Res 97-009RESOLUTION NO. 97-009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY
APPROVING THE PUBLIC IMPROVEMENT REIMBURSEMENT AGREEMENT
BY AND BETWEEN THE CITY OF POWAY AND THE POWAY REDEVELOPMENT
AGENCY AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH
WHEREAS, the Poway Redevelopment Agency (the "Agency") is a community
redevelopment agency organized and existing under the Community Redevelopment Law, California
Health and Safety Code Sections 33000, et seq. (the "CRL") and has been authorized to transact
business and exercise the powers of a redevelopment agency pursuant to action of the City Council
of the City of Poway (the "City Council"); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the
Redevelopment Plan for the Paguay Redevelopment Project (the "Redevelopment Plan" and the
"Project Area" respectively) which was adopted by the City Council pursuant to Ordinance No. 117
and thereafter amended by Ordinance Nos. 415 and 439.; and
WHEREAS, the Agency has issued the $104,710,000 Poway Redevelopment Agency,
Paguay Redevelopment Project, Subordinated Tax Allocation Refunding Bonds, Series 1993 and the
$21,595,000 Poway Redevelopment Agency, Paguay Redevelopment Project, Tax Allocation
Refunding Bonds, Series 1990A (collectively, the "Existing Senior Lien Bonded Indebtedness"); and
WHEREAS, the Agency is contemplating entering into an Owner Participation Agreement
(the "OPA") with the prospective owner (the "Prospective Owner") of a certain parcel of real
property located within the Project Area comprising approximately one hundred seventy three and
one-half (173~A) acres of what is generally known as Phase II of the Parkway Business Centre (the
"Site"); and
WHEREAS, the Site is also located within the boundaries of Community Facilities District
No. 88-1 of the City of Poway ("CFD No. 88-1"); and
WHEREAS, CFD No. 88-1 has issued the $30,000,000 City of Poway Community Facilities
District No. 88-1 Special Tax Bonds, Series 1989 ("Parkway Business Centre") and the $8,000,000
City of Poway Community Facilities District No. 88-1 Special Tax Bonds, Series 1990 ("Parkway
Business Centre") (collectively, the "CFD Bonds") in order to fund the development of certain public
improvements within the territory of CFD No. 88-1; and
WHEREAS, CFD No. 88-1 has levied special taxes against properties within the boundaries
of CFD No. 88-1, including the Site, in order to pay debt service on the CFD Bonds; and
WHEREAS, certain special taxes levied against the Site are delinquent and litigation has been
commenced (the "Litigation") in order to foreclose upon the special tax lien and cure the
delinquency; and
PUBL:46696_It424122345.0016
Resolution No. 97-009
Page 2
WHEREAS, pursuant to the OPA, Agency intends to provide certain assistance to the
Prospective Owner (the "Agency Assistance") in order to facilitate the settlement of the Litigation;
and
WHEREAS, while the Litigation has been pending, the City has loaned the principle amount
of Four Million Two Hundred Thousand Dollars ($4,200,000.00) (the "City Loan") to CFD
No. 88-1 to pay debt service as due on the CFD Bonds. The amount due on the City Loan as of
February 28, 1997 will be Four Million Seven Hundred Forty Thousand Eight Hundred Seventy
Seven Dollars ($4,740,877.00); and
WHEREAS, Section 33445 of the CRL, authorizes the Agency, with the consent of the City
Council of the City and upon making certain determinations, (i) to pay all or part of the value of and
cost of construction of public improvements and (ii) to reimburse the City for costs incurred by the
City in construction of public improvements; and
WHEREAS, the City and Agency desire to enter into the Public Improvement
Reimbursement Agreement (the "Agreement") in order to provide for the Agency's reimbursement
of the City for the provision of the City Loan in order to partially fund debt service on the CFD
Bonds and provide for the funding of the public improvements constructed at the direction CFD
No. 88-1 (the "Improvements"); and
WHEREAS, the City's provision of the City Loan and the Agency's reimbursement of the
City therefore pursuant to the terms of the Agreement are in the vital and best interests of the City
and the health, safety, morals and welfare of its residents, and in accord with the public purposes
and provisions of applicable State and local laws and the requirements under which the
redevelopment of the Project Area has been undertaken.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. The City Council hereby finds that it can be seen with certainty that there is no
possibility that the Agency's reimbursement of the City for the provision of the City Loan pursuant
to the Agreement may have a significant effect on the environment and therefore, pursuant to Section
15061 of the Guidelines for the California Environmental Quality Act, 14 California Code of
Regulations Sections 15000, et seq., the Agreement is exempt from the provisions of the California
Environmental Quality Act, California Public Resources Code Section 21000, et seq.
Section 2. The City Council finds and determines that based upon substantial evidence
in the record before it that the Improvements are of benefit to the Project Area.
Section 3. The City Council finds and determines that based upon substantial evidence
in the record before it that no other reasonable means of financing the Improvements are available
to the community.
PUBL:46696_l1424[22345.0016
Resolution No.97- 009
Page 3
Section 4. The City Council finds and determines that based upon substantial evidence
in the record before it that the payment of funds for the Improvements will assist in the elimination
of one or more blighting conditions within the Project Area and is consistent with the adopted
implementation plan.
Section 5. The City Council hereby approves the Public Improvement Reimbursement
Agreement (the "Agreement") and authorizes the Mayor to execute the Agreement on behalf of the
City.
Section 6. The City Clerk is hereby directed to file a notice of exemption pursuant to the
California Environmental Quality Act with the Clerk of the County of San Diego.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Poway at a
regular meeting this 28th day of January, 1997.
Don Higginson, May&JQJ
ATTEST:
Marjorit I~. Wahlsten. City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify under penalty
of perjury that the foregoing Resolution No. 97-009 was duly adopted by the City Council at a
meeting of said City Council held on the 28th day of January, 1997, and that it was so adopted by
the following vote:
AYES: CAFAGNA,
NOES: N0N E
ABSTAIN: NO N E
ABSENT: NONE
EMERY, GOLDBY, REXFORD, HIGGINSON
PUBL:46696_11424122345.0016
Marjor~ Wahlsten, City Clerk