Resolution Number 92-12-15-3®35
RESOLUTION NO. 92-12-15-3
' APPROVING THE EXECUTION AND DELIVERY OF A 1
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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 AND APPROVING AND
AUTHORIZING THE EXECUTION OF A PROMISSORY NOTE FOR
THE REPAYMENT THEREOF
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 and 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 State of California adopted the 1992 Budget Act and related
legislation, Chapter 700 (Senate Bill 8454) of which requires the Agency to shift
$303,506.35 of tax increment to the Educational Revenue Allocation Fund ("ERAF"); and,
WHEREAS, the Agency has demonstrated and certified its inability to meet its
entire obligation from tax increment available; and,
' WHEREAS, the City must enter into an agreement with the Agency to provide
the funds necessary to assist the Agency in its allocation to avoid the County Auditor
from transferring the necessary amount from the City's property tax allocation.
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 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.
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rim
SECTION 4.
The Promissory Note, attached hereto as Exhibit "B", is hereby approved. The
City hereby authorizes and directs the City Manager and Director of Administrative
Services to execute the Note, providing for the repayment by the Agency to the City of
the Note amount plus interest thereon, in substantially the form attached hereto, on
behalf of the city at such time as the funds are necessary to fulfill the Agency's
obligation, together with such changes thereto as are approved by the City Manager of
the City, execution thereof being conclusive evidence of the City's approval of such
changes.
PASSED, APPROVED, AND ADOPTED this 15th day
Of December , 1992.
StII„ J�ON£S, MAYOR
ATTEST:
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. 92-12-15-3 adopted by the City Council of the City of San Juan
Capistrano, California, at a regular meeting thereof held on the 15th day
Of December , 1992, by the following vote:
AYES: Council Members Nash, Hausdorfer, Campbell, Vasquez and
Mayor Jones
NOES: None
ABSTAIN: None
ABSENT: None
(SEAL)
CHERYL JOHN CLERK
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Exhibit "A"
' CITYIAGENCY LOAN AGREEMENT
SAN JUAN CAPISTRANO CENTRAL REDEVELOPMENT PROJECT
THIS AGREEMENT is entered into this 15th day of December,
1992, 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 on May 15, 1984, Ordinance No. 547 adopted on July 16, 1985 and
I
Ordinance Nos. 582 and 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").
B. Pursuant to the Community Redevelopment Law of the State of
California (Health and Safety Code Section 33000 et. seq., the Agency is
carrying out the Redevelopment Plan for the Project in the redevelopment
project area (the "Project Area").
C. Under the State Budget Act, Chapter 700 (SB 844) the Agency
' shall shift $303,506.35 of tax increment revenue to the Educational Revenue
Allocation Fund (ERAF) by May 15, 1993.
M0
M
D. The Agency has determined by resolution its inability to
allocate the full amount required and the City and the Agency desire to enter
into an agreement under which the City will loan to the Agency an amount not
to exceed $100,000.00.
AGREEMENT
The Agency and the City hereby agree as follows:
1. Loan. The City loans to the Agency the amount not to
exceed One Hundred Thousand Dollars ($100,00.00) (the "Loan Amount), which
the Agency shall use to meet its required property tax shift (ERAF).
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 ten years from the
date hereof.
3. Indebtedness of Agency. This Agreement constitutes an
indebtedness of the Agency incurred in 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; provided, 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.
039
IN WITNESS WHEREOF, the Agency and the City have executed this
I
Agreement as of the date first above written.
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY
By-
Carolyn Nas , Chairman
By. /s/ George Scarborough
George Scarborough, Executive Director
ATTEST:
' /a/ Cheryl Johnson
Cheryl Johnson, Secretary
CITY OF SAN JUAN CAPISTRANO
By. /s/ Gil Jones
Gil Jones, Mayor
By. /s/ George Scarborough
George Scarborough, City Manager
ATTEST:
/s/ Cheryl Johnson
Cheryl Johnson, City Clerk
' APPROVED AS TO FORM
/s/ Richard K. Denhalter
Richard K. Denhalter, City Attorney
VA
040" Exhibit B
PROMISSORY NOTE SECURED BY DEED OF TRUST
San Juan Capistrano, California
, 1992
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 designated in writing by Lender, the principal sum of
(insert amount, not to exceed $100,00 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 this 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.
Neither this note nor any term hereof may be waived, amended, discharged,
modified, changed or terminated orally nor shall any waiver of any provision hereof be
effective except by an 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 right or of any right under this note.
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
/s/ George Scarborough
By: By: /s/ Carolyn Nash
Executive Director Chairman, Board of Directors
ATTEST:
/s/ Cheryl Johnson
City Clerk
/s/ Cheryl Johnson
Agency ecretary