8E Consent 2012 0507 - Laserfiche WebLink

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File Number: 12 -218 WHEREAS, the Note bears interest at the rate of six percent per annum; WHEREAS, the Note provides for interest -only payments, but permits prepayment of the principal balance at any time; WHEREAS, the current principal balance payable pursuant to the Note is $2,040,797.30; WHEREAS, in accordance with AB 26, the City, acting in its capacity as Successor Agency, prepared a Recognized Obligation Payment Schedule ( "ROPS ") setting forth the schedule of existing Redevelopment Agency obligations, including among others, repayment of the Note; WHEREAS, an oversight board for the Successor Agency was established pursuant to AB 26 (the "Oversight Board "); WHEREAS, the Oversight Board approved the ROPS on April 6, 2012; WHEREAS, the State Department of Finance reviewed the ROPS, but by letter dated April 11, 2012, indicated that it objected to the Note; WHEREAS, Health and Safety Code Section 34178(a) provides that, with specified exceptions, commencing upon February 1, 2012, agreements, contracts and arrangements between a redevelopment agency and the city that formed the redevelopment agency are invalid; provided however, a successor agency that wishes to reenter into agreements with the city that formed the agency may do so upon obtaining approval of the oversight board; WHEREAS, the improvements undertaken by the Agency in the Joint City /County Project Area using the advance of City funds have resulted in significant revitalization of the Joint City /County Project Area, and have been of benefit to all taxing entities that share in the property tax revenue generated by property located within the Joint City /County Project Areas because such improvements have removed impediments to development, eliminated adverse conditions in the project area and catalyzed private development, thus resulting in an increase in assessed valuation and property tax revenue that accrues to the taxing entities; WHEREAS, the City and the Successor Agency desire to ratify the Successor Agency's obligation to repay the Note, and desire to enter into an Amended and Restated Promissory Note stating modified terms for repayment ( "Restated Note "); WHEREAS, the execution of the Restated Note was also approved by the governing board for the Successor Agency by resolution adopted on May 7, 2012; and WHEREAS, the Restated Note will be presented to the Oversight Board for consideration. NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of San Leandro that it hereby: 1. Subject to approval of the Oversight Board, authorizes the modification of terms as set forth in the Amended and Restated Promissory Note attached hereto and authorizes the City Manager to execute the Restated Note substantially in such form. City of San Leandro Page 2 Printed on 51112012