HomeMy WebLinkAbout461 SA_CCv0001.pdf RESOLUTION NO. 461
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 "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, pursuant to Section 34173(h) of the Health and Safety Code, a 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; and
WHEREAS, on November 16, 2010, the former Redevelopment Agency of the City of
Redlands (the "Former Agency") entered into a Participation Agreement with the Shabahang-
Hatami Family Trust(the "Trust") for a restaurant improvement incentive loan in the amount of
$150,000; and
WHEREAS, after receipt of notification from the Trust in July 2011 that the Trust would
not meet its obligations under the Participation Agreement, the Former Agency, on September 6.
2011, declared the Trust in default; and
WHEREAS, on May 7, 2013, the Agency, as successor to the Participation Agreement,
directed the Agency's staff to take all action required to enforce the Agency's rights under the
Participation Agreement, including the commencement of litigation; and
WHEREAS, because the Agency has insufficient funds to pay the estimated litigation
costs to enforce the Agency's rights and remedies as the successor to the Former Agency under
the Participation Agreement out of existing Agency funds, the City Council of the City of
Redlands determined that the City would provide a loan to the Agency in the amount of Ten
Thousand Dollars($10,000)to pay for the estimated litigation costs; and
WHEREAS, the to would be evidenced by a promissory note requiring repayment of
the loan by the Agency, including interest accrued at the current State of California Local
Agency Investment Fund interest rate of.28 percent per annum, and the receipt of the ftuids shall
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be reflected on Recognized Obligation Payment Schedule or the administrative budget of the
Agency and therefore subject to the oversight and approval of the Oversight Board;
NOW, THEREFORE, BE IT RESOLVED by the Board of 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 Ten Thousand Dollars ($10,000) (the "Loan")
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 for enforceable obligations, administrative expenses and/or project-
related expenses pursuant to the Successor's Agency approved Recognized Obligation Payment
Schedules, including the Agency's pursuit of its aforementioned remedies.
Section 5. 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, Section 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)).
ADOPTED, SIGNED AND APPROVED this 15th day of October, 2013.
A
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Peter Agu ar, Chairman
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SIrwie, S4retary
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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 l5t" day of October,2013,by the following vote:
AYES: Councilmembers Harrison, Foster, Gardner,Gilbreath;Mayor Aguilar
NOES: None
ABSTAIN: None
ABSENT: None
Sam Irwin,City Clerk
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