RES-OB-0076 Small Business Assistance LoansRESOLUTION NO.OB -0076
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE ORANGE
REDEVELOPMENT AGENCY AUTHORIZING THE
WRITE -OFF OF SMALL BUSINESS ASSISTANCE
LOANS TO AULD IRISHER, LLC AND LINCOLN
COAST ENTERPRISES, INC. AND REPEALING
RESOLUTION NO. OB -0074.
WHEREAS, Assembly Bill xl 26 ( "AB 26 ") and AB xl 27 were passed by the State
Legislature on June 15, 2011 and signed by the Governor on June 28, 2011; and
WHEREAS, among other things, AB 26 amended Sections 33500, 33501, 33607.5 and
33607.7 of the California Health and Safety Code and added Part 1.8 and Part 1.85 of Division 24
to the California Health and Safety Code; and
WHEREAS, by enactment of Part 1.85 of Division 24 of the California Health and Safety
Code, subject to all reservations herein stated, the Orange Redevelopment Agency (the "Agency ")
was dissolved as of February 1, 2012; and
WHEREAS, Assembly Bill 1484 ( "AB 1484 ") was passed by the State Legislature on
June 27, 2012 and signed by the Governor on June 27, 2012 which adds and amends certain
provisions contained in AB 26, including the process for adopting Recognized Obligation Payment
Schedules; and
WHEREAS, California Health and Safety Code Section 34173(a) designates successor
agencies as successor entities to former redevelopment agencies; and
WHEREAS, on January 10, 2012, by Resolution No. 10625, the City of Orange declared
itself as the successor agency (the "Successor Agency ") upon the dissolution of the Agency,
subject to all reservations stated in such resolution; and
WHEREAS, pursuant to Section 34181 of the California Health and Safety Code ( "HSC "),
the Oversight Board is required to direct the Successor Agency to take certain actions in connection
with the wind down of the affairs of the Former Agency; and
WHEREAS, the Successor Agency wishes to write off the Small Business Assistance
loans to Auld Irisher Orange, LLC and Lincoln Coast Enterprises, Inc. that are in default; and
WHEREAS, the Oversight Board approved Resolution OB -0074 to authorize the write off
of the loans to Auld Irisher Orange, LLC and Lincoln Coast Enterprises, Inc.; and
WHEREAS, the Department of Finance ( "DOF "), via a letter dated March 7, 2018,
rejected the action of the Oversight Board.
NOW, THEREFORE, the Oversight Board of the Successor Agency to the Orange
Redevelopment Agency does hereby find, determine, resolve, and order as follows:
Section 1. The above recitals are true and correct and are a substantive part of this
Resolution.
Section 2. Resolution OB -0074 is repealed in its entirety.
Section 3. Successor Agency staff reviewed the collectability of the outstanding loans
and determined that the cost of pursuing collection would exceed the amount to be collected. This
is because neither Auld Irisher Orange, LLC and Lincoln Coast Enterprises, Inc. are no longer in
existence.
Section 4. The Oversight Board hereby authorizes the Successor Agency to write -off
the Small Business Assistance loans to Auld Irisher Orange, LLC and Lincoln Coast Enterprises,
Inc.
Section 5. The Oversight Board hereby finds that the write -offs are in the best interest
of the taxing entities.
Section 6. The Staff of the Successor Agency are hereby authorized and directed,
jointly and severally, to do any and all things which they may deem necessary or advisable to
effectuate this Resolution.
Section 7. If any provision of this Resolution or the application thereof to any person
or circumstance is held invalid, such invalidity shall not affect other provisions or applications of
this Resolution which can be given effect without the invalid provision or application, and to this
end, the provisions of this Resolution are severable. The Oversight Board hereby declares that it
would have adopted this Resolution regardless that one or more portion may be determined to be
invalid.
Resolution No. OB -0076 2
PASSED AND ADOPTED this 19th day of April 2018.
C: ti - J -
Teresa k Smith
Chairperson of the Oversight Board to the
Successor Agency of the Orange Redevelopment Agency
ATTEST:
k cv°
Mary Mu by
Clerk of the Oversight Board
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Oversight Board of the Successor Agency to the Orange Redevelopment Agency at a regular
meeting thereof held on the 19th day of April 2018, by the following vote:
AYES: BOARD MEMBERS: Smith, Buttress, Christensen, Remland, Schulze
NOES: BOARD MEMBERS: None
ABSENT: BOARD MEMBERS: Davert
ABSTAIN: BOARD MEMBERS: None
Mary Mu ry
Clerk of the Oversight Board
Resolution No. OB -0076 3