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HomeMy WebLinkAboutResolution No. 14-R11RESOLUTION NO. 14-Rll RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING THE RATIFICATION AND AMENDMENT OF CERTAIN AGREEMENTS BETWEEN THE CITY OF AZUSA AND THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA i WHEREAS, Health and Safety Code Section 34172, as modified by the opinion of the Supreme Court of the State of California in California Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. 5194861 ("Legal Action"), provides that all redevelopment agencies, including the Redevelopment Agency of the City of Azusa ("Redevelopment Agency"), were dissolved as of February 1, 2012; and WHEREAS, well in advance of the Redevelopment Agency's dissolution, the City of Azusa ("City") and Redevelopment Agency entered into various loan agreements, as further described in Attachment A to this Resolution (collectively, "Loan Agreements"), whereby the City agreed to provide the Redevelopment Agency with various loans in order to assist the Redevelopment Agency to carry out its functions under the Community Redevelopment Law and to assist with implementation of the redevelopment plans ("Redevelopment Plans") for the Merged Central Business District & West End Redevelopment Project Areas; and WHEREAS, Assembly Bill 1X 26 ("AB 26"), enacted as part of the 2011-2012 State of California budget bill, and as modified by the Legal Action, dissolved and set out procedures for the wind -down of all redevelopment agencies throughout the State effective February 1, 2012, and in June 2012, the California Legislature adopted Assembly Bill 1484 ("AB 1484," and collectively with AB 26, the "Dissolution Act") further modifying some of the procedures set forth in AB 26, and adding certain other procedures and requirements for the dissolution and wind -down of redevelopment agencies; and WHEREAS, The City of Azusa elected to serve as the successor agendy to the Redevelopment Agency ("Successor Agency"), as provided in Oversight Board Resol',ution No. OB -O1-12, dated May 3`d 2012; and WHEREAS, the Successor Agency is the successor entity to the former Redevelopment Agency and, pursuant to the Dissolution Act, is responsible for the wind -down of the former Redevelopment Agency, including without limitation the performance and repayment of all enforceable obligations of the former Redevelopment Agency; and WHEREAS, Health and Safety Code Section 34171(d)(2), as modified by AB 1484, provides, with a few exceptions, that "enforceable obligation" does not include any agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency; and I WHEREAS, Health and Safety Code Section 34179.7, added by AB 1484, provides that upon completion of certain requirements and payment of certain amounts as required by Sections 34179.6 and 34183.5, the Department of Finance ("DOF") issued on May 31, 2013, a finding of completion of the requirements of Section 34179.6 to the successor agency; and WHEREAS, Health and Safety Code Section 34191.4, also added by AB 1484,�provides in part that, following issuance of a finding of completion by DOF, and upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes; and WHEREAS, in addition to establishing when a loan agreement will be deemed to be an enforceable obligation, Section 34191.4 further establishes certain restrictions and limitations on, among other things, the calculation of interest on the remaining principal amount of the, loan, the amounts that can be repaid from time to time under the loan agreement, and requires that twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to a Low and Moderate Income Housing Asset Fund; and i WHEREAS, the City and Successor Agency have agreed to enter into a Ratification and Amendment Agreement for each of the Loan Agreements in order to ratify the existence and validity of the Loan Agreements, and to establish their understanding and agreement�as to the limitations and restrictions that will apply to the repayment to the City of all amount due and owing the City by the former Redevelopment Agency under the Loan Agreements pdrsuant to the Dissolution Act; i NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct, and are incorporated into this Resolution by this reference. Section 2. CEOA Compliance. The approval of the Loan Agreements through this Resolution does not commit the Successor Agency to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. The City Clerk is authorized and directed to file a Notice of Exemption with the appropriate official of the County of Los, Angeles, California, within five (5) days following the date of adoption of this Resolution. I Section 3. Approval of Loan Agreements. The Successor Agency hereby; approves the execution of a Ratification and Amendment Agreement for each of the Loan Agreement, as listed in Attachment A to this Resolution, and authorizes and directs the Executive Director to enter into a Ratification and Amendment Agreement for each of the Loan Agreements ion behalf of the Successor Agency in order to allow for the Loan Agreements to be recognized enforceable obligations in accordance with the Dissolution Act. Section 4. Transmittal of Loan Agreements to Oversight Board. The Executive Director is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution, including without limitation, cooperating with the City of Azusa to provide any documentation and evidence to the Oversight Board as necessary to obtain 11from the Oversight Board approval of the Loan Agreements, together with a finding that the loan of funds by the City to the former Redevelopment Agency under the Loan Agreements was for legitimate redevelopment purposes. Section 5. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Successor Agency declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. Section 6. Effectiveness. This Resolution shall take effect immediately! upon its adoption. PASSED APPROVED and ADOPTED this 2nd day of September, 2014 . a ✓' Joseph Romero Rocha Chairman ATTEST: Jr' a e Cornejo, Jr Secretary CERTIFICATION I, Jeffrey Lawrence Comejo, Jr., City Clerk of the City of Azusa, do hereby certify that Resolution No. 14 -RI 1 was duly adopted by the City Council of the City of Azusa, serving as the Successor Agency to the Former Redevelopment Agency, at a regular meeting held'on the 2"d day of September 2014, by the following vote of the Agency: AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: AGENCY MEMBERS: NONE ABSENT: AGENCY MEMBERS: NONE qjffrALA e Cornejo, Jr. Secretary