HomeMy WebLinkAbout2016-01-26 - RESOLUTIONS - AMEND REINSTATE CITY LOANS RDA (3)RESOLUTION NO. SA 16-01
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 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 of 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;
LA #4831-0886-0460 v11
(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
LA #4831-0886-0460 v12
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 of 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
advancing funds to assist in the redevelopment of the Project Area, including
the funding of phase II 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 Il 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 Loans ("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
LA #4831-0886-0460 v13
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 Recognized Obligation Payment Schedule ("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
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
sponsoring 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 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 Oversight Board will consider Resolution No. 16-
02 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 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.
LA #4831-0886-0460 v14
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
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.
SECTION 4. The Executive Director and designees are authorized to take such further
actions as may be necessary to carry out the intent of this Resolution.
SECTION 5. The Secretary shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 26th day of January 2016.
S (CESS R AGENCY A CHAIR
ATTEST:
SECRETPARY
DATE: i 116116—
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 26th day of January 2016, by the following vote:
AYES: BOARDMEMBERS: Acosta, McLean, Boydston, Weste, Kellar
NOES: BOARDMEMBERS: None
ABSENT: BOARDMEMBERS: None
LA #4831-0886-0460 v15