HomeMy WebLinkAboutResolution - 3181 STATE OF CALIFORNIA ) RESOLUTION NO. 3181
COUNTY OF RIVERSIDE) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
JACINTO APPROVING A LOAN AGREEMENT BETWEEN THE SAN
JACINTO REDEVELOPMENT AGENCY AND THE CITY OF SAN
JACINTO FOR THE PAYMENT OF AGENCY ADMINISTRATIVE AND
OTHER OPERATING EXPENSES RELATED TO THE SOBOBA
SPRINGS REDEVELOPMENT PROJECT AREA
WHEREAS, the San Jacinto Redevelopment Agency (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 San Jacinto ("City") has adopted a redevelopment plan
("Redevelopment Plan") for a redevelopment project area known as the Soboba
Springs Redevelopment Project Area ("Project Area") 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 Agency is authorized, pursuant to CRL Sections 33132 and
33601 and Section 700.10 of the Redevelopment Plan, to accept financial assistance
from other public agencies for purposes of redevelopment; and
WHEREAS, the Agency has sought financial assistance from the City in the
form of a loan ("Loan"), in an amount equal to Six hundred Thousand Dollars
($600,000) ("Funds"), in order to assist the Agency in meeting its administrative and
certain other operating expenses related to the Project Area; and
WHEREAS, the City has agreed to provide such financial assistance to
Agency; and
WHEREAS, the City and the Agency have negotiated the terms of a Loan
Agreement, attached hereto as Exhibit "A" ("Loan Agreement") which provides,
among other things, for City to loan the Funds to the Agency and the Agency to
repay the Funds to City with interest, in accordance with the terms of the Loan
Agreement; and
WHEREAS, the Agency's obligations under the Loan Agreement shall
constitute an indebtedness of the Agency for the purposes of CRL 33675 will be
reported on the Statement of Indebtedness filed no later than October 1, 2008 and
annually thereafter until repaid in full; and
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WHEREAS, the City, as lead agency, and the Agency, as a responsible
agency, have determined that pursuant to Section 15478(b)(4) of the California
Environmental Quality Act ("CEQA") Guidelines that the Loan Agreement is not a
"Project" subject to CEQA review and is therefore exempt from CEQA requirements
because it is a government funding mechanism or other governmental fiscal activity
which does not involve any commitment to any specific project which may result in a
potentially significant environmental impact on the environment,
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
San Jacinto that:
Section 1. The City Council hereby approves the Loan Agreement in
substantially the form attached hereto as Exhibit "A".
Section 2. The City Council hereby authorizes and directs the City Manager
(with the concurrence of the City Attorney) to execute and deliver on behalf of the
City the Loan Agreement and such other documents and instruments as may be
necessary or convenient in the furtherance of the actions authorized by this
Resolution.
Section 3. This Resolution shall take effect immediately upon its adoption
by the City Council.
PASSED, APPROVED AND ADOPTED this 19th day of June, 2008.
Ayes: Carlson, Mansperger, Stubblefield, Ayres
`-' Nays: None
Absent: Ritchie
Abstain: None
City of San Jacinto
Awti
'Ir Ayr , Mayor
ATTEST:
rofhy L. C uinard, City Clerk
APPROVED AS TO LEGAL FORM:
BEST BEST & KRIEGER LLP
6ity Afforney
City of San Jacinto, California r
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EXHIBIT "A"
Loan Agreement
Soboba Springs Redevelopment Project Area
[Attached behind this page]
EXHIBIT A
LOAN AGREEMENT
between
SAN JACINTO REDEVELOPMENT AGENCY,
a public body, corporate and politic
and
CITY OF SAN JACINTO,
a California municipal corporation
[Dated as of June 19, 2008 for reference purposes only.]
SHORT TERM LOAN AGREEMENT
ARTICLE 1. EFFECTIVE DATE; PARTIES; DEFINITIONS.
1.1 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 and the Agency's governing board and executed by the City's and
Agency's duly authorized representatives.
1.2 Parties to Agreement.
1.2.1 The City. The address of the City is 595 S. San Jacinto Ave.,
San Jacinto, CA 92583, Attention: City Manager; telephone: (951) 487-7330; facsimile
951-654-3728.
1.2.2 The Agency. The address of the Agency is 595 S. San Jacinto
Ave., San Jacinto, CA 92583, Attention: Executive Director; telephone: (951) 487-7330;
facsimile 95-654-3728.
1.3 Definitions. All initially capitalized terms used in this Agreement shall
have the meanings set forth below or, if not set forth below, where such terms first
appear in this Agreement.
L 1.3.1 "Agency" means the San Jacinto Redevelopment Agency, a
California public agency, corporate and politic, and any nominee, assignee of, or
successor to its rights, powers and responsibilities.
1.3.2 "City" means the City of San Jacinto, a California municipal
corporation, and any nominee, assignee of, or successor to its rights, powers and
responsibilities.
1.3.3 "CRL" or "Community Redevelopment Law" means the
California Community Redevelopment Law, California Health and Safety Code Sections
33000, et seq., as it may be amended from time to time.
1.3.4 "Project Area" means the Soboba Springs Redevelopment Project
Area, as it may have been, or may be from time to time hereafter, amended.
1.3.7 "Redevelopment Plan" means the Redevelopment Plan for the
Project Area adopted by the City Council pursuant to the CRL, as it may have been, or
may be from time to time hereafter, amended.
ARTICLE 2. RECITALS.
2A Redevelopment Plan and Project Area. The City Council of the City has
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approved and adopted the Redevelopment Plan for the Project Area by its adoption of
Ordinance No. 767 adopted by the City Council on December 27, 1983. The duration of
the Redevelopment Plan is until December 27, 2023. The Redevelopment Plan is
incorporated by this reference. The Project Area is located in the City; its boundaries
are specifically described in the Redevelopment Plan.
2.2 Purpose of Agreement. The Agency is authorized pursuant to Sections
33132 and 33601 of the Community Redevelopment Law to accept financial assistance
from other public agencies. In order to meet its administrative and certain other
operating expenses, the Agency has sought financial assistance from the City in the
form of a loan ("Loan"), in an amount not to exceed Six Hundred Thousand Dollars
($600,000) or such other amount as the City and Agency may agree. 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 CRL Section 33675.
ARTICLE 3. TERMS.
3.1 Disbursement of Funds. The City agrees to disburse to the Agency
such portions of the Loan as the Agency may from time to time request, in an amount
not to exceed Six Hundred Thousand Dollars ($600,000), or such other amount as the
Agency and the City may agree, in the aggregate. The City shall disburse the
requested portion of the Loan within fifteen (15) days following the Agency's written
request therefor. The aggregate of all sums disbursed, together with the accrued
interest thereon, shall be deemed to be the "Loan." Each disbursement shall
commence to accrue simple interest computed at the rate of six percent (6%) per
annum, based on a 365 day year and the actual number of days elapsed, from
disbursement until fully paid.
3.2 Repayment. The Agency shall repay the Loan, together with all accrued
and unpaid interest thereon, in its entirety upon the earlier to occur of:
(i) Within ten (10) days following demand therefore from the City,
provided that such demand may not be made prior to the first (1st) anniversary of the
Effective Date; or
(ii) On the fifth (5t") anniversary of the Effective Date.
3.3 Discharge of Agency's Obligations. The Agency's obligations under
Section 3.2 shall be forgiven, discharged and excused upon the date the aggregate
amount of payments made by Agency to City equals the amount of the Loan, together
with accrued interest.
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ARTICLE 4. MISCELLANEOUS PROVISIONS
4.1 Amendments to this Agreement. The City and the Agency agree to
consider reasonable requests for amendments to this Agreement which may be made
by any of the parties hereto, lending institutions, bond counsel or financial consultants.
Any amendments to this Agreement must be in writing and signed by the appropriate
authorities of the Agency and the City. The Executive Director and the City Manager
are authorized on behalf of the Agency and the City to approve and execute minor
amendments to this Agreement including, but not limited to, the granting of extensions
of time.
4.2 Counterpart Originals; Integration. This Agreement may be executed
in triplicate originals, each of which is deemed to be an original. This Agreement
represents the entire understanding of the parties and supersedes all negotiations or
previous agreements between the parties with respect to all or any part of the subject
matter hereof.
4.3 No Waiver. Failure to insist on any one occasion upon strict compliance
with any of the terms, covenants or conditions hereof shall not be deemed a waiver of
such term, covenant or condition, nor shall any waiver or relinquishment of any rights or
powers hereunder at any one time or more times be deemed a waiver or relinquishment
of such other right or power at any other time or times.
4.4 Not a Pledge of Tax Increment. The Agency's obligations under this
Agreement do not constitute a formal pledge of the Agency's tax increment; however,
the Agency's obligations shall be paid out of all legally available funds, including bond
proceeds. 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.
4.5 No Third Party Beneficiaries. This Agreement and its provisions are for
the sole and exclusive benefit of the City and the Agency. No other parties or entities
are intended to be, or shall be considered, a beneficiary of the performance of any of
the parties' obligations under this Agreement.
4.6 Jurisdiction and Venue. Any action or proceeding concerning this
Agreement shall be filed and prosecuted in the appropriate state court in the County of
Riverside, California.
4.7 Severability. If any term of this Agreement is held invalid the remainder
of this Agreement shall remain in effect.
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4.8 Entire Agreement This Agreement sets forth the entire understanding
between the parties. Changes or amendments shall be made in writing and signed by
the parties.
[Signatures on Following Pages]
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SIGNATURE PAGE TO
SHORT TERM LOAN AGREEMENT
SAN JACINTO REDEVELOPMENT
AGENCY, a public body, corporate and
., .. politic
y ,
E`
J
Barry Viellan, Executive Director
ATTEST:
T&ftl"� - I
Daf6thy L. Ch V
inard, Agency Secretary
APPROVED AS TO LEGAL FORM:
Best Best & Krieger LLP
By: (! �1 y
Jeff S. Baffling r, gency Counsel
[Signatures continued on following page]
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�,. SIGNATURE PAGE TO
SHORT TERM LOAN AGREEMENT
1 CITY OF SAN JACINTO,
a California municipal corporation
By. ,&C
Bar c lellan, City Manager
ATTEST:
rothy L. iouinard, City Clerk
APPROVED AS TO LEGAL FORM:
Best Best & Krieger LLP
By:
tr6ffl%rS. Balling , City Attorney
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