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OSB 14-009
RESOLUTION NO. OSB 14-009 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY APPROVING AN AUGUST 4, 1987 DRAINAGE FUND LOAN BETWEEN THE CITY OF POWAY AND THE FORMER POWAY REDEVELOPMENT AGENCY AND MAKING FINDINGS RELATING THERETO WHEREAS, pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the City Council of the City of Poway ("City") activated the Poway Redevelopment Agency ("Redevelopment Agency") and adopted, and subsequently amended, the Redevelopment Plan for the Paguay Redevelopment Project Area ("Redevelopment Plan"); and WHEREAS, in furtherance of its redevelopment activities, the City and Redevelopment Agency completed a loan, dated August 4, 1987 (August 4, 1987 Drainage Fund Loan; Exhibit A), whereby the City lent to the Redevelopment Agency an amount equal to $220,000 from the City's Drainage Fund, of which a principal balance of $105,000 remains, for the purpose of completing Midland Road and Community Road Streets and Drainage Improvements; and WHEREAS, Assembly Bill (AB) X1 26, enacted June 2011, and AB 1484, enacted June 2012 (collectively, the "Dissolution Act") required the dissolution of redevelopment agencies and established certain procedures and requirement for the wind-down of their activities; and WHEREAS, the Successor Agency to the Poway Redevelopment Agency ("Successor Agency") is the successor entity to the Redevelopment Agency and, pursuant to the Dissolution Act, is responsible for the wind-down affairs of the former Redevelopment Agency, including without limitation the performance and repayment of all enforceable obligations of the former Redevelopment Agency; and WHEREAS, the Oversight Board is the oversight board to the Successor Agency and, pursuant to the Dissolution Act, is responsible to oversee the actions of the Successor Agency in the wind-down affairs of the former Redevelopment Agency, including without limitation the performance and repayment of all enforceable obligations of the former Redevelopment Agency; and WHEREAS, Health and Safety Code Section 34171(d)(2) provides, with a few exceptions, that "enforceable obligation" does not include any agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency; and WHEREAS, the Dissolution Act further provides that after a successor agency receives a finding of completion from the Department of Finance ("DOF") pursuant to Health and Safety Code Section 34179.7, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes; and Resolution No. OSB 14-009 Page 2 WHEREAS, the Successor Agency has received a finding of completion from the DOF on May 24, 2013; and WHEREAS, in addition to establishing when a loan agreement between the city and redevelopment agency shall be deemed to be an enforceable obligation, Health and Safety Code Section 34191.4 further establishes certain restrictions and limitations concerning loan repayments; and WHEREAS, the City and Successor Agency have submitted the August 4, 1987 Drainage Fund Loan, together with other information relating thereto, to the Oversight Board and requested that the Oversight Board approve the August 4, 1987 Drainage Fund Loan, and find that the loan of funds under the August 4, 1987 Drainage Fund Loan was for legitimate redevelopment purposes; NOW, THEREFORE, BE IT RESOLVED by the Oversight Board to the Successor Agency of the Poway Redevelopment Agency as follows: Section 1. Recitals. The recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. Findings. The Oversight Board has reviewed the original purpose and use of the August 4, 1987 Drainage Fund Loan and hereby finds and determines that the loan of funds by the City to the former Redevelopment Agency under the August 4, 1987 Drainage Fund Loan was for legitimate redevelopment purposes. This finding is based upon the following: a) The amounts due and owing to the City under the August 4, 1987 Drainage Fund Loan reflect the repayment to the City of amounts advanced to or on behalf of the former Redevelopment Agency in order to assist the Redevelopment Agency with completing Midland Road and Community Road Streets and Drainage Improvements to benefit the Paguay Redevelopment Project Area and the community. b) Financing public improvements in the Paguay Redevelopment Project Area was specifically identified in the Redevelopment Plan as activities to be undertaken by the Redevelopment Agency to further the goals of the Redevelopment Plan. c) Health and Safety Code Section 33133 authorizes a redevelopment agency to accept assistance from any public or private source for the redevelopment agency's activities. Furthermore, the Redevelopment Plan specifically authorizes the Redevelopment Agency to receive assistance from the City in forms that include advances and loans. d) The Redevelopment Agency was established for the purpose of eliminating blight; stimulating private investment; upgrading commercial and industrial areas; developing parks and recreation facilities; financing public improvements; alleviating infrastructure deficiencies; and providing affordable housing in the areas constituting the Paguay Redevelopment Project Area pursuant to the Resolution No. OSB 14-009 Page 3 adopted Redevelopment Plan. The Redevelopment Agency entered into the August 4, 1987 Drainage Fund Loan with the City in order to borrow funds necessary for the Redevelopment Agency to pay costs associated with completing Midland Road and Community Road Streets and Drainage Improvements in accordance with and in implementation of the Redevelopment Plan and the five-year Implementation Plan adopted by the Redevelopment Agency pursuant to Health and Safety Code Section 33490. e) The amounts provided to the Redevelopment Agency under the August 4, 1987 Drainage Fund Loan were loaned to the Redevelopment Agency to further the Redevelopment Agency's redevelopment activities and goals in accordance with and in furtherance of the Redevelopment Plan and the Implementation Plan, to benefit the Paguay Redevelopment Project Area and the surrounding community. Section 3. Approval of August 4, 1987 Drainage Fund Loan. The Oversight Board hereby approves the August 4, 1987 Drainage Fund Loan from the City to the former Redevelopment Agency, including without limitation the recalculation of interest using the Local Agency Investment Fund rate as of the quarter ending December 31, 2013, in accordance with and as set forth in the August 4, 1987 Drainage Fund Loan Repayment Schedule (Exhibit B). The total principal and interest owed ("Amounts Owed") for the August 4, 1987 Drainage Fund Loan is $111,927.60. The Oversight Board further determines that the repayment of Amounts Owed under the August 4, 1987 Drainage Fund Loan is an enforceable obligation and the Successor Agency is authorized to include the repayment of the August 4, 1987 Drainage Fund Loan as an enforceable obligation under its future Recognized Obligation Payment Schedules (ROPS) submitted to the Oversight Board for approval. As Proposition 218, and other constitutional requirements that must be met, support the need for repayment of the full amounts loaned to the Redevelopment Agency from the City's Drainage Fund, the Oversight Board hereby approves, and authorizes the Successor Agency to take such actions, in cooperation with the City, to ensure that all monies due and owing under the August 4, 1987 Drainage Fund Loan are repaid in full to the City's Drainage Fund. Section 4. Transmittal of August 4, 1987 Drainage Fund Loan to Department of Finance. The Successor Agency is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution, including without limitation, providing any documentation and evidence to the Department of Finance as necessary to obtain from the Department of Finance approval of the August 4, 1987 Drainage Fund Loan as an enforceable obligation. Resolution No. OSB 14-009 Page 4 PASSED, ADOPTED AND APPROVED by the Oversight Board to the Successor Agency of the Poway Redevelopment Agency at a meeting thereof this 30th day of April 2014. Olt Bruce Ta, y, Cha r ATTEST: Sheila . Cobian, CMC, Secretary Resolution No. OSB 14-009 Page 5 STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN DIEGO ) I, Sheila R. Cobian, Secretary of the Successor Agency of the Poway Redevelopment Agency, do hereby certify under penalty of perjury that the foregoing Resolution No. OSB 14-009 was duly adopted by the Oversight Board to the Successor Agency of the Poway Redevelopment Agency at a meeting of said Board held on the 30th day of April 2014, and that it was so adopted by the following vote: AYES: TARZY, FONG-SAKAI, LYON, SCOTT, LADERMAN, THOLANDI NOES: NONE ABSENT: TAM DISQUALIFIED: NONE Sheila Cobian, CMC, Secretary Attachments: Exhibit A —August 4, 1987 Drainage Fund Loan Repayment Agreement and Supporting Budget Documentation Exhibit B —August 4, 1987 Drainage Fund Loan Repayment Schedule .s 4%2.20,vOd AGENDA REPORT 11E" 4411MEMIIMININIIIIMI ,ar■,- ,p '- N if CITY OF POWAY This report is included on the Consent Calendar.There will be no separate discussion of the report prior to approval by the ` City Council unless members of the Council,staff or public \A6, �` request It to be removed from the Consent Calendar and 4,� -�/ discussed separately.if you wish to have this report pulled for discussion,please fill out a slip indicating the report number c,). -,:%‘:'.''' „:; and give it to the City Clerk prior to the beginning of the City Council meeting. THE TO: Honorable Mayor and Members of the City Council Honorable Chairman and Members of the Redevelopment Agency VP FROM: James L. Bowersox, City Manager/Executive Direr`- INITIATED BY: Alan D. Archibald, Director of Public 5ervic " '•.•- J. Bradley Kutzner, Senior Civil Engineer C�/' �. DATE: August 4, 1987 SUBJECT: Additional Appropriation of Funds and Award of Contract for Construction of Street and Drainage Improvements on Community Road from Poway Creek to Poway Road and on Midland Road from Poway Road to Fairgate Drive (5213 & 5214) ABSTRACT This action would: 1. Appropriate an additional $220,000 from the Drainage Fund for this project. ) 2. Award the contract to Daley Corporation. BACKGROUND On June 23, 1987, the City Council appropriated $400,000 from the Drainage Fund for the estimated construction costs of twin 84” storm drain pipes. When the bids were received, the actual costs turned out to be $620,000. Of this, 25% of the costs will be paid by the developer of the Poway Plaza Shopping Center. The remaining costs will be spread over future developments in this drainage basin which will be assessed proportionate shares of the remaining 75%. Ultimately all of this cost will be borne by private development. FINDINGS On June 23, 1987, the Agency authorized the bidding of the aforementioned pro- ject. On July 23, 1987, two bids were received: 1. Daley Corporation $1,722,869.00 2. West Coast General Corp $1,880,144.06 ACTION: 15( , : (,_ (4,... AUG 41987 ITEM 13 1 of 2 6- 1 • Exhibit A AGENDA REPORT - August 4, 1987 Appropriation of Funds and Award of Contract Community/Midland Page 2 RECO*IENDATION It is recommended that the City Council authorize a loan of an additional $220,000 from the Drainage Fund to the Redevelopment Agency (for a total loan of $620,000.). It is further recommended that the Redevelopment Agency: 1. Accept the loan of the additional $220,000. 2. Appropriate the additional $220,000 for the Community Road Widening project. . 3. Award the bid for the projects to the lowest responsible bidder, Daley Corporation, for the total amount of $1,722,869.00 JLB:ADA:JBK:mh • AUG 41987 ITEM 13 2 of 2 Exhibit A k.. AGENDA REPORT % CITY OF POWAY i _ �r 1.Is report Is included on the Consent Calendar.There will be no separate discussion of the report prior to approval by the City Council unless members of the Council,staff or public request It to be removed from the Consent Calendar and ��,. �` a/ discussed separately.If you wish to have this report pulled for discussion,please fin out a slip Indicating the report number \cam,f d and give it to the City Clerk prior to the beginning of the City Council meeting. TO: Honorable Mayor and Members of the City Council Chairman and Members of the Redevelopment Agency Cw FROM: James L. Bowersox, City Manager/Executive Di - � !,�IP Ilk DATE: August 4, 1987 SUBJECT: Consent of the City of Poway and Redevelopment Agency to the Assignment and Assumption of Contractual Rights and Obligations of the Developer, related parent and subsidiary corporations, and the guarantor of the developer of the Pomerado Business Park as set forth in the Development Agreement, Owner Participation Agreement, Acquisition Agreement, Guaranty and documents pertaining to the Pomerado Business Park. - BACKGROUND N During the past several months, there has been considerable publicity within the financial journals with regards to the acquisition of Cadillac Fairview, Ltd. by JMB Realty Corporation of Chicago, Illinois. The acquisition is essentially the purchase of stock thereby leaving the corporate structure of Cadillac Fairview intact. Prior to the actual transfer of ownership to JMB Realty Corporation, it is the desire of JMB Realty to permit the transfer of certain assets of Cadillac Fairview to a new corporation called Prentiss/Copley Investment Group. In order to facilitate this transfer which involves Cadillac Fairview/California, Inc. _ the general partner in the Pomerado Business Park, it is necessary for Cadillac Fairview to form a new general partner, CF Pomerado, Inc., and for the City and Redevelopment Agency to consent to assignment of contractual rights and obliga- tions for the Pomerado Business Park. FINDINGS Attached for your consideration are copies of the documents consenting to the assignment and assumption of contractual rights and obligations by the City of Poway and Poway Redevelopment Agency. These documents provide for creation of a new general partner, CF Pomerado, Inc. and specifically ensure that the new general partner will assume all obligation of the South Poway Community ACTION: / .7 AUG 41987 ITEM 1 1 of 12 I)--3 Exhibit A �� RESOLUTION NO. R-87- 24 A RESOLUTION OF THE POWAY REDEVELOPMENT AGENCY ACCEPTING CERTAIN LOANS FROM THE CITY OF POWAY, CALIFORNIA, AMENDING THE REDEVELOPMENT AGENCY BUDGET AND APPROVING A SINGLE STANDARD, ADJUSTABLE RATE OF INTEREST ON CITY LOANS TO THE AGENCY NOW, THEREFORE, THE POWAY REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the City Council of the City of Poway (the "City"), in accordance with the provisions of the California Community Redevelopment Law, has created a Community Redevelopment Agency Administrative Fund to account for administrative and debt service expenditures and a Redevelopment Fund to account for capital expenditures, and WHEREAS, the City Council has approved by resolution of even date herewith, loans of $2,052,000 to assist with development of the Pomerado Business Park and $220,000 to supplement the Redevelopment Agency budget for Project #5405, Community Road Storm Drain Project, and WHEREAS, the City Council has approved a standardization of the method for calculating interest on City loans to the Agency, ■ NOW, THEREFORE, be it resolved that: Section 1. The Agency accepts the loans described above, ratifies the expenditure of $2,052,000 to assist the Pomerado Business Park development by paying part of the debt service required on the Community Facilities District #1 Bonds. Section 2. The Agency.hereby amends the capital improvement project budget to add $220,000 to the Corrflunity Road Storm Drain. Project, Section 3. The Agency approves the following adjustable interest rate for the loins-described above as well as for all City to Agency loans outstanding as of the date of this resolution, said rate to be effective as of July 1, 1987: All loans from the City to the Agency shall bear interest at. a rate equal to the annual average 'interest accrued on investment .of the City General Fund • as calculated on January 1st of each year. This rate, however, is not to exceed 11) 12% per annum, or (ii) the maximum interest rate that may lawfully be paid. .by 'a Redevelopment Agency. Air Exhibit)4 • Resolution No. R-87- 24 Page 2 PASSED, ADOPTED AND APPROVED, by the Poway Redevelopment Agency, at a regu- lar meeting thereof this 22nd day of September, 1987. AS.A ruce . a 4 , a rman ATTEST: -1 - V Marjorie lq Wahlsten, Secretary STATE OFkCALIFORNIA ) ) ss. COUNTY OF SAN DIEGO ) I, Marjorie K. Wahlsten, Secretary of the Poway Redevelopment Agency, do hereby certify that the foregoing Resolution No. R-87- 24 was duly adopted by the Redevelopment Agency at a meeting of said Agency on the 22nd day of September, 1987, and. that it was so adopted by the following vote: / AYES: BRANNON , EMERY , KRUSE, TARZY NOES: NONE ABSTAIN: NONE ABSENT: HIGGINSON Mcv.A.,\,A.;_t_ L`IL. , Marjorie Wahlsten, Secretary Poway Redevelopment Agency Exhibit A Page 3 - CITY OF POWAY - August 4, 1987 13. Authorized an additional loan of $220,000 from the Drainage Fund to the Redevelopment Agency as additional funds needed for Midland/Community street and drainage improvements. 15. Noted and filed the report regarding Councilmember disqualification proce- dures. 16. Approved the replacement purchase of an IBM Series III, Model 85 photo- copier, from IBM Corporation, in the amount of $35,000. Motion carried unanimously. ITEM 4 TENTATIVE TRACT MAP 87-01 DEVELOPMENT REVIEW 87-03 APPLICANT: CONAM PROPERTIES LTD. Staff report by City Manager Bowersox. This is a request for approval of a 38-unit condominium project on the southeast corner of Midland Road and Edgemoor Street. On May 12, 1987, Council granted a three-week continuance, and at the June 2, 1987, meeting the applicant requested a continuance to allow the Public Services Department time to complete a hydraulic/hydrology study for the Midland Road area. At that time the applicant signed a waiver of his right to Council action within the period specified in the Government Code and Poway Municipal Code. Staff recommends approval of a continuance until September 1, 1987, as requested by letter from the applicant dated July 27, 1987. Motion by Councilmember Emery, seconded by Councilmember Kruse, to continue con- sideration of TPM 87-01 to September 1, 1987. Motion carried unanimously. ITEM 5 CONDITIONAL USE PERMIT 87-07 APPLICANT: PRENSATT, INC. Mayor Tarzy opened the public hearing. Staff report by City Manager Bowersox. This is a request to continue a school, afterschool,. and summer school program at an existing facility at 14911 Espola Road in the RR-C zone. The Montessori school use of the site was established in 1978 with he granting of ZAP 78-14 by the County of San Diego. Modifications to said permit allowed the number of children to increase from 40 to 50 and extended the maximum age from six to nine. This permit will expire on August 23, 1987, but could have been granted a time extension. Planning Services Department is recommending the issuance of a new use permit as an alternative. All conditions of approval for ZAP 78-14M have been incorporated into CUP 87-07. Staff is recommending approval of CUP 87-07 with additional conditions pertaining to the circular driveway and ulti- mate improvements to Espola Road. SEP 81987 ITEM 9 a zssl f)-• 6 Exhibit A AUGUST 4, 1987 DRAINAGE FUND LOAN 18-YEAR $105,000 Principal Balance Annual payment on 6/30 of eabb./111404 year(18 year repayments 6,336 39 LAIF lntereet rate Pymt# Balances Principal Interest Total Balance @ 6/30/15 105,000.00 6,927.60 111,927.60 1 I Payment @ 6/30/15 (571.21) 6,927.60 6,356.39 Balance @ 7/1/15 105,571.21 - 105,571.21 FY 15-16 Interest - 274.49 274.49 Balance @ 6/30/16 105,571.21 274.49 105,845.70 2 I Payment @ 6/30/16 6,081.90 274.49 6,356.39 Balance @ 7/1/16 99,489.31 - 99,489.31 FY 16-17 Interest - 258.67 258.67 Balance @ 6/30/17 99,489.31 258.67 99,747.98 3 I Payment @ 6/30/17 6,097.72 258.67 6,356.39 Balance @ 7/1/17 93,391.59 - 93,391.59 FY 17-18 Interest - 242.82 242.82 Balance @ 6/30/18 93,391.59 242.82 93,634.41 4 I Payment @ 6/30/18 6,113.57 242.82 6,356.39 Balance @ 7/1/18 87,278.02 - 87,278.02 FY 18-19 Interest - 226.92 226.92 Balance @ 6/30/19 87,278.02 226.92 87,504.94 5 I Payment @ 6/30/19 6,129.47 226.92 6,356.39 Balance @ 7/1/19 81,148.55 - 81,148.55 FY 19-20 Interest - 210.99 210.99 Balance @ 6/30/20 81,148.55 210.99 81,359.54 6 I Payment @ 6/30/20 6,145.40 210.99 6,356.39 Exhibit B AUGUST 4, 1987 DRAINAGE FUND LOAN 18-YEAR $105,000 Principal Balance Continued Pymt# Balances Principal Interest Total Balance @ 7/1/20 75,003.15 - 75,003.15 FY 20-21 Interest - 195.01 195.01 Balance CO 6/30/21 75,003.15 195.01 75,198.16 7 I Payment @ 6/30/21 6,161.38 195.01 6,356.39 Balance @ 7/1/21 68,841.77 - 68,841.77 FY 21-22 Interest - 178.99 178.99 Balance @ 6/30/22 68,841.77 178.99 69,020.76 8 I Payment @ 6/30/22 6,177.40 178.99 6,356.39 Balance @ 7/1/22 62,664.37 - 62,664.37 FY 22-23 Interest - 162.93 162.93 Balance @ 6/30/23 62,664.37 162.93 62,827.30 9 I Payment @ 6/30/23 6,193.46 162.93 6,356.39 Balance @ 7/1/23 56,470.91 - 56,470.91 FY 23-24 Interest - 146.82 146.82 Balance @ 6/30/24 56,470.91 146.82 56,617.73 10 I Payment @ 6/30/24 6,209.57 146.82 6,356.39 Balance @ 7/1/24 50,261.34 - 50,261.34 FY 24-25 Interest - 130.68 130.68 Balance @ 6/30/25 50,261.34 130.68 50,392.02 11 I Payment @ 6/30/25 6,225.71 130.68 6,356.39 Balance CO 7/1/25 44,035.63 - 44,035.63 FY 25-26 Interest - 114.49 114.49 Balance @ 6/30/26 44,035.63 114.49 44,150.12 12 I Payment @ 6/30/26 6,241.90 114.49 6,356.39 Exhibit B AUGUST 4, 1987 DRAINAGE FUND LOAN 18-YEAR $105,000 Principal Balance Continued Pymt# Balances Principal Interest Total Balance @ 7/1/26 37,793.73 - 37,793.73 FY 26-27 Interest - 98.26 98.26 Balance @ 6/30/27 37,793.73 98.26 37,891.99 13 I Payment @ 6/30/27 6,258.13 98.26 6,356.39 Balance @ 7/1/27 31,535.60 - 31,535.60 FY 27-28 Interest - 81.99 81.99 Balance @ 6/30/28 31,535.60 81.99 31,617.59 14 1 Payment @ 6/30/28 6,274.40 81.99 6,356.39 Balance @ 7/1/28 25,261.20 - 25,261.20 FY 28-29 Interest - 65.68 65.68 Balance @ 6/30/29 25,261.20 65.68 25,326.88 15 I Payment @ 6/30/29 6,290.71 65.68 6,356.39 Balance @ 7/1/29 18,970.49 - 18,970.49 FY 29-30 Interest - 49.32 49.32 Balance @ 6/30/30 18,970.49 49.32 19,019.81 16 , Payment @ 6/30/30 6,307.07 49.32 6,356.39 Balance @ 7/1/30 12,663.42 - 12,663.42 FY 30-31 Interest - 32.92 32.92 Balance © 6/30/31 12,663.42 32.92 12,696.34 17 1 Payment @ 6/30/31 6,323.47 32.92 6,356.39 Balance @ 7/1/31 6,339.95 - 6,339.95 FY 31-32 Interest - 16.48 16.48 Balance @ 6/30/32 6,339.95 16.48 6,356.43 18 1 Payment @ 6/30/32 6,339.95 16.48 6,356.43 Balance @ 7/1/32 - - 0.00 Exhibit B