HomeMy Public PortalAbout2011.152 (06-21-11) RESOLUTION NO. 2011.152
A JOINT RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AND THE
CITY OF LYNWOOD APPROVING THE FULL REPAYMENT OF THE BALANCE OF
THE $1,950,000 LOAN FROM THE WATER FUND TO THE LYNWOOD
REDEVELOPMENT AGENCY
WHEREAS, on March 4, 2010, the Lynwood Redevelopment Agency and City of
Lynwood approved an Agreement and Promissory Note by and between the Agency
and City for a City loan from the Water Fund in the amount of $1,950,000 to pursue
development opportunities dedicated to eliminating blight in Project Area A; and
WHEREAS, pursuant to the executed Promissory Note, the Agency will
commence making monthly payments of $7,207.58 next fiscal year on July 1, 2011 and
every month thereafter, with final repayment expected in June of 2014 to the Water
Fund; and
WHEREAS, on June 15, 2011, the State Legislature passed a"Two-Bill" budget
package that will give redevelopment agencies the option to cease to exist by a
specified date or continue to operate only if they opt into paying a mandatory
proportionate share to the State in FY 12 and to schools, fire protection agencies, and
transit agencies in FY 13 and thereafter; and
WHEREAS, the Governor is expected to sign and approve these bills; and
WHEREAS, the City of Lynwood and Redevelopment Agency face economic
uncertainty in which these bills will adversely impact the Agency's ability to make bond
payments on existing obligations, payments on all City- Agency Agreements and greatly
diminish the Agency's ability to pursue new development opportunities and eliminate
blight in the community; and
WHEREAS, to preserve the fiscal well-being of the City and Agency, the Agency
agrees to repay the $1.95 million Water Loan to the City in full effective immediately;
and
WHEREAS, to date the principal owed and the interest accrued on the loan is
$1, 982,745.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. By adoption of this resulution, the Agency agrees to repay the full
pay-off balance of the original $1,950,000 loan (from the City to the Agency) to the
Water Fund effective immediately.
Section 2. The City Manager of the City, or his respective Designee, are
hereby authorized to execute the transfer of $1,982,744.84 from the unappropriated
Area A Tax Increment Fund (Fund 1012) and 2011 Series A Bond Proceeds (Fund
1019) to the Water Fund (Fund 6051).
Section 3. This Resolution shall be effective immediately upon its adoption.
Section 4. The Agency Secretary and City Clerk shall certify as to the adoption
of this Joint Agency and City Council Resolution.
PASSED, APPROVED and ADOPTED this 21 day of June, 2011.
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Aide� Castro, Mayor
ATTEST:
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Maria Quinonez, City Clerk Roger L. Haley,` y Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
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Fre Galante, City Attorney Robert S. or z, i nt City
Manager
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
foregoing Resolution was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the 21 day of June, 2011.
AYES: COUNCIL MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON
AND CASTRO
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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aria Quinonez, City Clerk
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned City Clerk of the City of Lynwood, and the Clerk of the City
Council of said City, do hereby certify that the above foregoing is a full, true and correct
copy of Resolution No. 2011.152 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated. Dated this 21 day of June, 2011.
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Maria Quinonez, City Clerk