HomeMy WebLinkAboutAGENDA REPORT 2012 0118 CC REG ITEM 10DMOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director V //
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ITEM 10.D.
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DATE: January 5, 2012 (City Council Meeting of January 18, 2012)
SUBJECT: Consider Resolution Rescinding Resolution No. 2011 -3039 Adopting
a Loan Agreement between the City of Moorpark and the
Redevelopment Agency of the City of Moorpark
BACKGROUND
On June 15, 2011, the City Council passed Resolution No. 2011 -3039, authorizing a
loan in the amount of $5 million to the Redevelopment Agency of the City of Moorpark.
That same evening the Redevelopment Agency of the City of Moorpark passed
Resolution No. 2011 -248 authorizing the same loan. The loan documents were duly
executed. However, the loan was never implemented because of the passage of ABx1
26.
On June 29, 2011, the Governor signed ABx1 26 into law, which abolished all
redevelopment agencies within the State of California. On December 29, 2011, the
California Supreme Court upheld this law as constitutional. Therefore, effective
February 1, 2012, the Redevelopment Agency of the City of Moorpark will cease to
exist.
DISCUSSION
The $5 million loan was never implemented for FY 2011/2012. Zero interest has
accrued since the loan was not effectuated.
Staff is recommending rescinding the loan from the City to the Agency in the amount of
$5.0 million for FY 2011/12.
STAFF RECOMMENDATION (Roll Call Vote)
Adopt Resolution No. 2012- , rescinding Resolution No. 2011 -3039 Adopting a
Loan Agreement with the Redevelopment Agency of the City of Moorpark.
Attachment: Resolution No. 2012- 53
RESOLUTION NO. 2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, RESCINDING RESOLUTION
NO. 2011 -3039 ADOPTING A LOAN AGREEMENT
BETWEEN THE CITY OF MOORPARK AND THE
REDEVELOPMENT AGENCY OF THE CITY OF
MOORPARK FOR FY 2011/12
WHEREAS, Resolution No. 2011 -3039 authorized the City of Moorpark to enter
into a loan agreement for $5 million with the Redevelopment Agency of the City of
Moorpark; and
WHEREAS, ABx1 26 as signed by the Governor of the State of California and
upheld by the California Supreme Court, abolishes the Redevelopment Agency of the
City of Moorpark; and
WHEREAS, the City of Moorpark and the Redevelopment Agency of the City of
Moorpark never implemented this loan and both desire to rescind this loan agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Resolution No. 2011 -3039 adopting a Loan Agreement between
the City of Moorpark and the Redevelopment Agency of the City of Moorpark dated July
1, 2011, and attached as Exhibit "A" to this resolution, is hereby rescinded.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original Resolutions.
PASSED AND ADOPTED this 18th day of January, 2012.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
Attachment: Exhibit "A"
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LOAN AGREEMENT
THIS LOAN AGREEMENT is entered into this 1st day of July, 2011, by and between
the City of Moorpark ( "City ") and the Redevelopment Agency of the City of Moorpark
( "Agency ").
RECITALS
WHEREAS, the Agency was created by Ordinance 87, adopted by the City
Council on March 18, 1987, for the purpose of eliminating blighted conditions within
specked project areas; and
WHEREAS, in support of its mission, the Agency is developing and implementing
plans to acquire and construct certain public facilities; and
WHEREAS, the Agency has determined that, in order to undertake this
redevelopment project, temporary financial assistance in the form of a loan is required
from the City of Moorpark; and
WHEREAS, Section 33600 et. seq. of the California Community Redevelopment
Law authorizes the Agency to borrow money or accept financial or other assistance
from the City.
COVENANTS
NOW, THEREFORE, THE CITY AND AGENCY AGREE AS FOLLOWS:
SECTION 1. Amount and Use of Loan. The City, from its Special Projects Fund,
will advance to the Agency the amount of $5,000,000 (five million dollars). Agency
agrees to use such loan proceeds only for those purposes set forth in the Health and
Safety Code and approved by the Agency.
SECTION 2. Repayment of Funds. The Agency will repay this loan, both
principal and interest, in full on or before June 30, 2012, unless extended by
amendment to this Agreement.
SECTION 3. Interest Payment. This loan will bear interest at a rate equivalent to
the rate earned by City investments in the Local Agency Investment Fund or the
Ventura County Poll, whichever is greater, plus one percent.
SECTION 4. Obligation Constitutes Indebtedness. This loan agreement shall
constitute an obligation and debt of the Agency to use all available increment revenue to
repay the City. Such indebtedness shall be subordinate to any and all other Agency
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indebtedness incurred by the Agency, including indebtedness incurred through the
issuance of tax allocation notes or bonds or any other bonds of the Agency.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.
REDEVELOPMENT AGENCY
OF THE CITY OF MOORPARK
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Ja ' e S. Parvin, Chair
ATTEST:
Maureen Benson,
Agency Secretary
CITY OF MOORPARK
Steven Kueny, City Manager
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Maureen Benson,
City Clerk
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