HomeMy Public PortalAboutResolution 03-42301
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RESOLUTION NO. 03 -4230
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMPLE CITY APPROVING AN AGREEMENT AND
PROMISSORY NOTE BY AND BETWEEN THE CITY OF
TEMPLE CITY AND THE TEMPLE CITY COMMUNITY
REDEVELOPMENT AGENCY AND AUTHORIZING THE CITY
MANAGER TO EXECUTE SAME
WHEREAS, the. `Temple City Community Redevelopment Agency (Agency) was
established via adoption of Ordinance 72 -350 on May 16, 1972; and,
WHEREAS, since 'its ,establishment, the Agency has required funds in order to implement
the goals contained in .the Redevelopment Plan for the Rosemead Boulevard Redevelopment
Project Area, including elimination of blight and the improvement of economic conditions
therein; and,
WHEREAS', .despite much progress in achieving the goals of the Redevelopment Plan
and those contained in the California Health and Safety Code, the Rosemead Boulevard Project
Area remains blighted and in need of further economic stimulus to be fostered by the continued
efforts of the Agency; and,
WHEREAS, in order to continue such work, the Agency now, and in the future, will be in
need of funds to invest in the Redevelopment Project Area and other project areas which the City
Council and /or Redevelopment Agency Board may determine to be necessary and in the best
interests of the people of the City of Temple City; and,
WHEREAS, the City Council has been advised by the City Attorney and Special Counsel
that the attached Agreement and Promissory Note meets the "establishment of [a] loan" as that
phrase is contained in the California Health and Safety Code.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES HEREBY
RESOLVE:
SECTION 1. That certain Agreement and Promissory Note attached hereto as Exhibit
"A" is hereby approved; and,
SECTION 2. The City Manager is hereby authorized to execute said Agreement and
Promissory Note.
PASSED, APPROVED AND ADOPTED on this 16th day of December, 2003.
ATTEST:
ry\ 1--LetAcvl.A.A—ciu
City Clerk
Resolution No. 03 -4230
Page 2
I, City Clerk of the City of Temple City, do hereby certify that the foregoing resolution,
Resolution No. 03 -4230, was duly passed, approved and adopted by the City Council of the City
of Temple City at a regular meeting held on the 16th day of December, 2003 by the following
vote:
AYES: Councilmember - Arrighi, Capra, Wong, Zovak, Vizcarra
NOES: Councilmember -None
ABSENT: Councilmember -None
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AGREEMENT AND PROMISSORY NOTE
BY AND BETWEEN
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF TEMPLE
CITY AND THE CITY OF TEMPLE CITY
WHEREAS, AGENCY continues to implement the goals of the California
Redevelopment Law through the elimination of blight and the increase of
economic activity within AGENCY's Redevelopment Project Area and other
areas as authorized by law; and,
WHEREAS, in order to continue the mission of AGENCY, AGENCY is in need of
a funding mechanism to fund current and future redevelopment projects; and,
WHEREAS, funding of these existing and future projects promotes the health,
safety, and welfare of the citizens of the City of Temple City.
NOW, THEREFORE, the City of Temple City, California, a charter City (City) and
the Community Redevelopment Agency of the City of Temple City (Agency) for
their mutual benefit and advantage do hereby agree as follows:
(1) CITY hereby lends to AGENCY, effective on December 18, 2003, the sum
of $15,000,000 (fifteen million dollars) {ESTABLISHED LOAN AMOUNT }.
(2) AGENCY agrees to repay CITY, in full both principal and interest, for such
loan on or before June 15, 2022 or the date contained in that certain
Redevelopment Plan for the Rosemead Boulevard Project Area for the
limitation on repayment of loans (as such date may from time to time be
extended by State law), whichever is later (FINAL DRAW DATE).
(3) AGENCY further agrees to pay interest on such loan equal to the average
yield on the Local Agency Investment FUND (LAIF) during the loan period.
(4) Because CITY is able to obtain better and more adaptable investment
interest rates that AGENCY is able to obtain, it is agreed that the
$15,000,000 (fifteen million dollars) shall remain with the CITY in trust for
the benefit of the AGENCY.
(5) AGENCY may draw down any or all of said $15,000,000 (fifteen million
dollars) at any time or times upon ten days' notice to CITY, and CITY shall
promptly pay to CRA such draw -downs as requested. Interest on such
draw downs shall begin on the first day of the first month after the date of
draw -down and continue until the last day of the month in which the draw -
down is repaid to CITY.
(6) Any portion of said ESTABLISHED LOAN AMOUNT not drawn down from
CITY by AGENCY during the term hereof shall be invested by CITY in
accordance with applicable law and any earnings on said amount shall
remain with and be the property of the CITY.
(7) Upon demand by CITY, AGENCY shall repay draw -downs with interest
thereupon calculated at a rate contained in Section (3) hereof. Upon
repayment to CITY, the principal amount of such draw -down repayments
shall be available for future draw -down upon the request of AGENCY and
such future draw -downs shall be subject to the provisions hereof.
IN WITNESS WHEREOF, both CITY and AGENCY execute this Agreement and
Promissory Note in triplicate by their duly authorized and empowered
representatives.
CITY OF TEMPLE CITY, CALIFORNIA
BY: - 17Y1,0-/A r✓ti
Martin R. Cole, MPA
ITS: City Manager
DATE: IS bEC 2c3
APPROVED (As to Form)
City of Temple City, a Ch- -r City
BY:
COMMUNITY
REDEVELOPMENT AGENCY
OF THE CITY OF TEMPLE CITY
BY: � . C
Martin R. Cole, MPA
ITS: Executive Director
DATE: I S DEC. 2x3
Community Red -�,�.: ,�ment
Agency of 'i, ity of emple City
ITS: City Attorney .> - ITS: Agenc.a nsel
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