OSB 14-019 RESOLUTION NO. OSB 14-019
A RESOLUTION OF THE OVERSIGHT BOARD
TO THE SUCCESSOR AGENCY OF THE POWAY REDEVELOPMENT AGENCY
APPROVING A FY 2000-01 GENERAL 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 FY 2000-01 (FY 2000-01 General Fund
Loan; Exhibit A), whereby the City lent to the Redevelopment Agency an amount equal to
$1,159,000 from the City's General Fund for the purpose of purchasing a 1.54-acre parcel
at 13100 Poway Road at the Northwest corner of Poway Road and Tarascan Road; 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 14-019
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 FY 2000-01
General Fund Loan, together with other information relating thereto, to the Oversight
Board and requested that the Oversight Board approve the FY 2000-01 General Fund
Loan, and find that the loan of funds under the FY 2000-01 General 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 FY 2000-01 General Fund Loan and hereby finds and determines that the loan of
funds by the City to the former Redevelopment Agency under the FY 2000-01 General
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 FY 2000-01 General Fund
Loan reflect the repayment to the City of amounts advanced to or on behalf of
the former Redevelopment Agency in order to purchase a 1.54-acre parcel at
13100 Poway Road at the Northwest corner of Poway Road and Tarascan Road
to benefit the Paguay Redevelopment Project Area and the community.
b) Financing public improvements and the acquisition of property 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
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Page 3
adopted Redevelopment Plan. The Redevelopment Agency entered into the FY
2000-01 General Fund Loan with the City in order to borrow funds necessary for
the Redevelopment Agency to purchase a 1.54-acre parcel at 13100 Poway
Road at the Northwest corner of Poway Road and Tarascan Road 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 FY 2000-01
General 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 FY 2000-01 General Fund Loan. The Oversight Board hereby
approves the FY 2000-01 General 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 FY 2000-01 General Fund Loan Repayment Schedule (Exhibit B).
The total principal and interest owed ("Amounts Owed") for the FY 2000-01 General Fund
Loan is $1,174,067. The Oversight Board further determines that the repayment of
Amounts Owed under the FY 2000-01 General Fund Loan is an enforceable obligation
and the Successor Agency is authorized to include the repayment of the FY 2000-01
General Fund Loan as an enforceable obligation under its future Recognized Obligation
Payment Schedules (ROPS) submitted to the Oversight Board for approval. 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 FY
2000-01 General Fund Loan are repaid in full to the City's General Fund.
Section 4. Transmittal of FY 2000-01 General 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 FY 2000-01 General Fund Loan as an
enforceable obligation.
Resolution No. OSB 14-019
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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.
Bruce Tarzy, Chair 411111
ATTEST:
Sheila R. Cobian, CMC, Secretary
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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 14-019 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
, lit C-4 , Ca e thr
Sheila . Cobian, MC, Secretary
Attachments:
Exhibit A — FY 2000-01 General Fund Loan Repayment Agreement and
Supporting Budget Documentation
Exhibit B — FY 2000-01 General Fund Loan Repayment Schedule