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Resolution No. 1434 " RESOLUTION NO. 1l.t-34- A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING A SETTLE:MENT FOR TAXES COLLECTED A.GAINST THE PROPERTIES OF THE DEFENSE PLANT CORPORATION, NOW THE RECONSTRUCTION FINANCE CORPORATION. THE CITY COUNCIL OF THE CITY OF VERl"'iON DOES RESOLVE AS FOLLOWS: WHEREAS, The eounty of Los Angeles, on behalf of itself and various other taxing entities within said County, assessed and collected taxes against the properties of the Defense Plant Corporation, now the Reconstruction Finance Corporation; and WHEREAS, said corporation challenged certain of the assessments on improvements, paid such taxes under protest, and has since filed 4-7 suits to recover said taxes; and WHEREAS, the total tax recovery of which is prayed for in said actions is $l.t-,668,635.l.t-9; and WHEREAS, the Reconstruction Finance Corporation has agreed to dismiss all of said actions with prejudice and to file a letter agreeing not to sue for the recovery of any add- itional taxes on any of the properties involved in the above actions to and including the fiscal year 19l.t-8-l.t-9 on the payment of the sum of $100,000, $20,000 of which is to be paid by the City of Los Angeles; and WHEREAS, of the total recovery prayed for in said actions the sum of $61.78 is attributable to taxes ot the City of Vernon and such taxes have been collected and paid to said City and its proportionate share of said settlement in $1.37 NOW, THEREFORE, the City Council of the City of Vernon does hereby authorize the settlement of all of said suits in which it is involved on the basis outlined ab1ve and authorizes payment of its pro rata share of said settlement, fixed in the sum of $1.37 in a manner similar to that provided by section 5101, Revenue and Taxation Code. The City Clerk of the City of Vernon is hereby directed to certify to the passage of this Resolution and thereupon and and thereafter the same shall be in full foree and effect. ADOPTED AND APPROVED, May 3, 1949 ATTEST: C STATE OF CALIFORNIA ) : ss COUNTY OF LOS ANGELES ) I, T. J. Furlong, City Clerk of the City of Vernon, do hereby eertify that the foregoing Resolution No. 1434 was duly adopted by the City Council of the City of Vernon, and approved by the Mayor of said City at a regular meeting held on May 3, 1949. . , HAROLD W. KENNEDY COUNTY COUNSEL MUTUAL 9211 OFFICE OF THE COUNTY COUNSEL SUITE llCC HALL OF' RECORD'S LOS ANGELES 12, CALIF'ORNIA March 26, 1949 City Council City of Vernon Vernon, California Gentlemen: The enclosed schedule shows the 41 suits brou!;:ht by the Reconstruction Finance Corporation and the distribution of the taxes sought to be recovered therein. The total is $4,668,635.49. Some time a~o the R.F.C. offered to settle for $640,552.84- Thi~ office and the Los Angeles City Attorney's office (Los Angeles City being a defendant in some but not all of the lawsuits and appearing by its own counsel) continued negotiations and now have tentatively agreed with the R.F.C. to settle all these suits on payment to the R.F.C. of t20,000 on behalf of the City of Los Angeles and $80,000 on behalf of all other parties, which is less than half of one ye&r's interest on the sum originally claimed. The R.F.C. will also file a letter agreeing not to sue for recovery of any addi- tion.?l taxes on nny of the properties involved in these acti::ms to and including the fiscal yenr 1948-49. Your proportionate share is shown in the schedUle and in the accompanying resolution. The County is willing to advance the money necessary to pay the settlement, when properly authorized by you~ and deduct it from available funds, if any, now on deposit in the county treasury or subsec.uently accrulngl in accordance with section 5101 Revenue and Taxation Code. Needless to say, we believe that this is an exceptionally favorable compromise and recommend it for your approval. If you desire to take advantage of this compromise, we would appreciate your adopting the en- closed resolution and returning two certified copies thereof to us at your earliest opportunity. Yours very truly, AOP A encls HAROLD w _ KENNEDY, 90unty BY~O. y~ Andrew O. Porter Deputy County Counsel C~unsel