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HomeMy WebLinkAbout2015-02-24 - RESOLUTIONS - RDA REINSTATEMENT CITY LOANS (2)' RESOLUTION NO. 15-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING 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 Xl 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 (Loan A); 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 (Loan B); and (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 (Loan C); and (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 (Loan D); 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 (Loan E); 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 (Loan F); 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 (Loan G); 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 (Loan H); 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 advancing funds to assist in the redevelopment of the Project Area, including the acquisition of property located at 24158 San Fernando Road (Loan I); and (j) a loan in the original principal amount of $250,000, in accordance with the I 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 (Loan .1); and (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 (Loan K); 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 (Loan L); 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 lI of the streetscape project (Loan M); 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 (Loan N); and 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; and WHEREAS, the Successor Agency received a Finding of Completion on June 20, 2013; FTI WHEREAS, on February 25, 2015, the Successor Agency's Oversight Board ("Oversight Board") will consider Resolution No. 2015-01 pursuant to which the Oversight Board will be asked to adopt findings determining that the Loans were made for legitimate redevelopment purposes as authorized by and consistent with the CRL, and to approve repayment of the Loans in accordance with the Agreement (defined below), which findings are necessary for final ' approval of the Agreement; and WHEREAS, Health and Safety Code Section 34191.4(b)(2) provides that: (i) the accumulated interest on Sponsoring Jurisdiction Loans shall be recalculated from origination at the interest rate earned by funds deposited into the Local Agency Investment Fund ("LAIF' ), (ii) ' Sponsoring Jurisdiction Loans shall be repaid to the sponsoring jurisdiction in accordance with a defined schedule over a reasonable tern of years at an interest rate not to exceed the interest rate earned by funds deposited into LAIF, and (iii) the annual amount of repayments on Sponsoring Jurisdiction Loans provided for in the Recognized Obligation Payment Schedule ("ROPS") is subject to specified limitations; and WHEREAS, Successor Agency staff have prepared an 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) and commits the City to use the Loan repayment proceeds in accordance with Health and Safety Code Section 34191.4(b). NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The City Council hereby fords 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 Agreement is approved, and the City Manager or his designee is authorized to execute the Agreement on behalf of the City substantially in the form presented I with the staff report accompanying this Resolution. 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 24th day of February 2015. ATTEST: CITY CTq, 2 / 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 24`h day of February 2015, by the following vote: AYES: COUNCILMEMBERS: Acosta, Kellar, Boydston, Weste, McLean NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None