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Resolution Number 98-10-6-2RESOLUTION NO. 98-10-6-2
APPROVING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, APPROVING A LOAN AGREEMENT BETWEEN THE
CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY (TRULIS/PARCEL 5, PARCEL MAP 92-
123)
WHEREAS, by Ordinance No. 488, adopted July 12, 1983, Ordinance No. 509 adopted May
15, 1984, Ordinance No. 547, adopted on July 16,1985, and Ordinance Nos. 582-583 adopted on August 19,
1986, the City Council of the City of San Juan Capistrano (the "City Council") approved and amended the
Redevelopment Plan (the "Plan") for the San Juan Capistrano Redevelopment Project (The "Project Area")
of the San Juan Capistrano Community Redevelopment Agency (the "Agency"); and,
WHEREAS, the Agency has the inability to meet its entire obligation for the purchase of
the Trulis Property.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Juan
Capistrano as follows:
SECTION 1.
The above recitals are true and correct.
SECTION 2.
The execution and delivery of the Loan Agreement and Promissory Note is in the best
interest of the Agency and will promote the public health, safety and welfare.
SECTION 3.
The Loan Agreement, attached hereto as Exhibit "A", is hereby approved. The Mayor pro
tem and City Manager are hereby authorized to execute the Loan Agreement on behalf of the City, together
with such changes thereto as are approved by the City Manager, execution thereof being conclusive evidence
of the City's approval of such changes.
PASSED, APPROVED, AND ADOPTED this 6th day of October ,
1998.
ATTEST:
�i-
CITY CLERK
-1-
YOR PRO TEM
303
304
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO
HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No.
98-10-6-2 adopted by the City Council of the City of San Juan Capistrano, California, at a
regular meeting thereof held onthe 6th day of October 1998, by the following vote:
AYES: Council Members Swerdlin, Greiner, Hart and Campbell
NOES: None
ABSTAIN: Mayor Jones
ABSENT: None
(SEAL)
CHERYL JOIII)(50NCITY CLERK
011
305
CITY/AGENCY LOAN AGREEMENT
SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT
THIS AGREEMENT is entered into this 6th day of October, 1998, by and between
the SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, a public body,
corporate and politic (the "Agency"), and the CITY OF SAN JUAN CAPISTRANO, a municipal
corporation (the "City").
RECITALS:
A. By Ordinance No. 488, adopted July 12, 1983, Ordinance No. 509 adopted
May 15, 1984, Ordinance No. 547, adopted on July 16,1985, and Ordinance Nos. 582-583 adopted
on August 19, 1986, the City Council of the City of San Juan Capistrano (the "City Council")
approved and amended the Redevelopment Plan (the "Plan") for the San Juan Capistrano
Redevelopment Project (The "Project Area") ofthe San Juan Capistrano Community Redevelopment
Agency (the "Agency").
B. Pursuant to the Community Redevelopment Law of the State of California
(Health and Safety Code Section 3300 et. seg., the Agency is carrying out the Redevelopment Plan
for the Project in the redevelopment project area (the "Project Area").
C. Agency needs funds to acquire certain property within the Central
Redevelopment Project Area in order to facilitate the goals of the Redevelopment Plan.
D. The Agency has determined by resolution inability to allocate the full amount
required and the City and the Agency desire to enter into agreement under which the City will loan
to the Agency an amount not to exceed $400,000.00.
AGREEMENT
The Agency and the City hereby agree as follows:
I . Loan. The City loan to the Agency the amount not to exceed Four
Hundred Thousand Dollars ($400,000.00) (the "Loan Amount")., which the Agency shall use as
_I_ Exhibit A
306
down payment for the purchase of Trulis Property. Agency shall issue a Promissory Note provided
as Attachment 1 and incorporated herein to this Agreement.
2. Repayment by the Agency • The Agency shall repay to the City the Loan
Amount, plus interest at the average rate earned by the City investments during the term of this loan
all due and payable upon the sale for the Lower Rosan Ranch property.
Indebtedness of Agency This Agreement constitutes an indebtedness of
the Agency incurred carrying out the Project, and a pledging of tax allocations from the Project to
repay such indebtedness, under the provisions of Section 16 of Article XVI of the California
Constitution and Section 33670-33674 of the Health and Safety Code; provide, however, that such
pledge of tax allocations shall always be subordinate and subject to the right of the Agency pledge
or commit tax allocations from the Project to repay bonds or other indebtedness incurred by the
Agency in carrying out the Project.
IN WITNESS WHEREOF, the Agency and the City have executed this Agreement
as of the date first above written.
ATTEST:
/s/ Cheryl Johnson
Agency Secretary
ATTEST:
/s/ Cheryl Johnson
City Clerk
APPROVED AS TO FORM
/s/ John Shaw
John Shaw, City Attorney
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY
By: /s/ Wyatt Hart
Wyatt Hart, Chairman
By /s George Scarborough
George Scarborough, Executive Director
CITY OF SAN JUAN CAPISTRANO
By: /s/ John Greiner
John Greiner, Mayor pro tem
By: /s/ George Scarborough
George Scarborough, City Manager
-2—
Exhibit A
307
PROMISSORY NOTE SECURED BY DEED OF TRUST
San Juan Capistrano, California
October 6 , 1998
The undersigned, SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT
AGENCY, a public body corporate and politic created under the laws of the State of California
('Borrower"), promises to pay to the order of the CITY OF SAN JUAN CAPISTRANO, a municipal
corporation organized and existing under the laws of the State of California ("Lender"), at 32400
Paseo Adelanto, San Juan Capistrano, California, or at such other place as may be designate in
writing by Lender, the principal sum of (amount, not to exceed $400,000) DOLLARS with interest
at the average rate earned by the City investment over the term of the note. Interest shall be due and
payable in one installment on the Maturity Date (as hereinafter defined).
The outstanding principal balance of this note, together with any accrued and unpaid interest,
shall be due and payable in one installment on or before the tenth anniversary date of the note
("Maturity Date"). Notwithstanding the foregoing sentence, the principal balance of this note,
together with accrued and unpaid interest, is payable at any time upon demand by Lender. All sums
owing hereunder are payable in lawful money of the United States of America. All or any portion
of the principal balance of this note may be prepaid at any time without penalty or premium.
In the event any payments are made by the Borrower in payment of the note, such payments
shall be applied first to the interest then accrued and due on the unpaid principal balance under this
note, and the remainder of any such payment shall be applied to the reduction of the unpaid principal
balance under this note, and the remainder of any such payments shall be applied to the reduction
of the unpaid principal.
Neither, this note nor any term hereof may be waived, amended, discharged, modified,
changed or terminated orally nor shall any waiver of any provision thereof be effective except by
any instrument in writing signed by the Borrower and the Lender hereof. No delay or omission on
the part of the Lender hereof in exercising any right hereunder shall operate as a waiver of such a
right or of any right under this note.
Attachment 1 to Agreement
308
Promissory Note
Page 2
This note shall be construed according to and governed by the Laws of the State of California
and the parties hereto agree to submit to the jurisdiction of the courts of the State of California in the
event any litigation arises concerning the terms of this note.
"Borrower"
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, a public
body corporate and politic created under the
laws of the State of California.
By:/s/ Wyatt Hart
Wyatt Hart, Chairman
By: /s/ George Scarborough
George Scarborough, Executive Director
ATTEST
/s/ Cheryl Johnson
Agency Secretary