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HomeMy WebLinkAboutResolution No. 10-R3RESOLUTION NO. 10-R3 A RESOLUTION OF THE GOVERNING BOARD OF THE REDEVELOPMENT -AGENCY OF THE CITY OF AZUSA, CALIFORNIA, AUTHORIZING THE ISSUANCE OF A LOAN TO FINANCE THE ACQUISITION OF FURNITURE, FIXTURES AND EQUIPMENT NECESSARY FOR . THE ESTABLISHMENT AND OPERATION OF A BUSINESS AND APPROVED RELATED DOCUMENTS WHEREAS, pursuant to the California Community Redevelopment Law (Health & Safety Code Section 33000, et seg.) ("CRL"), the City Council of the City of Azusa ("City") ("City Council") approved and adopted a Redevelopment Plan ("Redevelopment Plan") for the Merged Redevelopment Project Area ("Project Area"); and WHEREAS, the Governing Board (`Board") of the Redevelopment Agency of the City of Azusa ("Agency") is engaged in activities to implement the Redevelopment Plan for the Project Area pursuant to the provisions of the CRL; and WHEREAS, the Agency and Fadl Fares (`Borrower") wish to enter into a loan agreement whereby the Agency will loan Borrower a principal amount not to exceed Forty Nine Thousand Seven Hundred and Ninety Dollars ($49,790.00), to accrue interest at a rate per annum equivalent to the prevailing prime rate plus two percent (2%) ("Loan"), adjusted annually on the anniversary date of the promissory note evidencing the Loan; and WHEREAS, the purpose of the Loan is to finance the purchase and/or leasing of furniture, fixtures and equipment ("FF&E") necessary for the establishment and operation of a restaurant ("Business") to be located at the certain property located at 855 East Alosta Avenue, City of Azusa, County of Los Angeles, California; and WHEREAS, the Loan will be secured by a first deed of trust on the Borrower's lease on the property on which the Business is to be located and a security interest in the FF&E pursuant to a security agreement perfected by the filing of a UCC Financing Statement; and WHEREAS, the term of the Loan ("Term") will be two (2) years and monthly principal and interest payments on the Loan will be deferred until the end of the Term as long as Borrower is not in a state of default; and WHEREAS, at the end of the Tern the balance of the Loan will be discharged as long as Borrower has remained in continuous business during the Term; and WHEREAS, the Business will be located outside of the Project Area, but immediately adjacent to the Project Area and immediately across Alosta Avenue from the Citrus Crossing Redevelopment Project which is located within the Project Area; and WHEREAS, the Agency has determined that the establishment and operation of the Business is a "project" subject to the California Environmental Quality Act ("CEQA"); and WHEREAS, the Agency, as the lead agency, determines that the Business is categorically exempt from further CEQA review pursuant to State CEQA Guidelines Sections 15301 because the Business involves a negligible or no addition to existing structures. NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the Redevelopment Agency of the City of Azusa as follows: Section 1. The Board hereby approves the issuance of the Loan, not to exceed the principal amount of Forty Nine Thousand Seven Hundred Ninety Dollars ($49,790.00), and the security for the Loan as set forth in a loan agreement attached hereto as Exhibit "A" and incorporated herein by reference. Section 2. The Board finds that the Business, although located outside the Project Area, will be of benefit to the Project Area because its close proximity to the Project Area and the Citrus Crossing Redevelopment Project will improve the aesthetic appearance and eliminate a blighting influence immediately adjacent to the Citrus Crossing Redevelopment Project and the Project Area. The Business will assist in bringing customers to the area and create a more vibrant retail/commercial environment within the Project Area. Section 3. The Board hereby authorizes and directs the Executive Director, the Agency Attorney and Agency staff to take action and execute any documents necessary to implement the Loan including the loan agreement in Exhibit "A". Section 4. The Agency determines that the Business is categorically exempt from the requirements of CEQA pursuant to State CEQA Guidelines Section 15301 and directs Agency staff to file a Notice of Exemption with the Los Angeles County Clerk's Office within three (3) days of the adoption of this Resolution. Section 5. 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. APPROVED AND ADOPTED this 190' day of January, 2010. seph R. Rocha, Chairman ATTEST Vera Mendoza, Secretary I HEREBY CERTIFY that the foregoing resolution no. 10-R3 was duly adopted by the Redevelopment Agency of the City of Azusa at a regular meeting held on the 19th day of January, 2010 by the following vote of the Agency: AYES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ROCHA NOES: BOARDMEMBERS: NONE ABSTAIN:, BOARDMEMBERS: NONE ABSENT: BOARDMEMBERS: HANKS V&ia Mendoza, Secretary