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Home My Public Portal AboutM 1934-08-30 - CC~~~ SPECIAL RiT{'rTTNG AUGI?ST 30TH, 1934. The City Council ofthe City of Lyn.vood met in a special session pursuant to call. of_ i,°ayor Koster at the Cit;,r Hall, 11331 Plaza utreet, on above date, at 7 P. I4., said call readinT as follows: "Please t^ke notice that the City Council of the City of Lynwood will hold a special meeting at the Council Chambez~ at the ';ity Hall in the City of L~nwood at 7 P. IJ:., .`~.urust 30th, 19:34. 'This meeting is c=elled for the purpose cf considering and propos- ing a settlement of the bond liability in hcquisition and Improvement Districts Nos. 1~3 and 20. Signed by C. G. Koster, rr`ayor of the City of -- Lyn!~rood ~" a copy of saiclnotice having been served on each member of the City Council at least three hours prior to sa.i.d meeting as required by law. I'.avor Koster in t?~e crair.. Councilmen T;ai~e, r~~e~Ter, ~^a~t-^~re 1^r and ~'ost-er answered the roll call.. Councilman `?n-r~?er ,~~~ r ati,Gert; . Cite `'reas~.~rer ~'eec? ar'dres^ed tre "ounril t~ t~P pfnect t'~at the City has been r.egcti..~ting ~~vith a ~`:r A?eal, renresert-nr; the Pacific Utates Savings and Loan Company, ~=vith re.:~pect to the passibility of ad- justing the difS'iculty in the century ~ioulevar~d and Tweedy-zbbott Woad Districts relative to the delinquent bonds and coupons, stating that a number of conferences read been held, as a result of ~v'nich a letter had been drafted, reading as follotivs: ~'+~Y7ereupon City Treasurer• steed. read the letter. "Refer. ring to 3onds of ~cquisi.tion and T_mprovement Districts Nas . 1£3 and 20, Los .'~ngeles Caurttr, C~:1 i.fcrnia . "In discussing these defaulted situ:~tions vrith your represer_t- ative, Ivir. J. D. 1`~eale, to tivhom you have r^ferred this negotiation, vre understand that you are tP~e ovmer of all the outstan.dir~b bonds of these districts ir_ the ag3regate amount of X761,706.72, the said bonds note beinf=, in defala_lt on botY interest a.nd principal maturities. nsecause of the exceedingly heavy burden c" taxes ~Rrhirh these issues impose upon this limited area largely witr.in the boundaries of --•+ Lynwood, and of the tremendously deprec3_ated values of the real estate affected, it is our belief that these bonds v:+ill remain permanently in default and that all of the land so affected vrill be taken. by thL State far taxes, unless Ure are able, with your rielp, to interest the present landowners in a plan of settlement which vrill enable them to retain their equities and tY?ereby induoe stem tc remove the Existing deplorable conditions. The bresert delinauenc~yT is ne~~rhy total, therefore we deem it highly irr~nortant that something be done immediately, to save this situation from utter loss. "',+e therefcre desire teat- n~„ -~,~~P ~,pr~r careflal considera.t3_on to the general r~7.^r of ~e+t- amens, •~,',; cr~ ,^re raise most ^,aref,~17_~ devel- oped, and vre ti:c:' i e~.re t1,:~t such ConSi~xeratior .' Il C~mr~er,d tai s rror~osal to you, as it represents tl~e maximum pasrment r,ossible, :got only from. this bonded area, over 90jo oy' ~rC.icl_, is improved property, uut also from all sources. `ibis default is rapidly becc~rnin~, worse. rye are encouraged in the belief that if 1Ne can get this adjustment program under way immediately, :ve may be agile to secure some i~elp from the i;ounty Supervisors in meeting tree payments scat fortr~. "Our carefully considered proposal follows: "1. The direct purchase from you. of the above bonds, with all matured and unmatured cou.~aons a?~r,ertaining thereto, for the total sure of ~,; x;410,000.00, payable ir. ten(10) annual i.nsta7.lments as fol.lovrs: "First installment of X50,000.00, ar.d nine subsequent equal annual installments of x;:40,000.00 each; such payments covering both ~-* interest and principal, each installment to be nail on the second day of January of each ,year, , except the first and second payments, which vri11 be made on or before the first day of October, l~?3 4, and. the 31st day of December, 1935, respectively, the third payment being due January 2.nd, 1937, i. e. the installment pa~Tments tivill be du.e as follows: first: October 1, 1934 ~;eccnd: December 31, 1935 Third; January 2, 193'7 Fourth : January 2, 193£3 '~ if th : January ", 1939 Sixth: January 2, 1Q40 Seventh : January 2, 1941 'r+'F~ t!'hth : Tart,ar~ %', 7..842 Trjt7tl`' : ,?`rlpi7artJ `% 1 ('1d,?j '~ ~ mertY~ : .T~n,a.arv ?, 7 ^~~' 4 ~~ f12. That all the bonds outstanding be deposited by you in same mutually satisfactory bank in Los ~-ngeles with a copy of this proposal with your acceptance thereon, together with instructions that upon payment of the first installment by us as herein provided all matux°ed coupons and 10~ of the deposited bonds with coupons appertaining thereto be delivered to us and that as each subsequent installment is paid as provided herein all coupons then matured and 10/ of the bonds origi- ally deposited with all coupons appertaining thereto be delivered to us. he bonds delivered upon the payment of any installment shall be the artiest maturities then outstanding. ' "3. Should the City of Lynwood be in arrears more than sixty (60) days in meeting any of the above mentioned annual payments, it is agreed that interest at the rate stipulated in the bonds shall be due and pay able on the total bonds then remaining on deposit for the period of delinquency, provided that if such annual payment shall not have been met within six (6) months after the same falls due, that the bonds then. deposited with the bank shall, upon order to it by you, be turned over to ,you and said bonds returned to you shall constitute a lien in the same manner and to the same extent as at the time of this rtarchase and sal e a~;re?ment. "4. Any installment ra~*mPnt mar Vie. made nr.ior to the due date thereof upon our ~;ivi.n.g to jrou ter, (10) da~rs ~rari tten rofiice of intention to make such r.ri_or pa Sment . "5. Imrr:ediately upon information from you that you accept the above plan of thi.~ purchase and sale agreement, we will proceed with due diligence in undertaking to carry out our part of this agreement. "It is our desire to accomplish all that is possible for the common good of all parties afi'ected, and this effort we seek your cooperation. "We await your early advice on this important subject.'} Said communication to be signed by either the Mayor of the City or the City Treasurer, depending on who,has 3urisdiction in the matter. City Treasurer Reed stated further that if said plan is accepted by both parties, it-will retire the bond issues in 9 years in lieu of having them running as now provided, to 1955 for the Century Boulevard issue and to 1948 for the Tweedy-Abbott Road issue; stating that the total payment under the plan would be X410,000.00 as against X1,366,000.00 bonds and coupons covering both issues to their expiration date; also stating that the City would pick up approximately ~~`~'168,944.00 of bonds and coupons with. the y~50,000.00 first payment, - X60,000.00 of principal in Century Boulevard District and 5,500.00 principal .for Tweedy-Abbott issue, and the balance coupons. A gener al discussion was had relative to the matter, whereupon P~"r. A~eale wa.s celled and the letter as ,outlined read in his hearing. • hfir. Neale stated in part that while the terms and conditions as set forth in the letter are not in all respects as the Pacific States Savings and Loan Company indicated to him they would accept, however, he will do his best to have the proposal accepted as it is, and if any .changes are requested it will be necessary for the Council to reconsider the matter, and re believes if they accept the proposa_1 teat it will be a hey p for the ^; ter i n procuring enough gasoline tax money so that the insta_~7m?r.ts non '^? met. Cit:~ Treasurer "eed stated teat ~e rail been ia.n to Tros Angeles to see ~'arold ?~ennedg of the County counsel's o~'~'ir_.e and ^ounty ~. Auditor Payne, however he was unable to contact them regarding the matter but he tivould endeavor to see them in thernorning and learn what their reaction will be toward such a plan of settlement. Thereupon RESOLU`i~ION N0. 918, entitled: "A-RESOLUTION OF THE CITY OF LYNVd00D, CALIr'UHiVIA, SU~iu~IT1ING PROPOSAL TO THE PACIFIC STATES SAVINGS AND LOAN CObiPtiNY FOR A C0141PROMISE SETTLEMENT IN THE MATTER OF ~3UNDS AND COUPONS OUTSTANDING IN ACQUISITION AND IMPROVEMENT DISTRICTS NOS . 18 and 20 OF THE CITY OF LYl~'l'~~OOD, n was read . It was moved by Councilman Meyer and seconded by Councilman Lake that said Resolution No. 918 be adopted. Roll Call: Ayes: Councilmen: Lake, Meyer, Daetweiler and Bolter. Noes: None. Absent: Councilman Snyder. 2~6 It was moved by Councilman Lake and seconded by Councilman Daetweiler that the meeting adjourn to "ex~tember 4th, 1x34 at 7:30 P. Ivy. All members o° the Council present voting, the ~,~ayor declared the motion carried and it was so ordered. ~~ i' _ _ ~ ayor of the^~ity of~Lyn~^rood. ATTEST : - - ------ _ ..~, ,. /~ -_~` mss' ~ _> ~ . j ~ ~~ ~. ~,~~~ -~. CITY CLERK, CITY OF LYNI+'u00D. ..,