Resolution No. 74081
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RESOLUTION NO. 7408
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AN AMENDMENT TO RESOLUTION NO.
5724 WHICH ESTABLISHED THE REDEVELOPMENT AGENCY
REVOLVING LOAN FUND AND APPROVING AN AMENDMENT
TO THE REVOLVING FUND LOAN AGREEMENTS ADJUSTING.
THE LOAN RATE AMOUNT WHICH WERE APPROVED BY
RESOLUTION NOS. 5725, 6717, 7195 AND 7232 FOR
REVOLVING FUND LOAN AGREEMENT NOS. 1, 2, 3 AND 4
WHEREAS, the City of Vernon (hereinafter referred to as
the "City") by adoption of Resolution No. 5724, on March 6, 1990,
established the Redevelopment Revolving Fund as authorized by
Health and Safety Code Section 33620; and
WHEREAS, Health and Safety Code Section 33623 provides
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 the "Agency"), upon such terms and conditions as the
legislative body may prescribe; and
WHEREAS, the City agreed 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; and
WHEREAS, all funds appropriated to the Redevelopment
Revolving Fund are to be authorized and approved by a duly adopted
resolution of the City Council; and
WHEREAS, all funds withdrawn from the Redevelopment
Revolving Fund for use by Agency are to 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; and
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WHEREAS, under the present terms and conditions of the
Redevelopment Revolving Fund, as set forth in Section 3 of
Resolution No. 5724, the sums advanced to the Agency from the
Redevelopment Revolving Fund are to bear interest at a rate of ten
percent (10%) per annum; and
WHEREAS, the City and Agency desire to change the terms
and conditions of the Redevelopment Revolving Fund by adjusting
the interest rate on the sums advanced to the Agency, from the
Redevelopment Revolving Fund by reducing the interest rate from
ten percent (10%) per annum to five percent (5%) per annum
effective as of September 7, 1999; and
WHEREAS, on March 6, 1990, the City Council adopted
Resolution No. 5725, which approved and authorized (1) the
acquisition of real property by the Redevelopment Agency of the
City of Vernon; (2) the transfer of funds from the General Fund to
the Redevelopment Revolving Fund; (3) the payment of monies in the
Redevelopment Revolving Funds 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; and
WHEREAS, Section 3 of Revolving Fund Loan No. 1,
establishes an interest rate for the sums withdrawn by the Agency
from the Redevelopment Revolving Fund at ten percent (10%) per
annum;
WHEREAS, the City and Agency desire to reduce the
interest rate on the sums advanced under Revolving Fund Loan No. 1
down from ten percent (10%) per annum to five percent (5%) per
annum; and
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WHEREAS, on November 21, 1995, the City Council adopted
Resolution No. 6717, which approved and authorized (1) the
execution of a Redevelopment Revolving Fund Agreement Loan No. 2
between the City of Vernon and the Redevelopment Agency of the
City of Vernon for CMD Reconstruction; (2) the transfer of funds
from the General Fund to the Redevelopment Revolving Fund; and (3)
the payment of monies in the Redevelopment Revolving Funds to the
Vernon Redevelopment Agency for CMD Reconstruction; and
WHEREAS, Section 3 of Revolving Fund Loan No. 2,
establishes an interest rate for the sums withdrawn by the Agency
from the Redevelopment Revolving Fund at ten percent (10%) per
annum;
WHEREAS, the City and Agency desire to reduce the
interest rate on the sums advanced under Revolving Fund Loan No. 2
from ten percent (10%) per annum to five percent (5%) per annum;
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WHEREAS, on August 4, 1998, the City Council adopted
Resolution No. 7195, which approved and authorized (1) the
transfer of funds from the General Fund to the Redevelopment
Revolving Fund; (2) the payment of monies in the Redevelopment
Revolving Funds to the Redevelopment Agency of the City of Vernon;
and (3) the execution of Redevelopment Revolving Fund Loan No. 3
Agreement between the City of Vernon and the Redevelopment Agency -
of the City of Vernon; and
WHEREAS, Section 3 of Revolving Fund Loan No. 3,
establishes an interest rate for the sums withdrawn by the Agency
from the Redevelopment Revolving Fund at ten percent (10%) per
annum;
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1 WHEREAS, the City and Agency desire to reduce the
2 interest rate on the sums advanced under Revolving Fund Loan No. 3
3 from ten percent (10%) per annum to five percent (5%) per annum;
4 and
5 WHEREAS, on November 3, 1998, the City Council adopted
6 Resolution No. 7232, which approved and authorized (1) the
7 transfer of funds from the General Fund to the Redevelopment
8 Revolving Fund; (2) the payment of monies in the Redevelopment
9 Revolving Funds to the Redevelopment Agency of the City of Vernon;
10 and (3) the execution of Redevelopment Revolving Fund Loan No. 4
11 Agreement between the City of Vernon and the Redevelopment Agency
12 of the City of Vernon; and
13 WHEREAS, Section 3 of Revolving Fund Loan No. 4,
14 establishes an interest rate for the sums withdrawn by the Agency
15 from the Redevelopment Revolving Fund at ten percent (10%) per
16 annum; and
17 WHEREAS, the City and Agency desire to reduce the
18 interest rate on the sums advanced under Revolving Fund Loan No. 3
19 from ten percent (10%) per annum to five percent (5%) per annum;
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21 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
22 CITY OF VERNON AS FOLLOWS:
23 SECTION 1: The City Council of the City hereby finds and
24 determines that the recitals contained hereinabove are true and
25 correct.
26 SECTION 2: The City Council of the City of Vernon hereby
27 amends Resolution No. 5724 to reduce the interest rate on the sums
28 that have been advanced to the Agency from the Redevelopment
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Revolving Fund, plus the unpaid interest on this sum and any sums
which may be advanced from time to time to the Agency from the
Redevelopment Revolving Fund from ten percent (10%) per annum to
five percent (5%) per annum.
SECTION 3: The City hereby approves the amendments to
the Redevelopment Revolving Fund Loan Nos. 1, 2, 3 and 4, copies
of which have been presented to the City Council concurrently with
this resolution and the City Council hereby orders said amendments
to Redevelopment Revolving Fund Loan Nos. 1, 2, 3 and 4 be
received and filed by the City Clerk.
SECTION 4: The City Council of the City hereby
authorizes the Mayor and the City Clerk to execute said amendments
to Redevelopment Revolving Fund Loan Nos. 1, 2, 3 and 4 for, and
on behalf of, the City of Vernon.
SECTION 5: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be full force and effect.
APPROVED AND ADOPTED this 7th day of September, 1999.
ATTES
BRUCE V. MALKENHORST, City Clerk
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,EONIS C. MALB RG, Mayor
1 STATE OF CALIFORNIA )
ss
2 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. 7408, was duly adopted by the City Council of the
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City of Vernon at a regular meeting of the City Council duly held
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on Tuesday, September 7, 1999, and thereafter was duly signed by
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the Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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12 (SEAL)
13 3.7408
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SUPPORTING
DOCUMENTS
70?
MEMORANDUM
TO: Gloria Orosco, Chief Deputy City Clerk
FROM: David B. Brearley, City Attorney
DATE: September-- 2-;-- 1g99 -
Interest Rate - Revolvi
It is my understanding that Mr. Malkenhorst is going to
recommend that the interest rate for the Revolving Loan Fund be
reduced from ten percent (10%) to five percent (5%).
OFFICE OF THE CITY ADMINISTRATOR/
CITY CLERK
INTER -OFFICE MEMORANDUM
DATE:
September
21, 1999
TO:
Sharon Johnson, Deputy
City Treasurer
FROM:
Gloria J.
Oros C ief
Deputy City Clerk
RE:
Amendment
No. to the
Redevelopment Revolving Fund
Loan Nos.
1, 2, 3, and
4 By and Between the City of
Vernon, California
and
the Redevelopment Agency of
The City
of Vernon
Transmitted herewith is a copy of the above referenced agreements
along with a copy of Resolution Nos. 7408 and RA-154 approving
said agreements at the City Council meeting held September 7,
1999.
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Execution Copy
AMENDMENT NO. 1
TO THE
REDEVELOPMENT REVOLVING FUND LOAN NO. 1
BY AND BETWEEN THE CITY OF VERNON, CALIFORNIA AND THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
THIS AMENDMENT NO. 1 is effective September 7, 1999
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
Development Law of the State of
California (hereinafter
referred to as the "Agency")
4305 Santa Fe Avenue
Vernon, California, 90058
AND THE CITY OF VERNON,a Municipal
Corporation, whose address is
4305 Santa Fe Avenue, Vernon,
California 90058-0805
(hereinafter referred to as the
"City")
WITNESSETH
WHEREAS, the Agency and the City entered into a Revolving
Fund Loan No. 1 Agreement (the "Agreement") which was adopted by
the Agency by Resolution No. RA-12, and by the City by Resolution
No. 5725 on March 6, 1990; and
WHEREAS, the Agreement is herein incorporated by
reference; and
WHEREAS, the Agency and City desire to amend the
Agreement to adjust the loan rate amount in the Agreement.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, IT IS
MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO TO AMEND THE
AGREEMENT AS FOLLOWS:
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SECTION 1: Section 3 of said Agreement is hereby amended
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as follows:
3 All sums as may be withdrawn by the AGENCY from
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the Redevelopment Revolving Fund for the purpose
5 of acquiring the subject property shall bear
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interest at a rate of interest per annum equal to
7 five percent 5% Such interest p ( ). payable on the
8 sums so advanced shall accrue and be added to the
9 principal amount of the loan, and all such
10 amounts shall bear interest at said rate and
11 shall compound annually until repaid by the
12 AGENCY to the CITY. All payments of tax
13 increment revenues pursuant to Health and Safety
14 Code Section 33670 in whole or in part, for the
15 repayment of the obligations of the AGENCY as
16 evidenced by this Agreement shall first be
17 applied to the accrued and unpaid interest on the
18 loan, and any additional amounts of tax increment
19 revenues thereafter remaining shall be applied to
20 the outstanding principal balance thereof.
21 SECTION 2: In all other respects, the terms and conditions
22 of the Revolving Fund Loan No. 1 Agreement shall be renewed in its
23 entirety.
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IN WITNESS WHEREOF, the parties hereto have executed this
Amendment or caused this Amendment to be executed by their
respective officers, duly authorized, effective on September 7,
1999.
THE REDEVELOPMENT AGENCY OF
THE CITY OF VERNON
N
By:
L80NI S C . MALBURG , Cha% rman
ATTES
BRUCE V. MALKENHORST, Secretary
APPROVED AS TO FORM:
DAVID B. BR ARLEY, Legal Counsel
ATTEST •
G IGY G v', o5'
BRUCE V. MALKENHORST, City Clerk
APPROVED AS
AS TO FORM:
SD �l
DAVID B. BR ARLEY, City torney
3.amendl.aa
CITY OF VERNON
L ONIS C. MALBURG, Ma or
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Execution Copy
AMENDMENT NO. 1
TO THE
REDEVELOPMENT REVOLVING FUND LOAN NO. 2
BY AND BETWEEN THE CITY OF VERNON, CALIFORNIA AND THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
THIS AMENDMENT NO. 1 is effective September 7, 1999
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
Development Law of the State of
California (hereinafter
referred to as the "Agency")
4305 Santa Fe Avenue
Vernon, California, 90058
AND THE CITY OF VERNON,a Municipal
Corporation, whose address is
4305 Santa Fe Avenue, Vernon,
California 90058-0805
(hereinafter referred to as the
11City")
WITNESSETH
WHEREAS, the Agency and the City entered into a Revolving
Fund Loan No. 2 Agreement (the "Agreement") which was adopted by
the Agency by Resolution No. RA-79 and by the City by Resolution
No. 6717 on November 21, 1995; and
WHEREAS, the Agreement is herein incorporated by
reference; and
WHEREAS, the Agency and City desire to amend the
Agreement to adjust the loan rate amount in the Agreement.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, IT IS
MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO TO AMEND THE
AGREEMENT AS FOLLOWS:
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SECTION 1: Section 3 of said Agreement is hereby amended
as follows:
All sums as may be withdrawn by the AGENCY from
the City Redevelopment Revolving Fund for the CMD
Reconstruction shall bear interest at a rate of
interest per annum equal to five percent (5%).
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 received by
Agency pursuant to Health and Safety Code Section
33670, may be used in whole or in part for the
repayment of the obligations of the AGENCY as
evidenced by this Agreement, which said revenues
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 2: In all other respects, the terms and conditions
of the Revolving Fund Loan No. 2 Agreement shall be renewed in its
entirety.
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IN WITNESS WHEREOF, the parties hereto have executed this
Amendment or caused this Amendment to be executed by their
respective officers, duly authorized, effective on September 7,
1999.
THE REDEVELOPMENT AGENCY OF
THE CITY OF VERNON
By:
LEONIS C. MAL8VRG, Ch irman
ATTEST •� ��/ J�`
BRUCE V. MALKENHORST, Secretary
APPROVED AS TO FORM:
DAVID B. BREARLEY, Legal Counsel
CITY OF VERNON
LEONIS C. MALBURG, Mdyor
ATTES
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM: p p
DAVID B. BREARLEY, City Attorney
ra.a-rvlv.a-2
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2711
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REDEVELOPMENT REVOLVING FUND LOAN NO. 3
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 4th day of
August, 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 1.0
acres located at 3226 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
WHEREAS, the CITY has established the Redevelopment
Revolving Fund pursuant to the provisions of Health and Safety
Code Section 33620, et seq.; and
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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 Eight
Thousand Dollars and No Cents ($800,000.00) 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
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
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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
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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1 SECTION 7: The sums advanced pursuant to this Agreement
2 shall be utilized by the AGENCY solely for the acquisition of the
3 Property and necessary expenses and costs incidental thereto.
4 SECTION 8: The CITY and the AGENCY hereby agree to
5 execute any and all ancillary documents as may reasonably be
6 requested by any bondholder or other purchaser of bonds, notes or
7 other forms of indebtedness of the AGENCY entitled to receive the
8 tax increment revenues of the AGENCY for the repayment of any
9 other indebtedness of the AGENCY for which the tax increment
10 revenues of the AGENCY have been or as may be hereafter be pledged
11 therefor.
12 SECTION 9: This Agreement shall take effect from and
13 after the date of adoption and approval by the CITY and the AGENCY
14 pursuant to official action of the governing bodies thereof and
15 shall be effective for a duration not to exceed the time as
16 necessary to repay fully the CITY the principal amount of the
17 advances from the Redevelopment Revolving Fund for the acquisition
18 of the Property, together with interest thereon as evidenced by
19 this Agreement but in no event shall such repayment obligation
20 extend for a duration of time in excess of that provided in any
21 applicable redevelopment plan, as now constituted or as the same
22 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:
- LEONIS £C. MALBURO,m Mayo
ATTEST:
BY:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS J� TO FORM:
DAVID B. BREARLEY, City Attorney
APPROVED ASTOFORM: �)
BY:
DAVID B. BREARLEY, Legal tounsel
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY
LEONI S C C. MALBURt,, Cha i n
BRUCE V. MALKENHORST
Secretary
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Execution Copy
AMENDMENT NO. 1 .
TO THE
REDEVELOPMENT REVOLVING FUND LOAN NO. 3
BY AND BETWEEN THE CITY OF VERNON, CALIFORNIA AND THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
THIS AMENDMENT NO. 1 is effective September 7, 1999
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
Development Law of the State of
California (hereinafter
referred to as the "Agency")
4305 Santa Fe Avenue
Vernon, California, 90058
AND THE CITY OF VERNON,a Municipal
Corporation, whose address is
4305 Santa Fe Avenue, Vernon,
California 90058-0805
(hereinafter referred to as the
"City")
WITNESSETH
WHEREAS, the Agency and the City entered into a Revolving
Fund Loan No. 3 Agreement (the "Agreement") which was adopted by
the Agency by Resolution No. RA-132, and by the City by Resolution
No. 7195 on August 4, 1998; and
WHEREAS, the Agreement is herein incorporated by
reference; and
WHEREAS, the Agency and City desire to amend the
Agreement to adjust the loan rate amount in the Agreement.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, IT IS
MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO TO AMEND THE
AGREEMENT AS FOLLOWS:
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SECTION 1: Section 3 of said Agreement is hereby amended
as follows:
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 five
percent (5%). 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 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 2: In all other respects, the terms and conditions
of the Revolving Fund Loan No. 3 Agreement shall be renewed in its
entirety.
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IN WITNESS WHEREOF, the parties hereto have executed this
Amendment or caused this Amendment to be executed by their
respective officers, duly authorized, effective on September 7,
1999.
THE REDEVELOPMENT AGENCY OF
THE CITY OF VERNON
By: `P �z 2-v= i- %mac a� ✓
ONIS C. MAL8VRG, ClYairman
ATTES --7r7�—
BRUCE V. MALKENHORST, Secretary
APPROVED AS TO FORM: ��p"-
DAVID B. BREARLEY, Legal Counsel
CITY OF VERNON
EONIS C. MA BURGMayor
ATTE
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
DAVID B. BREARLEY, City Attorney
ra.a rvlv.1-3
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Execution Copy
AMENDMENT NO. 1
TO THE
REDEVELOPMENT REVOLVING FUND LOAN NO. 4
BY AND BETWEEN THE CITY OF VERNON, CALIFORNIA AND THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON
THIS AMENDMENT NO. 1 is effective September 7, 1999
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
Development Law of the State of
California (hereinafter
referred to as the "Agency")
4305 Santa Fe Avenue
Vernon, California, 90058
AND THE CITY OF VERNON,a Municipal
Corporation, whose address is
4305 Santa Fe Avenue, Vernon,
California 90058-0805
(hereinafter referred to as the
"City")
WITNESSETH
WHEREAS, the Agency and the City entered into a Revolving
Fund Loan No. 4 Agreement (the "Agreement") which was adopted by
the Agency by Resolution No. RA-136, and by the City by Resolution
No. 7232 on November 3, 1998; and
WHEREAS, the Agreement is herein incorporated by
reference; and
WHEREAS, the Agency and City desire to amend the
Agreement to adjust the loan rate amount in the Agreement.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, IT IS
MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO TO AMEND THE
AGREEMENT AS FOLLOWS:
1
SECTION 1: Section 3 of said Agreement is hereby amended
2
as follows:
3 All sums as may be withdrawn by the AGENCY from
4 the Redevelopment Revolving Fund for the purpose
5 of acquiring the Property shall bear interest at
6 a rate of interest per annum equal to five
7 percent (5%). Such interest payable on the sums
8 so advanced shall accrue and be added to the
9 principal amount of the loan, and all such
10 amounts shall bear interest at said rate and
11 shall compound annually until repaid by the
12 AGENCY to the CITY. All payments of tax
13 increment revenues pursuant to Health and Safety
14 Code Section 33670, in whole or in part, for the
15 repayment of the obligations, of the AGENCY as
16 evidenced by this Agreement shall first be
17 applied to the accrued and unpaid interest on the
18 loan, and any additional amounts of tax increment
19 revenues thereafter remaining shall be applied to
20 the outstanding principal balance thereof.
21 SECTION 2: In all other respects, the terms and conditions
22 of the Revolving Fund Loan No. 4 Agreement shall be renewed in its
23 entirety.
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IN WITNESS WHEREOF, the parties hereto have executed this
Amendment or caused this Amendment to be executed by their
respective officers, duly authorized, effective on September 7,
1999.
THE REDEVELOPMENT AGENCY OF
THE CITY OF VERNON
By:
-` L ONIS C. MALB RG, Ch irman
ATTES .
BRUCE V. MALKENHORST, Secretary
APPROVED AS TO FORM:
X:��
DAVID B. BREARLEY, Legal Co sel
CITY OF VERNON
LEONIS C. MA BURG, VMayor
ATTEST:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
DAVID B. BREARLEY, City Attorney
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