Resolution No. 81861
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RESOLUTIO14 NO. 8186
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. 8 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 a building on real
property consisting of approximately 109,771 square feet/2.52 acres
located at 2900-3000 E. 50th Street in the City of Vernon, County of Los
Angeles, State of California (commonly known as the South Side of East
50th Street), legally described on Exhibit "A" attached hereto and
incorporated herein by this reference (hereinafter referred to as the
1"Property"); and
WHEREAS, Owens -Brockway Glass Container, Inc., owner of
Property, has agreed to sell the Property to the Agency on negotiated
terms, which the Agency has determined to be fair and reasonable; 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
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WHEREAS, on August 17, 1999, the City Council adopted
Ordinance No. 1076, which established a special parcel tax that would
raise revenues for, among other things, the acquisition of real
11property; and
WHEREAS, the loan agreement between the City and the Agency
(hereinafter designated as Redevelopment Revolving Fund Loan No. 8)
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:
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 Special Parcel Tax Fund
in the General Fund to the Redevelopment Revolving Fund, up to the sum
of Two Million Twenty Thousand Dollars and No Cents ($2,020,000.00) to
be utilized by the Agency in the acquisition of the Property, including
the cost of the Property, relocation expenses, preliminary title
report, escrow fees, title insurance and other costs and expenses
incidental to and necessary for the acquisition of the Property.
SECTION 3: The City Council of the City of Vernon hereby
approves the Redevelopment Revolving Fund Loan No. 8, a copy of which
is attached hereto and incorporated herein by this reference as Exhibitl',
%%B...
SECTION 4: The City Council of the City hereby authorizes
the Mayor and the City Clerk to execute said Redevelopment Revolving
Fund Loan No. 8 for, and on behalf of, the City of Vernon.
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w
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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 in full force and effect.
APPROVED AND ADOPTED this 16th day of April, 2003.
ATTESTT
RUCE V. MALKENHORST, City C er
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EONIS C. URG, Mayor
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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.
8186, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, April 16,
2003, and thereafter was duly signed by the Mayor of the City of
Vernon.
(SEAL)
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BRUCE V. MALKENHORST, City Clerk
EXHIBIT
VI&
LEGAL DESCRIPTION
AFTER LOT LINE ADJUSTMENT
I Z'j lcm
THAT PORTION OF LOT 31 OF THE 500 ACRE TRACT OF THE LOS ANGELES FRUIT LAND
ASSOCIATION, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA, AS PER MAP RECORDED IN BOOK 3, PAGES 156 AND 157 OF MISCELLANEOUS
RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS
FOLLOWS:
BOUNDED NORTHERLY BY A LINE WHICH IS 20.00 FEET SOUTHERLY OF AND PARALLEL
WITH THE CENTER LINE OF EAST 50TH STREET, AND BOUNDED SOUTHERLY BY THE
NORTHERLY RIGHT OF WAY LINE OF THE LOS ANGELES JUNCTION RAILWAY, 17 FEET IN
WIDTH, AS DESCRIBED IN THE DEED TO CENTRAL MANUFACTURING DISTRICT, INC.,
RECORDED IN BOOK 4752 PAGE 265 OF OFFICIAL RECORDS, IN SAID RECORDER'S OFFICE,
AND BOUNDED WESTERLY BY A LINE WHICH IS PARALLEL WITH AND 386.70 FEET
WESTERLY OF THE EAST LINE OF SAID LOT 31, AND BOUNDED EASTERLY BY THE EAST
LINE OF SAID LOT 31.
CONTAINING AN AREA OF
2.672 ACRES, MORE OR LESS
Ex HIBIIT
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REDEVELOPMENT REVOLVING FUND LOAN NO. 8
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, as of this 16th day of April,
2003
BY AND BETWEEN
AND
RECITALS
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")
WHEREAS, the AGENCY has determined that the acquisition of
real property consisting of approximately 109,771 square feet/2.52
acres located at 2900-3000 E. 501h Street in the City of 'Vernon,
County of Los Angeles, State of California, commonly known as the
South Side of East 50th Street (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
t
I WHEREAS, the CITY has established the Redevelopment Revolving
2 Fund pursuant to the provisions of Health and Safety Code Section
3 33620, et seq.; and
4 WHEREAS, the CITY deems it advisable to loan to the AGENCY
5 city funds necessary to acquire the Property, subject to the terms and
6 conditions contained in this Agreement; and
7 WHEREAS, such funds as may be loaned to the AGENCY through
8 the Redevelopment Revolving Fund, as approved from time to time by the
9 City Council, shall be repaid to the CITY if and when tax increment
10 revenues shall be available to the AGENCY.
11 NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
12 SECTION 1: The foregoing recitals are true and correct and
13 constitute valid consideration for this Agreement.
14 SECTION 2: The CITY agrees to deposit up to the sum of Two
15 Million Twenty Thousand Dollars and No Cents ($2,020,000.00) into the
16 Redevelopment Revolving Fund and agrees that the AGENCY may withdraw
17 said funds and utilize same in the acquisition of the Property,
18 subject to the terms of this Agreement.
19 SECTION 3: All sums as may be withdrawn by the AGENCY from
20 the Redevelopment Revolving Fund for the purpose of acquiring the
21 Property shall bear interest at a rate per annum equal to five percent
22 (5%). Such interest payable on the sums so advanced shall accrue and
23 be added to the principal amount of the loan, and all such amounts
24 shall bear interest at said rate and shall compound annually until
25 repaid by the AGENCY to the CITY. All payments of tax increment
revenues pursuant to Health and Safety Code Section 33670, in whole or
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in part, for the repayment of the obligations of the AGENCY as
27 evidenced by this Agreement shall first be applied to the accrued and
28 unpaid interest on the loan, and any additional amounts of tax
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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
11 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.'
SECTION 7: The sums advanced pursuant to this Agreement
shall be utilized by the AGENCY solely for the acquisition of the
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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 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.
SECTION 10: This Agreement is the entire agreement of the
parties. The AGENCY represents that in entering into this Agreement,
it has not relied on any previous representations or understandings of
any kind or nature.
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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.
ATTEST:
BY:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
BY:
EDUARDO OLIVO, City Attorney
APPROVED AS TO FORM:
BY:
EDUARDO OLIVO, Legal Counsel
CITY OF VERNON
BY:
LEONIS C. MALBURG, Mayor
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY•
LEONIS C. MALBURG, Chairman
BY:
BRUCE V. MALKENHORST, Secretary
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SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro —Tern
WM. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
City Council
City of Vernon
Honorable Members:
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
April 10, 2003
EDUARDO OLIVO
City Attorney
FAX: (562) 869-1883
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
V47
O0
At this time the Redevelopment Agency is considering the Sale and
Purchase of certain property in the Agency's Project Area. This has
been reviewed by the City Attorney and in order for the Agency to
proceed it is hereby recommended that the following actions be
approved:
• Transfer of Funds to the Redevelopment Revolving Fund;
• Payment of Monies in the Redevelopment Revolving Fund to the
Redevelopment Agency of the City of Vernon; and
• Execution of Redevelopment Revolving Fund Loan No. 8 between
the City of Vernon and the Redevelopment Agency of the City
of Vernon
Very truly yours,
v.
ce V. Malken rst
City Administra or/City Clerk
BVM/gm
I
CITY COUNCIL
LEONIS JC. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
April 10, 2003
Mr. Bruce V. Malkenhorst
City Administrator/City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058
EDUARDO OLIVO
City Attorney
FAX: (562) 869-1883
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
Re: Owens -Brockway Glass Container, Inc. - Purchase of
Real Property
Dear Bruce:
As you know, we have been negotiating a purchase and sale
agreement with Owens -Brockway Glass Container, Inc. for real
property located at 2900-3000 E. 50t" Street. The property will
be used, in part, as a temporary laydown area for the Malburg
Generating Station Project.
Staff has now negotiated acceptable terms and conditions
for an agreement and I have recommended that an Agreement to
Purchase and Sell Real Estate and Escrow Instructions be put on
the Redevelopment Agency agenda for consideration at the
April 16, 2003, meeting.
In addition, the City Council of the City of Vernon needs
to approve and authorize the transfer of funds from the Light
and Power Fund to the Redevelopment Revolving Fund to allow the
Agency to acquire the property.
Both the Agency and the City Council need to approve and
authorize the execution of Redevelopment Revolving Fund Loan No.
8 to effectuate the sale.
0
Mr. Bruce V. Malkenhorst
April 10, 2003
Page 2
I have prepared the appropriate resolutionsapprovingthe
execution of the Agreements.
If you have any questions or comments, please contact me.
�Ve-rry truly your
Eduardo Olivo
City Attorney
EO.jl
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REDEVELOPMENT REVOLVING FUND LOAN NO. 8
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, as of this 16th day of April,
2003
BY AND BETWEEN
RECITALS
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")
WHEREAS, the AGENCY has determined that the acquisition of
real property consisting of approximately 109,771 square feet/2.52
acres located at 2900-3000 E. 50th Street in the City of Vernon,
County of Los Angeles State of California, commonly known as the
South Side of East 50th Street (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
I WHEREAS, the CITY has established the Redevelopment Revolving
2 Fund pursuant to the provisions of Health and Safety Code Section
3 33620, et seq.; and
4 WHEREAS, the CITY deems it advisable to loan to the AGENCY
5 city funds necessary to acquire the Property, subject to the terms and
6 conditions contained in this Agreement; and
7 WHEREAS, such funds as may be loaned to the AGENCY through
8 the Redevelopment Revolving Fund, as approved from time to time by the
9 City Council, shall be repaid to the CITY if and when tax increment
10 revenues shall be available to the AGENCY.
11 NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
12 SECTION 1: The foregoing recitals are true and correct and
13 constitute valid consideration for this Agreement.
14 SECTION 2: The CITY agrees to deposit up to the sum of Two
15 Million Twenty Thousand Dollars and No Cents ($2,020,000.00) into the
16 Redevelopment Revolving Fund and agrees that the AGENCY may withdraw
17 said funds and utilize same in the acquisition of the Property,
18 subject to the terms of this Agreement.
19 SECTION 3: All sums as may be withdrawn by the AGENCY from
20 the Redevelopment Revolving Fund for the purpose of acquiring the
21 Property shall bear interest at a rate per annum equal to five percent
22 (5%). Such interest payable on the sums so advanced shall accrue and
23 be added to the principal amount of the loan, and all such amounts
shall bear interest at said rate and shall compound annually until
24
repaid by the AGENCY to the CITY. All payments of tax increment
25
revenues pursuant to Health and Safety Code Section 33670, .in whole or
26
in part, for the repayment of the obligations of the AGENCY as
27 evidenced by this Agreement shall first be applied to the accrued and
28 unpaid interest on the loan, and any additional amounts of tax
2
I increment revenues thereafter remaining shall be applied to the
2 outstanding principal balance thereof.
3 SECTION 4: The loan from the CITY to the AGENCY as hereby
4 approved may be repaid from time to time, in whole or in part, at the
5 option of the AGENCY, solely from the tax increment revenues, if any,
6 if and when tax increment revenues shall be available and paid to the
7 AGENCY for such purpose pursuant to Health and Safety Code Section
8 33670(b).
9 SECTION 5: The AGENCY and the CITY hereby agree that any
10 repayment obligation of the AGENCY with respect to the loan as may
11 hereafter be funded by the CITY from time to time shall at all times
12 be subordinated to any and all other outstanding, or as hereafter may
13 be outstanding, bonds, notes or other forms of indebtedness payable in
14 whole or in part from the tax increment revenues of the AGENCY and
15 shall not constitute a prior lien as to either the tax increment
16 revenues received by the AGENCY or any other legally available funds
17 of the AGENCY.
18 SECTION 6: The CITY and the AGENCY hereby acknowledge and
19 agree that the amounts which may hereafter be advanced by the CITY to
20 the AGENCY as necessary to acquire the Property pursuant to this
21 Agreement shall be considered as an indebtedness of the AGENCY as the
22 same is intended for purposes of the filing of a Statement of
23 Indebtedness with the County of Los Angeles pursuant to Health and
24 Safety Code Section 33675. The repayment obligation of the AGENCY
hereunder shall be made from the legally available tax increment
25
revenues of the AGENCY and any other funds of the AGENCY, if any, and
26
at the option of the AGENCY, legally available therefor.
27
SECTION 7: The sums advanced pursuant to this Agreement
28 shall be utilized by the AGENCY solely for the acquisition of the -
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I Property and necessary expenses and costs incidental thereto.
2 SECTION 8: The CITY and the AGENCY hereby agree to execute
3 any and all ancillary documents as may reasonably be requested by any
4 bondholder or other purchaser of bonds, notes or other forms of
5 indebtedness of the AGENCY for which the tax increment revenues of the
6 AGENCY have been or as may be hereafter be pledged therefor.
7 SECTION 9: This Agreement shall take effect from and after
8 the date of adoption and approval by the CITY and the AGENCY pursuant
9 to official action of the governing bodies thereof and shall be
10 effective for a duration not to exceed the time as necessary to repay
11 fully the CITY the principal amount of the advances from the
12 Redevelopment Revolving Fund for the acquisition of the Property,
13 together with interest thereon as evidenced by this Agreement but in
14 no event shall such repayment obligation extend for a duration of time
15 in excess of that provided in any applicable redevelopment plan, as
16 now constituted or as the same may hereafter be amended.
17 SECTION 10: This Agreement is the entire agreement of the
18 parties. The AGENCY represents that in entering into this Agreement,
19 it has not relied on any previous representations or understandings of
any kind or nature.
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I IN WITNESS WHEREOF, the parties hereto have executed this
2 Agreement or caused this Agreement to be executed by their respective
3 officers, duly authorized, as of this date, month and year first above
4 written.
5 CITY OF VERNON
6
7 Nam,. L .ONIS C. MAL URG, M yor
8 ATTEST:
10 BY: jam✓ '',
BRUCE V. MALKENHORST, City Clerk
11
12 APPROVED AS TO FORM:
13
BY. _C'A'
14 EDUARDO OLIVO, City At hey
15 REDEVELOPMENT AGENCY OF THE
16 CITY OF VERNON
17 BYi-/'�'�.�
-- L ONIS C. MAL RG, Chairman
18
19 BY:
20 BRUCE V. MALKENHORST, Secretary
21
APPROVED AS TO FORM:
22
23 BY:
24 EDUARDO OLIVO, Legal Counsel
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