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Home My WebLink About1994 026 CC RESO1994 026 CC RESO(Ìì´« RESOLUTION NO.94--- 26 RESOLUTION OF THE CITY OF BALDWIN PARK APPROVING A FINANCING AGREEMENT BETWEEN THE CITY OF BALDWIN PARK AND THE BALDWIN PARK REDEVELOPMENT AGENCY WHEREAS, the City of Baldwin Park City") is a municipal corporation and general law city of the State of California; and WHEREAS, the Baldwin Park Redevelopment Agency Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law CRL") Health and Safety Code 33000 et sea.); and WHEREAS, the Agency and City previously established the San Gabriel River Project Area, the Central Business District Project Area, and the Puente-Merced Project Area; and WHEREAS, the Agency is required, for Fiscal Year 1993-94, to make an allocation to the Educational Revenue Augmentation Fund ERAF") as required by Health and Safety Code Section 33681.5; and WHEREAS, Agency staff has determined that there is insufficient funds available to make the required ERAF allocation for the Central Business District and Puente- Merced Project Areas; and WHEREAS, the Agency is permitted to borrow certain amounts from the Agency's Low and Moderate Income Housing Fund for the Central Business District and Puente- Merced Project Areas to assist in the Agency's funding of the required ERAF allocation for those two project areas, and the Agency has previously taken action to effect a borrowing of such amounts from the Low and Moderate Income Housing fund up to the permitted maximum; and WHEREAS, there still remains a shortfall in available monies to fund the ERAF allocation for the Central Business District and Puente-Merced Project Areas; and WHEREAS, in order for the Agency to meet its statutory obligation to fully fund its ERAF allocation for the Central Business District and Puente-Merced Project Areas, the City and Agency staff have proposed a series of Financing Agreements between the City and Agency to effect certain transfers totalling $13,080.65, specifically: A. Financing Agreement between the City and Agency whereby Agency loans City the amount of $13,060.85 from the Agency's San Gabriel River Project Area, to be repaid by the City to the Agency within one year with interest accruing at a rate equal to the rate of the Agency and City investments with the Local Agency Investment Fund; B. Financing Agreement between the City and Agency whereby the City loans the Agency the amount of $8,666.24 to assist Agency's funding of its ERAF allocation for the Central Business District Project Area, to be repaid by the Agency to the City within one year with interest accruing at a rate equal to the rate of the Agency and City investments with the Local Agency Investment Fund; C. Financing Agreement between the City and Agency whereby the City loans the Agency the amount of $4,414.41 to assist Agency's funding of its ERAF allocation for the Puente-Merced Project Area, to be repaid by the Agency to the City within one year with interest accruing at a rate equal to the rate of the Agency and City investments with the Local Agency Investment fund; and BIB] 37650-U01 1994-U02 026-U02 CC-U02 RESO-U02 LI3-U03 FO1126-U03 FO1461-U03 DO1593-U03 C6-U03 RESO-U03 10/10/2001-U04 ADMIN-U04 RESO-U05 94-26-U05 MAR-U05 16-U05 1994-U05 1994 026 CC RESO(Ìì´« RESOLUTION NO.94-26 PAGE TWO WHEREAS, the above three financing agreements are hereinafter referred to as the Financing Agreements;" and WHEREAS, Agency is authorized by Health and Safety Code Sections 33600 and 33601 to enter into the transactions described above. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Baldwin Park that the Financing Agreements between the City and Agency effecting the transactions described in the above Recitals and in more detail in each of the Financing Agreements, a copy of which Financing Agreements are on file in the office of the City Clerk, and which Financing Agreements are incorporated herein by reference, are hereby approved. APPROVED and ADOPTED this 16th day of March, 1994, by the City Council of the City of Baldwin Park. STATE OF CALIFORNIA COUNTY OF LOS ANGELES) ss: CITY OF BALDWIN PARK I, LINDA L. GAIR, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing Resolution was duly and regularly approved and adopted by the City Council of the City of Baldwin Park at its regular meeting of the City Council on March 16,1994 by the following vote: AYES: COUNCILMEMBER MCNEILL,MARTINEZ,MUSE,MAYOR VARGAS NOES: COUNCILMEMBER NONE ABSENT: COUNCILMEMBER GALLEGOS Z LINDA L. GAIR, CITY CLERK BIB] 37650-U01 1994-U02 026-U02 CC-U02 RESO-U02 LI3-U03 FO1126-U03 FO1461-U03 DO1593-U03 C6-U03 RESO-U03 10/10/2001-U04 ADMIN-U04 RESO-U05 94-26-U05 MAR-U05 16-U05 1994-U05 1994 026 CC RESO(Ìì´« FINANCING AGREEMENT THIS FINANCING AGREEMENT Agreement") is made and entered into this 16th day of March, 1994, Effective Date"), by and between the BALDWIN PARK REDEVELOPMENT AGENCY, a public body, corporate and politic Agency"), and the CITY OF BALDWIN PARK, a municipal corporation City"). RECITALS A. Agency is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law CRL") Health & Safety Code 33000 et sea.). B. City is a municipal corporation and a general law city of the State of California. C. Agency and City, on August 16,1978, by Ordinance No.780 of the City Council of the City, established the Puente-Merced Redevelopment Project Area Project Area"). D. Agency desires to obtain a loan from the City in order to fully fund the Agency's allocation to the Educational Revenue Augmentation Fund ERAF) for the Project Area. E. Agency is authorized by Health & Safety Code Sections 33600 and 33601 to loan money and to enter into agreements with public agencies, including the City, for redevelopment purposes. F. City and Agency desire to effect a transaction whereby City loans funds to Agency to be paid back by Agency with interest. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 1. City Loan. City hereby loans to Agency the principal amount of FOUR THOUSAND FOUR HUNDRED FOURTEEN DOLLARS AND FORTY-ONE CENTS $4,414.41) Loan Principal"). 2. Interest. Interest shall accrue on the outstanding Loan Principal at the rate of interest, applicable as of the Effective Date, that is paid to the City for its investments with the Local Agency Investment Fund. Interest shall commence to accrue as of the date the Loan Principal is transferred by City to Agency. Interest shall be compounded annually, if applicable. 3. Agency Repayment. Agency shall repay the total outstanding Loan Principal and accrued interest within one 1) year of the Effective Date of this Agreement. Agency shall be entitled to repay all or any part of the outstanding balance at any time with no charges, fees, or penalties. 4. Indebtedness of Agency. The Loan Principal and accrued interest described in this Agreement shall constitute an indebtedness of the Agency. 5. Subordination. The repayment of the Loan Principal and accrued interest by Agency shall be junior and subordinate to i) all Agency tax allocation bonds or other direct long-term indebtedness of Agency, ii) all pledges by Agency of tax increments for tax allocation bonds or other direct long-term indebtedness of Agency, iii) Agency financial arrangements or other contractual obligations of Agency, iv) any contingent BIB] 37650-U01 1994-U02 026-U02 CC-U02 RESO-U02 LI3-U03 FO1126-U03 FO1461-U03 DO1593-U03 C6-U03 RESO-U03 10/10/2001-U04 ADMIN-U04 RESO-U05 94-26-U05 MAR-U05 16-U05 1994-U05 1994 026 CC RESO(Ìì´« obligations of Agency, and v) any State-mandated payments, repayments, or set aside of any kind. 6. Non-Recourse Obligation. No officer, official, employee, agent, or representative of Agency shall be liable for any amounts due hereunder, and no judgment or execution thereon entered in any action hereon shall be personally enforced against any such officer, official, employee, agent, or representative. 7. Entire Agreement. This Agreement shall constitute the entire agreement of the parties. This Agreement may be amended or modified only by an agreement in writing signed by the parties. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their authorized representatives, as of the date first above written. BALDWIN PARK REDEVELOPMENT AGENCY Agency) By. Chairman ATTEST: APPROVED AS TO FORM: Agency Council CITY OF BALDWIN PARK City") By: Mayor ATTEST. BIB] 37650-U01 1994-U02 026-U02 CC-U02 RESO-U02 LI3-U03 FO1126-U03 FO1461-U03 DO1593-U03 C6-U03 RESO-U03 10/10/2001-U04 ADMIN-U04 RESO-U05 94-26-U05 MAR-U05 16-U05 1994-U05