HomeMy WebLinkAboutResolution No. 10-C14RESOLUTION NO. 10-C14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
AUTHORIZING LOANS FOR PURPOSES OF THE MERGED AND RANCH
CENTER REDEVELOPMENT PROJECT AREAS
WHEREAS, pursuant to California Community Redevelopment Law (HealthandSafety
Code Section 33000, et seg.) ("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 City Council has determined the City will 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 City Council of the City of Azusa that:
Section 1. Pursuant to the provisions of said Section 33620, et. seq., of the Health and Safety
Code, the City Council hereby authorizes to the Redevelopment Agency of the City of Azusa the
following loan for the Merged and Ranch Center Redevelopment Projects.
Section 2. The Agency shall 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. Such loan shall be evidenced by a Loan Agreement between the City and 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
City of
Tax Increment,
SERAF Paymen[:
extended by mutual
Azusa
Other Available
Merged Project
consent of both parties
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 City Council of the City of Azusa is hereby authorized and directed to accept,
on behalf of the Agency, the Note to the City of Azusa in accordance with the provision of Section 3
hereof.
Section 5. The City Clerk shall certify the adoption of this Resolution.
PASSED AND ADOPTED this 16`" day of February, 2010.
1, N
Jo eph R. Rocha, Mayor
I HEREBY CERTIFY that the foregoing resolution No. 10-C 14 was duly adopted by the Cityof
Azusa at a regular meeting thereof, held on the 16a' day of February 2010, by the following vote of
the Council:
AYES: COUNCIL MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS
NOES: COUNCIL MEMBERS: ROCHA
ABSTAIN: COUNCIL MEMBERS: NONE