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HomeMy WebLinkAbout2009 CC RESO 2009-136 CDCRESOLUTION NO. 2009 — 136 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY APPROVING A SUMMARY OF REDEVELOPMENT PROJECTS LIST, WHICH INCLUDES ROAD RESURFACING PROJECTS, AND A PROMISSORY NOTE BETWEEN THE CITY OF NATIONAL CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY WHEREAS, the Community Development Commission of the City of National City ("CDC") is organized and existing under Part 1.7 of the California Health and Safety Code (Section 34100, et seq.); and WHEREAS, the CDC functions as a redevelopment agency pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.; hereinafter, the "CCRL") and is responsible for the administration of redevelopment activities within the City of National City; and WHEREAS, on November 16, 1969, the City Council of the City of National City adopted Ordinance No. 1233, which approved the City's first redevelopment plan; and WHEREAS, since redevelopment was instituted in National City, the City Council has adopted and amended redevelopment plans for the E. J. Christman No. 1, E. J. Christman No. 2, South Bay Town and Country, Centre City, Downtown, Downtown Amended, and 1995 Added Area (Harbor District) Redevelopment Areas (the "Redevelopment Project Areas"); and WHEREAS, pursuant to CCRL Section 33445(c), when the value of the land or the cost of the installation and construction of a building, facility, structure, or other improvement, or both, has been or will be paid or provided for initially by the community or other public corporation, the CDC may enter into a contract with the community or other public corporation under which it agrees to reimburse the community or other public corporation for all or part of the value of the land or all or part of the cost of the building, facility, structure, or other improvement, or both, by periodic payments over a period of years; and WHEREAS, the purpose of this resolution is to confirm the CDC's monetary obligations to the City arising from the City's financing and development of the various capital improvement projects delineated on the Summary of Redevelopment Projects List ("Projects List"), attached hereto as Exhibit "A", for four (4) of the Redevelopment Project Areas on behalf of the CDC; and WHEREAS, pursuant to CCRL Section 33445(d), the obligation of the CDC under the Promissory Note, attached hereto as Exhibit "B", shall constitute an indebtedness of the CDC for the purpose of carrying out the redevelopment projects for the Redevelopment Project Areas, which indebtedness may be made payable out of taxes levied in the Redevelopment Project Areas, and allocated to the CDC under CCRL Section 33670(b) or out of any other available funds; and WHEREAS, all of the prerequisites with respect to the approval of this resolution have been met. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Resolution No. 2009 — 136 June 2, 2009 Page 2 3. The foregoing recitals are true and correct and are a substantive part of this resolution. 4. The Summary of Redevelopment Projects List, attached hereto as Exhibit "A", is approved. 3. The Promissory Note, attached hereto as Exhibit "B", is approved. 4. This resolution shall take effect upon the date of its adoption. PASSED and ADOPTED this 2nd day of June, 200 ATTEST: Brad a ' : , Secretary APPROVED AS TO FORM: George H. iser, III City Attorney on Morrison, Chairman Resolution No. 2009 — 136 June 2, 2009 Page 3 EXHIBIT "A" Summary of Redevelopment Projects List National City Redevelopment Project Areas FY 2008-2009 ROADWAY RESURFACING PROJECTS National City Downtown Project Area: $5,054,102 E. J. Christman No. 2 Project Area: 399,512 National City Harbor Project Area: 233,714 Center City Project Area: 142,672 Total Estimated Cost: $5,830.000 Resolution No. 2009 — 136 *`, June 2, 2009 Page 3 EXHIBIT "B" PROMISSORY NOTE Principal Amount $5,830,000.00 National City, CA , 2009 Promise to Pay. The Community Development Commission of the City of National City (the "CDC"), a public body, corporate and politic, duly organized and existing under the laws of the State of California, for value received, hereby promises to pay to the order of the City of National City, a California municipal corporation, duly organized and existing under the laws of the State of California (the "City"), the principal due pursuant to the terms of this Note. Purpose. The CDC functions as a redevelopment agency pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.; hereinafter, the "CCRL") and is responsible for the administration of redevelopment activities within the City of National City. Since redevelopment was instituted in National City, the City Council has adopted and amended redevelopment plans for the E. J. Christman No. 1, E. J. Christman No. 2, South Bay Town and Country, Centre City, Downtown, Downtown Amended, and 1995 Added Area (Harbor District) Redevelopment Areas (the "Redevelopment Project Areas"). This Note is being executed to evidence the CDC's monetary obligations to the City arising from the City's financing and development of the various capital improvement projects delineated on Exhibit "A", the Summary of Redevelopment Projects List (the "Projects List") for four (4) of the Redevelopment Project Areas on behalf of the CDC. Interest Rate. This Note shall bear simple interest at a rate equivalent to the Local Agency Investment Fund ("LAIF") apportionment rate as determined by the office of the California Treasurer. For each year during the term of this Note, the interest rate for the applicable fiscal year shall be the LAIF apportionment rate published by the California Treasurer for June of each year. Term. Unless earlier repaid, any balance on this Note shall be due in full on the later of July 18, 2040 or the last date for the repayment of indebtedness for the Redevelopment Project Areas. Priority of Revenue. The CDC will repay the Note from net tax increment funds as these funds are available for such repayment. Net tax increment funds shall mean the net tax increment revenues, excluding any amount used to: a. Pay principal of, any premium on, and interest on any existing or future bonds or notes that are secured by a pledge of tax increment revenues generated from the Redevelopment Project Areas; b. Make payments to any taxing entity pursuant to a tax sharing agreement or statutory tax sharing formula pursuant to Sections 33607.5 and 33607.7; c. Pay the San Diego County property tax collection administrative fee; d. Contribute revenues to the Low- and Moderate -Income Housing Fund in the amounts required by the CCRL; and e. Fund the administrative expenses of the CDC, not to exceed the amount listed in the CDC's annually adopted budget. Repayment Schedule. Subject to the priority of revenue noted hereinabove, the CDC shall initiate repayment of the indebtedness evidenced by this Note on the later of July 18, 2025, or the last date for redevelopment plan effectiveness for the Redevelopment Project Areas. Payments and Pre -Payments. All payments under this Note shall be made in lawful money of the United States at the principal office of the City of National City, 1243 National City Boulevard, National City, CA 91950, or at such other place as may from time to time be designated by the City. All payments on this Note shall be applied first to the principal due on the Note and the remaining balance shall be applied to interest. The CDC may prepay, at any time, all or any part of the principal amount of this Note without any payment of penalties or premiums. IN WITNESS WHEREOF, the parties hereto have executed this Promissory Note as of the date first set forth above. ATTEST: By: Michael R. Dalla City Clerk CITY OF NATIONAL CITY By: Ron Morrison Mayor COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ATTEST: NATIONAL CITY By: By: Brad Raulston Ron Morrison Secretary Chairman Passed and adopted by the Community Development Commission of the City of National City, California, on June 2, 2009, by the following vote, to -wit: Ayes: Commissioners Parra, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: Commissioner Morrison. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman, Community Development Commission Secre Development Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2009-136 of the Community Development Commission of the City of National City, California, passed and adopted on June 2, 2009. Secretary, Community Development Commission By: Deputy