HomeMy WebLinkAboutResolution 1999-050 RESOLUTION NO. 1999-050
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO
AUTHORIZING THE LOAN OF MONIES TO THE CITY OF ATASCADERO
REDEVELOPMENT AGENCY AND THE EXECUTION OF AN AGREEMENT IN
CONNECTION THEREWITH
WHEREAS, the City of Atascadero has determined that in order for the City of
Atascadero Redevelopment Agency to carry out its redevelopment activities for Project Area
duly established, it is necessary that the City assist in funding the activities of the City of
Atascadero Redevelopment Agency until such time that tax increments are available for the
support of the redevelopment function; and
WHEREAS, it is the understanding of the City Council that such loans would be repaid
out of tax increment funds as such funds become available to the Agency pursuant to the terms of
a Short Term Loan Agreement between the Agency and the City which Agreement is attached
hereto and made a part hereof as Exhibit A; and
WHEREAS, it is the understanding of the City Council that the Agency has agreed to
borrow such funds pursuant to certain terms and conditions as set forth in the Short Term Loan
Agreement; and
WHEREAS, it is the understanding of the City Council that the Agency will reimburse
the City of Atascadero,out of tax increments, for all costs incurred for the benefit of the Agency,
pursuant to the terms of the Short Term Loan Agreement, Exhibit A.
NOW, THEERFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO
DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That the City Council of the City of Atascadero agrees to loan the
Atascadero Redevelopment Agency the amount not to exceed $161,909.
SECTION 2. That the City Council hereby authorized the Mayor of the City of
Atascadero to execute the Repayment Agreement on behalf of the City of Atascadero.
On motion by Mayor Pro Tem Arrambide and seconded by Council Member Luna, the foregoing
resolution is hereby adopted in its entirety the following call vote:
AYES: Council Members Arrambide, Clay, Lerno, Luna and Mayor Johnson
NOES: None
ABSENT: None
ADOPTED: August 10, 1999
City of Ataseadero
Resolution No. 1999-050
Page 2
VJosoDERO
ATTEST: '
Marcia McClure Torgerson, City ClVrk
Approved as to form:
Roy Hanley, City Attor y
Exhibit: A
Atascadero City Council
Resolution 1999-050
SHORT TERM LOAN AGREEMENT
Between
THE REDEVELOPMENT AGENCY OF THE CITY OF ATASCADERO
a California public agency
And
THE CITY OF ATASCADERO
a California municipal corporation
[Dated as of August 10, 1999.for reference purposes only.]
SHORT TERM LOAN AGREEMENT
1. PARTIES AND EFFECTIVE DATE
1.1 Parties to this Agreement. The parties to this Short Term Loan Agreement
("Agreement") are (i) The Redevelopment Agency of the City of Atascadero ("Agency"). A
California public agency, and (ii) The City of Atascadero ("City"), a California municipal
corporation. This Agreement is dated as of August 10, 1999, for reference purposes only. This
Agreement will not become effective until the Effective Date described in Section 1.2 below.1
1.2 Effective Date. This Agreement will not become legally effective or binding
until the date ("Effective Date") on which this Agreement has been approved by the City Council
and the Agency's governing board and executed by the City's and Agency's duly authorized
representatives and shall be in effect for a period of one (1) year from effective date, unless
extended or amended.
2. RECITALS.
2.1 The Agency is authorized pursuant to Sections 33132 and 33601 of the California
Community Redevelopment Law (Health & Safety Code Section 33000, et. seq.) to accept
financial assistance from other public agencies. In order to meet its administrative and certain
other operating expenses, the Agency has sought financial assistance from the City in the form of
a loan ("Loan"), in the principal amount not to exceed one hundred sixty-one thousand nine
hundred and nine dollars ($161,909) or such other amount as the City and Agency may agree.
The Agency has agreed to provide such financial assistance on the terms of this Agreement. The
Agency's obligations under this Agreement shall constitute an indebtedness of the Agency for
the purposes of Health& Safety Code Section 33675.
�.All Section references shall be to Sections of this Agreement,unless otherwise stated.
Short Term Loan Agreement
A'tascadero Redevelopment Agency&
City of Atascadero
Page 2
3. TERMS.
3.1 Disbursement of Funds. The City agrees to disburse to the Agency such
portions of the Loan as the Agency may from time to time request, principal not to exceed one
hundred sixty-one thousand nine hundred and nine dollars ($161,909) or such other amount as
the Agency and the City may agree, in the aggregate.
The aggregate of all sums disbursed, together with the accrued interest thereon, and any
previous advances or loans provided by City to Agency shall be deemed to be the "Loan."
Each disbursement and any accrued interest thereon shall commence to accrue interest at
a rate equal to the average return received by the City, from the date of disbursement (or date
incurred) until paid.
3.2 Repayment. The Agency agrees to repay the Loan from the City in an amount
not to exceed the total amount advanced plus accrued interest. The Loan shall bear interest at the
rate equal to the Local Agency Investment Fund plus three percent (3%). The Loan shall bear
interest from the date that loan funds are drawn by the Agency. Principal and accrued interest
shall be repaid solely from tax increment funds generated within the respective Project Area. It
is understood that in the event such tax increment revenues fail to yield enough revenue to repay
these obligations, the Agency is under no obligation to the City to make such repayment from
any further funds or resources it may acquire, however, the Agency may repay loan, in part or in
full, from the proceeds of tax increment revenue bond proceeds.
In the event that the City authorizes any future loan(s), such loan(s) shall become a debt
of the Agency.
It is understood by the Agency and the City that such repayment shall be a debt of the
Agency and shall be repaid solely from tax increments generated within the respective project
areas.
Short Term Loan Agreement.
Atascadero Redevelopment Agency&
City of Atascadero
Page 3
3.3 Repayment Subordination. It is agreed by the parties hereto that the repayment
to the City pursuant to this Agreement is hereby subordinated to any and all payments necessary
to satisfy the Agency's obligations in connection with any existing or future bonded
indebtedness or obligation which may be incurred by the Agency for the benefit of the
Atascadero Redevelopment Plan or to the extent necessary for any bonded indebtedness for
which the Agency has pledged as security or source of repayment tax increment generated within
the Project Area.
3.4 No Third Party Beneficiaries. . This Agreement is for the sole and exclusive
benefit of the Agency and the City.. No person or entity not a party to this Agreement is intended
to be benefited by any provision of this Agreement and no person or entity not a party to this
Agreement shall have any rights, causes of action, or claims against either the Agency or the City
due to the fact either the Agency's and/or the City's entry into and performance or non-
performance pursuant to this Agreement.
3.5 Counterpart Originals. This Agreement may be executed in two (2) counterpart
originals, each of which shall be deemed to be an original, but, when taken together, shall
constitute one and the same instrument.
THE REDEVELOPMENT AGENCY
THE CITY OF ATASCADERO OF THE CITY OF ATASCADERO
A California municipal corporation A California public agency
By By
Ray Jo s 4ni Wade McKinney
Mayor Executive Director