Resolution No. 5725
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RESOLUTION NO. 5725
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AND AUTHORIZING
(1) THE ACQUISITION OF REAL PROPERTY BY
THE REDEVELOPMENT AGENCY OF THE CITY OF
VERNON;
(2) THE TRANSFER OF FUNDS TO THE
REDEVELOPMENT REVOLVING FUND;
(3) THE PAYMENT OF MONIES IN THE
REDEVELOPMENT REVOLVING FUND TO THE
REDEVELOPMENT AGENCY OF THE CITY OF
VERNON; AND
( 4) THE EXECUTION OF A REDEVELOPMENT
REVOLVING FUND LOAN NO. 1 AGREEMENT
BETWEEN THE CITY OF VERNON AND THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
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WHEREAS, the City of Vernon (hereinafter "City") has
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established the Redevelopment Revolving Fund as authorized by
12 Health and Safety Code Section 33620; and
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WHEREAS, Health and Safety Code section 33392
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authorizes a redevelopment agency with the approval of the
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legislative body of the community to acquire, by negotiation or
other means, real property in a project area at any time after
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formulation of the preliminary plan for such area by the
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planning commission, and prior to the adoption of the
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redevelopment plan by the legislative body of the communi ty ,
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and;
WHEREAS, it is necessary and desirable to acquire for
redevelopment purposes and the elimination of blight that
certain real property consisting of approximately 42,815 sq. ft.
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located on the south side of Bandini Blvd.
in the City of
State of California,
commonly
Vernon,
County of Los Angeles,
known as 4528 Bandini Blvd (hereinafter "subject property"); and
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WHEREAS, the owner of subj ect property has agreed to
sell the subject property to the Redevelopment Agency of the
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ci ty of Vernon (hereinafter "Agency") at the appraised value
established by the Agency's appraiser, to wit Seven Hundred
Seventy Thousand Dollars ($770,000.00); and
WHEREAS, Health and Safety Code 33623 requires that the
legislative body approve by resolution adopted by two-thirds
vote the payment of monies in the Redevelopment Revolving Fund
to the Agency upon such terms and conditions as the legislative
body may prescribe; and
WHEREAS, the loan agreement between the Ci ty and the
Agency (hereinafter designated as Redevelopment Revolving Fund
Loan NO.1) appropriately establishes the terms and conditions
applicable to the advance of monies to the Agency for the
acquisition of the subject property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City hereby finds
and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the city hereby
approves the acquisition by the Agency of the subject property,
subject to the terms and conditions of Redevelopment Revolving
Fund Loan No.1.
SECTION 3: The City hereby approves and authorizes the
transfer from the Light and Power Fund to the Redevelopment
Revolving Fund, the sum of Eight Hundred Thousand Dollars
($800,000.00) to be utilized by the Agency in the acquisition of
the subj ect property including the cost of the property,
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preliminary title report, escrow fees, title insurance and other
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costs
and
incidental
to
and necessary
for the
expenses
acquisition of the subject property.
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SECTION 4: The City hereby approves the Redevelopment
Revolving Fund Loan NO.1, a copy of which has been presented to
the City Council concurrently with this resolution and the City
Council hereby orders said Redevelopment Revolving Fund Loan No.
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1 to be received and filed by the City Clerk.
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SECTION 5:
The City Council of the City hereby
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authorizes the Mayor and the City Clerk to execute said
Redevelopment Revolving Fund Loan No. 1 for, and on
behalf of,
the City.
SECTION 6: The City Clerk of the City shall certify to
the passage of this resolution and thereupon and thereafter the
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same shall be in full force and effect.
APPROVED AND ADOPTED this 6th day of March, 1990.
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ATTEST:
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STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, city Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 5725, was duly adopted by the City council of the
ci ty of Vernon at a regular meeting of the City Council duly
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,
1 REDEVELOPMENT REVOLVING FUND LOAN NO. 1
2 BY AND BETWEEN
THE CITY OF VERNON, CALIFORNIA
3 AND
THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON
4 THIS AGREEMENT is made, entered into and executed in
5 duplicate originals, either copy of which may be considered and
6 used as the original hereof for all purposes this 6th day of
7 March 1990.
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9 BY AND BETWEEN THE REDEVELOPMENT AGENCY
10 OF THE CITY OF VERNON,
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A Public Body, Corporate and
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politic duly created and
13 established pursuant to the
14 Community Development Act
15 of the State of California,
16 hereinafter referred to as
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"AGENCY"
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19 AND THE CITY OF VERNON, a
20 Municipal Corporation, whose
21 address is 4305 Santa Fe Ave. ,
22 Vernon, CA 90058-0805,
23 hereinafter referred to as
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"CITY"
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RECITALS
2 WHEREAS, the AGENCY has determined that the acquisition
3 of that real property consisting of approximately 42,815 square
4 feet located on the south side of Bandini Boulevard in the City
5 of Vernon, County of Los Angeles, State of California, commonly
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known as 4528 Bandini Boulevard , (hereinafter " subject
7 property") is necessary and desirable for the elimination of
8 blight and for redevelopment purposes; and
9 WHEREAS, at this time, the necessary acquisition funds
10 are not otherwise available to the AGENCY for the purpose of
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acquiring the subject property; and
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WHEREAS, the CITY has established the Redevelopment
13 Revolving Fund pursuant to the provisions of Health and Safety
14 Code Section 33620, et sea. ; and
15 WHEREAS, the CITY deems it advisable to loan to the
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AGENCY city funds necessary to acquire the subject property
17 subject to the terms and conditions contained in this Agreement;
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19 WHEREAS , such funds as may be loaned to the AGENCY
20 through the Redevelopment Revolving Fund, as approved from time
21 to time by the City Council, shall be repaid to the CITY if and
22 when tax increment revenues shall be available to the AGENCY.
23 NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
24 SECTION 1: The foregoing recitals are true and correct
25 and constitute valid consideration for this Agreement.
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1 SECTION 2 : The CITY agrees to deposit the sum of Eight
2 Hundred Thousand Dollars ($800, 000.00) into the Redevelopment
3 Revolving Fund and agrees that the AGENCY may withdraw said
4 funds and utilize same in the acquisition of the subject
5 property, subject to the terms of this Agreement.
6 SECTION 3 : All sums as may be withdrawn by the AGENCY
7 from the Redevelopment Revolving Fund for the purpose of
8 acquiring the subject property shall bear interest at a rate of
9 interest per annum equal to ten percent (10%) . Such interest
10 payable on the sums so advanced shall accrue and be added to the
11 principal amount of the loan, and all such amounts shall bear
12 interest at said rate and shall compound annually until repaid
13 by the AGENCY to the CITY. All payments of tax increment
14 revenues pursuant to Health and Safety Code Section 33670, in
15 whole or in part, for the repayment of the obligations of the
16 AGENCY as evidenced by this Agreement shall first be applied to
17 the accrued and unpaid interest on the loan, and any additional
18 amounts of tax increment revenues thereafter remaining shall be
19 applied to the outstanding principal balance thereof.
20 SECTION 4 : The loan from the CITY to the AGENCY as
21 hereby approved may be repaid from time to time, in whole or in
22 part, at the option of the AGENCY, solely from the tax increment
23 revenues, if any, if and when tax increment revenues shall be
24 available and paid to the AGENCY for such purpose pursuant to
25 Health and Safety Code Section 33670 (b) .
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SECTION 5: The AGENCY and the CITY hereby agree that
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any repayment obligation of the AGENCY with respect to the loan
3 as may hereafter be funded by the CITY from time to time shall
4 at all times be subordinated to any and all other outstanding,
5 or as hereafter may be outstanding, bonds, notes or other forms
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of indebtedness payable in whole or in part from the tax
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increment revenues of the AGENCY and shall not constitute a
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prior lien as to either the tax increment revenues received by
9 the AGENCY or any other legally available funds of the AGENCY.
10 SECTION 6: The CITY and the AGENCY hereby acknowledge
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and agree that the amounts which may hereafter be advanced by
12 the CITY to the AGENCY as necessary to acquire the subject
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property pursuant to this Agreement shall be considered as an
14 indebtedness of the AGENCY as the same is intended for purposes
15 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 hereunder shall be made
18 from the legally available tax increment revenues of the AGENCY
19 and an other funds of the AGENCY if any,y, and at the option of
20 the AGENCY, legally available therefor.
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SECTION 7 : The sums advanced pursuant to this
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Agreement shall be utilized by the AGENCY solely for the
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acquisition of the subject property and necessary expenses and
24 costs incidental thereto.
25 SECTION 8: The CITY and the AGENCY hereby agree to
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execute any and all ancillary documents as may reasonably be
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requested by any bondholder or other purchaser of bonds, notes
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or other forms of indebtedness of the AGENCY entitled to receive
2 the tax increment revenues of the AGENCY for the repayment of
3 any other indebtedness of the AGENCY for which the tax increment
4 revenues of the AGENCY have been or as may be hereafter be
5 pledged therefor.
6 SECTION 9 : This Agreement shall take effect from and
7 after the date of adoption and approval by the CITY and the
8 AGENCY pursuant to official action of the governing bodies
9 thereof and shall be effective for a duration not to exceed the
10 time as necessary to repay fully the CITY the principal amount
11 of the advances from the Redevelopment Revolving Fund for the
12 acquisition of the subject property, together with interest
13 thereon as evidenced by this Agreement but in no event shall
14 such repayment obligation extend for a duration of time in
15 excess of that provided in any Redevelopment Plan hereafter
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adopted.
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1 IN WITNESS WHEREOF
, the parties hereto have executed
2` this '.Agreement or: caused this Agreement to be executed by their,
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respective off icers, ,duly authorized, ras of this date, mouth and
year first above written.
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6 CITY OF VERNON
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BY
8' EONI$ C. MAL, URG, M yor
9 ATTEST
19 BY:
BRUCE V. MALKENHORST, City Clerk
11 APPROVED AS TO FORM: n
12 BY: KV
13 DAVID B. BREARLEYi City Attorney
14 REDEVE14OPMENT AGENCY OF THE
CITY OF VERNON
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B �
ONIS C. MALBT7 G, Cha rman
17 BY Y /
18 BRUCE'V, MALKENHORST
EXeoutive Director
19 APPROVED AS TO FORM:
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21 DAVID 'B, BREARLEY 1
Legal Counse3
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