HomeMy WebLinkAbout7201_CCv0001.pdf RESOLUTION NO. 7201
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
TAKING CERTAIN ACTIONS WITH RESPECT TO THE PROVISION OF A
LOAN TO THE SUCCESSOR AGENCY TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS
RECITALS
WHEREAS, on November 1, 2011, the City Council of the City of Redlands (the"City")
approved Resolution 7089 electing to serve as the Successor Agency to the former
Redevelopment Agency of the City of Redlands (the "Successor Agency") pursuant to Section
34173 of the Health and Safety Code; and
WHEREAS, Assembly Bill No. 1484 was signed by the Governor of California on June
27, 2012, adding among other things, Chapter 9 (commencing with Section 34191.1) to Part
1.85 of Division 24 of the California Health and Safety Code; and
WHEREAS,on July 9, 2012 the Successor Agency received a demand for payment in the
amount of $2,867,052 from the County of San Bernardino Auditor-Controller/Treasurer/Tax
Collector pursuant to Section 341835(b)(2)(A) of Assembly Bill No. 1484; and
WHEREAS, On July 11, 2012 the Successor Agency received a revised demand for
payment in the amount of $2,601,269 (the "Payment") from the County of San Bernardino
Auditor-Controller/Treasurer/Tax Collector pursuant to Section 34183.5(b)(2)(A) of Assembly
Bill No. 1484; and
WHEREAS, On July 12, 2012, the Successor Agency made the Payment to the County of
San Bernardino Auditor-Controller/Treasurer/Tax Collector, using the $2,535,662 balance held
in its Successor Agency Funds and a$65,607.37 loan from the City.
WHEREAS, the Successor Agency no longer has any fund balance in its Successor
Agency Funds and has enforceable obligations from July through December 2012 in the amount
of Three Million One Hundred Fifty Seven Thousand Four Hundred Dollars ($3,157,400) and,
pursuant to Section 34173(h) of the Health and Safety Code, the city that authorized the creation
of a redevelopment agency may loan or grant funds to a successor agency for administrative
costs, enforceable obligations, or project-related expenses at the city's discretion.
WHEREAS, it is in the best interest of the City that the Successor Agency pay the
enforceable obligations, which include $2,880,794 in bond principal and interest payments, as
default by the Successor Agency could potentially affect the creditworthiness of the City; and
WHEREAS, the loan would be evidenced by a promissory note requiring repayment of
the loan by the Successor Agency including interest accrued at the current State of California
Local Agency Investment Fund interest rate of 0.38%, and the receipt of the funds shall be
reflected on Recognized Obligation Payment Schedule or the administrative budget of the
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Successor Agency and therefore subject to the oversight and approval of the Oversight Board.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as
follows:
Section 1. The above recitals are true and correct and are a substantive part of this
Resolution.
Section 2. This Resolution is adopted pursuant to Health and Safety Code Section
34173.
Section 3. The City Council hereby authorizes a loan to the Successor Agency in the
amount of Three Million One Hundred Fifty Seven Thousand Four Hundred Dollars
($3,157,400) and authorizes the Mayor of City of Redlands, or any City Councilmember, to
execute loan documents.
Section 4. The adoption of this Resolution is not intended and shall not constitute a
waiver by the City or the Successor Agency of any right the City or Successor Agency may have
to challenge all or any portion of Assembly Bill No. 1484 through administrative or judicial
proceedings.
Section 5. This Resolution has been reviewed with respect to applicability of the
California Environmental Quality Act ("CEQA"), the State CEQA Guidelines (California Code
of Regulations, Tide 14, Sections 15000 et seq., hereafter the "Guidelines"), and the City's
environmental guidelines. The City Council has determined that this Resolution is not a"project"
for purposes of CEQA, as the term is defined by Guidelines Section 15378, because this
Resolution is an administrative activity that will not result in a direct or indirect physical change
in the environment(Guidelines Section 15378(b)(5)).
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ADOPTED, SIGNED AND APPROVED this 26th day of July, 2012.
Peter Agui ar, Mayor
ATTEST-
Sam Irwin, <t erk
I, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing Resolution was duly
adopted by the City Council at a special meeting thereof, held on the 26h day of July, 2012, by the
following vote:
AYES: Councilmembers Harrison, Bean, Gardner; Mayor Aguilar
NOES: hone
ABSTAIN: None
ABSENT: Councilmember Foster
Sam Irwin, City Clerk
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