Resolution No. 72321
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RESOLUTION NO. 7232
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING (1) THE
TRANSFER OF FUNDS TO THE REDEVELOPMENT
REVOLVING FUND; (2) THE PAYMENT OF MONIES IN
THE REDEVELOPMENT REVOLVING FUND TO THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON;
AND (3) THE EXECUTION OF REDEVELOPMENT
REVOLVING FUND LOAN AGREEMENT NO. 4 BY AND
BETWEEN THE CITY OF VERNON AND THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
WHEREAS, the City of Vernon (hereinafter "City"), by
adoption of Resolution No. 5724, has established the
Redevelopment Revolving Fund as authorized by Health and Safety
Code Section 33620; and
WHEREAS, the Redevelopment Agency of the City of Vernon
("Agency") has determined it is necessary and desirable to
acquire for redevelopment purposes and the elimination of blight
that certain real property consisting of approximately 3.29 acres
located at 3270 E. Washington Boulevard in the City of Vernon
County of Los Angeles, State of California, (hereinafter
"Property"); and
WHEREAS, Soco-Lynch Corporation, owner of Property, has
agreed to sell the Property to the Redevelopment Agency of the
City of Vernon (hereinafter "Agency") on negotiated terms, which
the Agency has determined to be fair and reasonable, to wit: One
Million Eight Thousand Dollars and No Cents ($1,800,000.00); 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
1 WHEREAS, the loan agreement between the City and the
2 Agency (hereinafter designated as Redevelopment Revolving Fund
3 Loan Agreement No. 4) appropriately establishes the terms and
4 conditions applicable to the advance of monies to the Agency for
5 the acquisition of the Property.
6 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
7 THE CITY OF VERNON AS FOLLOWS:
8 SECTION 1: The City Council of the City of Vernon
9 hereby finds and determines that the recitals contained
10 hereinabove are true ,and correct.
11 SECTION 2: The City Council of the City of Vernon
12 hereby approves and authorizes the transfer from the Light and
13 Power Fund to the Redevelopment Revolving Fund, the sum of One
14 Million Eight Hundred Seven Thousand Sixty Dollars and No Cents
15 ($1,807,060.00) to be utilized by the Agency in the acquisition
16 of the Property, including the cost of the property, preliminary
17 title report, escrow fees, title insurance and other costs and
18 expenses incidental to and necessary for the acquisition of the
19 Property.
20 SECTION 3: The City hereby approves the Redevelopment
21 Revolving Fund Loan Agreement No. 4, a copy of which has been
22 presented to the City Council concurrently with this resolution
23 and the City Council hereby orders said Redevelopment Revolving
24 Fund Loan Agreement No. 4 to be received and filed by the City
25 Clerk.
26 SECTION 4: The City Council of the City hereby
27 authorizes the Mayor and the City Clerk to execute said
28 Redevelopment Revolving Fund Loan Agreement No. 4 for, and on
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.behalf of, the City of Vernon.
2 SECTION 5: The City Clerk of the City of Vernon shall
3 certify to the passage of this resolution, and thereupon and
4 thereafter the same shall be in full force and effect.
5 APPROVED AND ADOPTED this 3rd day of November, 1998.
6
7 THOMAS A. YB , Mayor Pro Tem
8 ATTEST-
9 7-L'
BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA )
) ss
2 COUNTY OF LOS ANGELES )
3 I, BRUCE V. MALKENHORST, City Clerk of the City of
4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 7232, was duly adopted by the City Council of the
6 City of Vernon at a regular meeting of the City Council duly held
7 on Tuesday, November 3, 1998, and thereafter was duly signed by
8 the Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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( SEAL)
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SUPPORTING
DOCUMENTS
OFFICE OF THE CITY CLERK
INTER -OFFICE MEMORANDUM
TO: Sharon Johnson, Budget/Auditor/Deputy City Treasurer
FROM: Gloria J. Orosco, Chief Deputy City Clerk
DATE: November 4, 1998
RE: I Resolution No. 7232
Enclosed, for your files, is a copy of Resolution No. 7232 which
was approved by City Council on November 3, 1998.
xc: RDA Agreement File
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REDEVELOPMENT REVOLVING FUND LOAN AGREEMENT NO. 4
BY AND BETWEEN
THE CITY OF VERNON, CALIFORNIA
AND
THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON
THIS AGREEMENT is made, entered into and executed in
duplicate originals, either copy of which may be considered and
used as the original hereof for all purposes this 3rd day of
November, 1998,
BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE
CITY OF VERNON, A Public Body,
Corporate and Politic duly
created and established
pursuant to the Community
Redevelopment Law of the State
of California (hereinafter
referred to as "AGENCY")
AND THE CITY OF VERNON„ a Municipal
Corporation, whose address is
4305 Santa Fe Avenue, Vernon,
California 90058-0805
(hereinafter referred to as
"CITY")
RECITALS
WHEREAS, the AGENCY has determined that the acquisition
of that certain real property consisting of approximately 3.29
acres located at 3270 E. Washington Boulevard in the City of
Vernon, County of Los Angeles, State of California (hereinafter
"Property") is necessary and desirable for the elimination of
blight or for redevelopment purposes; and
WHEREAS, at this time, the necessary acquisition funds
are not otherwise available to the AGENCY for the purpose of
acquiring the Property; and
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WHEREAS, the CITY has established the Redevelopment
Revolving Fund pursuant to the provisions of Health and Safety
Code Section 33620, et sec.; and
WHEREAS, the CITY deems it advisable to loan to the
AGENCY city funds necessary to acquire the Property subject to the
terms and conditions contained in this Agreement; and
WHEREAS, such funds as may be loaned to the AGENCY
through the Redevelopment Revolving Fund, as approved from time to
time by the City Council, shall be repaid to the CITY if and when
tax increment revenues shall be available to the AGENCY.
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION 1: The foregoing recitals are true and correct
and constitute valid consideration for this Agreement.
SECTION 2: The CITY agrees to deposit the sum of One
Million Eight Hundred Seven Thousand Sixty Dollars and No Cents
($1,807,060.00) into the Redevelopment Revolving Fund and agrees
that the AGENCY may withdraw said funds and utilize same in the
acquisition of the Property, subject to the terms of this
Agreement.
SECTION 3: All sums as may be withdrawn by the AGENCY
from the Redevelopment Revolving Fund for the purpose of acquiring
the Property 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
loan, 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
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.of the obligations of the AGENCY as evidenced by this Agreement
shall first be applied to the accrued and unpaid interest on the
loan, and any additional amounts of tax increment revenues
.thereafter remaining shall be applied to the outstanding principal
balance thereof.
SECTION 4: The loan from the CITY to the AGENCY as hereby
approved may be repaid from time to time, in whole or in part, 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 AGENCY and the CITY hereby agree that any
repayment obligation of the AGENCY with respect to the loan as may
hereafter be 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.
SECTION 6: The CITY and the AGENCY hereby acknowledge and
agree that the amounts which may hereafter be advanced by the CITY
to the AGENCY as necessary to acquire the Property pursuant to
this Agreement shall be considered as an indebtedness of the
AGENCY as the same is intended for purposes of the filing of a
Statement of Indebtedness with the County of Los Angeles pursuant
to Health and Safety Code Section 33675. The repayment obligation
of the AGENCY hereunder shall be made from the legally available
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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.
SECTION 7: The sums advanced pursuant to this Agreement
shall be utilized by the AGENCY solely for the acquisition of the
Property and necessary expenses and costs incidental thereto.
SECTION 8: The CITY and the AGENCY hereby agree to
execute any and all ancillary documents as may reasonably be
requested by any bondholder or other purchaser of bonds, notes or
other forms of indebtedness of the AGENCY entitled to receive the
tax increment revenues of the AGENCY for the repayment of any
other indebtedness of the AGENCY for which the tax increment
revenues of the AGENCY have been or as may be hereafter be pledged
therefor.
SECTION 9: This Agreement shall take effect from and
after the date of adoption and approval by the CITY and the AGENCY
pursuant to official action of the governing bodies thereof and
shall be effective for a duration not to exceed the time as
necessary to repay fully the CITY the principal amount of the
advances from the Redevelopment Revolving Fund for the acquisition
of the Property, together with interest thereon as evidenced by
this Agreement but in no event shall such repayment obligation
extend for a duration of time in excess of that provided in any
applicable redevelopment plan, as now constituted or as the same
may hereafter be amended.
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IN WITNESS WHEREOF, the parties hereto have executed this
Agreement or caused this Agreement to be executed by their
respective officers, duly authorized, as of this date, month and
year first above written.
CITY OF VERNON
BY: s/Thomas A. Ybarra
THOMAS A. YBARRA, Mayor Pro Tem
ATTEST:
BY: s/Bruce V. Malkenhorst
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
BY: s/David B. Brearley
DAVID B. BREARLEY, City Attorney
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY. s/Thomas A. Ybarra
BY:
A. YBARRA, Chairman Pro Tem
BY. s/Bruce V. Malkenhorst
BY:
V. MALKENHORST, Secretary
APPROVED AS TO FORM:
BY: s/David B. Brearley-
DAVID B. BREARLEY, Legal Counsel
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