RES-10279 Approval of Promissory Note for Portion of Construction of Grijalva Park GymnasiumRESOLUTION NO. 10279
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING EXECUTION AND
DELIVERY BY THE CITY OF ORANGE TO THE
ORANGE REDEVELOPMENT AGENCY OF A
PROMISSORY NOTE IN EXCHANGE FOR THE
LOAN IN THE PRINCIPAL AMOUNT NOT TO
EXCEED $4,250,000 FOR THE PURPOSE OF
AIDING IN FINANCING A PORTION OF THE COST
OF CONSTRUCTION OF THE GRIJALVA PARK
AT SANTIAGO CREEK GYMNASIUM/SPORTS
CENTER, AND MAKING FINDINGS PURSUANT TO
CALIFORNIA HEAL TH AND SAFETY CODE
SECTIONS 33445 AND 33679.
WHEREAS, the Orange Redevelopment Agency (the Agency) is a redevelopment
agency authorized pursuant to the Community Redevelopment Law of the State of California,
being Part I of Division 24 (commencing with Section 33000) of the California Health and
Safety Code, as amended (the Law) to employ all appropriate means to protect and promote the
sound development and redevelopment of blighted areas and the general welfare of the
inhabitants of the communities in which they exist and to advance or expend public funds for
the purpose of redevelopment; and
WHEREAS, pursuant to the Law, the City Council of the City of Orange (the City)
approved and adopted a redevelopment plan (the Redevelopment Plan) for a redevelopment
project area of the Agency known and designated as the Orange Merged and Amended
Redevelopment Project Area (the Project Area) - which merged three formerly separate redevelopment
project areas: the Tustin Street Project Area, the Southwest Project Area and the
Northwest Project Area - and all requirements of law for, and precedent to, the adoption and approval
of the Redevelopment Plan have been duly complied with; and WHEREAS, at
a regular meeting of its members held on February 26, 2008, at which a quorum was
present and acting throughout, this City Council awarded a contract to Robert Clapper Construction
Services, Inc., a California corporation, for the construction of the Grijalva Park
at Santiago Creek Gymnasium/Sports Center (the Project) in the amount of 8,768,
000. The Project will be located outside the Project Area; and WHEREAS, Section
33445 of the Law authorizes the Agency, with the consent of the City Council,
to, among other things, pay all or a part of the cost of installation and construction of
certain public improvements, located either within or without the Project Area,which are
or will, upon completion, become publicly owned, upon the making of certain findings; and
WHEREAS, this City Council desires to borrow from the Agency the principal amount
not to exceed $4,250,000.00 for the purpose of aiding in financing a portion of the cost of
construction of the Project (or for making reimbursements to the City for such costs theretofore
paid by it); and
WHEREAS, pursuant to Section 33679 of the Law, after notice duly published in
accordance with the Law, the Agency and the City Council held a joint public hearing on this
date with respect to use of funds legally available to the Agency, including tax increment
revenues from the Project Area, to aid in financing a portion of the cost of construction of the
Project and received evidence concerning the public benefits therefrom; and
WHEREAS, there has been made available in the office of the City Clerk for two
weeks prior to such public hearing for public inspection and copying, at a cost not to exceed the
cost of duplication, a summary report (the Summary Report) which includes all of the
following: (i) an estimate of the amount of funds legally available to the Agency, including tax
increment revenues from the Project Area, which the Agency proposes to use to loan to the
City for the purpose of aiding in financing a portion of the cost of construction of the Project
or for making reimbursements to the City for such costs theretofore paid by it); (ii) the facts
supporting the determinations required to be made by the City and the Agency pursuant to
Section 33445 of the Law; and (iii) the redevelopment purpose for which such funds will be
used.
WHEREAS, this City Council, with the aid of its staff, has reviewed the Promissory
Note relating to the loan of legally available funds by the Agency, in the form presented at this
meeting, and desires to approve the execution and delivery of the Promissory Note by the City
to the Agency; and
WHEREAS, pursuant to Section 33679 of the California Health and Safety Code, after
notice duly published in accordance with law, the City Council and the Board of Directors of
the Agency held a joint public hearing on this date with respect to use of funds legally available
to the Agency, including tax increment revenues from the Project Area, to aid in financing a
portion of the cost of construction of the Project, and received evidence concerning the public
benefits therefrom; and
WHEREAS, there has been made available in the office of the City Clerk for two
weeks prior to such public hearing for public inspection and copying, at a cost not to exceed the
cost of duplication, a summary report (the Summary Report) which includes all of the
following: (i) an estimate of the amount of legally available funds allocated to the Agency,
which the City proposes to borrow from the Agency for the purpose of aiding in financing a
portion of the cost of construction of the Project (or for making reimbursements to the City for
such costs theretofore paid by it); (ii) the facts supporting the determinations required to be
made by the Agency and the City pursuant to Section 33445 of the Law; and (iii) the
redevelopment purpose for which such funds will be used.i.
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NOW, THEREFORE, the City Council of the City of Orange hereby finds,
determines, resolves and orders as follows:
Section 1.Recitals. The above recitals, and each of them, are true and correct.
Section 2. Approval of Financing. The loan by the Agency to the City in the
principal amount not to exceed $4,250,000.00 from funds legally available to the Agency,
including tax increment revenues from the Project Area, is hereby approved.
Section 3. Findin2s Relatin2 to the Proiect. This City Council hereby finds and
determines, based on the Summary Report and other information presented to the City Council,
as follows: (i) the Project is of benefit to the Project Area; (ii) the loan of funds legally
available to the Agency, including tax increment revenues from the Project Area, for the
purpose of aiding in financing a portion of the cost of construction of the Project (or for making
reimbursements to the City for such costs theretofore paid by it) will assist in the elimination of
one or more blighting conditions inside the Project Area; (iii) the loan of such funds to the City
is consistent with the Agency's implementation plan adopted pursuant to Section 33490 of the
Law; and (iv) no other reasonable means of financing that portion of the Project to be assisted
by Agency funds under the terms of the Promissory Note is available to the City.
Section 4. Other Acts. The Mayor (or, in her absence, the Mayor Pro Tem), acting
singly, is hereby authorized and directed to execute and deliver the Promissory Note to the
Agency for and in the name of the City. The City Manager and all other officers of the Agency
are hereby authorized and directed, jointly and severally, to take such actions which they may
deem necessary or proper in connection with the use of the loan proceeds in accordance with
the terms of the Promissory Note or otherwise to effectuate the purposes of this Resolution and
any such actions previously taken by such officers are hereby ratified, confirmed and approved.
ADOPTED this 22nd day of April, 2008
ATTEST:
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I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify
that the foregoing Resolution was duly and regularly adopted by the City Council of the City of
Orange at a regular meeting thereof held on the 22nd day of April, 2008, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS: Smith, Murphy, Cavecche, Dumitru
COUNCILMEMBERS: None
COUNCILMEMBERS: Bilodeau
COUNCILMEMBERS: None
a
Mary E.
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