HomeMy Public PortalAbout2013.038 (03-19-13) • RESOLUTION NO. 2013.038
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
PROCLAIMING FORMAL SUPPORT OF ASSEMBLY BILL (AB) 981 (BLOOM)
RELATED TO THE USE OF REDEVELOPMENT BOND PROCEEDS
WHEREAS, redevelopment has been an essential tool in the revitalization of
communities across California and the City of Lynwood; and
WHEREAS, the elimination of Redevelopment Agencies (RDAs) has left cities
without the necessary tools to continue the important work of reducing blight, creating
safer, more livable neighborhoods that can meet residents' expectations; and
WHEREAS, the City of Lynwood Redevelopment Agency 2011 Tax Allocation
Bonds, were earmarked to finance redevelopment activities within Project Area A and
finance low and moderate income housing projects throughout the City, since the fall of
2010; and
WHEREAS, on March 7, 2011, the City of Lynwood and former Lynwood
Redevelopment Agency floated bonds in the amount of $24.1 million; and was ready to
move forward with the above-referenced projects; and
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WHEREAS, the elimination of RDAs, as prescribed by ABx1' 26, assumed that
funds generated as a result of the floating of bonds would be made available by•the
successor agency to the State and counties to be used for purposes other than those
for which they were originally floated; and -
WHEREAS, bonds'floated under a tax-exempt status can only be used for the
originally intended purposes and 'cannot be defeased for many years; using,'bond
proceeds for purposes other than the originally stated could trigger a.loss-.of the tax-
exempt status and the potential imposition of monetary penalties; and
WHEREAS, the Successor Agency of the City of Lynwood is currently servicing
the debt on the floated bonds and has made payments in the amount of $6 million; and
WHEREAS, cities like Lynwood have been prevented from proceeding with
construction of much needed projects at a time when the unemployment rate in
California is above 10%; and
WHEREAS, the use of these bonds would bring vital economic projects to the
community, create new jobs and economic investment opportunities, and improvement
to vital public infrastructures.
• NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD
HEREBY RESOLVES AS FOLLOWS:
Section 1. By adoption of this Resolution, the City of Lynwood .proclaims,its
formal support of AB 981(Bloom) and the public and economic benefits the bill will
create.
Section 2. The City Council authorizes the City 'Manager; staff and/or any
advocacy organization or contracted lobbyist to communicate the City's position,
advocate, and support for AB 981 and oppose any`proposal(s).that Would hinder this
legislation.
Section 3. This Resolution shall be effective immediately-upon'its adoption.
Section 4. The City Clerk shall certify as to the adoption of this City. Council
Resolution.
PASSED, APPROVED and ADOPTED this 19th day of•March, 2013.
Fr
'Sal/ad:r-Alatorre, Mayor
ATTEST:
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aria Quinonez, City Clerk Roger L. aleyrity Manager
APPROVED AS TO FORM: APPROVED AS TO'CONTENT '
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Fred Galante, City Attorney Amanda Roberson, Director
Finance
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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 19th day of March, 2013.
AYES: COUNCIL MEMBERS CASTRO, SANTILLAN-BEAS, MORTON,
RODRIGUEZ AND ALATORRE
NOES: NONE
ABSENT: NONE
ABSTAIN: ,NONE .J
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4 4 Maid I
Maria Quindri'@z;.Cify' Clerk
,r.
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. 2013.038 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated. Dated this 19th day of March, 2013.
Maria Quinorez City C erk
r
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