HomeMy WebLinkAboutResolution No. 09-R39
RESOLUTION NO. 09-R3
A RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE CITY OF AZUSA APPROVING THE USE OF LOW
AND MODERATE INCOME FUNDS TO SATISFY THE
EDUCATION REVENUE AUGMENTATION FUND
ALLOCATION AND MAKING FINDINGS PURSUANT TO
HEALTH AND SAFETY CODE SECTION 33685
WHEREAS, the Redevelopment Agency of the City of Azusa ("Agency") adopted the
Central Business District Project, by Ordinance No. 2062 on September 18, 1978, the West End
Project, by Ordinance No. 2196 on November 28, 1983 and the Merged Central Business District
and West End Projects, by Ordinance No. 2382 on November 7, 1988 ("Project Areas") within
the City of Azusa ("City") pursuant to the provisions of the California Redevelopment Law
("CRL") (Health and Safety Code section 33000 et seq.); and
WHEREAS, pursuant to CRL Sections 33334.2, 33334.3 and 33334.6 twenty percent
(20%) of the tax increment allocated to the Agency each year from the Project Areas must be
used by the Agency to increase, improve and preserve the supply of affordable housing for
persons and families of low or moderate income ("Low -Mod Fund"); and
WHEREAS, pursuant to CRL Section 33685 and Article 3 (commencing with Section
97) of Chapter 6 of Part 0.5 of Division 1 of the California Revenue and Taxation Code, during
the 2008-2009 fiscal year the Agency must, prior to .May 10, 2009, deposit an amount
determined by the California Department of Finance ("Allocation Amount") in Los Angeles
County's Educational Revenue Augmentation Fund ("ERAF"); and
WHEREAS, pursuant to CRL Section 33685, the Agency may borrow up to fifty percent
(50%) of the amount required to be allocated to the Low -Mod Fund during the 2008-2009 fiscal
year in order to satisfy the ERAF Allocation Amount upon the Agency's determination that there
are insufficient other moneys available to satisfy the ERAF Allocation Amount; and
WHEREAS, the Agency has determined that there are insufficient other moneys to
satisfy the ERAF Allocation Amount and the Agency desires to borrow from its Low -Mod Fund
to satisfy the ERAF Allocation Amount; and
WHEREAS, the Agency has further determined that borrowing from its Low -Mod Fund
is exempt from review under the California Environmental Quality Act (California Public
Resources Code Section 21000 et seg.) ("CEQA") because, pursuant to State CEQA Guidelines
Section 15061, it can be seen with certainty that there is no possibility that the borrowing from
its Low -Mod Fund will have a physical effect on the environment because such borrowing is
merely a funding mechanism and governmental fiscal activity. (Cal. Code Regs., tit. 14, §
15061, subdivision (b)(3).)
O oU ldford 00177.1
Witb envisions by Azusa R dcvcloMcvt 1
NOW, THEREFORE, BE IT RESOLVED AND ORDERED, by the Board of
Directors of the Redevelopment Agency of the City of Azusa, as follows:
Section 1. Based upon the staff report accompanying this Resolution, and such other
oral and written evidence as presented to the Agency, the Agency finds and determines that the
borrowing of up to fifty percent (50%) of the amount required to be allocated to the Low -Mod
Fund during the 2008-2009 fiscal year in order to satisfy the ERAF Allocation Amount is
necessary because there are insufficient other moneys to meet the requirements of CRL 33685.
Section 2. The Agency hereby approves the borrowing of up to fifty percent (50%) of
the amount required to be allocated to the Low -Mod Fund during the 2008-2009 fiscal year to
satisfy the ERAF Allocation Amount. Pursuant to CRL Section 33685, such loan shall be repaid
to the Low -Mod Fund on or before May 10, 2019, as evidenced by and per the terms of the
Promissory Note attached as Exhibit A.
Section 3. The Executive Director is hereby authorized and directed to undertake
such actions and execute such documents as may be reasonably necessary or convenient to the
carrying out and administration of the actions authorized by this Resolution.
Section 4. The Agency Secretary shall certify to the passage and adoption of this
Resolution and the same shall thereupon take effect and be in force immediately upon its
adoption.
ADOPTED AND APPROVED THIS 5Tn DAY OF JANUARY 2009.
(2'
oseph . Rocha, Chairman
I HEREBY CERTIFY that the foregoing Resolution No. 09-R3 was duly adopted by the
Redevelopment Agency of the City of Azusa at a regular meeting thereof, held on the 5c' day of
January 2009, by the following vote of the Agency.
AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
NOES: AGENCY MEMBERS: NONE
ABSTAIN: AGENCY MEMBERS: NONE
ABSENT: AGENCY MEMBERS: NONE
Mendoza,
o e,. Af.,d�WMA
Wnh Revisions by Azusa Rcdevd,.. 2
• "EXHIBIT A" •
PROMISSORY NOTE
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
CENTRAL BUSINESS DISTRICT AND WEST END MERGED PROJECT
CAPITAL PROJECT FUND
AZUSA, CALIFORNIA
JANUARY 5, 2009
For value received, the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA CENTRAL
BUSINESS DISTRICT AND WEST END MERGED PROJECT DEBT SERVICE FUND, ("Debt
Service 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
TWO HUNDRED FIFTY-SIX THOUSAND TWO HUNDRED SEVENTY-TWO DOLLARS AND
NO/100 ($256,272) ("Loaned Funds"), with simple interest thereon from the date of disbursement to the
Debt Service Fund, at the average annual rate determined by the State of California Local Agency
Investment Fund (LAIF). Principal and interest is payable in full within 10 years from the disbursement
date, in the year 2019. 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 10 years after said disbursement date, in
the year 2019.
This note is issued in connection with the provision of funds to finance redevelopment activities of the
Merged Redevelopment Project Area, and specifically the Educational Revenue Augmentation Fund
(ERAF) obligation due May 10, 2009. 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 one-half of the ERAF obligation imposed by the State of California. 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 Debt Service 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
�ph R. Rocha, Chairperson
ERAF PAYMENT OBLIGATION
OatazioUttilWldm3W] HT1
Wab Revisions by Azusa Re&ev p=m 3