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HomeMy WebLinkAboutReso RDA 1-2003RESOLUTION NO. 1-2003 REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION APPROVING LOAN AGREEMENTS BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND REDEVELOPMENT AGENCY, APPROPRIATING FUNDS FOR REPAYMENT OF OBLIGATIONS AND APPROVING BUDGET AMENDMENT NO.03-13 WHEREAS, the City of South San Francisco, in accordance with California Redevelopment Law, Health and Safety Code Section 33220 et. seq., previously advanced the Redevelopment Agency Three Million Eight Hundred and Forty Six Thousand Dollars ($3,846,000) to facilitate redevelopment in the Shearwater Plan Area and One Million Fifty-Five Thousand Dollars ($1,055,000) for redevelopment activities in the E1 Camino Redevelopment Plan Area; and, WHEREAS, the City and Agency now wish to formalize the advance of funds by executing legal documents providing repayment terms for the previously issued debt, including a one time payment of Three Million Six Hundred Thousand Dollars ($3,600,000), in accordance with the Promissory Notes attached hereto and incorporated herein as Exhibits A and B; and, WHEREAS, the Shearwater and E1 Camino Redevelopment Plan Areas have not generated tax increment revenues sufficient to fully repay the Agency debt; and, WHEREAS, the Downtown Central Plan Area Redevelopment Fund has sufficient revenues to advance payment to the Shearwater Fund so that the City may receive partial payment on the existing debt; and, WHEREAS, the Downtown Central Plan Area has benefited from the redevelopment activities in the Shearwater Plan Area through the joint use of the completed infrastructure improvements, i.e. Oyster Point Widening Project, such project has provided greater access to the Downtown Plan Area generating increased sales tax revenues in the Downtown Area, and the project serves the Downtown Central Plan Area in as much as it transects the Shearwater and Downtown Central areas; and, WHEREAS, the Agency, in order to satisfy the obligations of the Shearwater Plan Area indebtedness, shall loan Three Million Six Hundred Thousand Dollars ($3,600,000) from the Downtown Redevelopment Fund to the Shearwater Redevelopment Fund. Such funds shall be repaid as tax increment funds become available in the Shearwater Redevelopment Fund in accordance with the Downtown-Shearwater Redevelopment Fund Promissory Note, attached hereto and incorporated herein as Exhibit C; and, WHEREAS, Three Million Six Hundred Thousand Dollars ($3,600,000) shall be deposited into the City's General Fund in payment of the aforementioned debt; and, WHEREAS, the Agency received One Million Fifty-Five Thousand Dollars ($1,055,000) from the City to facilitate redevelopment in the E1 Camino Redevelopment Plan Area by funding a design and feasibility study for the Oak Avenue Extension project and said project is included in the City's Capital Improvement Program; and, WHEREAS, the E1 Camino Redevelopment Plan Fund does not have sufficient revenues to fund construction of the Oak Avenue Extension; and, WHEREAS, the planned improvement benefits the project area, the immediate neighborhood in which the project is located and the adjacent Downtown Redevelopment Plan Area; and, WHEREAS, there are no other reasonable means of financing the planned improvement and the payment of funds for the construction of the project will assist in the elimination of one or more blighting conditions within the project area and is consistent with the implementation plan adopted pursuant to California Health & Safety Code Section 33490; and, WHEREAS, as a result of a property tax assessment dispute, the Agency is required to pay an estimated One Million One Hundred Thousand Dollars ($1,100,000) to satisfy its interest obligation and desires to pay its interest obligation from monies in the Downtown Redevelopment Fund. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of South San Francisco hereby: 1. Approves the Agreements attached as Exhibits A, B and C, which Agreements provide for repayment of funds loaned by the City and Agency. Authorizes the execution and delivery of the Promissory Notes in substantially the form attached to this Resolution, together with any additions thereto or changes therein deemed necessary or advisable by the Executive Director, upon advice of the Agency Counsel. The execution of the Promissory Notes shall be deemed conclusive evidence of the Agency's approval of such additions or changes, provided that no such change shall increase the combined amount of the Promissory Notes to an amount greater than Four Million Nine Hundred One Thousand Dollars ($4,901,000), excluding unpaid interest, or provide for an interest rate on the Promissory Notes in excess of 6.00%. The Executive Director is hereby authorized and directed to execute the Promissory Notes for and in the name and on behalf of the Agency. o Transfers Three Million Six Hundred Thousand Dollars ($3,600,000) from the Downtown Redevelopment Fund to the Shearwater Fund in accordance with terms of Exhibit C and, ° Appropriates Three Million Six Hundred Thousand Dollars ($3,600,000) from the Shearwater Fund to the City of South San Francisco General Fund as partial payment on an existing debt; and, o Appropriates One Million One Hundred Thousand Dollars ($1,100,000) from the Downtown Redevelopment Fund to satisfy existing interest payment obligations related to an appeal of property tax assessments dating back to the 1992-93 fiscal year. Approves a Budget Amendment No. 03-13 to reflect the above referenced transfers and obligations. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the 8th of January 2003 by the following vote: AYES: NOES: ABSTAIN: ABSENT: Boardmembers, Joseph A. Fernekes, Richard A. Garbarino, Sr. and Raymond L. Green, Vice-Chair Karyl Matsumoto and Chairman Pedro Gonzalez None. None. None. ATTEST: ~tct'~) , i~A,~_ {.J Clerk EXHIBIT A REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO PROMISSORY NOTE - Shearwater Redevelopment Plan Area $3,846,000 January ,2003 FOR VALUE RECEIVED, the Redevelopment Agency of the City of South San Francisco (the "Agency") acknowledges itself indebted to and promises to pay the City of South San Francisco ("City"), on or before October 1, 2033, the principal sum of Three Million Eight Hundred Forty Six Thousand Dollars ($3,846,000.00) in lawful money of the United States of America, together with interest thereon, including interest on unpaid interest, at the rate of 6%. Agency shall make a one time payment of Three Million Six Hundred Thousand Dollars upon execution of this Promissory Note. Interest shall accrue on the remaining balance thereafter and be paid annually on December 1st of each year and principal shall be paid on December 1st each year amortized in a manner that will provide level debt service. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. The Agency hereby pledges to the repayment of amounts owing under this Promissory Note all tax increment revenue received by the Agency from the Shearwater Redevelopment Plan Area, other than amounts required to be deposited in the Agency's 20% Low and Moderate Income Housing Fund or to be paid to other taxing entities (unless such payments are subordinated to the payment of this Promissory Note or other debt of the Agency). It is hereby certified, recited and declared that this Promissory Note is made, executed and given pursuant to authority of Resolution __ - __ under and by authority of Article 5 of Chapter 6 of Part I of Division 24 of Title 1 of the California Health and Safety Code (commencing with Section 33640), and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Promissory Note have existed, happened and been performed in regular and due time, form and manner as required by law. The City may assign its interest in this Promissory Note to a trustee or fiscal agent in connection with the issuance of lease revenue bonds or the delivery of certificates of participation. This Promissory Note is subject to prepayment, in whole or in part, on any date. IN WITNESS WHEREOF, the Redevelopment Agency of the City of South San Francisco has caused this Promissory Note to be executed by its Executive Director on this __ day of January 2003. CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY (Agency) Michael A. Wilson. Executive Director ATTEST: Sylvia M. Payne, City Clerk APPROVED AS TO FORM: Steven T. Mattas, Agency Counsel ACCEPTED CITY OF SOUTH SAN FRANCISCO By: Pedro Gonzalez, Mayor EXHIBIT A REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO PROMISSORY NOTE - Shearwater Redevelopment Plan Area $3,846,000 January ,2003 FOR VALUE RECEIVED, the Redevelopment Agency of the City of South San Francisco (the "Agency") acknowledges itself indebted to and promises to pay the City of South San Francisco ("City"), on or before October 1, 2033, the principal sum of Three Million Eight Hundred Forty Six Thousand Dollars ($3,846,000.00) in lawful money of the United States of America, together with interest thereon, including interest on unpaid interest, at the rate of 6%. Agency shall make a one time payment of Three Million Six Hundred Thousand Dollars upon execution of this Promissory Note. Interest shall accrue on the remaining balance thereafter and be paid annually on December 1st of each year and principal shall be paid on December 1st each year amortized in a manner that will provide level debt service. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. The Agency hereby pledges to the repayment of amounts owing under this Promissory Note all tax increment revenue received by the Agency from the Shearwater Redevelopment Plan Area, other than amounts required to be deposited in the Agency's 20% Low and Moderate Income Housing Fund or to be paid to other taxing entities (unless such payments are subordinated to the payment of this Promissory Note or other debt of the Agency). It is hereby certified, recited and declared that this Promissory Note is made, executed and given pursuant to authority of Resolution __ __ under and by authority of Article 5 of Chapter 6 of Part I of Division 24 of Title 1 of the California Health and Safety Code (commencing with Section 33640), and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Promissory Note have existed, happened and been performed in regular and due time, form and manner as required by law. The City may assign its interest in this Promissory Note to a trustee or fiscal agent in connection with the issuance of lease revenue bonds or the delivery of certificates of participation. This Promissory Note is subject to prepayment, in whole or in part, on any date. IN WITNESS WHEREOF, the Redevelopment Agency of the City of South San Francisco has caused this Promissory Note to be executed by its Executive Director on this __ day of January 2003. CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY (Agency) Michael A. Wilson. Executive Director ATTEST: Sylvia M. Payne, City Clerk APPROVED AS TO FORM: Steven T. Mattas, Agency Counsel ACCEPTED CITY OF SOUTH SAN FRANCISCO By: Pedro Gonzalez, Mayor EXHIBIT B REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO $1,055,000 January PROMISSORY NOTE - El Camino Redevelopment Plan Area ,2003 FOR VALUE RECEIVED, the Redevelopment Agency of the City of South San Francisco (the "Agency") acknowledges itself indebted to and promises to pay the City of South San Francisco ("City"), on or before October 1, 2033, the principal sum of One Million Fifty- Five Thousand Dollars ($1,055,000.00) in lawful money of the United States of America, together with interest thereon, including interest on unpaid interest, at the rate of 6%. Interest shall be paid annually on December 1 st of each year and principal shall be paid on December 1st each year amortized in a manner that will provide level debt service. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. The Agency hereby pledges to the repayment of amounts owing under this Promissory Note all tax increment revenue received by the Agency from the E1 Camino Plan Area, other than amounts required to be deposited in the Agency's 20% Low and Moderate Income Housing Fund or to be paid to other taxing entities (unless such payments are subordinated to the payment of this Promissory Note or other debt of the Agency). It is hereby certified, recited and declared that this Promissory Note is made, executed and given pursuant to authority of Resolution __ __ under and by authority of Article 5 of Chapter 6 of Part I of Division 24 of Title 1 of the California Health and Safety Code (commencing with Section 33640), and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Promissory Note have existed, happened and been performed in regular and due time, form and manner as required by law. The City may assign its interest in this Promissory Note to a trustee or fiscal agent in connection with the issuance of lease revenue bonds or the delivery of certificates of participation. This Promissory Note is subject to prepayment, in whole or in part, on any date. IN WITNESS WHEREOF, the Redevelopment Agency of the City of South San Francisco has caused this Promissory Note to be executed by its Executive Director on this __ day of January 2003. CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY (Agency) Michael A. Wilson. Executive Director ATTEST: Sylvia M. Payne, City Clerk APPROVED AS TO FORM: Steven T. Mattas, Agency Counsel ACCEPTED CITY OF SOUTH SAN FRANCISCO By: Pedro Gonzalez, Mayor EXHIBIT B REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO $1,055,000 January PROMISSORY NOTE - El Camino Redevelopment Plan Area ,2003 FOR VALUE RECEIVED, the Redevelopment Agency of the City of South San Francisco (the "Agency") acknowledges itself indebted to and promises to pay the City of South San Francisco ("City"), on or before October 1, 2033, the principal sum of One Million Fifty- Five Thousand Dollars ($1,055,000.00) in lawful money of the United States of America, together with interest thereon, including interest on unpaid interest, at the rate of 6%. Interest shall be paid annually on December 1st of each year and principal shall be paid on December 1st each year amortized in a manner that will provide level debt service. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. The Agency hereby pledges to the repayment of amounts owing under this Promissory Note all tax increment revenue received by the Agency from the E1 Camino Plan Area, other than amounts required to be deposited in the Agency's 20% Low and Moderate Income Housing Fund or to be paid to other taxing entities (unless such payments are subordinated to the payment of this Promissory Note or other debt of the Agency). It is hereby certified, recited and declared that this Promissory Note is made, executed and given pursuant to authority of Resolution __ - __ under and by authority of Article 5 of Chapter 6 of Part I of Division 24 of Title 1 of the California Health and Safety Code (commencing with Section 33640), and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Promissory Note have existed, happened and been performed in regular and due time, form and manner as required by law. The City may assign its interest in this Promissory Note to a trustee or fiscal agent in connection with the issuance of lease revenue bonds or the delivery of certificates of participation. This Promissory Note is subject to prepayment, in whole or in part, on any date. IN WITNESS WHEREOF, the Redevelopment Agency of the City of South San Francisco has caused this Promissory Note to be executed by its Executive Director on this __ day of January 2003. CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY (Agency) Michael A. Wilson. Executive Director ATTEST: Sylvia M. Payne, City Clerk APPROVED AS TO FORM: Steven T. Mattas, Agency Counsel ACCEPTED CITY OF SOUTH SAN FRANCISCO By: Pedro Gonzalez, Mayor EXHIBIT C REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO PROMISSORY NOTE - Downtown Central-Shearwater Redevelopment Plan Area $3,600,000 January ,2003 FOR VALUE RECEIVED, the Redevelopment Agency of the City of South San Francisco (the "Agency"), Shearwater Plan Area, acknowledges itself indebted to and promises to pay the Downtown Central Redevelopment Plan Area ("Downtown Area Plan"), on or before October 1, 2033, the principal sum of Three Million Six Hundred Thousand Dollars ($3,600,000.00) in lawful money of the United States of America, together with interest thereon, including interest on unpaid interest, at the rate of 6%. Such payment is to compensate the Downtown Area Plan for its investment in the debt issued to the Shearwater Plan Area under that certain Promissory Note by and between the City of South San Francisco and the Redevelopment Agency of the City of South San Francisco, Shearwater Redevelopment Plan Area dated January ,2003. Interest shall be paid annually on December 1st of each year and principal shall be paid on December 1st each year amortized in a manner that will provide level debt service. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. The Shearwater Plan Area pledges to the repayment of amounts owing under this Promissory Note all tax increment revenue received by the Agency from the Shearwater Redevelopment Plan Area, other than amounts required to be deposited in the Agency's 20% Low and Moderate Income Housing Fund, amounts paid to the City of South San Francisco due under the Promissory Note dated January ,2003, or to be paid to other taxing entities (unless such payments are subordinated to the payment of this Promissory Note or other debt of the Agency). It is hereby certified, recited and declared that this Promissory Note is made, executed and given pursuant to authority of Resolution __ __ under and by authority of California Health and Safety Code (commencing with Section 33000) and other laws governing the use of Agency funds, and that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Promissory Note have existed, happened and been performed in regular and due time, form and manner as required by law. The Agency may assign its interest in this Promissory Note to a trustee or fiscal agent in connection with the issuance of lease revenue bonds or the delivery of certificates of participation. This Promissory Note is subject to prepayment, in whole or in part, on any date. IN WITNESS WHEREOF, the Redevelopment Agency of the City of South San Francisco has caused this Promissory Note to be executed by its Executive Director on this __ day of January 2003. CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY-On behalf of the Shearwater Redevelopment Plan Area (Agency) Michael A. Wilson. Executive Director ATTEST: Sylvia M. Payne, City Clerk APPROVED AS TO FORM: Steven T. Mattas, Agency Counsel ACCEPTED Redevelopment Agency on Behalf of the Downtown Central Plan Area By: Pedro Gonzalez, Chairman