HomeMy WebLinkAboutResolution 2002-029 RESOLUTION NO. 2002-029
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 PURCHASE OF THE
LOCATION OF DIAMOND ADULT WORLD AND THE ADJOINING
VACANT LOT
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 purchasing real property; 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
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", and the Administrative Services Department is
authorized to make the appropriate budget adjustments.
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 Atascadero
Resolution No.2002-029
Page 2
Section 3. This Resolution shall take effect immediately upon its adoption by the City
Council.
PASSED,APPROVED AND ADOPTED this 11th day of June, 2002.
AYES: Council Members Clay, Johnson, Luna, Scalise and Mayor Arrambide
NOES: None
ABSENT: None
ATTEST: CITY OF ATASCADERO
filidAtiL
Marcia McClure Torgerson, City C rk J. Michael 14rambide, Mayor
City of Atascadero
Resolution No.2002-029
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 11 to day of June, 2002, 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 11th day of June, 2002, at Atascadero, California.
Marcia McClure Torgerson, City Clerk
Contract No.2002-014
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, 2002, 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 SeMc.) to accept
financial assistance from other public agencies. In order to purchase certain real property, the
Agency has sought financial assistance from the City in the form of a loan ("Loan"), in the
amount of Seven Hundred Thousand Dollars ($720,000) 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.
City of Atascadero/Redevelopment Agency
Loan Agreement
Page 1
Contract No.2002-014
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 (1St)
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 page]
City of Atascadero/Redevelopment Agency
Loan Agreement
Page 2
Contract No.2002-014
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
THE CITY OF ATASCADERO,
a California municipal corporation
By:
J. Michael Arrambide, Mayor
ATTEST:
By:
Marcia McClure Torgerson, City Clerk
APPROVED AS TO LEGAL FORM:
By:
Roy A. Hanley, City Attorney
City of Atascadero/Redevelopment Agency
Loan Agreement
Page 3