HomeMy WebLinkAboutResolution No. 2015-R11RESOLUTION NO. 2015-R11
RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING
THE RATIFICATION AND AMENDMENT OF THE ENTERPRISE
PROMISSORY NOTE/LOAN AGREEMENT BETWEEN THE CITY OF
AZUSA AND THE FORMER REDEVELOPMENT AGENCY OF THE CITY
OF AZUSA
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. S194861 ("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 a promissory note (`Loan Agreement'),
as further described in Attachment A to this Resolution, whereby the City agreed to provide the
Redevelopment Agency with a loan in order to assist the Redevelopment Agency to acquire the
property located at 229 S. Azusa Avenue, Azusa, CA 91702 (`Enterprise Site'), 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 agency to the
Redevelopment Agency ("Successor Agency"), as provided in Oversight Board Resolution No.
OB -01-12, dated May 3, 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
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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
WHEREAS, the City and Successor Agency have agreed to enter into a Ratification and
Amendment Agreement for each of the Loan Agreement in order to ratify the existence and
validity of the Loan Agreement, and to establish their understanding and agreement as to the
limitations and restrictions that will apply to the repayment to the City of all amounts due and
owing the City by the former Redevelopment Agency under the Loan Agreement pursuant to the
Dissolution Act;
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 this Loan Agreement 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.
Section 3. Approval of Loan Agreement. The Successor Agency hereby approves
the execution of a Ratification and Amendment Agreement for this 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 this Loan Agreement on behalf of the Successor
Agency in order to allow for this Loan Agreement to be recognized enforceable obligations in
accordance with the Dissolution Act.
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Section 4. Interest Rate Calculation. The amortization schedule listed as
Attachment B calculates the interest charges at the rate listed on the original Loan Agreement.
However, if the final judicial determination orders an interest rate other than the original Loan
Agreement interest rate, the amortization schedule will be recalculated accordingly.
Section 5. Transmittal of Loan Agreement to Oversight Board. The Executive
Director is hereby authorized and directed to take any action necessary to cavy 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 from the
Oversight Board approval of this Loan Agreement, together with a finding that the loan of funds
by the City to the former Redevelopment Agency under the Loan Agreement was for legitimate
redevelopment purposes.
Section 6. 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 7. Effectiveness. This Resolution shall take effect immediately upon its
adoption.
PASSED, APPROVED and ADOPTED this 15th day of June, 2015
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/
oseph Romero Rocha
Chairperson
ATTEST:
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2015-R1 l was duly adopted
by the Board of the Successor Agency to the former Redevelopment Agency of the City of
Azusa at a regular meeting thereof, held on the 15th day of June, 2015, by the following vote of
Board:
AYES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: BOARDMEMBERS: NONE
ABSENT: BOARDMEMBERS: NONE
nTomejo, Jr.
Secretary
APPROVED AS TO FORM:
A
Best lest & Krieger,LLP
City Pittorney
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