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HomeMy WebLinkAboutResolution No. 11-R20RESOLUTION NO. 11-11120 0 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 $350 million to county Supplemental Educational Revenue Augmentation Funds ("SERAF") during Fiscal Year 2010-11; 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 2010-11 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 REVENUE FROM SOURCES AMOUNT PROJECT RATE TERM $513,030 FY 2010/11 SERAF 6.0% 1 Year, unless extended by City of Tax Increment, Other Payment: mutual consent of both parties' Azusa Available Revenues Merged Project Area designees Portion: $504,536 Ranch Center Project Area Portion: $8,494 The loan listed herein is payable according to the terms of the Note. The Note is payable from accumulated tax increment fimds 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 2"d day of May, 2011. r� Jo ph R. Rocha, Chairperson I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Azusa at a regular meeting held on the 2nd day of May, 2011. AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: AGENCY MEMBERS: NONE ABSTAIN:/AGENCY MEMBERS: NONE ABSENT: AGENCY MEMBERS: NONE