Resolution No. 5724
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RESOLUTION NO. 5724
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON ESTABLISHING THE
REDEVELOPMENT REVOLVING FUND
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WHEREAS, Heal th and Safety Code section 33620
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authorizes the legislative body of the city to establish a
Redevelopment Revolving Fund to be kept in the treasury of the
city; and
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WHEREAS, Health and Safety Code section 33623 provides
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that, by resolution of the legislative body adopted by a two-
thirds vote, any money in the Redevelopment Revolving Fund may
be paid to the Redevelopment Agency of the City of Vernon
(hereinafter "Agency"), upon such terms and conditions as the
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legislative body may prescribe for any of the following
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purposes:
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(a)
Deposi t in a trust fund to be expended for the
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acquisition of real property in any project area.
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(b)
The clearance of any proj ect area for
redevelopment.
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(c)
Any expenses necessary or incidental to the
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carrying out of a redevelopment plan which has been adopted by
the legislative body; and
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WHEREAS, at this time, the necessary funds are not
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otherwise available to the Agency for the purpose of acquiring
real property in any project area other than through those
monies which may be loaned by the City of Vernon (hereinafter
"City") to the Agency pursuant to Health and Safety Code section
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33620, et seq.; and
III
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WHEREAS, the City deems it advisable to loan to the
Agency such funds as may be necessary, from time to time, to
acquire real property in the project area and to perform those
other functions authorized by Health and Safety Code section
33623.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
The City Council of the City hereby finds
the recitals contained hereinabove are true
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SECTION 1:
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SECTION 2 :
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The City Council of the city hereby
establishes the Redevelopment Revolving Fund to be kept in the
treasury of the City and agrees to advance sums from time to
time as necessary for the Agency to acquire real property in the
project area or for other purposes authorized by Health and
Safety Code section 33623. All funds appropriated to the
Redevelopment Revolving Fund shall be authorized and approved by
a duly adopted resolution of the City Council. All funds
withdrawn from the Redevelopment Revolving Fund for use by
Agency shall be authorized and approved by a duly adopted
resolution of the City Council and documented in a loan
agreement duly executed by City and Agency.
SECTION 3: The sums as may be advanced to the Agency
from the Redevelopment Revolving Fund from time to time shall
bear interest at a rate of interest per annum equal to ten
percent (10%). Such interest payable on the sums so advanced
shall accrue and be added to the principal amount of the
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advance, and all such amounts shall bear interest at said rate
and shall compound annually until repaid by the Agency to the
city. All payments of tax increment revenues pursuant to Health
and Safety Code Section 33670 in whole or in part, for the
repayment of the obligations of the Agency shall first be
applied to the accrued and unpaid interest, and any additional
amounts of tax increment revenues thereafter remaining shall be
applied to the outstanding principal balance thereof.
SECTION 4: Any advance from the City to the Agency out
of the Redevelopment Revolving Fund may be repaid from time to
time, in whole or in part and at the option of the Agency,
solely from the tax increment revenues, if any, if and when tax
increment revenues shall be available and paid to the Agency for
such purpose pursuant to Health and Safety Code section
33670(b).
SECTION 5: The City hereby agrees that any repayment
obligation of the Agency with respect to any advance or payment
from the Redevelopment Revolving Fund with respect to property
acquisition as may hereafter be approved and funded by the City
from time to time shall at all times be subordinated to any and
all other outstanding, or as hereafter may be outstanding,
bonds, notes or other forms of indebtedness payable in whole or
in part from the tax increment revenues of the Agency and shall
not constitute a prior lien as to either the tax increment
revenues received by the Agency or any other legally available
funds of the Agency.
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Each advance from the Redevelopment
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Revolving Fund to the Agency shall be acknowledged by an
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agreement between the City and the Agency reflecting, inter
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alia, that all amounts which may be advanced to the Agency from
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the Redevelopment Revolving Fund shall be considered as an
indebtedness of the Agency as the same is intended for purposes
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of the filing of a statement of Indebtedness with the County of
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Los Angeles pursuant to Health and Safety Code section 33675.
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The repayment obligation of the Agency shall be made from the
legally available tax increment revenues of the Agency and any
other funds of the Agency, if any, and at the option of the
Agency, legally available therefor.
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SECTION 7: The city Clerk of the City of Vernon shall
certify to the passage of this resolution and thereupon and
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thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 6th day of March, 1990.
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MALKENHORST, City Clerk
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~ ~()NIS C. MA URG, ay~r
ATTEST:
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BRUCE V.
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STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
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Resolution No. 5724, was duly adopted by the City Council of the
ci ty of Vernon at a regular meeting of the city Council duly
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held on Tuesday, March 6. 1990. and thereafter duly signed by
the Mayor of the City of Vernon.
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12 ( SEAL)
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BRUCE V. MALKENHORST,