Resolution No. 91741
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RESOLUTION NO. 9174
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
REDEVELOPMENT REVOLVING LOAN NO. 13 BETWEEN THE
CITY OF VERNON AND THE REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
WHEREAS, the City of Vernon by Resolution No. 9173 on
November 22, 2006, established the City of Vernon Revolving Fund; and
WHEREAS, pursuant to Health and Safety Code Section 33603,
the Redevelopment Agency of the City of Vernon (the "Agency") may
invest any money held in reserves or sinking funds, or any money not
required for immediate disbursement, in property or securities in
which savings banks may legally invest money subject to their control;
and
WHEREAS, the City is in the process of developing a natural
gas -fired combined cycle power plant located within City limits
officially named the Vernon Power Plant (the "VPP Project") for the
purpose of installing additional generating capacity that will yield
an efficient, cost-effective, and reliable source of electric
generation to the City; and
WHEREAS, the City and the Agency believe that a loan from
the Agency to the City would be an investment in the community served
by the Agency's Redevelopment Plan; and
WHEREAS, the City desires to use the investment funds loaned
by the Agency to develop the VPP Project provided that such funds as
may be loaned to the City for such purposes shall be repaid to the
Agency; and
WHEREAS, the Revolving Fund Loan Agreement No. 13 between
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the City and the Agency establishes the terms and conditions
applicable to the advance of up to Thirty Million Dollars and No Cents
($30,000,000.00) to the City from the Agency for investment purposes
regarding the development of the VPP Project, provided that such funds
shall be repaid to the Agency, with interest.
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 of funds from the Redevelopment
Fund to the City of Vernon Revolving Fund in the sum of Thirty Million
Dollars and No Cents ($30,000,000.00), to be utilized by the City for
the VPP Project.
SECTION 3: The City Council of the City of Vernon hereby
approves the Redevelopment Revolving Fund Loan No. 13 Agreement, in
substantially the same form as the copy which is attached hereto as
Exhibit A and incorporated by reference.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the Mayor to execute said Agreement for, and on behalf of,
the City of Vernon and the Acting City Clerk is hereby authorized to
attest thereto.
SECTION 5: The City Council of the City of Vernon hereby
authorizes the Acting City Clerk, or his designee, to make whatever
nonsubstantive, administrative and/or text changes, upon advice of
counsel, to the Agreement.
SECTION 6: The City Council of the City of Vernon hereby
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directs the Acting City Clerk, or his designee, to send an executed
Agreement to:
Redevelopment Agency of the City of Vernon
Attn: Acting Executive Director
4305 Santa Fe Avenue
Vernon, CA 90058
SECTION 7: The City Council of the City of Vernon hereby
authorizes the Acting City Clerk, or his designee, to execute any
documents or take any action deemed necessary to implement and carry
out the purposes of the Agreement.
SECTION 8: The Acting 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 22nd day of November, 2006.
�LEONIS C.URG, Mayor
ATTEST:
BRUCE V. LKENHORST, JR.
Acting City Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 9174, was duly adopted by the City Council of the City
of Vernon at a special meeting of the City Council duly held on
Wednesday, November 22, 2006, and thereafter was duly signed by the
Mayor of the City of Vernon.
BRUCE V. MALKENHORST, JR.
Acting City Clerk
(SEAL)
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EXHIBIT
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REDEVELOPMENT REVOLVING FUND LOAN NO. 13
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 22°d day of
November, 2006
BY AND BETWEEN
:WL9
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")
4305 Santa Fe Avenue
Vernon, California 90058
CITY OF VERNON, a Municipal
Corporation (hereinafter
referred to as "'CITY")
4305 Santa Fe Avenue
Vernon, California 90058
WHEREAS, the AGENCY has determined that an investment in the
community served by the Agency's Redevelopment Plan by loaning the
CITY funds to develop the Vernon Power Plant Project (hereinafter the
"Investment") is necessary and desirable for redevelopment purposes;
and
WHEREAS, at this time the necessary funds are not required
by the AGENCY for immediate disbursement and are needed by the CITY
for the purpose of the Investment; and
WHEREAS, the CITY has established the City of Vernon
Revolving Fund; and
I WHEREAS, the AGENCY deems it advisable to loan to the CITY
2 funds necessary for the Investment, subject to the terms and
3 conditions contained in this Agreement; and
4 WHEREAS, such funds as may be loaned to the CITY through the
5 City of Vernon Revolving Fund, as approved from time to time by the
6 City Council, shall be repaid to the AGENCY by the CITY within one (1)
7 year.
8 NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
9 SECTION 1: The foregoing recitals are true and correct and
10 constitute valid consideration for this Agreement.
11 SECTION 2: The AGENCY agrees to deposit up to the sum of
12 Thirty Million Dollars and No Cents ($30,000,000.00) into the City of
13 Vernon Revolving Fund and agrees that the CITY may withdraw said funds
14 and utilize same in the Investment, subject to the terms of this
15 Agreement.
16 SECTION 3: All sums as may be withdrawn by the CITY from
17 the City of Vernon Revolving Fund for the purpose of the Investment
18 shall bear interest at a rate per annum equal to five percent (50).
19 Such interest payable on the sums so advanced shall accrue and be
20 added to the principal amount of the loan, and all such amounts shall
21 bear interest at said rate and shall compound annually until repaid by
22 the CITY to the AGENCY.
23 SECTION 4: The loan from the AGENCY to the CITY as hereby
24 approved may be repaid from time to time, in whole or in part, at the
25 option of the CITY, within one (1) year of the date of this Agreement.
26 SECTION 5: The CITY and the AGENCY hereby acknowledge and
27 agree that the amounts which may hereafter be advanced by the AGENCY
28 to the CITY as necessary for the Investment pursuant to this Agreement
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I shall be considered as an investment of the AGENCY. The repayment
2 obligation of the CITY hereunder shall be made from the legally
3 available revenues of the CITY and any other funds of the CITY, if
4 any, and at the option of the CITY, legally available therefor.
5 SECTION 6: The sums advanced pursuant to this Agreement
6 shall be utilized by the CITY solely for the Investment.
7 SECTION 7: The CITY and the AGENCY hereby agree to execute
8 any and all ancillary documents as may reasonably be requested.
9 SECTION 8: 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 AGENCY the principal amount of the advances from the City of
14 Vernon Revolving Fund for the Investment, together with interest
15 thereon as evidenced by this Agreement but in no event shall such
16 repayment obligation extend for a duration of time in excess of that
17 provided in any applicable redevelopment plan, as now constituted or
18 as the same may hereafter be amended.
19 SECTION 9: 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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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, JR.
Acting City Clerk
APPROVED AS TO FORM:
BY: f_
ERIC T. FRESC , City Attorney
BY: - l/
BRUCE V. MALKENHORST, JR.
Acting Secretary
APPROVED
0 FORM:
J( Hattison for Karns
& rab n, Legal Counsel
CITY OF VERNON
LEONIS C. MA.BURG, Mayor
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY:r�e� �c
L ONIS C. MAL RG, airman
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REDEVELOPMENT REVOLVING FUND LOAN NO. 13
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 22nd day of
November, 2006
BY AND BETWEEN
110�
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")
4305 Santa Fe Avenue
Vernon, California 90058
CITY OF VERNON, a Municipal
Corporation (hereinafter
referred to as "CITY")
4305 Santa Fe Avenue
Vernon, California 90058
WHEREAS, the AGENCY has determined that an investment in the
community served by the Agency's Redevelopment Plan by loaning the
CITY funds to develop the Vernon Power Plant Project (hereinafter the
"Investment") is necessary and desirable for redevelopment purposes;
and
WHEREAS, at this time the necessary funds are not required
by the AGENCY for immediate disbursement and are needed by the CITY
for the purpose of the Investment; and
WHEREAS, the CITY has established the City of Vernon
Revolving Fund; and
WHEREAS, the AGENCY deems it advisable to loan to the CITY
funds necessary for the Investment, subject to the terms and
conditions contained in this Agreement; and
WHEREAS, such funds as may be loaned to the CITY through the
City of Vernon Revolving Fund, as approved from time to time by the
City Council, shall be repaid to the AGENCY by the CITY within one (1)
year.
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 AGENCY agrees to deposit up to the sum of
Thirty Million Dollars and No Cents ($30,000,000.00) into the City of
Vernon Revolving Fund and agrees that the CITY may withdraw said funds
and utilize same in the Investment, subject to the terms of this
Agreement.
L SECTION 3: All sums as may be withdrawn by the CITY from
the City of Vernon Revolving Fund for the purpose of the Investment
shall bear interest at a rate per annum equal to five percent (50).
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 CITY to the AGENCY.
SECTION 4: The loan from the AGENCY to the CITY as hereby
approved may be repaid from time to time, in whole or in part, at the
option of the CITY, within one (1) year of the date of this Agreement.
SECTION 5: The CITY and the AGENCY hereby acknowledge and
agree that the amounts which may hereafter be advanced by the AGENCY
to the CITY as necessary for the Investment pursuant to this Agreement
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shall be considered as an investment of the AGENCY. The repayment
obligation of the CITY hereunder shall be made from the legally
available revenues of the CITY and any other funds of the CITY, if
any, and at the option of the CITY, legally available therefor.
SECTION 6: The sums advanced pursuant to this Agreement
shall be utilized by the CITY solely for the Investment.
SECTION 7: The CITY and the AGENCY hereby agree to execute
any and all ancillary documents as may reasonably be requested.
SECTION 8: 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 AGENCY the principal amount of the advances from the City of
Vernon Revolving Fund for the Investment, 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 9: 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, JR.
Acting City Clerk
APPROVED AS TO FORM:
BY: r— -1�&
ERIC T. FRESC , City Attorney
BRUCE V. MALKENHORST, JR.
Acting Secretary
APPROVED AS( CPO FORM:
J¢' Ha��ison for Karns
& 'I�fl rab n, Legal Counsel
CITY OF VERNON
(LEONIS C. MALBURG, f-Mayor
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY:
LEONIS C. MALBQRG, Chairman
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