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HomeMy WebLinkAbout5315 v RESOLUTION NO. 5315 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, APPROVING THE FINAL FORM OF A CERTAIN REIMBURSEMENT AGREEMENT, AUTHORIZING EXECUTION THEREOF AND MAKING CERTAIN FINDINGS IN CONNECTION WITH A CERTAIN COMMITMENT BY THE ARCADIA REDEVELOPMENT AGENCY FOR THE USE OF TAX INCREMENT REVENUES TO PAY FOR THE INSTALLATION AND CONSTRUCTION OF A PUBLICLY OWNED BUILDING PURSUANT TO HEALTH AND SAFETY CODE SECTION 33679 WHEREAS, the Arcadia Redevelopment Agency (the "Agency") proposes to issue an aggregate principal amount of $3,400,000 of Arcadia Redevelopment Agency, Central Redevelopment Project, Tax Allocation Notes, Issue of 1986 (the "Notes"); and WHEREAS, it is proposed that the Agency and the City of Arcadia, California (the "City") enter into a certain reimbursement agreement by and between the Agency and the City as attached hereto as Exhibit "A" and incorporated herein by this reference (the "Reimbursement Agreement") whereby the Agency shall pledge all or a portion of certain tax increment revenues available to the Agency pursuant to Health and Safety Code Section 33670{b) for reimbursement to the City of amounts that may be advanced from time to time by the City for the payments to Bernards Bros. Construction , pursuant to Job No. 578 known as "Construction of the City of Arcadia Corporation Yard", which jOb was awarded by minute order (motion) of the City Council of the City of Arcadia, California (the "City Council") on July 2, 1986 (the "Contract"); and WHEREAS, the subject of the Contract is the installation and construction of a certain publicly owned building consisting of - 1 - 5315 a municipal public works yard all as more fully described in said Reimbursement Agreement (the .project"); and WHEREAS, Health and Safety Code Section 33679 requires that a public hearing be held by the City Council prior to the commitment by the Agency to use tax increment revenues for the purpose of paying all or part of the cost of the installation and construction of a publicly owned building which public hearing shall be held by the City Council of the City; and WHEREAS, for the financing there shall be presented to this City Council at this meeting the Reimbursement Agreement by and between the Agency and the City, for consideration for final approval and execution in connection with the issuance of the Notes; and WHEREAS, the Agency has approved a certain summary which has been prepared in accordance with Health and Safety Code Section 33679 regarding the installation and construction of the Project and a copy of said summary is on file with the City Clerk; and WHEREAS, the Agency has requested the City Council of the City to conduct a public hearing concerning the commitment of the Agency to use all or a portion of certain tax increment revenues which may hereafter be allocated and paid to the Agency for the purpose of paying all or part of the cost of the installation and construction of the Project as more fully described in said Reimbursement Agreement; and WHEREAS, the City Council has adopted its Resolution No. 5314, dated August 5, 1986, in which the City Council set a - 2 - 5315 public hearing in accordance with Health and Safety Code Section 33679 for the purpose of considering the terms of the Reimbursement Agreement and the commitment of the Agency; and WHEREAS, the City Clerk has caused notice of said public hearing to be duly published in accordance with applicable law; and WHEREAS, pursuant to Health and Safety Code Section 33445, the Agency may, with the consent of the City Council pay all or part of the cost of the installation and construction of any building, facility, structure or other improvement which is publicly owned either within or without the boundaries of a redevelopment project area, if the City Council determines: (1) that such buildings, facilities, structures, or other improvements are of benefit to the project area or the immediate neighborhood in which the project is located, regardless of whether such improvement is within another project area or in the case of a project area in which substantially all of the land is publicly owned that such improvement is of benefit to an adjacent project area of the Agency, and (2) that no other reasonable means of financing such buildings, facilities, structures, or other improvements, are available to the community, and such determinations by the Agency and the City Council body shall be final and conclusive; and WHEREAS, it is the intent and desire of the City that the Agency's obligations to the City under any agreements, loans, resolutions or minute orders (motions) of the City or the Agency, including the Reimbursement Agreement, be subordinate to the Notes; and - 3 - 5315 WHEREAS, it is appropriate at this time for the City Council to make certain findings and take certain action with respect to the Project. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council has duly conducted a full and fair public hearing in accordance with the provisions of Health and Safety Code Section 33679 in connection with the proposed Reimbursement Agreement and the Project. SECTION 2. The Reimbursement Agreement is hereby approved and the Mayor or the City Manager, or his designee, and the City Clerk, as may be required, are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the name of and on behalf of the City, in substantially the form and content now before this meeting, but with such changes, modifications, additions and deletions therein as shall be deemed necessary, desirable or appropriate by the City Manager or Special Counsel. SECTION 3. The City Council hereby accepts and approves that certain summary, dated as of August 5, 1986, as prepared by the City Staff and the Staff of the Agency and on file with the City Clerk in accordance with Health and Safety Code Section 33679 regarding the Project. SECTION 4. The City Council hereby finds and determines the Project is located outside of the redevelopment project area of the Central Redevelopment Project and benefits the redevelopment project area of the Central Redevelopment Project and benefits other neighborhoods and areas in the City by virtue of the improved - 4 - 5315 community services which shall be provided as a result of said project. The City Council further finds and determines that no other reasonable means of financing the construction of the Project are presently available to the City except as may be provided pursuant to the Reimbursement Agreement. SECTION 5. Pursuant to Health and Safety Code Section 33445, the City Council hereby consents to the payment by the Agency of all or part of the value of costs of the installation and construction of the Project in accordance with the Reimbursement Agreement. SECTION 6. The City hereby subordinates the rights of the City to receive any payments from the Agency pursuant to any agreements, loans, resolutions or minute orders (motions) of the City or the Agency, including the Reimbursement Agreement, to the use of any tax increment revenues of the Agency required to pay debt service amounts On the Notes, SECTION 7. This Resolution shall take effect upon adoption. Passed, approved and adopted this 19th day of August , 1986, "-?t~ City Clerk of the City of Arcadia -; .-;- -::/--- -" .':,':-".~~,'.'::"'~- ,z....- -~. - ",,:../$'..'- '.,,,=,,"- " /- /..~ '';:'' J.___~ :~~'" ,. ~:'1~; ,. ;~~:~;:~.",l(tf~ ~ ~~-t~ ..<.....~_/......:::-.;:::...., .. ~"'-"............... ~..I-,",-::::;:S ~ .- ~~{::,"'---';::'.....'C'...;:::f;("r ... :;-s.. -;~:--.....,-- '~_..N - - 5 - 5315 STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF ARCADIA ) ) ) SS: I, CHRISTINE VAN MAANEN, City Clerk of the City of Arcadia, California, hereby certify that the foregoing Resolution No. 5315 was passed and adopted by the City Council of the City of Arcadia, California, signed by the Mayor and attested to by the City Clerk at a regular meeting of said City Council on the 19th day of Auqust , 1986, and that said Resolution was adopted by the following vote,to-wit: AYES: Councilman Chandler, Gilb, Harbicht, Lojeski and Young NOES: None ABSENT: None City Clerk of the City of Arcadia, California - 6 - 5315 EXHIBIT "A" REIMBURSEMENT AGREEMENT $4,000,000 ARCADIA REDEVELOPMENT AGENCY CENTRAL REDEVELOPMENT PROJECT TAX ALLOCATION NOTES ISSUE OF 1986 This Reimbursement Agreement is entered into this first (1st) day of August, 1986, by and between the Arcadia Redevelopment Agency (the .Agency">' a redevelopment agency, being a public body, corporate and politic, duly organized and existing under the laws of the State of California, and the City of Arcadia, California (the .Ci ty.), a municipal corporation, duly organized and existing under the Constitution and laws of the State of California. RECITALS A. The Agency is a redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the California Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State of California), B. A Redevelopment Plan for the redevelopment project area known and designated as the "Central Redevelopment Project. (the .Project Area") has been considered and approved by the City and the Agency, In accordance with and to implement said Redevelopment Plan and for purposes of implementing redevelopment activities of the Agency benefiting the Project Area, the Agency shall enter into this Reimbursement Agreement with the City for the construction and installation of a publicly owned building consisting of a public municipal works yard contemplated, to be used by the City, and related appurtenances and improvements to be constructed outside of the Project Area (the .Project"). In order to finance the construction of the Project, the Agency intends to authorize the sale and delivery of the Notes (the "Notes"). I C. The Agency and the City Counci 1 of the City each have determined by resolution pursuant to Section 33445 of the Health and Safety Code that the construction of the Project shall be of benefit to the Project Area and the same are for purposes of redevelopment and shall be located outside of the Project Area, the implementation of which is permitted under the circumstances as herein recited. The Agency intends to reimburse the City or otherwise construct or cause to be constructed the Project with funds generally available to the Agency or with tax increment revenues of the Agency generally or with tax increment revenues to be received from the Project Area. The Agency and the City have found and determined that there are no other reasonable means of financing the construction of the Project. - 1 - 0, The Agency hereby agrees to reimburse the City for such payments made by the City to Bernards Bros. Construction pursuant to Job No. 578 known as "Construction of the City of Arcadia Corporation Yard", which job was awarded by minute order (motion) of the Ci ty Counci I of the City of Arcadi a, Ca li fornia (the "City Council") within thirty (30) days of the date of such payments from funds generally available to the Agency and certain tax increment revenues of the Agency as permitted by Health and Safety Code Section 33445 and 33679 including, without limitation, the proceeds of the Notes (the "Reimbursement Amount"). The pledge to pay debt service on the Notes shall be limited to tax increment revenues allocated and paid to the Agency with respect to the Project Area or other redevelopment proj ect areas (the "Revenues"). However, the Agency, at its sole discretion, may use any other available funds for such purpose. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and conditions set forth herein, the parties hereto agree to as follows: Section 1. Reimbursement Aqreement. The Agency hereby agrees to pay the Reimbursement Amount to the City within thirty (30) days of payments made by the City, If and to the extent tha t the funds available to the Agency in any fiscal year are insufficient to pay the Reimbursement Amount or any portion thereof, the unpaid Reimbursement Amount or portion thereof shall be added to the Reimbursement Amount due and payable to the City for any subsequent fiscal year, shall bear interest at the prevailing rate of interest being drawn on City investments (calculated quarterly), on the unpaid balance due under this Agreement, and interest shall accrue from the date of any such payments, including interest thereon at the rate specified herein, by the City until reimbursed by the Agency as provided herein. However, the Agency's obligation to reimburse the City as set forth in this Section shall constitute an "indebtedness" of the Agency wi thin the meaning of Hea lth and Safety Code Section 33675. Section 2" P,riori ty of Indebtedness. The indebtedness of the Agency to the City created by this Agreement shall be a first and prior pledge of the' Revenues and a lien thereon to the City, except as to amounts, if any, as may hereafter be requi red to be paid to any affected taxing agency pursuant to an agreement duly authorized and approved in accordance wi th Hea lth and Safety Code Section 33401 and approved by both the Agency and the City, However, the City hereby agrees, and the Agency acknowledges, that this Agreement shall be made subordinate to the rights of the holders of the Notes to receive the tax increment revenues attributable to the Project Area. The tax increment revenues pledged hereunder shall be limited to that which may be attributable to the Redevelopment Plan for the Project Area. - 2 - IN WITNESS WHEREOF. the Agency and the City have executed this Agreement as of the date first set forth herein above. CITY OF ARCADIA, CALIFORNIA By: City Manager APPROVED AS TO FORM: City Attorney ARCADIA REDEVELOPMENT AGENCY By: Executive Director APPROVED AS TO FORM: Agency Counsel /0245a - 3 -