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HomeMy WebLinkAbout5254 CITY COUNCIL RESOLUTION NO. 5254 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA APPROVING AND AUTHORIZING EXECUTION OF A LOAN AGREEMENT AND APPROVING AN APPROPRIATION TO THE ARCADIA REDEVELOPMENT AGENCY FROM THE CITY OF ARCADIA GENERAL FUND, IMPROVEMENTS TO CITY PROPERTY FUND AND CAPITAL OUTLAY FUND 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 acquisition and development projects as high priority in implementing the Redevelopment Plan for the Central Downtown Project Area; WHEREAS, the Arcadia Redevelopment Agency does not currently have adequate funds to undertake said projects; and WHEREAS, the Arcadia City Council is interested in seeing the Plan for the Central Downtown Project Area implemented and has adequate surplus funds now available and which will become available in the next two years in the City General Fund, Improve- ments to City Property Fund, and Capital Outlay Fund to assist the Agency in its activities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That up to $3.6 million be appropriated from the General Fund, Improvements to City Property and Capital Outlay Fund to the Arcadia Redevelopment Agency Revolving Fund for use in acquiring property, relocating residents and businesses and for capital improvements in order to carry out the goals of the Redevelopment Plan for the Central Project Area. SECTION 2. That the City Council hereby approve the attached Loan Agreement (Exhibit "A") for repayment of said sum and direct the Mayor to execute the said Loan Agreement and this Resolution. SECTION 3. The City Clerk is hereby authorized and directed to certify to the adoption of this Resolution. SECTION 4. This Resolution shall take effect upon adoption. -1- 5254 " LOAN AGREEMENT This Agreement is entered into this 5th day of November, 1985 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 $3.6 million (the "Loan"), of which amount the sum of $1.0 million shall be disbursed to the Agency upon execution of this Agreement, and of which the remainder shall be disbursed to the Agency from time to time upon receipt by the Finance Direc- tor of written notice from the Executive Director that any portion or all of the remainder is needed from time to time. Any and all portions of the Loan shall bear interest calculated at the prevailing rate of interest being drawn on City of Arcadia invest- ments, 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 consistent with the needs of the Arcadia Redevelopment Agency as determined by the Agency, and such por- tions of the Loan shall further be repaid to the City when funds become available to the Agency; 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 may hereafter be incurred by it have been satisfied and the repayment EXHIBIT "A" obligation of the Agency hereunder may be made subordinate to any interim or permanent financing of the Agency. 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 devel- opment using this loan money, in excess of the money required to repay the loans and interest on said real property, shall be redeposited in the Redevelopment Revolving Fund, and when so redeposited, shall be applied toward repayment of this Loan and the accrual of interest thereon. Executed this 5th day of November, 1985. c- <:: edevelopment ATTEST: ~~ 7J~ City Clerk of the City of Arcadia/ Secretary, Arcadia Redevelopment Agency Approved as to Form: ~j(, ~D-- ~9,~ Agency Special Counsel EXHIBIT "A" Passed, approved and adopted this 5th day of November, 1985. ATTEST: ~~~ City Cle~k of the City of Arcadia STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS: CITY OF ARCADIA -I, CHRISTINE VAN MAANEN, City Clerk of~the City of Arcadia hereby certify that the foregoing City Council Resolution No. 5254 was passed and adopted by the Arcadia City Council, signed by the Mayor and attested to by the city Clerk at a regular meeting of said City Council on the 5th day of November, 1985, and that said Resolution was adopted by the following vote, to wit: AYES: Councilman Hannah, Lojeski, Young and Pellegrino NOES: None ABSENT: Councilman Gilb ~.?;z~ City Clerk of the City of Arcadia -2- 5254