HomeMy WebLinkAboutResolution No. 11-C17RESOLUTION NO. 11-C17
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 (Health and Safety Code Section 33000, etseq.)
("CRL"), the Redevelopment Agency of the City of Azusa ("Agency") is engaged in activities necessary to implement the
redevelopment plans ("Redevelopment Plans") for the Mersed 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 $350,000,000 to county Supplemental Educational
Revenue Augmentation Funds ("SERAF") during Fiscal Year 2010-11; and
WHEREAS, by March 1, 2011, 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 2010-11; 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 20 10-1 1 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 REVENUE
FROM
SOURCES
AMOUNT
PROJECT
RATE
TERM
$512,545
FY 2010/11 SERAF
6.0%
1 Year, unless extended by
City of
Tax Increment, Other
Iymen :
mutual consent of both parties
Azusa
Available Revenues
Merged Project Area
Portion: $504,059
Ranch Center Project
Area Portion:
$8,486
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 22 day of February, 2011.
J seph R. Rocha, Mayor
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City of Azusa at a regular meeting thereof,
held on the 22 day of February, 2011.
AYES: COUNCIL MEMBERS: GONZALES, CARRILLO, HANKS, MACIAS, ROCHA
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: OUNCIL MEMBERS: NONE