RES-ORA-0485 Promissory Note to CIty for Portion of Construction of Grijalva Park GymnasiumRESOLUTION NO. ORA-
0485 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING
THE LOAN TO THE CITY OF ORANGE 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
HEALTH 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 1 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, the City Council of the City of Orange 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 J
WHEREAS, the Agency desires to loan to the City funds legally available to the
Agency, including tax increment revenues from the Project Area, in 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, the Board of Directors of the Agency, with the aid of its staff, has
reviewed the Promissory Note, in the form presented at this meeting, relating to the loan of
legally available funds to the City, and desires to approve the disbursement of such funds to
the City in exchange for the delivery to the Agency of the fully-executed Promissory
Note and in accordance with the terms and provisions of said Promissory Note;
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 allocated to the Agency, 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 Agency and the
City pursuant to Section 33445 of the Law; and (iii) the redevelopment purpose for which
such funds will be
used.NOW, THEREFORE, the Board of Directors of the Orange Redevelopment
Agency hereby finds, determines, resolves and orders as
follows:Section 1.Recitals. The above recitals, and each of them, are true and
correct.Section 2. Findine:s Relatine: to the Project. The Agency hereby finds
and determines, based on the Summary Report and other information presented to the Agency,
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, 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) 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 3. Promissory Note. The Promissory Note, in the form presented at this
meeting, is hereby approved. The loan of funds legally available to the Agency, including
tax increment revenues from the Project Area, to the City in the principal amount not to
exceed $4,250,000.00, pursuant to the terms of the Promissory Note, is hereby authorized.
Section 4. Other Acts. The Executive Director (or, in his absence, the Assistant
Executive Director) and the Finance Officer 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 disbursement of such funds to the City 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:
c~
Mary E. . , Clerk ~
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 Orange
Redevelopment Agency at a regular meeting thereof held on the 22nd day of April, 2008, by
the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
DIRECTORS: Smith, Murphy, Cavecche, Dumitru,
DIRECTORS: None
DIRECTORS: Bilodeau
DIRECTORS: None
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