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HomeMy WebLinkAboutResolution No. 11-C12RESOLUTION NO. 11—C 12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, CALLING AN AGENCY LOAN AND REQUIRING IMMEDIATE REPAYMENT OF OUTSTANDING INDEBTEDNESS OWED TO THE CITY WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Sections 33000, et seq.) ("CRL"), the City Council ("City Council") of the City of Azusa ("City") has approved and adopted a redevelopment plan ("Redevelopment Plan") for the Merged Central Business District Redevelopment Project Area ("Project Area"); and WHEREAS, the Governing Board ("Board") of the Redevelopment Agency of the City of Azusa ("Agency") has adopted an implementation plan for the Redevelopment Plan ("Implementation Plan") and is engaged in activities necessary to execute and implement the Redevelopment Plan pursuant to the CRL; and WHEREAS, on December 21, 2009, the City Council authorized a loan of 53,310,000 to the Agency, and the Agency accepted the loan from the Council, for the purpose of financing the acquisition of certain real property located at (see attached listing) for redevelopment ("City Loan"); and WHEREAS, as evidenced by the Promissory Note, City may call the City Loan at any time and require immediate repayment of the Agency indebtedness; and WHEREAS, the City desires to exercise this right and require immediate repayment in full of the Agency indebtedness. In lieu of payment in available funds, the City is willing to accept, via quitclaim deed, property of equal value; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES RESOLVE AS FOLLOWS: Section 1. The recitals set forth above are true and correct and incorporated herein. Section 2. The Council hereby calls the City Loan and requires immediate repayment in full of the City Loan. Section 3. The City Manager, or his or her designee, is authorized and directed to execute such documents and instruments as may be necessary to memorialize the obligations between the City and the Agency, including the obligations required to finalize a transfer of property, and shall take all other actions necessary or convenient in the furtherance of the actions authorized by this Resolution. Section 4. The Council has determined that the requirement of repayment from the Agency to the City, and potential transfer of land, is exempt from the requirements of the California Environmental Quality Act ("CEQA"), Pursuant to State CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that the mere transfer of funds or title from the Agency to the City will not have a significant effect on the environment. Section 5. The Council hereby directs City staff to file a Notice of Exemption with the Clerk of Los Angeles County within five (5) calendar days following approval of this Resolution. Section 6. This Resolution shall take effect immediately upon its adoption. Section 7. The Mayor shall sign this Resolution and the City Clerk shall attest and certify to the passage and adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 22"d day of February, 2011. //SEPIIR. ROCHA, MAYOR ATTEST: MENDOZA, CITY I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Azusa at a special meeting thereof held on the 22°d day of February, 2011, by the following vote of the Council: AYES: COUNCI.LMEMBERS: NOES: COUNCILMEMBERS: ASSENT: COUNCILMEMBERS. MENDOZA, CITY APPROVED TO FORM: CITY ATTORNEY GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NONE NONE PROMISSORY NOTE MERGED REDEVELOPMENT PROJECT AREA AZUSA, CALIFORNIA December 21, 2009 For value received, the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, a public body corporate and politic ("Agency"), promises to paythe CITY OF AZUSA, a municipal corporation and general law cityorganized and existing under the laws of the State of California ("City"), the estimated sum of THREE MILLION THREE HUNDRED AND TEN THOUSAND DOLLARS AND NO/100 (S 1,310,000). revised as necessary to reflect actual expenditures, with interest thereon from the date of execution of this Note at the annual interest rate of 6.5%. The principal and interest are payable annually. Any unpaid amounts will accrue annually and be added to principal. The Note is payable from tax increment revenues in excess of those pledged for Agency bonded indebtedness, property sales proceeds, bond proceeds designated to repay this note, and/or any other resources available to the Agency from which such payment may legally be made, allocated to and received by the Agency for the Merged Redevelopment Project Area. The tern of the note shall be payable upon demand, unless extended by mutual consent of both parties. This note is issued in connection with the provision of funds to finance redevelopment activities of the Merged Redevelopment Project .Area. The Merged Project provides for tax increment financing in accordance with the provisions of the California Health and Safety Code. The Agency is authorized, with the consent of the Board of Directors, to undertake certain actions which are necessary and incidental to carrying out the Redevelopment Plan which has previously been adopted by the City of Azusa, for purposes of the Merged Redevelopment Project area. The City Council has authorized the loan forpurposes of fundingproperry acquisitions, administrative expenses and project related activities. This note is issued under the authority and pursuant to the Community Redevelopment Law, commencing with Section 33600 of the Health and Safety Code of the State of California, as amended. Each payment shall be credited fust to principal due and the remainder to interest; and interest shall thereupon cease upon the principal so credited. Any unpaid interest shall accrue and be added to the outstanding principal balance. In event of default in payment of any amount as herein provided, then the entire amount shall become due at the option of the City of Azusa. Principal and interest shall be payable in lawful money of the United States at Azusa, California. Demand, presentment for payment, protest and notice of protest are hereby waived. REDEVELOPMENT AGENCY OF THE CITY OF AZUSA da Chairperson PROPERTY ACQUISITION/CBD C.%MCVMLIII1AJUSAli-240C.`.L I-'.EAIo,XVGRF\YI�U�.4GENC'1'RE-10 REQUES1 NL, V! 1A1 LVAV IXK ENTERPRISE PROPERTY Address: 229 S. Azusa Avenue APN: 8614-014-918, 8614-014-919, 4-014-920 Attachments: Resolutions (3) requesting repayment of loans Promissory Notes List of properties proposed for quitclaim in repayment of loans