HomeMy WebLinkAbout2016-01-26 - AGENDA REPORTS - REPAYMENT LOANS CITY TO RDA (2)0
Agenda Item: 6
CITY OF SANTA CLARITA
Q) AGENDA REPORT
CONSENT CALENDAR
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CITY MANAGER APPROVAL: 1 j=�
DATE: January 26, 2016
SUBJECT: FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY
OF SANTA CLARITA AND THE SUCCESSOR AGENCY TO THE
FORMER REDEVELOPMENT AGENCY OF THE CITY OF SANTA
CLARITA AUTHORIZING REPAYMENT OF LOANS MADE FROM
THE CITY TO THE REDEVELOPMENT AGENCY
DEPARTMENT: Administrative Services
PRESENTER: Susan Cromsigt
RECOMMENDED ACTION
City Council adopt a resolution approving a "First Amendment to an Agreement Regarding
Reinstatement of City Loans Made to the Former Redevelopment Agency," and direct the
City Manager to execute the agreement subject to City Attorney approval.
2. Successor Agency Board adopt a resolution approving a "First Amendment to an Agreement
Regarding Reinstatement of City Loans Made to the Former Redevelopment Agency," and
direct staff to bring this action to the Oversight Board for their approval, and upon
concurrence from the Oversight Board and the Department of Finance, direct the Executive
Director to execute the agreement, subject to Agency Counsel approval.
BACKGROUND
On February 24, 2015, the City Council and Successor Agency Board approved an "Agreement
Regarding Reinstatement of Loan" that allowed the City of Santa Clarita to recoup some of the
moneys advanced to the former Redevelopment Agency throughout that Agency's existence.
Funds had been loaned for administrative purposes and to fund redevelopment projects
undertaken by the Agency, such as streetscape design and construction, the preparation of the
Old Town Newhall Specific Plan, the preparation of the North Newhall Specific Plan, and
property acquisition.
The Oversight Board ratified the Successor Agency's action on February 25, 2015; and it was
subsequently approved by the Department of Finance. When the City Council and Successor
Agency approved the original Agreement, City staff calculated interest owing and to be accrued
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on the outstanding loan balances in a manner authorized by Assembly Bill 1484, the authorizing
legislation at the time. On September 22, 2015, Governor Brown signed Senate Bill 107, a
budget bill including, among other things, a modification to the language of Health and Safety
Code Section 34191.4(b) concerning the manner in which interest on these loans is to be
calculated. The modification, among other things, eliminates the need for the 14 loans to be
considered separately and sets forth a single rate of interest and means by which to calculate
interest for all of the loans
On December 2, 2015, the Department of Finance sent to the City's finance staff the recalculated
Loan balance, in compliance with the new statutory calculation rates and procedures. The "First
Amendment to an Agreement Regarding Reinstatement of City Loans Made to the Former
Redevelopment Agency" modifies the interest and payment sections of the Agreement to bring it
into compliance with the new statutory requirements. Interest is to be calculated at a simple rate
of three percent (3%). Consistent with the Department of Finance calculations, the new rate
increased the outstanding loan balances from $12,772,279 to $15,553,557 as of December 31,
2015. No other changes to the Agreement are proposed.
The amount anticipated to be available in future fiscal years to repay the loan will continue to
vary, as it continues to be subject to the repayment formula outlined in the law. This takes into
account whether former tax increment amounts increase or decrease, enforceable obligations are
reduced or eliminated, and also any further legislative changes that may occur. The Agreement,
even with the modification, takes these unknowns into account and allows for accelerated
repayments to be made consistent with the law in effect at the time.
Upon approval by the City Council and the Successor Agency Board, the Successor Agency
must present the amendment to the Agreement to the Oversight Board. An Oversight Board
meeting is scheduled for January 28, 2016, to consider this item. After the Oversight Board has
approved the amendment, it will be provided to the Department of Finance, which has the
ultimate approval authority. Upon approval by the Department of Finance, the Successor
Agency will list the Agreement (as modified) as an enforceable obligation on the annual
Recognized Obligation Payment Schedules (ROPS) and receive future allocations from the
County Auditor -Controller's Redevelopment Property Tax Trust Fund (which was formally
redevelopment tax increment) so that the loan can be repaid.
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL IMPACT
This action by the City Council and the Successor Agency Board will provide repayment to the
City in the amount of $100,306 in Fiscal Year 2015-16, of which $80,245 will be used to
reimburse the General Fund and Developer Fee Fund that made the loans originally, and $20,061
would be required to be deposited in the City's Housing Successor Agency fund to be utilized to
further affordable housing efforts in the City. Repayment began in Fiscal Year 2015-16.
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ATTACHMENTS
First Amendment to Agreement Regarding Reinstatement of Loan
City Resolution Approving Loan Amendment
Successor Agency Resolution Approving Loan Amendment
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FIRST AMENDMENT TO
AGREEMENT REGARDING REINSTATEMENT OF LOAN
(City of Santa Clarita/Successor Agency to the former Redevelopment Agency of the City of
Santa Clarita)
THIS FIRST AMENDMENT TO AGREEMENT REGARDING REINSTATEMENT
OF LOAN (this "Amendment") is entered into by and between the Successor Agency to former
Redevelopment Agency of the City of Santa Clarita ("Successor Agency") and the City of Santa
Clarita, a municipal corporation ("City"), effective as of the execution of this Amendment by E
both of the Successor Agency and the City, which are hereinafter collectively referred to as the
"Parties." Notwithstanding the foregoing, for reference and for purposes of calculations
necessary to effectuate the purposes of this Amendment, the parties agree that December 31,
2015 shall be considered the effective date for this Amendment ("Effective Date"). v
RECITALS
A. Pursuant to authority granted under Community Redevelopment Law (California
Health and Safety Code Section 33000 et seq.) ("CRL"), the former Redevelopment Agency of
the City of Santa Clarita ("Redevelopment Agency") had responsibility to implement the
Redevelopment Plans for the Newhall Redevelopment Project Area ("Project Area").
B. The City Council of the City of Santa Clarita ("City Council") agreed to serve as
the successor agency to the Redevelopment Agency commencing upon dissolution of the
Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill x1 26.
C. Pursuant to Health and Safety Code Section 33220, the City was authorized to
assist the Redevelopment Agency for the purpose of aiding and cooperating in the planning,
undertaking, construction, and operation of redevelopment projects located within the
jurisdiction of the City, upon the terms and with or without consideration as the City determined.
D. Pursuant to Health and Safety Code Section 33445, the Redevelopment Agency
was authorized to enter into agreements with the City pursuant to which the Redevelopment
Agency would agree to reimburse the City for funds provided by the City for the cost of
installation and construction of public improvements, structures and facilities located within or
outside the Project Areas.
E. Pursuant to Health and Safety Code Sections 33132 and 33601, the
Redevelopment Agency was authorized to borrow money and accept financial assistance from
the City for redevelopment projects located within the Redevelopment Agency's jurisdiction.
F. Consistent with the foregoing authority, the City made the following loans (the
"Loans") to the Redevelopment Agency:
(a) a loan in the original principal amount of $500,000, in accordance with the
terms set forth in City Council Resolution No. 96-101 and Redevelopment
Agency Resolution No. 96-2, each dated July 9, 1996 for the purpose of
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advancing funds to assist in the redevelopment of the Project Area, including
the funding operating costs for the Redevelopment Agency; and
(b) a loan in the original principal amount of $750,000, in accordance with the
terms set forth in City Council Resolution No. 98-94 and Redevelopment
Agency Resolution No. 98-2, each dated June 23, 1998, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency; and
(c) a loan in the original principal amount of $445,000, in accordance with the E
terms set forth in City Council Resolution No. 00-95 and Redevelopment
Agency Resolution No. 00-1, each dated June 27, 2000, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency; and CO
(d) a loan in the original principal amount of $50,000, in accordance with the
terms set forth in City Council Resolution No. 03-48 and Redevelopment
Agency Resolution No. 03-1, each dated April 8, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape along San Fernando Road; and
(e) a loan in the original principal amount of $160,000, in accordance with the
terms set forth in City Council Resolution No. 03-85 and Redevelopment
Agency Resolution No. 03-3, each dated June 24, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape design; and
(f) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan; and
(g) a loan in the original principal amount of $335,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan; and
(h) a loan in the original principal amount of $845,000, in accordance with the
terms set forth in City Council Resolution No. 05-13 and Redevelopment
Agency Resolution No. 05-1, each dated January 25, 2005, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24513 San Fernando Road; and
(i) a loan in the original principal amount of $770,000, in accordance with the
terms set forth in City Council Resolution No. 06-4 and Redevelopment
Agency Resolution No. 06-2, each dated January 10, 2006, for the purpose of
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advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24158 San Fernando Road; and
(j) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 06-3 and Redevelopment
Agency Resolution No. 06-1, each dated January 10, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan; and
(k) a loan in the original principal amount of $439,400, in accordance with the E
terms set forth in City Council Resolution No. 06-40 and Redevelopment
Agency Resolution No. 06-3, each dated May 9, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding the North Newhall Specific Plan and Environmental Impact v
Report; and
(1) a loan in the original principal amount of $5,000,000, in accordance with the
terms set forth in City Council Resolution No. 06-71 and Redevelopment
Agency Resolution No. 06-5, each dated June 27, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape and striping projects; and
(m)a loan in the original principal amount of $2,550,000, in accordance with the
terms set forth in City Council Resolution No. 09-105 and Redevelopment
Agency Resolution No. 9-15, each dated December 8, 2009, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase II of the streetscape project; and
(n) a loan in the original principal amount of $2,309,886, in accordance with the
terms set forth in City Council Resolution No. 10-42 and Redevelopment
Agency Resolution No. 10-5, each dated June 22, 2010, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase II of the streetscape project; and
G. Pursuant to Health and Safety Code Section 34191.4(b), once a successor agency
has received a Finding of Completion pursuant to Health and Safety Code Section 34179.7, loan
agreements entered into between the redevelopment agency and the entity that created the
redevelopment agency ("Sponsoring Jurisdiction Loans") shall be deemed to be enforceable
obligations provided that the successor agency's oversight board makes a finding that the
Sponsoring Jurisdiction Loans were for legitimate redevelopment purposes.
H. The Successor Agency received a Finding of Completion on June 20, 2013.
L On February 24, 2015, the City adopted Resolution No. 15-05 and the Successor
Agency adopted Resolution No. 15-01, each of which authorized execution of an Agreement
Regarding Reinstatement of Loan ("Agreement"), which includes the terms and conditions for
the repayment of the Loans, including but not limited to the then -applicable statutory interest
rates for each individual Loan as set forth in Health and Safety Code Section 34191.4(b).
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J. On February 25, 2015, the Oversight Board for the Successor Agency ("Oversight
Board") adopted Resolution No. 15-01 pursuant to which the Oversight Board adopted findings
determining that the Loans were made for legitimate redevelopment purposes as authorized by
and consistent with the CRL, authorized the Successor Agency to enter into the Agreement, and
authorized the Successor Agency to list the Agreement and repayment of the Loans on the
ROPS.
K. On September 22, 2015, Governor Brown signed Senate Bill 107, a budget bill
including, among other things, a modification to the language of Health and Safety Code Section
34191.4(b) concerning the manner in which interest on Sponsoring Jurisdiction Loans is to be
calculated.
L. Health and Safety Code Section 34191.4(b)(2) as written after the adoption of v
Senate Bill 107 now provides that: (i) interest on the remaining principal amount of the Loans
that was left unpaid after the original effective date thereof is to be recalculated from the date of
origination as approved by the former Redevelopment Agency on a quarterly basis, at a simple
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interest rate of 3 percent, (ii) Sponsoring Jurisdiction Loans shall be repaid to the sponsoring
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jurisdiction in accordance with a defined schedule over a reasonable term of years and otherwise
in compliance with the limitations of Section 34191.4(b)(2), and (iii) the annual amount of
repayments for Sponsoring Jurisdiction Loans provided for in the Recognized Obligation
J
Payment Schedule ("ROPS") is subject to specified limitations.
M. On December 2, 2015, the Department of Finance sent to the City's finance staff
the recalculated Loan balance, in compliance with the new statutory calculation rates and
procedures.
N. As part of the recalculation of the Loans and the new statutory guidelines for
accrual of and calculation of interest on the Loans, the Department of Finance has treated all
fourteen of the Loans as a single debt from the Successor Agency to the City, so there is no
longer a need to list the Loans separately in the Agreement.
O. On January 28, 2016, the Oversight Board adopted Resolution No. 16-01 pursuant
to which the Oversight Board authorized the Successor Agency to enter into the Amendment and
authorized the Successor Agency to list the Agreement as Amended and the repayment of the
Loans on the ROPS.
NOW, THEREFORE, the Successor Agency and the City agree as follows:
1. Amendment to Section 1 of the Agreement. Section 1 [Reinstatement of Loans] of the
Agreement is amended to read in whole as follows:
1. Reinstatement of Loans. The Parties acknowledge and agree that pursuant to the
facts stated in the foregoing Recitals, which by this reference are incorporated into this
Agreement, the Loans constitute enforceable obligations, eligible to be listed on the Successor
Agency's ROPS and repaid pursuant to and in accordance with Health and Safety Code Section
34191.4(b). In accordance with Health and Safety Code Section 34191.4(b)(2), the interest
accumulated on the outstanding principal balance of the Loans from origination through the
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Effective Date of the Amendment ("Accumulated Interest') is as set forth below, based upon
calculations performed by the Department of Finance and reviewed by the City and Successor
Agency. The Parties acknowledge and agree that as of the Effective Date of the Amendment, the
outstanding principal balance and accumulated interest of the Loans is as follows:
The Accumulated Interest of the Loans as calculated by the Department of Finance
and City staff, as of the Effective Date, equals $3,270,084. When added to the
$12,283,473 principal amount, taking in to account all payments made on any and all
of the loans to date, the total due to the City for the Loans as of the Effective Date is
$15,553,557.
Commencing upon the Effective Date of the Amendment, interest shall accrue on the outstanding
principal balance of the Loans and the interest accrued thereon (including the Accumulated
Interest) at a rate equal to the rate set forth in Health and Safety Code Section 34191.4(b)(2) (the CO
"Interest Rate"). Interest shall accrue in accordance with this Section until the Loans are repaid
in full. Interest shall be calculated on the basis of a year of 365 days and charged for the actual
number of days elapsed. City and Successor Agency staff are authorized to modify the Interest c
Rate or any other calculation related to the total amount required to repay the Loan to reflect any A
changes to the language of Health and Safety Code Section 34191.4(b)(2) subsequent to the
Effective Date.
2. Remainder Unchanged. Except as specifically modified by Section 1 hereof, the
Agreement and all of its terms and conditions remains in full force and effect.
3. Further Modifications to Reflect Legal Changes. The City and Successor Agency
recognize that the California State Legislature may continue to modify the Health and Safety
Code provisions governing the repayment of the Loans, and that the Department of Finance may
make changes to its interpretations of those provisions. City and Successor Agency Staff are
authorized to make administrative modifications to the Agreement (as modified by this
Amendment) to reflect any legal changes made by the Legislature or Department of Finance and
to report such administrative modifications to the City Council and Successor Agency Board.
4. Counterparts. This Amendment may be executed in counterparts, each of which shall be
deemed an original and all of which shall constitute but one and the same instrument.
SIGNATURES ONFOLLO WING PAGES.
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IN WITNESS WHEREOF, the Parties have executed this Amendment effective as of the
date first written above.
CITY:
CITY OF SANTA CLARITA
By:
City Manager
Attest:
City Clerk
Approved as to form:
By:
City Attorney
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LA #4834-2690-3852 A
SUCCESSOR AGENCY
SUCCESSOR AGENCY TO THE FORMER
REDEVELOPMENT AGENCY OF THE
CITY OF SANTA CLARITA
By:
Executive Director
Attest:
Secretary
Approved as to form:
By:
Successor Agency Counsel
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6.b
RESOLUTION 16-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, APPROVING A FIRST
AMENDMENT TO AN AGREEMENT REGARDING
REINSTATEMENT OF CITY LOANS MADE TO THE
FORMER REDEVELOPMENT AGENCY
WHEREAS, pursuant to authority granted under Community Redevelopment Law
(California Health and Safety Code Section 33000 et seq.) ("CRL"), the former Redevelopment
Agency of the City of Santa Clarita ("Redevelopment Agency") had responsibility to implement
the Redevelopment Plans for the Newhall Redevelopment Project Area ("Project Area"); and
WHEREAS, the City of Santa Clarita ("City") agreed to serve as the successor agency to
the Redevelopment Agency ("Successor Agency") commencing upon dissolution of the
Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill X1 26; and
WHEREAS, pursuant to Health and Safety Code Section 33220, the City was authorized
to assist the Redevelopment Agency for the purpose of aiding and cooperating in the planning,
undertaking, construction, and operation of redevelopment projects located within the
jurisdiction of the City, upon the terms and with or without consideration as the City determined;
and
WHEREAS, pursuant to Health and Safety Code Section 33445, the Redevelopment
Agency was authorized to enter into agreements with the City pursuant to which the
Redevelopment Agency would agree to reimburse the City for funds provided by the City for the
cost of installation and construction of public improvements, structures and facilities located
within or outside the Project Areas; and
WHEREAS, pursuant to Health and Safety Code Sections 33132 and 33601, the
Redevelopment Agency was authorized to borrow money and accept financial assistance from
the City for redevelopment projects located within the Redevelopment Agency's jurisdiction; and
WHEREAS, consistent with the foregoing authority, the City made the following loans
(collectively, the "Loans") to the Redevelopment Agency:
(a) a loan in the original principal amount of $500,000, in accordance with the
terms set forth in City Council Resolution No. 96-101 and Redevelopment
Agency Resolution No. 96-2, each dated July 9, 1996 for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding operating costs for the Redevelopment Agency;
(b) a loan in the original principal amount of $750,000, in accordance with the
terms set forth in City Council Resolution No. 98-94 and Redevelopment
Agency Resolution No. 98-2, each dated June 23, 1998, for the purpose of
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advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency;
(c) a loan in the original principal amount of $445,000, in accordance with the
terms set forth in City Council Resolution No. 00-95 and Redevelopment
Agency Resolution No. 00-1, each dated June 27, 2000, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency;
(d) a loan in the original principal amount of $50,000, in accordance with the
terms set forth in City Council Resolution No. 03-48 and Redevelopment
Agency Resolution No. 03-1, each dated April 8, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape along San Fernando Road;
(e) a loan in the original principal amount of $160,000, in accordance with the
terms set forth in City Council Resolution No. 03-85 and Redevelopment
Agency Resolution No. 03-3, each dated June 24, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape design;
(f) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan;
(g) a loan in the original principal amount of $335,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan;
(h) a loan in the original principal amount of $845,000, in accordance with the
terms set forth in City Council Resolution No. 05-13 and Redevelopment
Agency Resolution No. 05-1, each dated January 25, 2005, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24513 San Fernando Road;
(i) a loan in the original principal amount of $770,000, in accordance with the
terms set forth in City Council Resolution No. 06-4 and Redevelopment
Agency Resolution No. 06-2, each dated January 10, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24158 San Fernando Road;
(j) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 06-3 and Redevelopment
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Agency Resolution No. 06-1, each dated January 10, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan;
(k) a loan in the original principal amount of $439,400, in accordance with the
terms set forth in City Council Resolution No. 06-40 and Redevelopment
Agency Resolution No. 06-3, each dated May 9, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding the North Newhall Specific Plan and Environmental Impact
Report;
(1) a loan in the original principal amount of $5,000,000, in accordance with the
terms set forth in City Council Resolution No. 06-71 and Redevelopment
Agency Resolution No. 06-5, each dated June 27, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape and striping projects;
(m)a loan in the original principal amount of $2,550,000, in accordance with the
terms set forth in City Council Resolution No. 09-105 and Redevelopment
Agency Resolution No. 9-15, each dated December 8, 2009, for the purpose of
v
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase 11 of the streetscape project;
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(n) a loan in the original principal amount of $2,309,886, in accordance with the
terms set forth in City Council Resolution No. 10-42 and Redevelopment
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Agency Resolution No. 10-5, each dated June 22, 2010, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
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the funding of phase 11 of the streetscape project;
WHEREAS, pursuant to Health and Safety Code Section 34191.4(b), once a successor
agency has received a Finding of Completion pursuant to Health and Safety Code Section
34179.7, loan agreements entered into between the redevelopment agency and the entity that
created the redevelopment agency ("Sponsoring Jurisdiction Loans") shall be deemed to be
enforceable obligations provided that the successor agency's oversight board makes a finding
that the Sponsoring Jurisdiction Loans were for legitimate redevelopment purposes;
WHEREAS, the Successor Agency received a Finding of Completion on June 20, 2013;
WHEREAS, on February 24, 2015, the City adopted Resolution No. 15-05 and the
Successor Agency adopted Resolution No. 15-01, each of which authorized execution of an
Agreement Regarding Reinstatement of Loan ("Agreement"), which includes the terms and
conditions for the repayment of the Loans, including but not limited to the then -applicable
statutory interest rates for each individual Loan as set forth in Health and Safety Code Section
34191.4(b);
WHEREAS, on February 25, 2015, the Oversight Board for the Successor Agency
("Oversight Board") adopted Resolution No. 15-02 pursuant to which the Oversight Board
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6.b
adopted findings determining that the Loans were made for legitimate redevelopment purposes as
authorized by and consistent with the CRL, authorized the Successor Agency to enter into the
Agreement, and authorized the Successor Agency to list the Agreement and repayment of the
Loans on the ROPS;
WHEREAS, On September 22, 2015, Governor Brown signed Senate Bill 107, a budget
bill including, among other things, a modification to the language of Health and Safety Code
Section 34191.4(b) concerning the manner in which interest on Sponsoring Jurisdiction Loans is
to be calculated;
WHEREAS, Health and Safety Code Section 34191.4(b)(2) as written after the adoption ¢
of Senate Bill 107 now provides that: (i) interest on the remaining principal amount of the
Loans that was left unpaid after the original effective date thereof is to be recalculated from the 0
date of origination as approved by the former Redevelopment Agency on a quarterly basis, at a
simple interest rate of 3 percent, (ii) Sponsoring Jurisdiction Loans shall be repaid to the
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sponsoring jurisdiction in accordance with a defined schedule over a reasonable term of years E
and otherwise in compliance with the limitations of Section 34191 A(b)(2), and (iii) the annual
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amount of repayments for Sponsoring Jurisdiction Loans provided for in the Recognized E
Obligation Payment Schedule ("ROPS") is subject to specified limitation;
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WHEREAS, on December 2, 2015, the Department of Finance sent to the City's finance
staff the recalculated Loan balance, in compliance with the new statutory calculation rates and
procedures; E
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WHEREAS, Successor Agency staff have prepared a First Amendment to Agreement ¢
Regarding Reinstatement of Loans (the "Agreement") which provides for repayment of the Loans
in accordance with the requirements of Health and Safety Code Section 34191.4(b), in particular o
the new requirements regarding calculation of interest; and
WHEREAS, on January 28, 2016, the Successor Agency's Oversight Board ("Oversight
Board") will consider Resolution No. 16-01 pursuant to which the Oversight Board will be asked
to approve repayment of the Loans in accordance with the Amendment, which findings are
necessary for final approval of the Amendment.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as
follows:
SECTION 1. The City Council hereby finds that the facts set forth in the recitals to this
Resolution are true and correct, and establish the factual basis for the City Council's adoption of
this Resolution.
SECTION 2. The Amendment is approved, and the City Manager or his designee is
authorized to execute the Amendment on behalf of the City substantially in the form presented
with the staff report accompanying this Resolution.
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SECTION 3. The City Manager and his designees are authorized to take such further
actions as may be necessary to carry out the intent of this Resolution.
SECTION 4. The City Clerk shall certify to the adoption of the Resolution.
PASSED, APPROVED, AND ADOPTED this 261h day of January 2016.
MAYOR
ATTEST:
CITY CLERK
6.b
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DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Kevin Tonoian, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the 260i day of January 2016, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
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RESOLUTION SA 16-
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE
FORMER REDEVELOPMENT AGENCY OF THE CITY OF
SANTA CLARITA, CALIFORNIA, APPROVING A FIRST
AMENDMENT TO AN AGREEMENT REGARDING
REINSTATEMENT OF CITY LOANS MADE TO THE
FORMER REDEVELOPMENT AGENCY
WHEREAS, pursuant to authority granted under Community Redevelopment Law
(California Health and Safety Code Section 33000 et seq.) ("CRL"), the former Redevelopment
Agency of the City of Santa Clarita ("Redevelopment Agency") had responsibility to implement
the Redevelopment Plans for the Newhall Redevelopment Project Area ("Project Area");
WHEREAS, the City of Santa Clarita ("City") agreed to serve as the successor agency to co
the Redevelopment Agency ("Successor Agency") commencing upon dissolution of the
Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill X1 26;
WHEREAS, pursuant to Health and Safety Code Section 33220, the City was authorized
to assist the Redevelopment Agency for the purpose of aiding and cooperating in the planning,
undertaking, construction, and operation of redevelopment projects located within the
jurisdiction of the City, upon the terms and with or without consideration as the City determined;
WHEREAS, pursuant to Health and Safety Code Section 33445, the Redevelopment
Agency was authorized to enter into agreements with the City pursuant to which the
Redevelopment Agency would agree to reimburse the City for funds provided by the City for the
cost of installation and construction of public improvements, structures and facilities located
within or outside the Project Areas;
WHEREAS, pursuant to Health and Safety Code Sections 33132 and 33601, the
Redevelopment Agency was authorized to borrow money and accept financial assistance from
the City for redevelopment projects located within the Redevelopment Agency's jurisdiction;
WHEREAS, consistent with the foregoing authority, the City made the following loans
(collectively, the "Loans") to the Redevelopment Agency:
(a) a loan in the original principal amount of $500,000, in accordance with the
terms set forth in City Council Resolution No. 96-101 and Redevelopment
Agency Resolution No. 96-2, each dated July 9, 1996 for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding operating costs for the Redevelopment Agency;
(b) a loan in the original principal amount of $750,000, in accordance with the
terms set forth in City Council Resolution No. 98-94 and Redevelopment
Agency Resolution No. 98-2, each dated June 23, 1998, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency;
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(c) a loan in the original principal amount of $445,000, in accordance with the
terms set forth in City Council Resolution No. 00-95 and Redevelopment
Agency Resolution No. 00-1, each dated June 27, 2000, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of operating costs for the Redevelopment Agency;
(d) a loan in the original principal amount of $50,000, in accordance with the
terms set forth in City Council Resolution No. 03-48 and Redevelopment
Agency Resolution No. 03-1, each dated April 8, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape along San Fernando Road;
(e) a loan in the original principal amount of $160,000, in accordance with the
terms set forth in City Council Resolution No. 03-85 and Redevelopment ,`
Agency Resolution No. 03-3, each dated June 24, 2003, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape design;
(f) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan;
(g) a loan in the original principal amount of $335,000, in accordance with the
terms set forth in City Council Resolution No. 04-74 and Redevelopment
Agency Resolution No. 04-2, each dated June 8, 2004, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan;
(h) a loan in the original principal amount of $845,000, in accordance with the
terms set forth in City Council Resolution No. 05-13 and Redevelopment
Agency Resolution No. 05-1, each dated January 25, 2005, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24513 San Fernando Road;
(i) a loan in the original principal amount of $770,000, in accordance with the
terms set forth in City Council Resolution No. 06-4 and Redevelopment
Agency Resolution No. 06-2, each dated January 10, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the acquisition of property located at 24158 San Fernando Road;
(j) a loan in the original principal amount of $250,000, in accordance with the
terms set forth in City Council Resolution No. 06-3 and Redevelopment
Agency Resolution No. 06-1, each dated January 10, 2006, for the purpose of
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advancing funds to assist in the redevelopment of the Project Area, including
the funding of the Downtown Newhall Specific Plan;
(k) a loan in the original principal amount of $439,400, in accordance with the
terms set forth in City Council Resolution No. 06-40 and Redevelopment
Agency Resolution No. 06-3, each dated May 9, 2006, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding the North Newhall Specific Plan and Environmental Impact
Report;
a loan in the original principal amount of $5,000,000, in accordance with the E
terms set forth in City Council Resolution No. 06-71 and Redevelopment
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Agency Resolution No. 06-5, each dated June 27, 2006, for the purpose of
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advancing funds to assist in the redevelopment of the Project Area, including
the funding of streetscape and striping projects;
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(m)a loan in the original principal amount of $2,550,000, in accordance with the
terms set forth in City Council Resolution No. 09-105 and Redevelopment
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Agency Resolution No. 9-15, each dated December 8, 2009, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase 11 of the streetscape project;
(n) a loan in the original principal amount of $2,309,886, in accordance with the
terms set forth in City Council Resolution No. 10-42 and Redevelopment
Agency Resolution No. 10-5, each dated June 22, 2010, for the purpose of
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase 11 of the streetscape project;
WHEREAS, pursuant to Health and Safety Code Section 34191.4(b), once a successor
agency has received a Finding of Completion pursuant to Health and Safety Code Section
34179.7, loan agreements entered into between the redevelopment agency and the entity that
created the redevelopment agency ("Sponsoring Jurisdiction Loans") shall be deemed to be
enforceable obligations provided that the successor agency's oversight board makes a finding
that the Sponsoring Jurisdiction Loans were for legitimate redevelopment purposes;
WHEREAS, the Successor Agency received a Finding of Completion on June 20, 2013;
WHEREAS, on February 24, 2015, the City adopted Resolution No. 15-05 and the
Successor Agency adopted Resolution No. 15-01, each of which authorized execution of an
Agreement Regarding Reinstatement of Loan ("Agreement"), which includes the terms and
conditions for the repayment of the Loans, including but not limited to the then -applicable
statutory interest rates for each individual Loan as set forth in Health and Safety Code Section
34191.4(b);
WHEREAS, on February 25, 2015, the Oversight Board for the Successor Agency
("Oversight Board") adopted Resolution No. 15-02 pursuant to which the Oversight Board
adopted findings determining that the Loans were made for legitimate redevelopment purposes as
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authorized by and consistent with the CRL, authorized the Successor Agency to enter into the
Agreement, and authorized the Successor Agency to list the Agreement and repayment of the
Loans on the ROPS;
WHEREAS, On September 22, 2015, Governor Brown signed Senate Bill 107, a budget
bill including, among other things, a modification to the language of Health and Safety Code
Section 34191.4(b) concerning the manner in which interest on Sponsoring Jurisdiction Loans is
to be calculated;
WHEREAS, Health and Safety Code Section 34191.4(b)(2) as written after the adoption
of Senate Bill 107 now provides that: (i) interest on the remaining principal amount of the
E
Loans that was left unpaid after the original effective date thereof is to be recalculated from the
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date of origination as approved by the former Redevelopment Agency on a quarterly basis, at a
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simple interest rate of 3 percent, (ii) Sponsoring Jurisdiction Loans shall be repaid to the
sponsoring jurisdiction in accordance with a defined schedule over a reasonable term of years
,`
and otherwise in compliance with the limitations of Section 34191 A(b)(2), and (iii) the annual
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amount of repayments for Sponsoring Jurisdiction Loans provided for in the Recognized
Obligation Payment Schedule ("ROPS") is subject to specified limitation;
WHEREAS, on December 2, 2015, the Department of Finance sent to the City's finance
staff the recalculated Loan balance, in compliance with the new statutory calculation rates and
procedures;
WHEREAS, Successor Agency staff have prepared a First Amendment to Agreement
Regarding Reinstatement of Loans (the "Agreement") which provides for repayment of the Loans
in accordance with the requirements of Health and Safety Code Section 34191.4(b), in particular
the new requirements regarding calculation of interest; and
WHEREAS, on January 28, 2016, the Successor Agency's Oversight Board ("Oversight
Board") will consider Resolution No. 16-01 pursuant to which the Oversight Board will be asked
to approve repayment of the Loans in accordance with the Amendment, which findings are
necessary for final approval of the Amendment.
NOW, THEREFORE, the Governing Board of the Successor Agency to the Former
Redevelopment Agency of the City of Santa Clarita does hereby resolve as follows:
SECTION 1. The Governing Board hereby finds that the facts set forth in the recitals to
this Resolution are true and correct, and establish the factual basis for the adoption of this
Resolution.
SECTION 2. The Amendment is approved contingent on the approval of the Oversight
Board, and consistent with the Oversight Board approval the Executive Director of the Successor
Agency or her designee is authorized to execute the Amendment on behalf of the Successor
Agency substantially in the form presented with the staff report accompanying this Resolution.
SECTION 3. Contingent on and consistent with the Oversight Board approval, the
Successor Agency is authorized and directed to list the Agreement and the repayment of the
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Loans on the Successor Agency's ROPS for the July 1 to December 31, 2016 period ("ROPS 16-
17A") and for each succeeding ROPS period until the Loans are repaid in full in accordance with
the Agreement.
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SECTION 4. The Executive Director and his designees are authorized to take such further w
actions as may be necessary to carry out the intent of this Resolution.
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SECTION 5. The Secretary shall certify to the adoption of this Resolution. 0
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PASSED, APPROVED, AND ADOPTED this 26a' day of January 2016.
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SUCCESSOR AGENCY BOARD CHAIR ¢
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SECRETARY
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Kevin Tonoian, Secretary of the Governing Board of the Successor Agency, do hereby
certify that the foregoing Resolution was duly adopted by the Successor Agency Board of the
former Redevelopment Agency of the City of Santa Clarita at a regular meeting thereof, held on
the 26u' day of January 2016, by the following vote:
AYES: BOARDMEMBERS:
NOES: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
SECRETARY
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