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HomeMy WebLinkAbout452 SA_CCv0001.pdf RESOLUTION NO. 452 A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS TAKING CERTAIN ACTIONS IN CONNECTION WITH THE PAYMENT OF ENFORCEABLE OBLIGATIONS OF THE SUCCESSOR AGENCY AND REQUESTING AND APPROVING OF A LOAN FROM THE CITY OF REDLANDS RECITALS WHEREAS, on November 1, 2011, the City Council of the City of Redlands (herein 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") under 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, which, among other things, added Chapter 9 (commencing with Section 34191.1) to Part 1.85 of Division 24 of the 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 34183.5(b)(2)(A) of Assembly Bili 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 and the Successor Agency 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 Successor Agency; and WHEREAS, the. Ioan would be evidenced by a promissory note requiring repayment of 1 I:rcclerk',Resolutionss\REDEVELOPMENT-SUCCESSOR AGENCY1.452 Loan Successor Agency.doc 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 Successor Agency and therefore subject to the oversight and approval of the Oversight Board. NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the former Redevelopment Agency 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 Successor Agency hereby requests, and authorizes the acceptance of, a loan from the City of Redlands in the amount of Three Million One Hundred Fifty Seven Thousand Four Hundred Dollars ($3,157,400) and authorizes the Chairperson, or any Board member, to execute loan documents to evidence the loan as an obligation of the Successor Agency. Section 4. The Successor Agency hereby authorizes and directs staff to use the loan proceeds to make payments on enforceable obligations pursuant to the approved Recognized Obligation Payment Schedule for July 1, 2012 though December 31, 2012. Section 5. 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 the legality of all or any portion of Assembly Bill No. 1484, through administrative or judicial proceedings. Section 6. This Resolution has been reviewed with respect to applicability of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines"). The Board of the Successor Agency 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)). 2 1:\cclerk\Resolutions\REDEVELOPMENT-SUCCESSOR AGENCY1452 Loan Successor Agency,doc ADOPTED, SIGNED AND APPROVED this 26th day of July, 2012, Peter Agu' ar, Chairman ATTEST: i " Sam rwln. Ci perk I, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing Resolution was duly adopted by the Successor Agency of the Former Redevelopment Agency of the City of Redlands at a special meeting thereof,held on the 26th day of July,2012,by the following vote: AYES: ?Members Harrison, Bean, Gardner; Chairman Aguilar NOES: None ABSTAIN: None ABSENT: Member Foster Sam Irwin, City Clerk 3 1:icclerk\Resolutions\REDEVELOPMENT-SUCCESSOR AGENCY1452 Loan Successor Agency.doc