SR - RES-SAORA-027 - WRITE-OFF OF TWO SMALL BUSINESS ASSISTANCE LOANS1. SUBJECT
Resolution No. SAORA -027 — A Resolution of the Governing Board of the Successor Agency to
the Orange Redevelopment Agency authorizing the write -off of two Small Business Assistance
loans that are in default.
2. SUMMARY
The Successor Agency Governing Board is requested to approve the write -off of defaulted Small
Business Assistance loans to Auld Irisher, LLC and Lincoln Coast Enterprises, Inc.
3. RECOMMENDATION
Approve Resolution No. SAORA -027.
4. FISCAL IMPACT
This action has no fiscal impact as both loans were expensed when funds were disbursed.
5. STRATEGIC PLAN GOAL(S)
2. Be a fiscally healthy community
a. Expend fiscal resources responsibly
6. GENERAL PLAN IMPLEMENTATION
Economic Development Goal 6.0: Provide sufficient infrastructure to support anticipated
economic development and growth.
Policy 6.1: Provide and maintain infrastructure adequate to support growth and expansion of
commercial, industrial and institutional areas, including water, sewer, streets, curbs, gutters,
sidewalks, storm drains, access, and parking improvements.
7. DISCUSSION and BACKGROUND
Background
The Orange Redevelopment Agency (ORA) operated a Small Business Assistance program that
provided loans to businesses to complete property improvements that provided benefits to the
community. In 2007, the ORA loaned $26,254.50 to Auld Irisher Orange, LLC to install grease
trap equipment at its location at 1547 W. Katella Avenue. In 2009, the ORA loaned $60,000 to
Lincoln Coast Enterprises, Inc. to upgrade the electrical service and construct restrooms that
meet the requirements of the Americans with Disabilities Act at its location at 117 N. Glassell
Street. All of the property improvements were completed however, both entities subsequently
went out of business before fulfilling the terms of their loan agreements. ORA efforts to collect
the outstanding loans were unsuccessful, and a Successor Agency Board action is required to
recognize the default and write off the loans.
Discussion
It is recommended that the Successor Agency approve Resolution No. SAORA -027 authorizing
the write -off of two Small Business Assistance loans that are in default.
8. ATTACHMENTS
• Resolution No. SAORA -027
RESOLUTION NO. SAORA -027
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE ORANGE
REDEVELOPMENT AGENCY AUTHORIZING THE CONVEYANCE OF
CERTAIN GOVERNMENTAL USE PROPERTIES TO THE CITY OF
ORANGE AND TAKING CERTAIN RELATED ACTIONS
WHEREAS, pursuant to AB X1 26 (which became effective at the end of June 2011), as
substantially upheld by the California Supreme Court's decision in California Redevelopment
Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231(2011), the Orange Redevelopment
Agency (the "Former Agency ") was dissolved as of February 1, 2012 and the Successor Agency
to the Orange Redevelopment Agency (the "Successor Agency ") was constituted; and
WHEREAS, AB 1484 (which became effective at the end of June 2012) amended and
supplemented AB X1 26 (AB X1 26 and AB 1484, together, being referred to below as the
"RDA Dissolution Act "); and
WHEREAS, pursuant to the RDA Dissolution Act, all assets, properties, contracts,
leases, books and records, buildings, and equipment of the former Redevelopment Agency have
been transferred to the control of the Successor Agency; and
WHEREAS, pursuant to the RDA Dissolution Act, an Oversight Board (the "Oversight
Board ") for the Successor Agency has been established; 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.
NOW, THEREFORE, the Governing 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. The officers and 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 and any such actions previously taken by such officers
and staff are hereby ratified and confirmed.
RESOLUTION NO. SAORA -0
CITY COUNCIL MINUTES SEPTEMBER 12, 2017
3. CONSENT CALENDAR (Continued)
3.25 Approval of a temporary closure a half -block section of North Cypress Street between
West Palm and West Maple Avenue on October 7, 2017, to facilitate a special event
at Chapman University. Resolution No. 11026. (S4000.S.4)
A Resolution of the City Council of the City of Orange temporarily closing a half -block
section of North Cypress Street between West Palm and West Maple Avenue from 11:00
a.m. to 4:00 p.m., Saturday, October 7, 2017, to facilitate a special event at Chapman
University.
ACTION: Approved Resolution No. 11026.
3.26 Authorizing the write -off of two small business assistance loans. Resolution No.
SAORA -027. (RA2100.0)
A Resolution of the Governing Board of the Successor Agency to the Orange
Redevelopment Agency authorizing the write -off of two Small Business Assistance loans
that are in default.
ACTION: Approved Resolution No. SAORA -027.
MOTION — Whitaker
SECOND — Alvarez
AYES — Alvarez, Whitaker, Smith, Murphy
ABSENT — Nichols
Mayor pro tem Murphy recorded an abstention on Items 3.21 and 3.22. Item 3.20 was
withdrawn from the agenda. All other items on the Consent Calendar were approved as
recommended.
END OF CONSENT CALENDAR
* * * * * * **
4. REPORTS FROM MAYOR SMITH
Mayor Smith requested that staff bring back a report to the next Council meeting outlining
how the City has been addressing and will continue to address the homeless issue; and how
the City will support the County's efforts in patrolling the riverbed. Council would like to
see a multi - departmental report and any costs associated with any increased efforts. In
addition, the City Attorney was directed to look at current vagrancy and panhandling laws
and to report back with any necessary amendments. It was also suggested that an ad -hoc
committee be created to work with the County.
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