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HomeMy WebLinkAboutResolution No. 91-C0870 NO. 91_C87 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZ' A LOAN FOR PURPOSES OF THE MERGED REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency of the City of Azusa ("Agency") is undertaking certain actions which are necessary and incidental to the carrying out of the Redevelopment Plan which has previously been adopted by the City of Azusa; and WHEREAS, the Agency has incurred and will continue to incur obligations for such purpose; and WHEREAS, the City of Azusa is authorized, pursuant to Section 33260, et. seq., of the Health and Safety Code of the State of California to make loans to the Agency for the purposes of defraying said expenses; 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 a loan for the Merged Redevelopment Project. 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 secured note of the Agency containing the following terms, in addition to all usual and customary terms: INT. PLEDGED REVENUE LOAN AMOUNT RATE TERM BORROW FROM SOURCES $2,300,000 Variable 5 Yr. Light Fund Tax Increment, Land Sales (a) Secured Loan Note is effective June 30, 1991. (b) Interest payments shall be made annually on or before May 31st of each year, beginning May 31, 1992. (c) Interest rate for the May 31st payment shall be the higher of 8% or the Local Agency Investment Fund (LAIF) rate in effect on March 31st of the payment year. Interest rate shall not exceed the maximum rate permitted by Section 53531 of the Government Code (12% as of this date). (d) Land sale proceeds from the sale of the property shall be applied to the principal of the Note. The remaining unpaid principal balance shall be paid in annual installments on May 31st, with the last installment payment due and payable on or before May 31, 1996. (e) Note is also payable from accumulated tax increment funds in excess of those pledged for payment of Agency bonded indebtedness, or from any other funds available to the Agency from which such payment may legally be made. (f) Note may be prepaid at any time without penalty. 0 PASSED AND ADOPTED this 1st day of July , 1991. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City of Azusa at a regular meeting thereof, held on the 1st day of July , 1991. AYES: COUNCILMEMBERS: DANGLEIS, STEMRICH, NARANJO, ALEXANDER, MOSES NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Deputy City Clerk