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Res 85-061RESOLUTION NO. 85-061 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, DETERMINING THAT THE CONSTRUCTION OF CERTAIN PUBLIC ]/~PROVfMM~fS ARE OF BENEFIT TO THE PAGUAY REDE~,:!OPM]~k]T PROJEC~ AND THE /~:~IATE AND DETERMINING THAT THERE ARE NO OTHER REASONABLE MEANS OF FINANCING SAID PUBLIC IMPROVMMENTS ~, the Poway Redevelopment Agency (the "Agency") is authorized to carry out the redevelopment of the Paguay Redevelog~nent Project Area (the "Project" ); and WHEREAS, the Redevelopment Plan for the Project Area authorizes and directs the Agency to construct public improv~nents, which are ent~nerated in materials referenced in the Redevelopment Plan and which include the public improvements on Metate Lane and Espola Road; and WHEREAS, the Agency desires to construct these public improv~nents in the Paguay Redevelopment Project Area; and WHEREAS, California Health and Safety Code Section 33445 provides that the redevelo~nent agency may, with the Consent of the legislative body, pay all or part of the value of public buildings, facilities, structures or other improve- ments upon a finding that such public improvements are of benefit to the Project Area or the i~nediate neighborhood in which the Project is located and that there is no other reasonable means of financing such public improv~nents available for the ccm~unity; and WHEREAS, without the direct financial participation by the Agency, there are insufficient resources available for the installation of public improvements on Metate Lane and Espola Road; and WHEREA~, the sidewalks on Metate Lane and the street lighting on Espola Road are public improvements which will be used by and of benefit to persons residing in the Project Area; and WHEREAS, the City of Poway proposes to enter into a repayment agre~nent with the Agency in the form of Attachment B hereto (the "Agreement"), which is incor- porated herein by reference. NOW, THf~d~FO~, the City Council of the City of Poway does hereby resolve as follows: Section 1: The City Council hereby determines that the installation of sidewalks on Metate Lane and street lighting on Espola Road will be of benefit to the Project Area and the surrounding area neighborhoods in which the Projects are located. Resolution No. 85-061 Page 2 Section 2: The City Council further determines that there are no other reasonable means for financing the installation of sidewalks on Metate Lane and street lighting on Espola Road without having the Agency pay all or part of the value of such reconstruction. Section 3: The City Council consents to the execution of the repayment agreement between the City and the Agency and the payment by the Agency of the "Amount" as defined in and purs,,mnt to such Agreement. This resolution does not constitute authorization for the expenditure of City funds. PASSED, ADOPTED AND APPROVED, by the City Council of the City of Poway, California, at a regular meeting thereof this 20th day of August, 1985. ATTEST: Marjori~. Wahlsten, City Clerk This Repayment Agreement entered in to as of the 20th day of August, 1985, by and between the Poway Redevelopment Agency, a public body, corporate and politic (the "Agency") and the City of Poway, a municipal corporation (the "City".). A. The Agency is responsible for carrying out redevelopment activities in the Poway Redevelopment Project Area (the "Project Area") which is the subject of a redevelopment plan approved by the City Council of the City by ordinance adopted on December 13, 1983. B. The City Council of 'the City desires to advance a loan to the Agency in the principal amount of up to $165,220 to assist the Agency in paying the cost of the design and construction of public improv~ent projects, and the Agency desires to accept said loan on the terms and conditions set forth herein (the "Public Ir~prov~ment Projects Loan"). NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and conditions set forth herein, the parties hereto agree as follows: Section 1. The City hereby advances to the Agency a Public Improvement Projects Loan in the principal amount of up to $165,220 with interest thereon calculated at the rate of 10.5 percent per annum to the Agency, and the Agency hereby accepts the Public Improvement Projects Loan on the terms and provisions set forth herein. The Agency shall be authorized to draw against the Public Improvement Projects Loan up to the authorized principal amount thereof frc~ time to time in accordance with generally accepted accounting principles. The Agency's obligation to repay the Public Improv~nent Pro~ects Loan and the interest thereon sh~!l be evidenced by a prcmissory note in the form attached hereto as Exhibit "A" and incorporated herein by reference (the "Public Improv~ent Projects Prcmissory Note"). Payments of interest only shall be due and payable with respect to the Public Improvement Projects Prcmissory Note ccm- mencing December 31, 1985, and s~i-annually thereafter until June 30, 1988, at which time all the unpaid principal and accrued interest with respect, to the Public Improv~aent Projects Prc~issory Note shall be due and payable unless extended by mutual agrc~ent of the parties hereto. The Agency shall execute and deliver the Public Improvement Projects Prcmissory Note as of the date of the execution of this Agreement. Attachment B -2- Section 2. The Agency's obligation to make payments to the city purs-~nt to the prc~aissory note referred to herein and in the recitals hereinabove shall be repayed solely from amounts deposited in the special fund created with respect to the Project Area into which tax increment revenues received by the Agency purs~ant to section 33670(b) are deposited, if and only to the extent that such ~a~ incre~e~nt revenues are received. Section 3. The parties hereto acknowledge and agree that the Agency's obli- gation to repay amounts evidenced by the Prcmissory Note referred to herein shall be automatically subordinated to any other obligation of the Agency secured by tax increment revenues derived frem the Area for which such ~a~ increment revenues are otherwise pledged in connection with the iss~_nce of bonds, notes, or certificates of participation as part of the implementation of the Redevelopment Plan for the Project Area. Section 4. The Agency shall have the right at any time, frem time to time, upon at least ten (10) days written notice to the City, to prepay, without pre- mia or penalty the outstanding balance of the Promissory Note referred to herein, or any portion thereof, with the interest payable through the date of such prepayment. Section 5. This Agreement shall terminate when all obligations of the Agency evidenced by the Prcmissory Note referred to herein shall have discharged in full. Section 6. In case any one or more of the provisions contained in this Agrc~--ment should be held invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the r~ining provisions contained herein shall not in any way be affected or impaired thereby. Section 7. No m~mber, officer, agent, or employee of the Agency shall he individ~ally or personally liable for the payment of the principal of or interest on the Promissory Note. Section 8. The parties hereto acknowledge and agree that the obligations of the Agency evidenced by the Prcmissory Note referred to herein constitutes an "indebtedness" .within the meaning of Health and Safety Code Section 33670(b). -3- IN WITNESS WHEREOF, the parties hereto have executed this Repayment Agre~uent as of the date first above written. CITY OF POWAY Robert C. Ruery, Mayor Marjorie K. Wahlsten, City Clerk POWAY I~.DEVELOPM]~gT AGENCY ATI~ST: Robert C. Emery, Chairman Marjorie K. Wahlsten, Secretary