Resolution Number CRA 92-12-15-2RESOLUTION NO. CRA 92-12-15-2
A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, 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 844) 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 Agency must enter into an agreement with the City 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 San Juan4pjstrano
Community Redevelopment Agency, City of San Juan Capistrano, California, as,s:
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
Chairman and the Executive Director are hereby authorized to execute the Loan
Agreement on behalf of the Agency, together with such changes thereto as are approved
by the Executive Director of the Agency, execution thereof being conclusive evidence of
the Agency's approval of such changes.
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SECTION 4.
The Promissory Note, attached hereto as Exhibit "B", is hereby approved. The
Agency hereby authorizes and directs the Chairman and Executive Director 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 Agency at
such time as the funds are necessary to fulfill the Agency's obligation, together with such
changes thereto as are approved by the Executive Director of the Agency, execution
thereof being conclusive evidence of the Agency's approval of such changes.
PASSED, APPROVED, AND ADOPTED this
of December .1992.
CAROLYN NASH, CHAIRMAN
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
15th
day
1, CHERYL JOHNSON, Secretary of the San Juan Capistrano Community
Redevelopment Agency, DO HEREBY CERTIFY that the foregoing is a true and correct
copy of Resolution No. CRA 92-12-15-2 adopted by the Board of Directors of the
San Juan Capistrano Community Redevelopment Agency, at a regular meeting thereof
held on the 15th day of December , 1992, by the following vote:
AYES: Directors Hausdorfer, Jones, Campbell, Vasquez and
Chairman Nash
NOES: None
ABSTAIN: None
ABSENT: None
(SEAL)
CHERYL JOHNSO , A Y SE TAAR
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Exhibit "A"
CITY/AGENCY 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
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.
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.
IN WITNESS WHEREOF, the Agency and the City have executed this
Agreement as of the date first above written.
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY
By: /s/ C2,4r40a r.✓ Al 4l s'H
Carolyn Nash, Chairman
By: 15169e2�- E 5CA- ,&AO-yu6 N
George Scarborough, Executive Director
ATTEST:
/5� �ffFyG VONN50N
Cheryl Johnson, Secretary
CITY OF SAN JUAN CAPISTRANO
By: 15161, U6NE5
Gil Jones, Mayor
By: 6fo�eGE �aefS9er�v�lt
George Scarborough, City Manager
ATTEST:
Cheryl Johnson, City Clerk
APPROVED AS TO FORM
Richard K. Denhalter, City Attorney
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 ::, p=v 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
By: Get�ieG.E Sc,9fi'/So/LouGe/ By: /s/ C'Ale1 VA,) nJ�iY-
Executive Director Chairman, Board of Directors
ATTEST:
City Clerk
/s/ V�d4I.�SOA�
Agency Secretary
STATE OF CALIFORNIA )
COUNTY OF ORANGE ), ss. AFFIDAVIT OF POSTING
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, declare as follows:
That I am the duly appointed and qualified Secretary of the San Juan
Capistrano Community Redevelopment Agency;
That in compliance with State laws of the State of California and in further
compliance with City Resolution No. CRA 83-12-20-1 and on the 17th day
Of December , 1992, I caused to be posted:
RESOLUTION NO. CRA 92-12-15-2 , being:
A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, 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
in three (3) public places in the City of San Juan Capistrano, to wit: City Hall; Old Fire
Station Recreation Complex; Orange County Public Library.
I declare under penalty of perjury that the foregoing is true and correct.
(2,k -
Cheryl Johnso Age y Secretary
San Juan Capistrano Community
Redevelopment Agency