070), revised as necessary to reflect actual expenditures, with interest thereon from the date of July 1, 2008, at the average monthly variable rate as determined by the State of California Local Agency Investment Fund, principal and interest payable at least annually and due in full by June 30, 2009, 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 be one (1) year, due in full by June 30, 2009, 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 incurred administrative obligations. 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: Jos ph R. Rocha, Chairperson ADMINISTRATION DOCU P C9 OCU NTS AND SETTMGS V SAUSERPDESKTOPRd Y 21. 2006E EDDED DOC