HomeMy Public PortalAbout2011.028 - LRA (06-21-11) RESOLUTION NO. 2011.028
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 LYWNOOD REDEVELOPMENT AGENCY BOARD
OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. By adoption of this resolution, 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 Executive Director of the Agency 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 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, Chair
ATTEST:
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Maria uinonez, Agency Secretary Roger L. Haley, xecutive Director
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
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Fred Galante, Agency Counsel Robert S. rez, tant City
Manager
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned, Secretary of the Lynwood Redevelopment Agency, do hereby
certify that the foregoing Resolution was passed and adopted by the Agency at its
regular meeting held on the 21 day of June, 2011.
AYES: MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON AND
CASTRO
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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aria Quinonez, Secretary
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned, Secretary of the Lynwood Redevelopment Agency, do hereby
certify that the above foregoing is a full, true and correct copy of Resolution No.
2011.028 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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aria Quinonez, ecretary