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HomeMy WebLinkAboutResolution - 3478 STATE OF CALIFORNIA ) RESOLUTION NO. 3478 COUNTY OF RIVERSIDE ) CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, APPROVING A RATIFICATION AND AMENDMENT TO LOAN AGREEMENT (SOBOBA SPRINGS) BETWEEN THE CITY OF SAN JACINTO AND THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO (DATED JUNE 19, 2008) WHEREAS, pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the City Council of City activated the Redevelopment Agency of the City of San Jacinto (the "Redevelopment Agency") and subsequently adopted the Soboba Spring Redevelopment Plan (the "Redevelopment Plan"); and WHEREAS, the City and Redevelopment Agency entered into a Loan Agreement (Soboba Springs), dated June 19, 2008 ("Loan Agreement"), whereby the City agreed to provide to the Redevelopment Agency a loan in the amount of Six Hundred Thousand Dollars ($600,000), with a simple interest rate of six percent (6%) per annum, to meet its administrative and other operating expenses, in order to assist the Redevelopment Agency to carry out its functions under the Community Redevelopment Law and to assist with implementation of the Redevelopment Plan; and WHEREAS, Assembly Bill 1X 26 ("AB 26"), enacted as part of the 2011-2012 State of California budget bill, and as modified by the Supreme Court of the State of California in the matter of California Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. S194861 ("Legal Action"), dissolved and set out procedures for the wind-down of all redevelopment agencies throughout the State effective February 1, 2012, and in June 2012, the California Legislature adopted Assembly Bill 1484 ("AB 1484," and collectively with AB 26, the "Dissolution Act") further modifying some of the procedures set forth in AB 26, and adding certain other procedures and requirements for the dissolution and wind-down of redevelopment agencies; and WHEREAS, the Successor Agency is the successor entity to the former Redevelopment Agency and, pursuant to the Dissolution Act, is responsible for the wind-down of the former Redevelopment Agency, including without limitation the performance and repayment of all enforceable obligations of the former Redevelopment Agency; and WHEREAS, Health and Safety Code Section 34171(d)(2), as modified by AB 1484, provides, with a few exceptions, that "enforceable obligation" does not include any agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency; and 24438.31000\8260982.1 WHEREAS, Health and Safety Code Section 34179.7, added by AB 1484, provides that upon completion of certain requirements and payment of certain amounts as required by Sections 34179.6 and 34183.5, the Department of Finance ("DOF") shall issue, within five business days, a finding of completion of the requirements of Section 34179.6 to the successor agency; and WHEREAS, Health and Safety Code Section 34191.4, also added by AB 1484, provides in part that, following issuance of a finding of completion by DOF, and upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes; and WHEREAS, in addition to establishing when a loan agreement will be deemed to be an enforceable obligation, Section 34191.4 further establishes certain restrictions and limitations on, among other things, the calculation of interest on the remaining principal amount of the loan, the amounts that can be repaid from time to time under the loan agreement, and requires that twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to a Low and Moderate Income Housing Asset Fund; and WHEREAS, the Successor Agency has received a finding of completion from DOF and, as such, the City and Successor Agency have prepared a Ratification and Amendment to the Loan Agreement ("Amendment') in order to ratify the existence and validity of the Loan Agreement, and to establish their understanding and agreement as to the limitations and restrictions that will apply to the repayment to the City of all amounts due and owing the City by the former Redevelopment Agency under the Loan Agreement pursuant to the Dissolution Act; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. CEQA Compliance. The approval of the Amendment through this Resolution does not commit the City to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. The City Clerk is authorized and directed to file a Notice of Exemption with the appropriate official of the County of Riverside, California, within five (5) days following the date of adoption of this Resolution. Section 3. Approval of Amendment. The City Council hereby approves the Ratification and Amendment to Loan Agreement (Soboba Springs) between the City of 24438 31000\8260982,1 San Jacinto and the former Redevelopment Agency of the City of San Jacinto, in substantially the form currently on file with the City Clerk. Section 4. Transmittal of Loan Agreement to Oversight Board. The City Manager is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution, including without limitation, cooperating with the Successor Agency to provide any documentation and evidence to the Oversight Board as necessary to obtain from the Oversight Board approval of the Loan Agreement, together with a finding that the loan of funds by the City to the former Redevelopment Agency under the Loan Agreement was for legitimate redevelopment purposes. Section 5. Effectiveness. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of San Jacinto on the 17th day of September, 2013, by the following vote: AYES: Ledezma, Miller, Ruiz, Bartel NAYS: None ABSTAIN: None ABSENT: Kotyuk City of San Jacinto Mark Bartel, Mayor ATTEST: , 'LL J�-'I C t 'L Richard Miller, City Clerk 24438 3100018260982A