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HomeMy WebLinkAboutCC RESO 95-56RESOLUTION NO. 95-56 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CONFIRMING THE PRIORITY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN DIEGO'S AGENCY TAX INCREMENT RELATIVE TO THE MEMORANDUM OF UNDERSTANDING, STATE RT. 252, DATED MARCH 10, 1987 WHEREAS, the City Council of the City of National City and the Redevelopment Agency of the City of San Diego (Agency) entered into a Memorandum of Understanding (MOU), dated March 10, 1987 (MOU); and, WHEREAS, the purpose of the MOU was to compensate the City of National City for impacts resulting from the State not constructing State Rt. 252; and, WHEREAS, the Agency is in the process of selling bonds to finance redevelopment projects which require a pledge of Agency funds to pay the bonds; and, WHEREAS, the Agency funds have been used by the Agency to fulfill the terms of the MOU; and, WHEREAS, the City of National City has been asked to confirm that the revenue source for the payment of the MOU obligation is not limited to tax increments; and, that any tax increments obligated to the City by virtue of the MOU, are subordinate to the lien imposed by the bond issue. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the City of National City hereby confirms that any tax increments of the Redevelopment Agency of the City of San Diego which are obligated to National City in accordance with the MOU are subordinate to the lien imposed on such tax increment by the Agency's tax allocation bond issue. (Continued Next Page) CITY COUNCIL RESOLUTION NO. 95-56 BE IT FURTHER RESOLVED, that the Mayor is authorized to execute the attached letter, Exhibit "A", in this regard. PASSED and ADOPTED this 3rd day of May 1995. George H. Waters, Mayor ATTEST: Lori Anne Peo les P C�i�y Clerk APPROVED AS TO FORM: George H. Eiser, City Attorney /bhm Taxlnc.M2 1200 Third Avenue • Suite 1620 • San Diego, California 92101- 4199 Telephone: (619) 236-6233 • Fax: (619) 696-0590 REDEVELOPMENT AGENCY OF THE CITY OF SAN DIEGO May 4, 1995 City of National City 1243 National City Blvd. National City, CA 91950 Attn: Mayor George Waters Ladies and Gentlemen: With respect to that certain Memorandum of Understanding (the "Memorandum") dated March 10, 1987 by and among the Redevelopment Agency of the City of San Diego (the "Agency") and the City of National City ("National City"), this letter confirms that the Memorandum does not pledge or encumber any specific Agency revenue source for the payment of the Agency's obligations under the Memorandum and to the extent that the Agency's obligations under the Memorandum create a lien on the tax increment revenues of the Agency (or a portion thereof), said Agency obligation are and shall be subordinate to the lien on such tax increment revenues granted by the Agency to the payment of the Agency's current and future tax allocation bonded indebtedness. Approved as to form and legality: John itt, nsel Allisyn . Thomas Depu Counsel By: The Redevelopment Agency of the City of San Diego Assistant Executive D7ector Acknowledged and agreed on this day of May 1995. Approved as to form: By: City Attorney, City of National City The City of National City By;�,-� � A Mayor AiN P : I. .srC� 7�•' Printed on Recycled Paper