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HomeMy WebLinkAboutResolution 2001-017 RESOLUTION NO. 2001-017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA APPROVING A LOAN AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF ATASCADERO, CALIFORNIA FOR THE PAYMENT OF AGENCY ADMINISTRATIVE AND OTHER EXPENSES WHEREAS, the Redevelopment Agency of the City of Atascadero (the "Agency") is a public body, corporate and politic, duly created, established and authorized to transact business and exercise its powers under and pursuant to the California Community Redevelopment Law, California Health and Safety Code, Section 33000, et seq. (the "CRL"); and WHEREAS, the City of Atascadero ("City") has adopted a redevelopment plan ("Redevelopment Plan") for a redevelopment project area known as the Atascadero Redevelopment Project Area ("Project Area") through the enactment of Ordinance No. 362, on July 6, 1999, and all requirements of law for, and precedent to, the adoption and approval of the Redevelopment Plan have been duly complied with; and WHEREAS, the Agency is engaged in activities necessary to execute and implement the Redevelopment Plan; and WHEREAS, the City desires to loan to the Agency and the Agency desires to borrow from the City, funds in order to assist the Agency in meeting its administrative and other expenses; and WHEREAS, the City and the Agency have negotiated the terms of a Loan Agreement ("Agreement") which provides, among other things, for the City's loaning of funds to the Agency, as part of a revolving loan fund program, in order to assist the Agency in meeting its administrative and other expenses, and for terms of repayment by the Agency to the City from the Agency's legally available funds. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA DOES RESOLVE AS FOLLOWS: Section 1. The City approves the Agreement in substantially the form presented to the City, a copy of which is attached hereto as Exhibit"A". Section 2. The Mayor is authorized to: (i) execute the Agreement on behalf of the City, together with such non-substantive changes as may be necessary; and (ii) execute and-deliver on behalf of the City such other documents and instruments as may be necessary or convenient for purposes of administration of the Agreement. City of Ataseadero Resolution No.2001-017 Page 2 Section 3. This Resolution shall take effect immediately upon its adoption by the City Council. PASSED,APPROVED AND ADOPTED this 12th day of June, 2001. AYES: Council Members Clay, Johnson, Luna, Scalise and Mayor Arrambide NOES: None ABSENT: None CITY OF ATASCADERO Michael Arrambide, Mayor ATTEST: arcia McClure Torgerson, City 91rk City of Atascadero Resolution No.2001-017 Page 3 I, Marcia McClure Torgerson, City Clerk for the City of Atascadero, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Atascadero, California, at a regular meeting of said City Council held on the 12th day of June, 2001, and that the same was so passed and adopted by the following votes: AYES: Council Members Clay, Johnson, Luna, Scalise and Mayor Arrambide NOES: None ABSENT: None Executed this 13th day of June, 2001, at Atascadero, California. �C Marcia McClure Torgerson, City Cleriv LOAN AGREEMENT between THE REDEVELOPMENT AGENCY OF THE CITY OF ATASCADERO, a public body, corporate and politic and THE CITY OF ATASCADERO, a California municipal corporation [Dated as of June 12, 2001 for reference purposes only.] LOAN AGREEMENT 1. PARTIES AND EFFECTIVE DATE. 1.1 Parties to this Agreement. The parties to this Loan Agreement ("Agreement") are (i) The Redevelopment Agency of the City of Atascadero ("Agency"), a public body, corporate and politic, and (ii) The City of Atascadero ("City"), a California municipal corporation. This Agreement is dated as of June 12, 2001, for reference purposes only. This Agreement will not become effective until the Effective Date described in Section 1.2 below.' 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 of the City and the Agency's governing board, and executed by the City's and Agency's duly authorized representatives. 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 expenses, the Agency has sought financial assistance from the City in the form of a loan ("Loan"), in an amount not to exceed Five Hundred Thousand Dollars ($500,000) (Maximum Amount") or such other amount as the City and Agency may from time to time agree upon. The City has agreed to provide such financial assistance on the terms set forth in this Agreement. The Agency has agreed to repay the Loan in accordance with 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. 3. TERMS. 3.1 Disbursement of Funds. The City agrees to disburse to the Agency the entire loan amount upon execution of this agreement. ' All Section references shall be to Sections of this Agreement, unless otherwise stated. 1 3.2 Interest. Any and all portions of the Loan disbursed by the City to the Agency shall bear interest at the rate of nine percent (9%), compounded monthly, from the date of each such disbursement from the City to the Agency. 3.3 Repayment. The Agency shall repay the Loan, or any portion thereof demanded by the City, together with all accrued and unpaid interest thereon, within ten (10) days following demand therefor from the City, provided that such demand may not be made prior to the first (1S) anniversary of the Effective Date. 3.4 Subordination. The Agency's obligations hereunder shall be paid out of all legally available funds of the Agency, including taxes paid to the Agency pursuant to Health and Safety Code section 33670(b). The Agency's obligations under this Agreement are subject and subordinate to any preexisting Agency indebtedness including, without implied limitation, bonded indebtedness, and to any other indebtedness including, without implied limitation, bonded indebtedness, which is incurred subsequent to the Effective Date of this Agreement. Without any further action or agreement required of the City, the City hereby expressly subordinates to any and all such Agency indebtedness, either heretofore or hereafter incurred, the City's right to receive repayment of all or any portion of the Loan. 3.5 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 of the Agency's and/or the City's entry into and performance or non-performance pursuant to this Agreement. 3.6 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. [Signatures on following pages] 2 THE REDEVELOPMENT AGENCY OF THE CITY OF ATASCADERO, a public body, corporate and politic By: George Luna, Chairperson ATTEST: Marcia McClure Torgerson, Agency Secretary APPROVED AS TO LEGAL FORM: By: Roy A. Hanley, Agency Counsel 3 THE CITY OF ATASCADERO, a California municipal corporation By: J. Michael Arrambide, Mayor ATTEST: Marcia McClure Torgerson, City Clerk APPROVED AS TO LEGAL FORM: By: Roy A. Hanley, City Attorney 4