Resolution - 92601,.
RESOLUTION NO. 9260
A RESOLUTION OF. THE CITY COUNCIL OF THE CITY OF
WEST COVINA MAKING FINDINGS WITH RESPECT TO
THE FINANCING OF PUBLIC IMPROVEMENTS BY THE
REDEVELOPMENT AGENCY OF THE CITY OF WEST
COVINA AND APPROVING A FINANCING AGREEMENT
BETWEEN THE AGENCY AND THE CITY OF WEST COVINA
WHEREAS, the Redevelopment Agency of the City of West Covina (the "Agency") is in
the process of implementing the Redevelopment Plan for the West Covina Redevelopment Project
Area (the "Project Area"); and
WHEREAS, the City of West Covina (the "City") is the owner of a building within the
Project Area that plays an important part in promoting the activities and economic revitalization
of businesses within the Project Area (the "City Building"); however, among other deficiencies,
the City Building contains asbestos and does not meet current seismic standards; and
WHEREAS, the City and Agency desire to enter into a proposed Financing Agreement
whereby Agency shall provide City with funds, derived from tax increment bond allocation
revenues from the Project Area, needed to remove asbestos from, seismically retrofit, and correct
other deficiencies in the City Building; and
WHEREAS, the Agency is authorized to provide City with the funds contemplated by the
proposed Financing Agreement pursuant to Health and Safety Code Section 33445, which permits
the Agency to pay for all or part of the land for and the cost of the installation of any public
facility or improvement either within or without a particular project area upon a finding of the
City Council that the facilities or improvements are of benefit to that particular project area or
the immediate neighborhood in which the project is located, and that no other reasonable means
of financing such facilities and improvements are available to the community; and
WHEREAS, a joint public hearing of the Agency and City Council on the proposed
Financing Agreement was duly noticed in accordance with the requirements of Health and Safety
Code Section 33679; and
WHEREAS, the proposed Financing Agreement, and a summary report meeting the
requirements of Health and Safety Code Section 33679, were available for public inspection
consistent with the requirements of Health and Safety Code Section 33679; and
WHEREAS, on October 3, 1995, the Agency and City Council held a joint public hearing
on the proposed Financing Agreement, at which time the City Council reviewed and evaluated
the proposed Financing Agreement; the benefit to the Project Area to be derived from the
proposed Financing Agreement; whether other reasonable means of financing the needed
improvements to the City Building were available; the staff report prepared on this matter; and
all of the information, testimony, and evidence presented during the joint public hearing on
October 3. 1995: and
WHEREAS, the Agency has found and determined that the improvements to the City
Building will not not have a significant effect on the environment and are exempt from the
provisions of the California Environmental Quality Act (California Public Resources Code
Section 2100, et seg.) under a "Class 1" categorical exemption pursuant to Section 15301 of Title
• 14 of the California Code of Regulations; and
WHEREAS, all actions required by all applicable law with respect to the proposed
Financing Agreement have been taken in an appropriate and timely manner.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WEST COVINA AS FOLLOWS:
ec ion 1. That the above recitals are true and correct and are incorporated herein.
Section 2. That the City Council does hereby find and determine as follows:
A. That the improvements to the City Building are of benefit to the
Project Area. This finding is based upon the record of the joint public hearing,
and upon the fact that (i) the City Building plays an important and vital role in
promoting the commercial, financial, professional and retail activities of, and the
economic revitalization of, businesses in the Project Area and the community, and
(ii) the City Building occupies a central location within the Project Area and the
community, making it particularly well suited to rehabiliate and continue using as
a vehicle for promoting the activities and economic revitalization of Project Area
and community businesses.
B. That there are no other reasonable means of financing the
improvements to the City Building available to the community other than Agency
financing. This finding is based upon the record of the joint public hearing, and
upon the fact that City general fund revenues are required and necessary for vital
public services, and that Agency financing is necessary to pay for the cost of
improvements to the City Building by meeting the financial obligations imposed on
City.
C. That the improvements to the City Building will not not have a
significant effect on the environment and are therefore exempt from the provisions
of the California Environmental Quality Act (California Public Resources Code
Section 2100, et s=.) under a "Class 1" categorical exemption pursuant to Section
15301 of Title 14 of the California Code of Regulations. This finding is based
upon the record of the joint public hearing, and upon the fact that the proposed
improvements involve the restoration and rehabilitation of a deteriorated public
structure to meet current standards of public health and safety, and the upgrading
of minor structures (parking lot and signage) appurtenant thereto.
Section 3. The attached Financing Agreement between the Agency and City to effect
the Agency's funding of the needed improvements to the City Building, a copy of which
Financing Agreement also is on file with the City Clerk, is hereby approved, and the Mayor is
authorized and directed to execute said Financing Agreement on behalf of the City.
Section 4. City staff is hereby authorized and directed to take any appropriate action
consistent with the purposes of this Resolution and the Financing Agreement approved hereby to
carry out the Financing Agreement on behalf of the City.
Section 5. The Agency Secretary/City Clerk shall file the Notice of Exemption with the
Los Angeles County Recorder's Office.
Section 6. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED on October 3,. 1995.
Mayor
ATTEST:
U r
• City Clerk
APPROVED AS TO FORM:
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0
•
CERTIFICATE OF CITY CLERK
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the West Covina
City Council at a regular meeting on Oct. 3 , 1995, by the following vote:
AYES: COUNCILMEMBERS: Manners, McFadden, Touhey, Wong, Herfert
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
IN WITNESS WHEREOF, I have set my hand this 3rdday of October 1995.
APPROVED AS TO FORM:
City orney
I
City Clerk
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3
08/29/95
FINANCING AGREEMENT
This Financing Agreement ("Agreement") is made and entered into this 944 day of
October, 1995 ("Effective Date"), by and between the CITY OF WEST COVINA, a municipal
corporation ("City"), and THE REDEVELOPMENT AGENCY OF THE CITY OF WEST
COVINA, a public body corporate and politic ("Agency").
RECITALS:
A. The Agency is in the process of implementing the Redevelopment Plan for the
West Covina Redevelopment Project Area (the "Project Area").
B. City is the owner of a building within the Project Area that plays an important
part in promoting the activities and economic revitalization of businesses within the Project Area
(the "City Building"); however, among other deficiencies, the City Building contains asbestos and
does not meet current seismic standards.
C. City and Agency desire to enter into this Agreement whereby Agency shall
provide City with funds, derived from bond proceeds of the Public Financing Authority Tax
Increment Allocation Bonds, needed to remove asbestos from, seismically retrofit, and correct
other deficiencies in the City Building.
D. The improvements to the City Building are of benefit to the Project Area and are
of particular benefit to the businesses within the Project Area, as described by the Resolution
referenced in Recital "G" below.
E. Health and Safety Code Section 33445 permits the Agency to pay for all or part of
the land for and the cost of the installation of any public facility or improvement either within or
without a particular project area upon a finding of the legislative body that the facilities or
improvements are of benefit to that particular project area or the immediate neighborhood in
which the project is located, and that no other reasonable means of financing such facilities and
improvements are available to the community.
F. On October 3, 1995, after compliance with all public notice requirements, Agency
Board and City Council held a joint public hearing on the Agreement.
G. On October 3, 1995, after consideration of the staff report and all of the
information, testimony, and evidence presented at the public hearing, Agency, by its Resolution
No. 479, which Resolution is incorporated herein as though fully set forth, approved this
Agreement.
H. On October 3, 1995, City Council of City, after adherence to all of the public
hearing and other requirements of applicable law, including but not limited to Health and Safety
Code Section 33679, and after consideration of the staff report and all of the information,
testimony, and evidence presented at the pubic hearing, adopted Resolution No. ,abo ,
making the findings required by Health and Safety Code Section 33445 as set forth in Recital "E"
above with respect to the proposed improvements to the City Building, and approving this
Agreement on behalf of City. City Council Resolution No. y 4 0 , including the findings set
forth therein, is incorporated herein by reference as though fully set forth.
I. The City has determined it may repay the Agency (in whole or in part) with funds
from the Business Improvement Area of the City.
AaKEEMENT:
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants and .
promises hereinafter contained, and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, City and Agency agree as follows:
Recitals Incorporated. The above recitals are hereby incorporated into this
Agreement.
2. Agency Financing: Source of Agency Funds. The Agency will loan the City the
principal amount of One Hundred Sixty -Seven Thousand Dollars ($167,000) for the public
improvements to the City Building. The source of Agency's funds is Public Financing Authority
Tax Increment Allocation Bonds pursuant to the findings set forth in Agency Resolution No. 479
approving this Agreement and in City Council Resolution No. = oo approving this
Agreement and finding that the improvements to the City Building are of benefit to the Project
Area and that no other reasonable means of financing the cost of these improvements are
available to the community.
3. City Payments to Agency. Pursuant to the findings set forth in Agency Resolution
No. 479 and City Council Resolution No. y�� b , City shall make the following payments to
Agency:
On or after June 15 of each year, commencing June 15, 1997, City shall pay to Agency
the amounts of principal and interest set out in the attached and incorporated Schedule.
4. Indebtedness of City: Source of City Funds. The payments made by City to
Agency hereunder shall constitute an indebtedness of City. The source of City's payment under
this Agreement may be from funds from the Business Improvement Area of the City.
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5. Release and Discharge. Agency, in its sole and absolute discretion, may release
and discharge City from its obligation hereunder to make one or more of the payments described
or Agency may, in its sole and absolute discretion, accept a partial payment from City in lieu of
full payment then due from City. Any such action by Agency shall affect only the payment
specified by Agency to be released, discharged, or reduced, and shall not cancel, suspend,
discharge, release, or reduce the obligation of City to make any other payments due hereunder.
City may offset from payments owing any funds Agency owes City.
6. Non -Recourse Obligation. No officer, official, employee, agent, or representative
of Agency or City 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.
7. Severability. Each provision of this Agreement shall be severable from the whole.
If any provision of this Agreement shall be found contrary to law, the remainder of this
Agreement shall remain in full force and effect.
8. Entire Agreement. This Agreement shall constitute the entire agreement of the
parties hereto. This Agreement may be amended or modified only by an agreement in writing
signed by the authorized representatives of the parties, after any and all required actions by the
parties' governing boards.
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IN WITNESS WHEREOF, Agency and City have caused this Agreement to be executed
by their authorized representatives as of the Effective Date.
REDEVELOPMENT AGENCY OF
THE CITY OF WEST COVINA
By:
Chairman
"AGENCY"
ATTEST:
� /-
Secretary
APPROVED AS TO FORM:
Agency General Couns
CITY OF WEST COVINA
By:
Mayor
"CITY"
ATTEST:
City Clerk
611
APPROVED AS TO FORM:
64�0-t. WwL
City Attorney
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4
CITY OF WEST COVINA
CITY BUILDING
REPAYMENT SCHEDULE
City Building
. Bond Year
June 15
Improvement
Share
Principal
Remaining
1997
$16,584
$159,747
1998
$16,584
$152,071
1999
$16,584
$143,944
2000
$16,584
$135,343
2001
$16,584
$126,238
2002
$16,584
$116,600
2003
$16,584
$106,399
2004
$16,584
$95,600
2005
$16,584
$84,170
2006
$16,584
$72,071
2007
$16,584
$59,264
2008
$16,584
$45,707
2009
$16,584
$31,358
2010
$16,584
$16,168
2011
$16,584
$0
TOTAL $248,760
XBH1940J.C.
9195