Resolution No. 74144 �
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
. RESOLUTION NO. 7414
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 NO. 5 AGREEMENT 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, as amended by Resolution No.
7408, 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
develop and rehabilitate the property located at 4700 South Boyle
Avenue, in the City of Vernon, in order to eliminate blight and
for carrying out redevelopment purposes; 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 City and the
Agency (hereinafter designated as Redevelopment Revolving Fund
Loan No. 5) appropriately establishes the terms and conditions
applicable to the advance of monies to the Agency for the
acquisition of the Property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
l
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby approves and authorizes the transfer from the General Fund
to the Redevelopment Revolving Fund, the sum of Three Million
Dollars and No Cents ($3,000,000.00) to be utilized by the Agency
in aiding in the relocation of site occupants and preparation of
any project area for redevelopment.
SECTION 3: The City hereby approves the Redevelopment
Revolving Fund Loan No. 5, 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.
5 to 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
Redevelopment Revolving Fund Loan No. 5 for, and on behalf of,
the City of Vernon.
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 21st day of September, 1999.
HOMAS A. YB , Mayor Pro Tem
ATTEST: r
BRUCE V. MALKENHORST, City Clerk
00M
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
4.1
STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 7414, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
on Tuesday, September 21, 1999, and thereafter was duly signed by
the Mayor Pro Tem of the City of Vernon.
G'
( SEAL)
4.7195.res
BRUCE V. MALKENHORST, City Clerk
-3 -
SUPPORTING
DOCUMENTS
OFFICE OF THE CITY ADMINISTRATOR/CITY CLERK
INTER -OFFICE MEMORANDUM
TO: Kevin Wilson, Director of Community Services
Sharon Johnson, Deputy City Treasurer
FROM: Gloria J. Oros o C of Deputy City Clerk
DATE: September 28, 1999
RE: Redevelopment Revolving Fund Loan No. 5 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 agreement
which was approved by City Council through Resolution No. 7414
and the Directors of the Redevelopment Agency through Resolution
No. RA-157 on September 21, 1999.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
2E
27
2E
REDEVELOPMENT REVOLVING FUND LOAN NO. 5
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 _ day of
September, 1999,
BY AND BETWEEN
AND
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")
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 development
and rehabilitation of the property located at 4700 South Boyle
Avenue, in the City of Vernon, is necessary and desirable for the
elimination of blight or for redevelopment purposes; and
WHEREAS, at this time, the necessary funds are not
otherwise available to the AGENCY for the aiding in relocation of
site occupants and preparation of any project area for
redevelopment; and
WHEREAS, by Resolution No. 5724, as amended by Resolution
No. 7408, the CITY has established the Redevelopment Revolving
Fund pursuant to the provisions of Health and Safety Code Section
33620, et sea.; and
1 WHEREAS, the CITY deems it advisable to.loan to the
2 AGENCY funds necessary to aid in the relocation of site occupants
3 and preparation of the project area for redevelopment subject to
4 the terms and conditions contained in this Agreement;. and
5 WHEREAS, such funds as may be loaned to the AGENCY
6 through the Redevelopment Revolving Fund, as approved from time to
7 time by the City Council, shall be repaid to the CITY if and when
8 tax increment revenues shall be available to the AGENCY.
9 NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
10 SECTION 1: The foregoing recitals are true and correct
11 and constitute valid consideration for this Agreement.
12 SECTION 2: The CITY agrees to deposit the sum of Three
13 Million Dollars and No Cents ($3,000,000.00) into the
14 Redevelopment Revolving Fund and agrees that the AGENCY may
15 withdraw said funds and utilize same in aiding in the relocation
16 of site occupants and the preparation of the project area for
17 redevelopment, subject to the terms of this Agreement.
18 SECTION 3: All sums as may be withdrawn by the AGENCY
19 from the Redevelopment Revolving Fund for the purpose of aiding in
20 the relocation of site occupants and preparation of the project
21 area for redevelopment shall bear interest at a rate of interest
22 per annum equal to five percent (5%). Such interest payable on
23 the sums so advanced shall accrue and be added to the principal
24 amount of the loan, and all such amounts shall bear interest at
25 said rate and shall compound annually until repaid by the AGENCY
26 to the CITY. All payments of tax increment revenues pursuant to
27 Health and Safety Code Section 33670, in whole or in part, for the
28 repayment of the obligations of the AGENCY as evidenced by this
-2-
1 Agreement shall first be applied to the accrued and unpaid
2 interest on the loan, and any additional am6unts of tax increment
31 revenues thereafter remaining shall be applied to the outstanding
4 principal balance thereof.
5 SECTION 4: The loan from the CITY to the AGENCY as hereby
6 approved may be repaid from time to time, in whole or in part, at
7 the option of the AGENCY, solely from the tax increment revenues,
8 if any, if and when tax increment revenues shall be available and
9 paid to the AGENCY for such purpose pursuant to Health and Safety
10 Code Section 33670(b).
11 SECTION 5: The AGENCY and the CITY hereby agree that any
12 repayment obligation of the AGENCY with respect to the loan as may
13
hereafter
be funded by the CITY from
time to time shall
at
all
14
times be
subordinated to any and all
other outstanding,
or
as
15 hereafter may be outstanding, bonds, notes or other forms of
16 indebtedness payable in whole or in part from the tax increment
17 revenues of the AGENCY and shall not constitute a prior lien as to
18 either the tax increment revenues received by the AGENCY or any
19 other legally available funds of the AGENCY.
20 SECTION 6: The CITY and the AGENCY hereby acknowledge and
21 agree that the amounts which may hereafter be advanced by the CITY
22 to the AGENCY as necessary to aid in the relocation of site
23 occupants and preparation of the project area for redevelopment
24 pursuant to this Agreement shall be considered as an indebtedness
25 of the AGENCY as the same is intended for purposes of the filing
26 of a Statement of Indebtedness with the County of Los Angeles
27 pursuant to Health and Safety Code Section 33675. The repayment
28 obligation of the AGENCY hereunder shall be made from the legally
-3-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
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.
SECTION 7: The sums advanced pursuant to this Agreement
shall be utilized by the AGENCY solely for aiding in the
relocation of site occupants and preparation of the project area
for redevelopment 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 aiding in the
relocation of site occupants and preparation of the project area
for redevelopment, 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.
-4-
1 IN WITNESS WHEREOF, the parties hereto have executed this
2 Agreement or caused this Agreement to be executed by their
3 respective officers, duly authorized, as of this date, month and
411 year first above written.
CITY OF VERNON
5
6 BY : �--
THOMAS A.*BA , Mayor Pro T
7
ATTEST:
8
BY:
9 BRUCE V. MALKENHORST, City Clerk
10 APPROVED AS TO FORM:
11 BY:
EDUARDO OLIVO,
12 Assistant City Attorney
13
14
15
16
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
� — n
BY:
BY:
Secretary
17
18 APPROVED AS TO FORM:
19 BY:
EDUARDO OLIVO for
20 DAVID B. BREARLEY, Legal Counsel
21
22
23
24
25
26
27
28
-5-