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HomeMy WebLinkAboutReso 122-1992 RESOLUTION NO. 122-92 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING EXECUTION OF THE REPAYMENT AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND REDEVELOPMENT AGENCY FOR THE EL CAMINO CORRIDOR REDEVELOPMENT PROJECT WHEREAS, on May 27, 1992, the City Council adopted a resolution stating the City's intent to create the E1 Camino Corridor Redevelopment Area; and WHEREAS, the Redevelopment Plan for the Redevelopyment Project Area will provide for tax increment financing in accordance with the provisions of Chapter 6, Part 1 of Division 24 of the Health & Safety Code and Section 16 of Article XVI of the Constitution of the State of California; and WHEREAS, the Agency proposes to finance certain Redevelopment Agency activities by obtaining a loan from the City; and WHEREAS, repayment of the loan shall be made from the tax increments received from the Redevelopment Project Area. NON, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco as follows: 1. The Loan and Repayment Agreement attached hereto as Exhibit "A" is hereby approved. 2. The Vice-Mayor is hereby authorized to execute the same on behalf of the City of South San Francisco. 3. The initial loan advance of $425,000 is hereby approved. 4. The Finance Director is directed to incrementally disburse amounts up to a total of $425,000 to the Agency as necessary to cover expenditures authorized by the Agency budget. I kereby 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 9th day of AYES: NOES: ABSTAIN: ABSENT-. September , 1992 by the following vote: Councilmembers Jack Drago, Joseph A. Fernekes, Roberta Cerri Teglia, Robert Yee, and Mayor John R. Penna None None None ATTEST: City C1 erk 2 EXHIBIT A TO RESOLUTION NO. 122-92 LOAN AND REPAYMENT AGREEMENT THIS LOAN AND REPAYMENT AGREEMENT, dated September 9, 1992 is by an~ between the Redevelopment Agency of the City of South San Francisco (the "Agency") and the City of South San Francisco; WITNESSETH: WHEREAS, the Agency is a duly constituted redevelopment agency under the laws of the State of California and pursuant to such laws is proceeding with the redevelopment of the E1 Camino Corridor Redevelopment Project (the "Project Area") within the City; and WHEREAS, the Redevelopment Plan for the Project Area provides for tax increment financing in accordance with the provisions of Chapter 6 of Part 1 of Division 24 of the Health and Safety Code of the State of California and Section 16 of Article XVI of the Constitution of the State of California; and WHEREAS, the Agency proposes to finance certain Redevelopment activities by financial assistance from the City. WHEREAS, the Agency is authorized to borrow money and accept financial assistance under Chapter 6 of Part 1 of Division 24 of the California Health and Safety Code and to expend such funds for any lawful purposes of the Agency; WHEREAS, the City is willing to provide certain financial assistance to the Agency with respect to the project activities within the E1 Camino Corridor Redevelopment Project, as initially adopted or thereafter amended, by making an advance of certain monies to be utilized for the funding of Agency activities in the 'adoption and implementation of the E1 Camino Corridor Redevelopment Project, as initially adopted or thereafter amended, which would be repaid once tax increment revenues are received by the Agency: NOW, THEREFORE, in consideration of the mutual covenants herein contained it is agreed by and between the parties hereto as follows: Section 1. Definitions. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Agreement, have the meanings herein specified. (a) "Agency" means the Redevelopment Agency of the City of South San Francisco, a redevelopment agency and public body corporate and politic duly organized and existing under and by virtue of the laws of the State of California. (b) "Agreement" means this Loan and Repayment Agreement together with any duly authorized and executed amendments hereto. (c) "city" means the City of South San Francisco, a municipal corporation organized and existing under and by virtue of the laws of the State of California. (d) "Law" means the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California and acts amendatory thereof and in supplement thereto. Whenever reference is made in this Agreement to the law, reference is made to the Law as in force on the date of the execution of this Agreement, unless the context otherwise requires. (e) Agency. "Loan" means any loan made hereunder by the City to the (f) "Project Area" means the E1 Camino Corridor Redevelopment Project Area of the Agency, the project area and the boundaries thereof to be described fully in the redevelopment plan, as such plan shall be amended from time to time in accordance with the Law. (g) "Site" means all of that certain real property situated in the City of South San Francisco, County of San Mateo, State of California, described in Exhibit "A" attached hereto and made a part hereof. (h) "Tax Revenues" means all taxes allocated to, and paid in a special fund of, the Agency with respect to the Project Area pursuant to Article 6 of Chapter 6 of the Law and Section 16 of Article XVI of the Constitution of the State of California, and as provided in the respective redevelopment plan for the Project Area, including all payments and reimbursements, if any, to the Agency specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations. Section 2. Authorization. Each of the parties hereby represents and warrants that it has full legal authority and is duly empowered to enter into this Agreement, and has taken all actions necessary to authorize the execution of this Agreement by the officers and persons signing it. Sec'tion 3. Loan. The city hereby loans and advances to the Agency the sum of $425,000. Such amount shall be utilized to fund the Agency's budget for the E1 Camino Redevelopment Project Area. The city further agrees to make, from time to time, such loans and advances for redevelopment activities in the project area as requested by the Agency and approved by the City. The Finance Director is hereby authorized to incrementally release up to the full amount of the initial $425,000 loan to the Agency as necessary to cover Agency disbursements. Seccion 4. Repayment Obligation of AgencY. In consideration of the loan made pursuant to Section 3, above, the Agency hereby agrees to repay the city at the rate of interest 2 that shall be equal to the rate of investment earning applied semi-annually to the various funds of the City, based upon the average outstanding balance during the calculation period. Interest charges will be applied semi-annually. The date when repayment will begin shall be at the discretion of the City, however, one year's notice to the Redevelopment Agency will be required. Repayment shall be subordinated to the Agency's outstanding bond obligations and shall be made from tax increments received from the project area. In the event that the project area is not created or that there are not sufficient tax increment dollars received to pay the loan, no repayment shall be required. Section 5. Term of Agreement. effect upon execution. This Agreement shall take Section 6. Successor is Deemed Included in Ail Reference to Predecessor. Whenever in this Agreement either the Agency or the City is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Agreement contained by or on behalf of the Agency or the City shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not. Section 7. Amendment. Without written consent neither the City nor the Agency shall alter, modify or cancel, or agree or consent to alter, modify or cancel this Agreement, excepting only (a) to add to the covenants and agreements of any part, other covenants to be observed, or to surrender any right or power herein reserved to the Agency or the City, (b) to cure, correct or supplement any ambiguous or defective provision contained herein, or (c) in regard to questions arising hereunder, as the parties hereto may deem necessary or desirable and which shall not adversely affect the interest of the owners of the Certificates. Section 8. Notices. Ail notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed to have been received if hand delivered or forty-eight (48) hours after deposit in the United Stated mail with postage fully prepaid. If to the City: City Manager City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 If to the Agency: Executive Director Redevelopment Agency of the city of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 The Agency and the City, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications will be sent. Section 9. Further Assurances and Corrective Instruments. The Agency and the City agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowl,~dged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any ina~equate or incorrect description of the Project. Se¢:tion 10. Execution in Counterparts. This Agreement may be exec%[ted in several counterparts, each of which shall be an original, and all of which shall constitute but one and the same in tnt. Se¢:tion 11. Applicable Law. This Agreement shall be g by and construed in accordance with the laws of the State California. Ag this tion 12. Captions. The captions or headings in this t are for convenience only and in no way define, limit or the scope or intent of any provisions of Sections of IN officers WHEREOF, the Agency and the City have caused this to be executed by their duly authorized respective REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SM. FRANCISCO Executive Dir%ctor Approved as to form: city Atto Attest: rney City Cleri CITY. OF SOUl,AN FRANCISCO 4