Resolution - 8841f
•
RESOLUTION NO. 8841
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, APPROVING A
PROMISSORY NOTE WITH THE REDEVELOPMENT AGENCY
OF THE CITY OF WEST COVINA CONFIRMING CITY
LOANS TO THE AGENCY PURSUANT TO RESOLUTION NO.
8771
WHEREAS, on January 7, 1992, the City council of the City
of West Covina ("City") adopted Resolution No. 8771 confirming loan
advances to the Redevelopment Agency of the City of West Covina
("Agency") and setting forth City policy and terms and conditions
relative to such loan advances; and
WHEREAS, on January 7, 1992, the Agency adopted
Resolution No. 434, approving and accepting the City policies and
terms and conditions for such loan advances;
WHEREAS, the loans by the City to the Agency constitute
a debt of the Agency; and
WHEREAS, to effect the policies set forth in City council
Resolution No. 8771, as accepted by the Agency by Resolution No.
434, the City Council and Agency hereby confirm the Agency's
indebtedness and the terms and conditions of repayment by a
promissory note;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST
COVINA DOES RESOLVE AS FOLLOWS:
Section 1. The Promissory Note set forth as Exhibit
"A" hereto, which exhibit is incorporated herein by this reference,
is approved. The Mayor is hereby authorized and directed to
execute the Promissory Note on behalf of the City.
Section 2. The City Clerk shall certify to the
adoption of this resolution by not less than a two-thirds vote of
the members of the City Council eligible to vote on such matter.
ATTEST: -
APPROVED AND ADOPTED THIS 16th DAY OF June 1992.
"City Cler
I HEREBY CERTIFY that the foregoing Resolution No. 8841 was
duly adopted by the City Council of the City of West Covina at a
regular meeting thereof held on the 16th day of June 1992,
by the following vote:
AYES:
Manners,
NOES:
None
ABSENT:
None
ABSTAIN:
None
APPROVED AS TO FORM:
&qtX- e.
City Attorney
WCRDALNS.RESO
Jennings, Herfert, McFadden, Wong
City Clerk
EXHIBIT "A"
PROMISSORY NOTE
FOR VALUE RECEIVED, the undersigned THE REDEVELOPMENT AGENCY
OF THE CITY OF WEST COVINA, a public body corporate and politic,
organized under California Community Redevelopment Law (Health and
Safety Code SS33000 et seq.), located at 1444 West Garvey Avenue
• South, West Covina, California 91790 (hereinafter called "Maker"),
does hereby promise to pay to the order of THE CITY OF WEST COVINA,
a municipal corporation, located at 1444 West Garvey Avenue South,
West Covina, California 91790 (hereinafter called "Lender"), in
lawful money of the United States of America, the principal sum of
TWENTY SIX MILLION FOUR HUNDRED SEVENTY-SEVEN THOUSAND SEVEN
HUNDRED NINETY-ONE DOLLARS AND NO CENTS ($26,477,791.00), together -
with interest thereon, at the rates hereinafter calculated.
1. Policy of Maker and Lender. This Note, approved by
Lender by Resolution No. , and by Maker by Resolution No.
, confirms the loan advances made by Lender to Maker and the
repayment policies, as set forth in Resolution No. 8771 of Lender,
and Resolution No. 434 of Maker.
2. Principal Amount. Maker hereby agrees to repay the
principal sum of TWENTY SIX MILLION FOUR HUNDRED SEVENTY-SEVEN
THOUSAND SEVEN HUNDRED NINETY-ONE DOLLARS AND NO CENTS
($26,477,791.00), together with interest as provided in Section 2
below.
3. Interest. All payments of principal and interest
hereunder shall accrue simple interest at the rate of ten and one-
half percent (10-1/2%) per annum on the outstanding balance.
4. Repayment Terms. The payments on this Note shall be made
in annual installments, in accordance with the Amortization
Schedule attached hereto and incorporated herein as Attachment 111".
All payments made on this note shall be credited first to interest
due; second to accrued interest, if any; and third to principal.
5. No Prepayment Penalty. Maker shall have the right to
prepay this Note in whole or in part, without penalty, at any time
and from time to time, prior to the maturity date hereof.
6. Default. If Maker shall be in default in the performance
of any of the terms, agreement, covenants, or conditions contained
in this Note, then, or at any time thereafter, Maker may, at the
election of Lender hereof, with notice to Maker, pursue any and all
remedies available to Maker.
7: Attorney 's Fees. Maker agrees to pay all costs of
collection, including reasonable attorney's fees,and all costs of
suit, in the event of any litigation because of the existence of
the indebtedness of this Note, whether or not suit is brought, and
including all litigation, suits, claims, and actions, whether
brought by Lender or a third party.
8. Governing Law; Compliance wicn usury Laws; xerormacion.
This Note has been executed under, and shall be construed and
enforced in accordance with the laws of the State of California.
In the event this Note shall require the payment of interest in
excess of the maximum amount permissible under applicable law, then
• the Maker's obligations hereunder shall, automatically and
retroactively, be deemed reduced to the higher maximum amount
permissible under applicable law. In the event Lender received as
interest an amount which would exceed such maximum applicable rate,
the amount of any excess interest shall not exceed such applicable
maximum rate, the amount of any excess interest shall be applied to
the reduction of the unpaid principal balance due hereunder. In
the event and to the extent such excess amount of interest exceeds
the outstanding unpaid principal balance hereunder, any such excess
amount shall be immediately returned to Maker.
9. No Waiver. No delay or omission on the part of Lender
hereof in exercising any right hereunder shall operate as a waiver
of such right or of any other right under this note.
10. Notices. Any notice required by law or this Note shall
be directed to Maker and Lender at the addresses set forth in the
preamble to this Note, with a copy of such notice(s) sent to the
West Covina City Attorney, c/o Rutan;& Tucker, 611 Anton Blvd.,
Suite 1400, Costa Mesa, California 92626, Attn: Elizabeth L.
• Hanna. Notices shall be personally delivered, delivered via
internal City mail, or via United States mail, prepaid, certified.
Notices shall be effective upon the earlier of (i) receipt, or (ii)
twenty-four hours after deposit. j
11. Successors and Assigns. Whenever used herein, the words
"Maker" and "Lender" shall be deemed'to include their respective
heirs, personal representatives, successors, and assigns.
12. Amendments in Writing. This Note may not be amended,
modified, or changed, not shall any waiver of any provision hereof
be effective, except by an instrument in writing signed by the
party against whom enforcement of any waiver, amendment,
modification, or discharge is sought.)
13. Renewals and Extensions. This Note may from time to time
be extended or renewed, with or without notice to Maker, and any
related right may be waived, exchanged, surrendered, or otherwise
dealt with, all without affecting the liability of Maker hereon.
14. Indebtedness of Maker. This Note, including the loan
principal and accrued interest thereon, shall constitute an
indebtedness of Maker.
15. Subordination. The payment of the loan principal and
accrued interest thereon by Maker shall be junior and subordinate
to (i) all tax allocation bonds or other direct long-term
indebtedness of Maker, (ii) all pledges by Maker of tax increments
for tax allocation bonds or other direct long-term indebtedness of
maker, (iii) Maker's financial agreements and other contractual
obligations of Maker, and (iv) any contingent obligations of Maker.
16. Non -Recourse Obligation. No officer, official, employee,
agent, or representative of Maker shall be liable for any amounts
due hereunder, and no judgment or execution thereon entered in any
action hereon shall be personally enforced against any such
officer, official, employee, agent, or representative.
Executed this 17th day of June , 1992, at West Covina,
California.
"MAKER"
THE REDEVELOPMENT AGENCY OF THE
CITY OF WEST COVINA
By:
Chairman
"LENDER"
• CITY OF WEST COVINA
By: "
ayor
° ATTACHMENT 1
Cl
•
RDA LOAN REPAYMENT TO CITY
ALL RDA PROJECTS
BEGINNING
ANNUAL RDA
INTEREST
INTEREST
ENDING
PRESENT
YEAR
BALANCE
PAYMENT
RATE
PAYMENT
BALANCE
VALUE
10.51
90
26,477,771
1652,500)
10.51
2,711,656
28,536,747 }
(593,182)
91
28,536,747
(11652,500)
10.51
21822,867
29,707,314 +
(1,365,702)
92
27,707,314
(11652,500)
10.51
21945,755
31,000,567 {
(11241,548)
93
31,000,569
(11652,500)
10.51
31081,547
32,429,617 {
(1,128,680)
94
32,429,617
(11652,500)
10.51
•31231,597
34,0081714 {
(11026,072)
95
34,008,714
(11652,500)
10.51
31377,402
35,753,616 {
(732,793)
96
351753,bi6
(11652,500)
10.51
31580,617
37,681,734 f
1847,974)
97
37,681,734
(11b52,504)
10.51
3,783,070
39,812,303
(770,903)
98
39,812,303
(1,652,500)
10.51
4,006,779
42,tb6,5831
(700,821)
99
42,166,583
(11652,500)
10.51
41253,979
44,768,062 f
(637,110)
100
44,768,062
(21422,541)
10.51
4,446,280
46,791,8011
(849,086)
101
46,791,801
(2,585,556)
10.51
41641,65b
48,847,900 f
(823,838)
102
48,847,900
(2,868,396)
10.51
41827,848
50,80713521
(830,872)
103
50,807,352
(31937,325)
10.51
41921,143
51,787,170 1
(11037,347)
104
51,789,170
(4,120,2261
10.5I
51005,239
52,614,184 f
(786,349)
05
52,674,184
(4,601,208)
10.51
5,041,662
53,120,638 f
(1,001,357)
106
53,120,638
(41843,065)
10.51
5,069,145
53,346,718 1
1958,175)
107
53,346,718
(51870,712)
10.51
41982,860
52,438,666 1
(11057,532)
108
52,438,666
(6,626,98T)
• 10.5I
41810,227
50,6111911 f
(1083,564)
109
50,621,712
(6,824,541)
10.51
41578,724.
48,396,095 1
(1,014,425)
110
48,396,095
(8,674,541)
10.51
4,170,763
43,872,318 f
(11172,196)
111
43,892,318
(81934,777)
10.51
31670,542
38,628,082 f
(1,077,601)
112
38,628,082
(9,2021821)
10.51
3,089,651
32,514,714 f
11,027,754)
113
32,514,714
(914781905)
10.51
21418,781
25,454,7701
(762,352)
114
25,454,770
01763,172)
10.51
1,647,607
17,339,127 f
(901,111)
115
17,339,127
(10,056,170)
10.51
764,710
81047,668 f
(843,768)
tib
81047,668
(81047,668)
10.51
0
0 f
(b13,857)
117
0
10)
10.51
0
0 f
(0)
TOTAL
0
(124,405,905)
77,728,112
0
(25,507,970)