HomeMy WebLinkAboutResolution No. 10-R7RESOLUTION NO. 10-117
A. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
AZUSA REQUESTING A LOAN FROM THE CITY OF AZUSA FOR
PURPOSES OF THE MERGED AND RANCH CENTER REDEVELOPMENT
PROJECT AREAS
WHEREAS, pursuant to California Community Redevelopment Law (Health and Safety
Code Section 33000, et seq.) ("CRL"), the Redevelopment Agency of the City of Azusa ("Agency")
is engaged in activities necessary to implement the redevelopment plans ("Redevelopment Plans")
for the Merged and Ranch Center Project Areas ("Project Areas"); and
WHEREAS, the State legislature passed AB 26 4x, as amended by Senate Bill 68, as a
budget balancing measure, which requires redevelopment agencies statewide to make payments
totaling $1,700,000,000 to county Supplemental Educational Revenue Augmentation Funds
("SERAF") during Fiscal Year 2009-10; and
WHEREAS, by March 1, 2010, the legislative body, City Council, has to report to the
County Auditor how the Agency intends to fund the required SERAF payment for Fiscal Year 2009-
10; and
WHEREAS, because the Agency has insufficient funds to make the SERAF payment out of
Agency funds, the Agency requests that the City Council determine that the City loan the funds to the
Agency to make the 2009-10 SERAF payment; 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; and
WHEREAS, the Parties now desire to enter into this Loan Agreement to memorialize the
terms and conditions of the City loan to the Agency for the SERAF payment;
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 and Ranch
Center Redevelopment Projects.
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 Loan Agreement (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
FROM
AMOUNT
PROJECT
RATE
TERM
REVENUE
SOURCES
$2,491,858
FY 2009/10
6.0%
1 Year, unless extended
City of
Tax Increment,
SERAF Payment:
by mutual consent of
Azusa
Other Available
Merged Project
both parties' designees
Revenues
Area Portion:
$2,450,602
Ranch Center
Project Area
Portion:
$41,256
The loan listed herein is payable according to the terms of the Note. The Note is payable from
accumulated tax increment funds in excess of those pledged for payment of Agency bonded
indebtedness or superior debt, 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 16`" day of February, 2010.
oseph R. Rocha, Chairperson
I HEREBY CERTIFY that the foregoing resolution No. 10-R7 was duly adopted by the
Redevelopment Agency of the City of Azusa at a regular meeting held on the 16th day of
February 2010, by the following vote of the Agency:
AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS
NOES: AGENCY MEMBERS: ROCHA
ABSTAIN: AGENCY MEMBERS: NONE
ABSENT: AGENCY MEMBERS: NONE
1era Men oza, Secretary