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HomeMy WebLinkAbout5502 - - ~ . . . , . .. ,< . . , . - ~ RESOLUTION NO. 5502 A RESOLUTION OF THE ARCADIA CITY COUNCIL AUTHORI- ZING EXECUTION OF AND APPROVING A LOAN AGREEMENT WITH 1'HE ARCADIA REDEVELOPMENT AGENCY FOR A LOAN AND APPROPRIATION MADE BY THE CITY OF ARCADIA FROM THE FACILITY CONSTRUCTION FUND AND GENERAL FUND (UNPROGRAMMED) FOR THE ACQUISITION OF PROPERTY, RELOCATION OF RESIDENTS AND BUSINESSES AND CAPITAL IMPROVEMENTS FOR REDEVELOPMENT PURPOSES WHEREAS, the Arcadia Redevelopment Agency has designated certain property acqui si tions and development projects as high priority in implementing the Redevelopment Plan for the Central Redevelopment Project Area, particularly the areas termed the Northwest and Southwest Corner Projects; WHEREAS, the Arcadia Redevelopment Agency does not currently have adequate funds to undertake and complete said Projects; and WHEREAS, the City of Arcadia has previously authorized certain loans to the Arcadia Redevelopment Agency and desires now to resci nd all previ ously approved authori ty to loan additional monies to the Agency; and WHEREAS, the City has money now and in the future available in the Facility Construction Fund and in the General Fund (unprogrammed) to loan to the Agency for purposes of redevelopment of the Central Redevelopment Project Area. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION I. That all previous authority for future loans from the City to the Arcadia Redevelopment Agency is hereby rescinded, except that the obligations for repayment of any and all outstanding loans heretofore made by the City to the Agency -1- 5502 - ~ . . - . . . , ~ by the City shall remain in full force and effect in accordance with the terms of any and all authorizing loan resolutions and agreements. SECTION 2. That the Loan Agreement attached as Exhibit "A" is hereby approved and the Mayor is authorized to execute said Loan Agreement and this Resolution. SECTION 3. The City Clerk shall certify to the adoption of this Resolution. Passed, October, 1989. approved and adopted this 3rd day of ATTEST: Ci f Arcadla -2- 5502 .< .~ ~ . :J ...-. 'r . STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF ARCADIA I, JUNE D. ALFORD, City Clerk of the City of Arcadia hereby certify that the foregoing Resolution No. 5502 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council on the 3rd day of October, 1989, and that said Resolution was adopted by the following vote, to wit: AYES: Councilmember Gilb, Harbicht, Lojeski, Young and Chandler NOES: None ABSENT: None -J of Arcadia Ci -3- 5502 . . - # """'- 1: - . "'7 .., . -; ,. .. T 1 .( ... - LOAN AGREEMENT This Agreement is entered into this 3rd day of October, 1989 by and between the City of Arcadia ("City") and the Arcadia Redevelopment Agency ("Agency"). The City and Agency hereby agree as follows: SECTION 1. The City hereby agrees to lend to the Agency the sum of $4.9 million (the "Loan") which shall be disbursed to the Agency from time to time upon receipt by the Finance Director of written notice from the City Manager/Executive Director that any portion or all of the remainder of such funds is needed from time to time. Loan Funds shall first be taken from the Facility Construction Fund until such is depleted, and then, if needed, from the General Fund (unprogrammed). Any and all portions of the Loan shall bear interest calculated at the highest prevailing rate of interest being drawn on the City of Arcadia investments during the applicable period calculated quarterly commencing at the date of disbursement of each loan as applicable. SECTION 2. The Agency hereby agrees to repay to the City any and all portions of the Loan disbursed to the Agency hereunder at a time and manner as funds become available to the Arcadia Redevelopment Agency for this purpose,provided, however, that repayment of any or all portions of the Loan need not be made by the Agency until all other debts or obligations of the Agency which have been or may hereafter be incurred by it have been satisfied and the repayment obligation of the Agency hereunder may be made subordinate to any interim or permanent financing of the Agency. EXHIBIT "A" 5502 > . .;, ~ 11: - . .:. .( - , . ; ) ~ . 1 1 The Agency agrees that pursuant to Health and Safety Code Section 33624 all money received by the Agency from the sale, lease or encumbrance of that land acquired and prepared for redevelopment using this loan money, in excess of the money required to repay the loans and interest on the real property, shall be redeposited in the Redevelopment Revolving Fund, and when so redeposited, shall to the greatest extent possible consistent with this Section 2, be applied toward repayment of this Loan and the accrual of interest thereon. SECTION 3. Notwithstanding the above, the principal amount of any loan hereunder, and the interest thereon, shall be due and payable no later than June 30, 1990. Executed this 3rd day of October, 1989. Mayor of the City of Arcadia! Chairman of the Arcadia Redevelopment Agency ATTEST: City Clerk of the City of Arcadia! Secretary of the Arcadia Redevelopment Agency APPROVED AS TO FORM: Michael H. Miller City Attorney Agency Counsel -2- EXHIBIT "A" 5502