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HomeMy WebLinkAboutResolution - RDA 08-09 STATE OF CALIFORNIA) RESOLUTION NO. RDA 08-09 COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE GOVERNING BOARD OF THE SAN JACINTO REDEVELOPMENT AGENCY 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, including the City, 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 and will be reported on the Statement of Indebtedness filed no later than October 1, 2008 and annually Page 1 of 4 thereafter until repaid in full; and 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 Governing Board of the San Jacinto Redevelopment Agency that: Section 1. The Agency Board hereby approves the Loan Agreement in substantially the form attached hereto as Exhibit "A". Section 2. The Agency Board hereby authorizes and directs the Executive Director of the Agency (with the concurrence of Agency Counsel) to execute and deliver on behalf of the Agency 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. The Agency Board hereby authorizes and directs Agency staff to file a Notice of Exemption with the County Clerk of Riverside County within five (5) days following approval of this Resolution. Section 4. This Resolution shall take effect immediately upon its adoption by the Agency Board. PASSED, APPROVED and ADOPTED, this 19th day of June, 2008 by the following vote: Ayes: Carlson, Mansperger, Stubblefield, Ayres Nays: None Absent: Ritchie Abstain: None Redevelopment Agency of the City of San Jacinto Z Aw., By /00kyres,thtrman Page 2 of 4 TEST: %U;22r ,�Z,d rothy L. Ch inard, Agency Secretary APPROVED AS TO FORM: BEST BEST & KRIEGER LLP a /3 2r } J rey S. Ballin er, Agency Counsel Page 3 of 4 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 :T%jvu- 1 , 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 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 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. 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 se-q., 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. 2.1 Redevelopment Plan and Project Area. The City Council of the City has 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 6 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 therefor from the City, provided that such demand may not be made prior to the first (1 st) anniversary of the Effective Date; or (ii) On the ( 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. 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 6 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. 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] 6 SIGNATURE PAGE TO SHORT TERM LOAN AGREEMENT CITY OF SAN JACINTO, a California municipal corporation By:X clues mCatlL City Malrager ATTEST: By: City � APPROVED AS TO LEGAL FORM: By: sal /-3, -Kes est& Krieger LLP City Attorney 6 SIGNATURE PAGE TO SHORT TERM LOAN AGREEMENT SAN JACINTO REDEVELOPMENT AGENCY, a public body, corporate and politic By: 06 at4a Executi irector ATTEST: By: /' �.I" Agenc ecretary APPROVED AS TO LEGAL FORM: Y: B qeeBest'a'K—ri�eger LLP Agency Counsel [Signatures continued on following page] 6 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 6- 1C1 ,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 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 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. 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. 2.1 Redevelopment Plan and Project Area. The City Council of the City has 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 6 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 therefor from the City, provided that such demand may not be made prior to the first (1 st) anniversary of the Effective Date; or (ii) On the () 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. 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 6 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. 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] 6 SIGNATURE PAGE TO SHORT TERM LOAN AGREEMENT SAN JACINTO REDEVELOPMENT AGENCY., a public body, corporate and politic By: Executi irector ATTEST: By: Zm�vx Age r cretary APPROVED AS TO LEGAL FORM: By: �1,0 st est& KriegeeLLP Agency Counsel [Signatures continued on following page] 6 SIGNATURE PAGE TO SHORT TERM LOAN AGREEMENT CITY OF SAN JACINTO, a California municipal corporation By:City�inager ATTEST: By: / C� City Cler APPROVED AS TO LEGAL FORM: By: L Best Kest & Krieger�LP City Attorney 6