Resolution No. 8871
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RESOLUTION NO. 8871
A RESOLUTIO~ OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
REDEVELOPMENT REVOLVING FUND LOAN NO. 12 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 15,246 square feet (0.35 acres) of
unimproved land located at 3240 East Washington Boulevard in the City
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of Vernon, County of Los Angeles, State of California (hereinafter
"Property"); and
WHEREAS, Nocerine Family Trust, et al., owner of Property,
have 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;
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WHEREAS, the loan agreement between the City and the Agency
(hereinafter designated as Redevelopment Revolving Fund Loan No. 12)
appropriately establishes the terms and conditions applicable to the
advance of monies to the Agency for the acquisition of the Property.
1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
2 CITY OF VERNON AS FOLLOWS:
3 SECTION 1: The City Council of the City of Vernon hereby
4 finds and determines that the recitals contained hereinabove are true
5 and correct.
6 SECTION 2: The City Council of the City of Vernon hereby
7 approves and authorizes the transfer from the General Fund to the
8 Redevelopment Revolving Fund, up to the sum of Six Hundred Twenty-Eight
9 Thousand One Hundred Thirty-Six Dollars and No Cents ($628,136.00) to
10 be utilized by the Agency in the acquisition of the Property, including
11 the cost of the Property, relocation expenses, preliminary title
12 report, escrow fees, title insurance and other costs and expenses
13 incidental to and necessary for the acquisition of the Property.
14 SECTION 3: The City Council of the City of Vernon hereby
15 approves the Redevelopment Revolving Fund Loan No. 12, a copy of which
16 is attached hereto and incorporated herein by reference as Exhibit A.
17 SECTION 4: The City Council of the City hereby authorizes
18 the Mayor and the City Clerk to execute said Redevelopment Revolving
19 Fund Loan No. 12 for, and on behalf of, the City of Vernon.
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SECTION 5: The Acting City Clerk of the City of Vernon shall
2 certify to the passage of this resolution and thereupon and thereafter
3 the same shall be in full force and effect.
4 APPROVED AND ADOPTED this 12th day of October, 2005.
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~ EONIS C. > M~ BURG, Mayor
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1 STATE OF CALIFORNIA
2 COUNTY OF LOS ANGELES
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I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 8871, was duly adopted by the City Council of the City
of Vernon at an adjourned regular meeting of the City Council duly held
on Wednesday, October 12, 2005, and thereafter was duly signed by the
Mayor of the City of Vernon.
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13 (SEAL)
BRUCE V. MALKENHORST, JR.
Acting City Clerk
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EXHIBIT
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REDEVELOPMENT REVOLVING FUND LOAN NO. 12
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
hereof for all purposes, as of this 12th day of
7 as the original
8 October, 2005
9 BY AND BETWEEN
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AND
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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")
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RECITALS
WHEREAS, the AGENCY has determined that the acquisition of
real property consisting of approximately 15,246 square feet (0.35
acres) of unimproved land located at 3240 East 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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1 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 Six
15 Hundred Twenty-Eight Thousand One Hundred Thirty-Six Dollars and No
16 Cents ($628,136.00) into the Redevelopment Revolving Fund and agrees
17 that the AGENCY may withdraw said funds and utilize same in the
18 acquisition of the Property, 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
26 revenues pursuant to Health and Safety Code Section 33670, in whole or
27 in part, for the repayment of the obligations of the AGENCY as
28 evidenced by this Agreement shall first be applied to the accrued and
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1 unpaid interest on the loan, and any additional amounts of tax
2 increment revenues thereafter remaining shall be applied to the
3 outstanding principal balance thereof.
4 SECTION 4: The loan from the CITY to the AGENCY as hereby
5 approved may be repaid from time to time, in whole or in part, at the
6 option of the AGENCY, solely from the tax increment revenues, if any,
7 if and when tax increment revenues shall be available and paid to the
8 AGENCY for such purpose pursuant to Health and Safety Code Section
9 33670(b).
10 SECTION 5: The AGENCY and the CITY hereby agree that any
11 repayment obligation of the AGENCY with respect to the loan as may
12 hereafter be funded by the CITY from time to time shall at all times
13 be subordinated to any and all other outstanding, or as hereafter may
14 be outstanding, bonds, notes or other forms of indebtedness payable in
15 whole or in part from the tax increment revenues of the AGENCY and
16 shall not constitute a prior lien as to either the tax increment
17 revenues received by the AGENCY or any other legally available funds
18 of the AGENCY.
19 SECTION 6: The CITY and the AGENCY hereby acknowledge and
20 agree that the amounts which may hereafter be advanced by the CITY to
21 the AGENCY as necessary to acquire the Property pursuant to this
22 Agreement shall be considered as an indebtedness of the AGENCY as the
23 same is intended for purposes of the filing of a Statement of
24 Indebtedness with the County of Los Angeles pursuant to Health and
25 Safety Code Section 33675. The repayment obligation of the AGENCY
26 hereunder shall be made from the legally available tax increment
27 revenues of the AGENCY and any other funds of the AGENCY, if any, and
28 at the option of the AGENCY, legally available therefor.
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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 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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25 BY:
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. MALBURG, Mayor
ATTEST:
BY:
BRUCE V. MALKENHORST, JR.
Acting City Clerk
APPROVED AS TO FORM:
BY:
ERIC T. FRESCH, City Attorney
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY:
LEONIS C. MALBURG, Chairman
BY:
BRUCE V. MALKENHORST, JR.
Acting Secretary
APPROVED AS TO FORM:
Jeff Harrison for Karns
26 & Karabian, Legal Counsel
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I REDEVELOPMENT REVOLVING FUND LOAN NO. 12
BY AND BETWEEN
2 THE CITY OF VERNON, CALIFORNIA
AND
3 THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON
4
5 THIS AGREEMENT is made, entered into and executed in
6 duplicate originals, either copy of which may be considered and used
7 as the original hereof for all purposes, as of this 12th day of
8 October, 2005
9 BY AND BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF VERNON, A Public
10 Body, Corporate and Politic,
11 duly created and established
pursuant to the Community
Redevelopment Law of the State
12 of California (hereinafter
13 referred to as "AGENCY")
AND THE CITY OF VERNON, a
14 Municipal Corporation, whose
15 address is 4305 Santa Fe
Avenue, Vernon, California
90058-0805 (hereinafter
16 referred to as "CITY")
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RECITALS
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19 WHEREAS, the AGENCY has determined that the acquisition of
20 real property consisting of approximately 15, 246 square feet (0 . 35
21 acres) of unimproved land located at 3240 East Washington Boulevard in
22 the City of Vernon, County of Los Angeles, State of California
23 (hereinafter "Property") is necessary and desirable for the
24 elimination of blight or for redevelopment purposes; and
25 WHEREAS, at this time the necessary acquisition funds are not
26 otherwise available to the AGENCY for the purpose of acquiring the
27 Property; and
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1 WHEREAS, the CITY has established the Redevelopment Revolving
2 Fund pursuant to the provisions of Health and Safety Code Section
3 33620, et sec. . ; 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 l : 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 Six
15 Hundred Twenty-Eight Thousand One Hundred Thirty-Six Dollars and No
16 Cents ($628, 136. 00) into the Redevelopment Revolving Fund and agrees
17 that the AGENCY may withdraw .said funds and utilize same in the
18 acquisition of the Property, 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 (50) . 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
26 revenues pursuant to Health and Safety Code Section 33670, in whole or
27 in part, for the repayment of the obligations of the AGENCY as
28 evidenced by this Agreement shall first be applied to the accrued and
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I unpaid interest on the loan, and any additional amounts of tax
2 increment revenues thereafter remaining shall be applied to the
3 outstanding principal balance thereof.
4 SECTION 4 : The loan from the CITY to the AGENCY as hereby
5 approved may be repaid from time to time, in whole or in part, at the
6 option of the AGENCY, solely from the tax increment revenues, if any,
7 if and when tax increment revenues shall be available and paid to the
8 AGENCY for such purpose pursuant to Health and Safety Code Section
9 33670 (b) .
10 SECTION 5: The AGENCY and the CITY hereby agree that any
11 repayment obligation of the AGENCY with respect to the loan as may
12 hereafter be funded by the CITY from time to time shall at all times
13 be subordinated to any and all other outstanding, or as hereafter may
14 be outstanding, bonds, notes or other forms of indebtedness payable in
15 whole or in part from the tax increment revenues of the AGENCY and
16 shall not constitute a prior lien as to either the tax increment
17 revenues received by the AGENCY or any other legally available funds
18 of the AGENCY.
19 SECTION 6: The CITY and the AGENCY hereby acknowledge and
20 agree that the amounts which may hereafter be advanced by the CITY to
21 the AGENCY as necessary to acquire the Property pursuant to this
22 Agreement shall be considered as an indebtedness of the AGENCY as the
23 same is intended for purposes of the filing of a Statement of
24 Indebtedness with the County of Los Angeles pursuant to Health and
25 Safety Code Section. 33675. The repayment obligation of the AGENCY
26 hereunder shall be made from the legally available tax increment
27 revenues of the AGENCY and any other funds of the AGENCY, if any, and
28 at the option of the AGENCY, legally available therefor.
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I 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 execute
5 any and all ancillary documents as may reasonably be requested by any
6 bondholder or other purchaser of bonds, notes or other forms of
7 indebtedness of the AGENCY for which the tax increment revenues of the
8 AGENCY have been or as may be hereafter be pledged therefor.
9 SECTION 9: This Agreement shall take effect from and after
10 the date of adoption and approval by the CITY and the AGENCY pursuant
11 to official action of the governing bodies thereof and shall be
12 effective for a duration not to exceed the time as necessary to repay
13 fully the CITY the principal amount of the advances from the
14 Redevelopment Revolving Fund for the acquisition of the Property,
15 together with interest thereon as evidenced by this Agreement but in
16 no event shall such repayment obligation extend for a duration of time
17 in excess of that provided in any applicable redevelopment plan, as
18 now constituted or as the same may hereafter be amended.
19 SECTION 10: This Agreement is the entire agreement of the
20 parties. The AGENCY represents that in entering into this Agreement,
21 it has not relied on any previous representations or understandings of
22 any kind .or nature.
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1 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
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7 JIIEONIS C. MAL$URG, M yor
8 ATTEST:
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10 BY:
BRUCE V. MALKENHORST, JR.
11 Acting City Clerk
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APPROVED AS TO FORM:
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14 BY: e-=
15 ERIC T. FRE CH, City Attorney
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REDEVELOPMENT AGENCY OF THE
17 CITY OF VERNON
18 BY:
L .ONIS C. MALBU ,G, Chai man
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20 BY:
21 BRU MALKENHORST, JR.
Acting Secretary
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23 APPROVED AS TO FORM:
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25 BY: _.
J arrison for Karns
26 & YXb ian, Legal Counsel
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