HomeMy WebLinkAbout5502
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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rescinded, except that the obligations for repayment of any and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
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5502
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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
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5502
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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
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of Arcadia
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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
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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
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EXHIBIT "A"
5502