HomeMy WebLinkAboutAGENDA REPORT 2011 0316 CC SPC ITEM 05AMOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director
ITEM 5.A.
CITY OF MOORRARK, CALIFORNu -,
City Council Meeting
of -1(0 -,-2 01
ACTION: 1001'WJ
.
LA" d . A01/ -301/•
... i
DATE: March 15, 2011 (City Council Meeting of March 16, 2011)
SUBJECT: Consider Resolution Adopting a First Amendment to a Loan
Agreement between the City of Moorpark and the Redevelopment
Agency of the City of Moorpark
BACKGROUND
In June of 2010, the City of Moorpark ( "City ") and Redevelopment Agency of the City of
Moorpark ( "Agency ") entered into a loan agreement for a $5,000,000 loan pursuant to
California Health and Safety Code Section 33610. That loan is due and payable as of
June 30, 2011.
The Agency is also the holder of a note secured (in second position) by the Parcel 7 of
the Mission Bell Plaza shopping center, in an original amount of $1,704,786. A notice of
default has been issued by the senior lender for the property, and there is a possibility
that the $1,704,786 note could be foreclosed out.
The California legislature is also considering AB 101, which would sunset
redevelopment agencies. If adopted, AB 101 could limit the Agency's ability to collect
on and /or negotiate a resolution of the outstanding Mission Bell Note.
Accordingly, it is appropriate for the City and Agency to consider an assignment of the
Mission Bell note to the City, via an amendment to the loan agreement between the City
and the Agency. If and to the extent that any moneys are recovered from the Mission
Bell note, those moneys will be credited toward the outstanding balance owed pursuant
to the City /Agency loan agreement.
Honorable City Council
March 16, 2011
Page 2
STAFF RECOMMENDATION (Roll Call Vote)
Adopt Resolution No. 2011- , approving a First Amendment to Loan Agreement
with the Redevelopment Agency of the City of Moorpark.
Attachment: Resolution No. 2011-
First Amendment to Loan Agreement
2
RESOLUTION 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, ADOPTING A FIRST
AMENDMENT TO LOAN AGREEMENT BETWEEN THE
CITY OF MOORPARK AND THE REDEVELOPMENT
AGENCY OF THE CITY OF MOORPARK
WHEREAS, the City Council of the City of Moorpark approved that certain loan
agreement by and between the City and the Redevelopment Agency of the City of
Moorpark dated July 1, 2010; and
WHEREAS, the Redevelopment Agency of the City of Moorpark is the holder of a
note secured by Parcel 7 of the Mission Bell Shopping Center and wishes to assign
same to the City of Moorpark in partial satisfaction of the outstanding loan between the
City of Moorpark and the Redevelopment Agency of the City of Moorpark .
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The First Amendment to Loan Agreement between the City of
Moorpark and the Redevelopment Agency of the City of Moorpark dated March 16,
2011, and attached as Exhibit "A" to this resolution, is hereby adopted.
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 16th day of March 2011.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
Attachment: Exhibit "A"
3
EXHIBIT "A"
FIRST AMENDMENT TO LOAN AGREEMENT
THIS FIRST AMENDMENT TO LOAN AGREEMENT is entered into this 16th day of
March, 2011 and amends that certain Loan Agreement dated 1st day of July, 2010, by
and between the City of Moorpark ( "City ") and the Redevelopment Agency of the City of
Moorpark ( "Agency ").
RECITALS
WHEREAS, the Agency and City are parties to that certain Loan Agreement
dated as of July 1, 2010 (the "Loan Agreement "); and
WHEREAS, the Agency is the holder of a note by and between the Agency (as
lender) and Mission Bell West LP, originally entered into on August 2, 1995 and
subsequently amended three times, the latest amendment dated as of December 1,
2006 (the "Mission Bell Note "); and
WHEREAS, the Agency wishes to transfer the Mission Bell Note to the City in
partial satisfaction of the outstanding obligation of the Loan Agreement by and between
the City and the Agency.
COVENANTS
NOW, THEREFORE, THE CITY AND AGENCY AGREE AS FOLLOWS:
SECTION 1. Assignment, assumption and partial repayment of funds. Agency
hereby assigns to the City and City hereby agrees to assume the Mission Bell Note. If
and to the extent that any moneys are recovered in satisfaction of the Mission Bell Note
(whether through payment, settlement, foreclosure, sale, or otherwise), prior to June 30,
2011, such moneys shall be credited against the amounts owed by the Agency to the
City pursuant to the Loan Agreement. If any such moneys are received by the City after
June 30, 2011, then no amount shall be credited against such repayment obligation and
the Agency shall be obligated to make a full repayment of the loan amount to the City.
Any moneys recovered by the City from the Mission Bell Note after June 30, 2011 shall
be reimbursed to the Agency — unless the Agency has any other outstanding financial
obligations owed to the City, or unless the Agency has not paid off the Loan Agreement
in its entirety, in either of which case, moneys recovered from the Mission Bell Note will
be applied against those obligations.
0
SECTION 2. The Mayor and /or City Manager and the Agency Chair and /or
Executive Director are hereby directed and authorized to execute any further such
documentation required to effectuate the intent of this First Amendment.
SECTION 3. Effect of First Amendment. Except as expressly amended herein,
the Loan Agreement is and remains in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Amendment to Loan
Agreement as of the date first written above.
MOORPARK REDEVELOPMENT AGENCY CITY OF MOORPARK
Janice S. Parvin, Chair
ATTEST:
Maureen Benson,
Agency Secretary
Steven Kueny, City Manager
Maureen Benson,
City Clerk
5