HomeMy WebLinkAboutCC Reso 2013-225 Joint SA-2013-0006 JOINT RESOLUTION NO.02/O /3'4(a 54 - dha — 644946
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A JOINT RESOLUTION OF THE CITY OF CATHEDRAL CITY AND OF
THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF
THE CITY OF CATHEDRAL CITY APPROVING A LOAN
AGREEMENT BETWEEN THE CITY AND THE SUCCESSOR AGENCY
UNDER HEALTH & SAFETY CODE SECTION 34173(11)
WHEREAS, in accord with the provisions of the California Community Redevelopment
Law (Health and Safety Code Section 33000, et seq. ( "CRL "), the City Council of the City of
Cathedral City ( "City ") previously established the Redevelopment Agency of the City of
Cathedral City, a public body, corporate and politic ( "Agency ") to carry out the purposes of and
exercise the powers granted to community redevelopment agencies under the CRL; and
WHEREAS, on February 1, 2012, the Agency was dissolved pursuant to Assembly Bill
1X26 (Stats. 2011, 1st Ex. Sess., Ch. 5) ( "AB 26 "), and its rights, powers, duties and obligations
were transferred to a "successor agency" (as defined by CRL Section 34171(j) and Section
34173); and
WHEREAS, the City Council determined that the City would become the Agency's
successor agency ( "Successor Agency ") under CRL Section 34173; and
WHEREAS, pursuant to Section 34179, an oversight board ( "Oversight Board ") was
established for the Successor Agency; and
WHEREAS, with the Oversight Board's approval, CRL section 34173(h) permits the
City to loan the Successor Agency funds to pay the Successor Agency's administrative costs,
enforceable obligations, and project - related expenses; and
WHEREAS, the Successor Agency received an insufficient distribution from the
Redevelopment Property Tax Trust Fund (established pursuant to CRL Section 34170.5 and
administered by the County Auditor - Controller in accord with CRL Sections 34182 and 34183)
maintained by the Riverside County Auditor - Controller ( "RPTTF ") to fully fund Oversight
Board and California Department of Finance ( "DOF ") approved enforceable obligations,
administrative costs, and project related expenses identified on its Recognized Obligation
Payment Schedule for the period of July 1, 2013 through July 31, 2013 as adopted by Oversight
Board Resolution No. 2013 -14 on 02/28/2013 ( "ROPS 13- 14A "); and
WHEREAS, the City and the Successor Agency have prepared an agreement entitled
"Loan Agreement for Enforceable Obligations, Administrative Costs and Project- Related
Expenses (For the Period July 1, 2013 — December 31, 2013, ROPS 13/14A)" ( "Loan
Agreement ") (a copy of which is attached as Exhibit A) providing for a loan ( "Loan ") from the
City to the Successor Agency in the amount of three hundred twenty -four thousand, two hundred
eighty -six dollars ($324,286); and
WHEREAS, the Loan Agreement must be submitted to and approved by the Oversight
Board and the State Department of Finance ( "DOF ") for review in accord with CRL Section
34179(h); and
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WHEREAS, the City and the Successor Agency desire to approve the Loan Agreement
and to make the Loan from the funding sources described below.
NOW, THEREFORE, BE IT JOINTLY RESOLVED BY THE CITY COUNCIL
OF THE CITY OF CATHEDRAL CITY AND THE GOVERNING BOARD OF THE
1 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF
CATHEDRAL CITY AS FOLLOWS:
Section 1. Under the authority of CRL Section 34173(h), the City and the Successor
Agency jointly approve the Loan Agreement, in the form attached as Exhibit A.
Section 2. The City Council and the governing board for the Successor Agency direct
1 the City Manager to execute the Loan Agreement on behalf of the City and on behalf of the
Successor Agency. The City Manager is further authorized, with the concurrence of the City
Attorney and Successor Agency legal counsel, to approve technical, non - substantive
amendments to the Loan Agreement on the City's and the Successor Agency's behalf and to
otherwise carry out the actions authorized by this Resolution.
Section 3. The City Council directs that the Loan be funded from the City's General
Fund and that loan repayment and interest thereon will be deposited back into the City's General
Fund.
Section 4. The approvals and other actions authorized by this Resolution will become
effective as provided by CRL Section 34179(h).
* * * **
APPROVED AND ADOPTED this 14 day of August, 2013.
-r ' 1t y J De
I, Jose4 ^- m42.‘c- Deputy City Clerk of the
p y y SiY of Cathedral City, do
hereby attest and certify that the foregoing Joint Resolution Ni0' 4 and S4 - - /20-06
was duly and regularly passed and adopted by the City Council and the Successor Agency to the
Redevelopment Agency of the City of Cathedral • at a meeting thereof held on the 14th day
of August, 2013, and that the foregoing is a - • d correct copy of said Joint Resolution.
' itflerk
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LOAN AGREEMENT FOR ENFORCEABLE OBLIGATIONS,
ADMINISTRATIVE COSTS AND PROJECT- RELATED EXPENSES
(FOR THE PERIOD JULY 1, 2013 — DECEMBER 31, 2013, ROPS 13/14A)
ARTICLE I.
PARTIES AND EFFECTIVE DATE
1.1 Parties. This Loan Agreement for Enforceable Obligations, Administrative Costs
and Project - Related Expenses (For the Period July 1, 2013 — December 31, 2013, ROPS 13/14A)
( "Agreement ") is reference dated as of August 14, 2013. This Agreement is entered into between
(1) the City of Cathedral City, a California general law city and municipal corporation ( "City")
and (2) The Successor Agency to the Redevelopment Agency of the City of Cathedral City,
formed and existing in accord with Section 34173 of the California Community Redevelopment
Law ( "CRL ") (Health & Safety Code Section 33000, et seq.) ( "Successor Agency ").
1.2 Effective Date. This Agreement will not become effective until the date
( "Effective Date ") all of the following have occurred:
A. This Agreement has been approved by the City Council as the City's
governing body and by the City Council as the Successor Agency's governing board and has
been executed by the City's and the Successor Agency's authorized officials.
B. This Agreement has been approved by the Successor Agency's oversight
board ( "Oversight Board ") formed in accord with CRL Section 34179.
C. As provided in CRL Section 34179(h), five (5) business days have elapsed
since notice of the Oversight Board's action approving this Agreement was provided to the State
Department of Finance ( "DOF "), unless the DOF requests to review the Oversight Board's
action, in which case this paragraph C will be deemed satisfied upon the DOF's approval of the
Oversight Board's action.
ARTICLE II.
RECITALS
2.1 Under the provisions of the CRL, the City Council of the City of Cathedral City
previously established the Redevelopment Agency of the City of Cathedral City, a public body,
corporate and politic ( "Agency "), to carry out the purposes of and exercise the powers granted to
community redevelopment agencies under the CRL.
2.2 On February 1, 2012, the Agency was dissolved by operation of Assembly Bill
1X26 (Stats. 2011, 1 Ex. Sess., Ch. 5) ( "AB 26 "), and its rights, powers, duties and obligations
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were transferred to a "successor agency" (as defined in CRL Section 34171(j) and Section
34173).
2.3 As provided by AB 26, the City Council took official action electing to become
the Agency's successor agency ( "Successor Agency ") under CRL Section 34173.
2.4 On or about June 27, 2012, the provisions of Assembly Bill 1484 ( "AB 1484 ")
became law. AB 1484 modified the CRL and AB 26 in various ways. As used herein, the term
"CRL" means Health & Safety Code Section 33000, et seq., as modified by AB 26 and AB 1484.
Specific terms used and not otherwise defined in this Agreement will have the meanings given to
those terms in the CRL.
2.5 CRL Section 34173(h) permits the City, as the former Agency's creating
authority, to loan or grant funds to the Successor Agency to pay for enforceable obligations,
administrative costs, and project- related expenses.
2.6 The Successor Agency received an insufficient distribution from the
Redevelopment Property Tax Trust Fund (established pursuant to CRL Section 34170.5 and
administered by the County Auditor - Controller in accord with CRL Sections 34182 and 34183)
maintained by the Riverside County Auditor - Controller ( "RPTTF ") to fully fund Oversight
Board and DOF approved enforceable obligations, administrative costs, and project related
expenses identified on its Recognized Obligation Payment Schedule for the period of July 1,
2013 through July 31, 2013 as adopted by Oversight Board Resolution No. 2013 -14 adopted on
02/28/2013 ( "ROPS 13- 14A ").
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2.7 The Successor Agency has requested that the City loan it the principal sum of
three hundred twenty -four thousand, two hundred eighty -six dollars ($324,286) ( "Loan") so that
the Successor Agency may pay its enforceable obligations, administrative costs and project -
related expenses set forth in the ROPS 13/14A. The City is willing to make the Loan under the
authority of CRL Section 34173(h) on the terms set forth in this Agreement.
ARTICLE III.
TERMS
3.1 Loan Agreement. The City agrees to disburse the Loan to the Successor Agency
upon the Successor Agency's request. The Loan will be disbursed to the Successor Agency to be
held in its accounts and may be used to pay any of the Successor Agency's enforceable
obligations, administrative costs and project - related expenses set forth in the ROPS 13/14A.
3.2 Interest and Repayment Terms. All disbursed and outstanding Loan amounts will
accrue interest at the rate earned by funds deposited by the City into the Local Agency
Investment Fund, as it may be adjusted from time -to -time ( "LAIF Rate "), from the date of
disbursement until fully repaid. The Loan will be repaid in two (2) installments, with the first
(1 installment due no later than February 15, 2014 and the second (2 " installment due no later
than July 1, 2014 ( "Maturity Date "). The amount of the first (1 payment will be equal to the
sum of one -half (1/2) of the Loan plus interest accrued through the date of payment. The amount
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1 C of the second (2 payment will be equal to the then current unpaid balance of the Loan plus all
accrued and unpaid interest through the date of payment.
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g 3.3 Inclusion on Recognized Obligation Payment Schedule.
A. The Successor Agency will identify this Agreement as an enforceable
obligation under CRL 34173 h on the Recognized O gnized Obligation Payment Schedule to be submitted
by the Successor Agency to the Department of Finance for the period covering January 1, 2014
through June 30, 2014 ( "ROPS 13/14B "). The Successor Agency will request an allocation of
property taxes from the "RPTTF on the ROPS 13/14B and each subsequent Recognized
Obligation Payment Schedule ( "ROPS ") covering any fiscal period in which the Successor
Agency has a Loan repayment obligation under this Agreement. If, for any reason whatsoever,
the Successor Agency does not receive sufficient allocations of property taxes from the RPTTF
I so as to fully repay the Loan and accrued interest on or before the Maturity Date, the Successor
' Agency will continue to make allocation requests on all subsequent ROPS until the Loan and all
accrued interest has been fully repaid. The amount of each allocation request will be equal to the
sum of the Successor Agency's repayment obligation arising during the period covered by the
ROPS plus the remaining balance (if any) of any repayment due during a prior ROPS period
f which was not fully paid.
B. The Successor Agency will prepare each ROPS as required by the CRL
and submit it to the Oversight Board and such other governmental agencies as the CRL may
P require from time -to -time. The Successor Agency will take all other actions as required by the
4 co CRL or other applicable authority to ensure that the Successor Agency receives an allocation of
taxes from RPTTF in the amounts necessary to satisfy the Successor Agency's payment
obligations under this Agreement.
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3.4 Amendment or Modification. This Agreement and the Successor Agency's
obligations under it may be amended or modified only in the following ways:
A. By the mutual written agreement of the City and the Successor Agency,
following all notices, hearings and approvals required by then - applicable provisions of the CRL I
and other legal authority.
B. As required to conform to future changes in the CRL, other applicable
legal authority, or pursuant to an order or judgment of a court of competent jurisdiction.
3.5 No Other Successor Agency Income or Assets Subject to Repayment Obligation.
No funds or other assets of the Successor Agency other than property tax allocations from the
RPTTF may be used for the repayment of the Successor Agency's obligations under this
Agreement.
3.6 Remedies for Breach. If the Successor Agency fails for any reason whatsoever to
fulfill its obligations under this Agreement, and regardless of whether the Maturity Date has
passed, the City may, without notice or demand, accelerate all payments to become due under
this Agreement and declare the entirety of the unpaid Loan principal and accrued interest
immediately due and payable.
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SIGNATURE PAGE TO
LOAN AGREEMENT FOR ENFORCEABLE OBLIGATIONS,
PROJECT - RELATED ADMINISTRATIVE COSTS AND EXPENSES
(FOR THE PERIOD JULY 1, 2013 — DECEMBER 31, 2013, ROPS 13/14A)
CITY
City of Cathedral City, a California general law city
and municipal corporation
a 1, i
karate
Nam- • Kathy J:Del sa
Title: 4 - or
ATT ST:
if
i pu y i ity Clerk 1
: C
SUCCESSOR AGENCY
The Successor Agency to the Redevelopment
Agency of the City of Cathedral City, a public
entity created and existing under the authority of
CRL Section 34173
4tv B y:
Name: Andy 11, City Manager]
ATTEST: APPROVED AS TO FORM:
,� By:
Dep. y City/ lerk as Secretary the Charles Green, City Attorney
tY Y
ccessor ' gency Successor Agency Counsel
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4 r
f
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}
gire INTERFUND LOAN AGREEMENT
ARTICLE I.
PARTIES AND EFFECTIVE DATE
1.1 Parties. This Interfund Loan Agreement ( "Agreement ") is reference dated as of
August 14, 2013. This Agreement is entered into between (1) the City of Cathedral City, a
California general law city and municipal corporation ( "City ") and (2) the City in its capacity as
the Housing Successor Agency to the Redevelopment Agency of the City of Cathedral City,
formed and existing in accord with Section 34176 of the California Community Redevelopment
Law ( "CRL ") (Health & Safety Code Section 33000, et seq.) ( "Housing Successor ").
1.2 Effective Date. This Agreement will not become effective until the date
( "Effective Date ") all of the following have occurred:
A. This Agreement has been approved by the City Council as the City's
governing body and by the City Council in its capacity as the Housing Successor and has been
executed by the City's and the Housing Successor's authorized officials.
B. The Loan Agreement for Enforceable Obligations, Administrative Costs
and Project Related Expenses (For the Period July 1, 2013 - December 31, 2013, ROPS 13/14A)
approved by the City as the Successor Agency to the former Redevelopment Agency of the City
of Cathedral City, formed and existing in accord with Section 34173 of the California
Community Redevelopment Law (the "Successor Agency") on gust 14, 2014 (the "Successor
Agency ") by adoption of Joint Resolution Nos.a&%J-1 a (the "City /Successor
Agency Loan") has become effective. S4-/D/3 - 4006
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ARTICLE II.
RECITALS t
2.1 Under the provisions of the CRL, the City Council of the City of Cathedral City
previously established the Redevelopment Agency of the City of Cathedral City, a public body,
corporate and politic ( "Agency "), to carry out the purposes of and exercise the powers granted to
community redevelopment agencies under the CRL.
2.2 On February 1, 2012, the Agency was dissolved by operation of Assembly Bill
1X26 (Stats. 2011, 1 Ex. Sess., Ch. 5) ( "AB 26 "), and its rights, powers, duties and obligations
were transferred to a "successor agency" (as defined in CRL Section 34171(j) and Section
34173) and to a "housing successor agency" (as defined in CRL Section 34176).
2.3 As provided by AB 26, the City Council took official action electing to become
(11; the Agency's housing successor agency ( "Housing Successor ") under CRL Section 34176.
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2.4 On or about June 27, 2012, the provisions of Assembly Bill 1484 ( "AB 1484 ")
became law. AB 1484 modified the CRL and AB 26 in various ways. As used herein, the term
"CRL" means Health & Safety Code Section 33000, et seq., as modified by AB 26 and AB 1484.
Specific terms used and not otherwise defined in this Agreement will have the meanings given to
those terms in the CRL.
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2.5 CRL Section 34173(h) permits the City, as the former Agency's creating
authority, to loan or grant funds to the Successor Agency to pay for enforceable obligations,
administrative costs, and project - related expenses.
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2.6 In order for the City to honor its commitments under the City /Successor Agency
Loan, the City has requested that the Housing Successor loan the City's General Fund the
principal sum of Three hundred twenty -four thousand, two hundred eighty -six dollars ($324,286)
( "Loan") from funds controlled by the Housing Successor. These funds will then be used to fund
the City /Successor Agency Loan and the proceeds will be used to assist the Successor Agency in
meeting its housing related obligations as identified on its Recognized Obligation Payment
Schedule 13/14A.
ARTICLE III.
TERMS
3.1 Loan Agreement. The Housing Successor agrees to disburse the Loan to the City
upon the City's request. The Loan will be disbursed to the City to be held in its accounts and
may be used fund the City /Successor Agency Loan.
3.2 Interest and Repayment Terms. All disbursed and outstanding tandmg Loan amounts will
accrue interest at the rate earned by funds deposited by the City into the Local Agency
Investment Fund, as it may be adjusted from time -to -time ( "LAIF Rate "), from the date of
disbursement until fully repaid. The Loan will be repaid under the same terms and conditions as
the City /Successor Agency Loan within fourteen (14) calendar days after receipt by the City of
any payment due the City under the City /Successor Agency Loan.
3.3 Amendment or Modification. This Agreement and the Housing Successor's
obligations under it may be amended or modified only in response to any modifications approved
and effective under the City /Successor Agency Loan.
3.4 No Other City Income or Assets Subject to Repayment Obligation. No funds or
other assets of the City other than payments received by the City from the City /Successor
Agency loan may be used for the repayment of the City's obligations under this Agreement.
3.5 Remedies for Breach. If the City fails for any reason whatsoever to fulfill its
obligations under this Agreement, remedies shall be limited to those identified in the
City /Successor Agency Loan; however, the Housing Successor may demand that the City initiate
the remedy procedures identified in the City /Successor Agency Loan.
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SIGNATURE PAGE TO
INTERFUND LOAN AGREEMENT)
CITY
City of Cathedral City, a California general law city
and municipal I rporation
g•, / _
N. • -. athy J. g' osa
Title: . yor
AT T:
, `Ts uty/ ty Clerk
HOUSING SUCCESSOR
The City of Cathedral City in its capacity tY P tY as the
Housing Successor to the former Redevelopment
Agency of the City of Cathedral City
By:
• ;
Name: Andy H. 1, ity Manager
•
AT • APPROVED AS TO FORM:
�✓ By
- : 1. -/ Jerk as Secretary to the Charles Green, City Attorney
Housing Successor Agency
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