HomeMy WebLinkAboutResolution No. 4469 RESOLUTION NO. 4 +469
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
SUBORDINATING ITS INTERESTS IN OPERATIVE AGREEMENT NOS. ONE (1)
THROUGH EIGHT (8) WITH THE DOWNEY COMMUNITY DEVELOPMENT COMMISSION,
A $1,200,000 PROMISSORY NOTE DATED MARCH 12, 1984, AND A $120,000
AGREEMENT FOR ACQUISITION OF REAL PROPERTY DATED JUNE 11, 1982
WHEREAS, the City Council of the City of Downey (the "City Council ") has
previously entered into Operative Agreement Nos. 1 through 8 (attached hereto
as Exhibits 1 through 8 and incorporated by reference herein) which agreements
obligate said Commission to repay loans in the amount of $2,822,000 made to
Commission by the City of Downey (the "City "); and
WHEREAS, the Commission has executed and delivered to the City a
Promissory Note (attached hereto as Exhibit Nine (9) and incorporated by
reference herein) dated March 12, 1982, evidencing the Commission's obligation
to repay a loan in the principal amount of $1,200,000, together with interest
thereon at the rate of 15.25% per annum, made by the City to the Commission;
and
WHEREAS, the Commission has executed and delivered to the City an
Acquisition Agreement for real property (attached hereto as Exhibit Ten (10)
and incorporated by reference herein) dated June 11, 1982, securing the
Commission's obligation to pay to the City the principal amount of $120,000;
and
WHEREAS, the Commission pledged in the Operative Agreements, the
Promissory Note and the Acquisition Agreement to repay said loans and
indebtedness from funds received from all legal sources, and, in the instance
of the eight Operative Agreements, if such funds are not reasonably required
to be retained by the Commission for its purposes; and
WHEREAS, a major source of income to the Commission is in the form of
tax increments which are property tax dollars allocated to the Commission
pursuant to California Health and Safety Code Section 33670(b) (the "Tax
Increments ") and the Commission desires to pledge its Tax Increments to the
Commission's financial obligation incurred as a result of adoption of
Resolution No. 163 (attached hereto as Exhibit Eleven (11) and incorporated by
reference herein) on August 14, 1984; and
WHEREAS, the City Council supports the Commission's activities relative
to Resolution No. 163 and wishes to subordinate its claim to the Commission's
Tax Increments, but solely and specifically for the purposes set forth in
Resolution No. 163.
NOW, THEREFORE, BE IT RESOLVED, THAT THE CITY COUNCIL FINDS AND
AUTHORIZES AS FOLLOWS:
SECTION 1. The Commission's adoption of Resolution No. 163 is in the
best interests of the City of Downey.
SECTION 2. Operative Agreement Nos. 1 through 8, the Promissory Note
and the Agreement for Acquisition of Real Property, shall each remain in
effect and the obligations of the Commission thereunder shall continue until
said Operative Agreement Nos. 1 through 8, the Promissory Note and the
Agreement for Acquisition of Real Property shall each be discharged in
accordance with its terms.
SECTION 3. The Commission's pledge of Tax Increments as the security
for the property acquisition contemplated by Resolution No. 163 is reasonable
and desirable and the Commission's pledge of Tax Increments pursuant to
Resolution 163 shall be superior to the City's claim on the Tax Increments as
contained in the instruments of debt referred to in Section 2 above.
SECTION 4. The City Council authorizes the Commission to utilize its
Tax Increment revenue to repay its obligations under Resolution No. 163.
PASSED, APPROVED AND ADOPTED this llth day of September , 1984.
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ayor
ATTEST:
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I HEREBY CERTIFY that the foregoing resolution was adopted at a regular
meeting of the City Council of the City of Downey on the 11th day
of September, 1984, by the following vote:
AYES: 4 COUNCIL MEMBERS: Santangelo, Boggs, Cormack, Barb
NOES: 1 COUNCIL MEMBERS: Davila
ABSENT: 0 COUNCIL MEMBERS: None
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