HomeMy Public PortalAbout2010.093 (05-04-10)RESOLUTION NO. 2010.093
A JOINT RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AND; THE
CITY OF LYNWOOD APPROVING THE AGREEMENT AND NOTE BY 'AND
BETWEEN THE CITY OF LYNWOOD AND THE LYNWOOD REDEVELOPMENT
AGENCY FOR A CITY LOAN FROM THE WATER FUND IN THE AMOUNT OF
$1,950,000 FOR PURSUING DEVELOPMENT OPPORTUNITIES THAT WILL
CONTRIBUTE TO THE ELIMINATION OF BLIGHT IN THE LYNWOOD
REDEVELOPMENT PROJECT AREA A AND INCREASE APPROPRIATIONS AS
NEEDED IN THE PUBLIC WATER DEPARTMENT/WATER FUND TO ENABLE THE
TRANSFER
WHEREAS, the Lynwood Redevelopment Agency ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan for
Redevelopment Project Area "A" ("Redevelopment Project") in the City of Lynwood; and
WHEREAS, due to unforeseen projected expenditures, the Agency will require
funding to cover existing appropriated expenses, overhead, and to continue pursuing, new
development opportunities that will contribute to the eliminatio.n,of~-blight; antl.~:`:~ ~~`«' ~i w
~..
,. __
~.
WHEREAS, the Agency is seeking assistance from the City in the form of a loan in
the amount of $1,950,000 to leverage the shortfall the Tax Increment fund is projected to
experience; and
WHEREAS, the City will borrow from the Water Fund to cover the requested loan
to the Agency: and
WHEREAS, the Agency and the City agree the loan is in the best interest of the
City of Lynwood and in furtherance of the goals and objectives of the Lynwood
Redevelopment Agency to reduce blight I and promote economic development in the
Project Area.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS:
Section 1. The Agency accepts the loan from the City in the amount of
$1,950,000, pursuant to the Promissory Note in the form attached hereto as Exhibit "A", for
expenses, overhead, and to continue pursuing new development opportunities.
Section 2. The Executive Director of the Agency and City Manager of the City,
or his respective designee, is hereby authorized to sign the Promissory Note in the form
attached hereto as Exhibit "A" and all documents necessary and appropriate to carry out
and implement this Resolution and the Promissory Note, and to administer and implement
the Agency's and City's obligations, responsibilities and duties to be performed under said
documents on the behalf of the Agency and City respectively.
Section 3. Increase appropriations as needed in the public water
department/water fund to enable the transfer.
Section 4. This Resolution becomes effective immediately upon adoption.
PASSED, APPROVED and ADOPTED this 4~' day of May, 2010.
G? ~,r.~,J `-~ _
Mari ~T. Santillan, Mayor
ATTEST:
~ ~
Maria Quinonez, City Clerk
APPROVED AS TO FORM:
Fred Galante, City Attorney
Roger aley, ity Manager
APPROVED AS TO CONTENT:
Sarah M. Wither , Director of
Redevelopment
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 4t" day of May, 2010.
AYES: COUNCIL MEMBERS FLORES, MORTON, RODRIGUEZ, AND
SANTILLAN
NOES: NONE
ABSENT: COUNCIL MEMBER CASTRO
ABSTAIN: NONE
..--
Maria 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. 2010.093 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated. Dated this 4t" day of May, 2010.
~
Maria Quinonez, City Clerk
Exhibit "A".
PROMISSORY NOTE
$1,950,000 May 4, 2010
FOR VALUE RECEIVED, the LYNWOOD REDEVELOPMENT AGENCY, public
body, corporate and politic ("Agency"), promises to pay to the order of THE CITY
OF LYNWOOD, a California municipal corporation ("City"), 11330 Bullis Road,
Lynwood, California 90262, or at such other place as the City may from time to
time designate in writing, the principal sum of One Million Nine Hundred Fifty
Thousand Dollars ($1,950,000) (the "Note") and interest. This Note is issued
pursuant to that certain Joint Resolution of the Lynwood Redevelopment Agency
and The City of Lynwood Approving the Agreement and Note by and between
the City of Lynwood and the Lynwood Redevelopment Agency for a City Loan
from the Water Fund in the Amount of $1,950,000 for Pursuing Development
Opportunities that Will Contribute to the Elimination of Blight in the Lynwood
Redevelopment Project Area A (the "Resolution"), which is fully incorporated
herein by this reference. This Note and the Resolution are sometimes
collectively referred to herein as the "Agency Documents."
The Agency agrees to make monthly principal and interest payments to
the City based on a 30 year 2% interest compounded monthly fully amortized
loan with a beginning principal balance of $1,950,000. Said monthly payments
shall be in the amount of $7,207.58 each [or pursuant to the attached
amortization schedule] and shall be payable on the first day of every month
commencing June 1, 2010 and continuing to June 1, 2040 at which time the
entire principal balance and all accrued interest on the Note shall be due and
payable by the Agency to the City.
Dated: May , 2010
Agency Executive Director
•