Resolution - 9288RESOLUTION NO. 9288
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA CONSENTING TO THE APPROVAL BY THE
REDEVELOPMENT AGENCY OF THE CITY OF WEST COVINA
OF THE AGREEMENT RE DEBT SERVICE SAVINGS AND SALES
TAX GUARANTEE BY AND BETWEEN CENTERMARK
PROPERTIES OF WEST COVINA, INC. AND THE
REDEVELOPMENT AGENCY OF THE CITY OF WEST COVINA
WHEREAS, the Redevelopment Agency of the City of West Covina (the "Agency") is
engaged in activities necessary to carry out the Redevelopment Plan for the West Covina
Redevelopment Project; and
WHEREAS, in order to carry out and implement the Redevelopment Plan, the Agency
entered into that certain Owner Participation Agreement (the "Original OPA") dated June 26,
1989 by and between the Agency and Sylvan S. Shulman Co./West Covina Associates
("Shulman"); and
WHEREAS, the Original OPA was subsequently amended by (i) that certain First
Amendment to Owner Participation Agreement (the "First Amendment") dated April 9, 1990 by
and between the Agency and Shulman, (ii) that certain Second Amendment to Owner
Participation Agreement (the "Second Amendment") dated May 27, 1992 by and between the
Agency, on the one hand, and Shulman and Centermark Properties of West Covina, Inc. (the
"Developer"), on the other hand, (iii) that certain Third Amendment to Owner Participation
Agreement and Consent to Assignment (the "Third Amendment") dated November 17, I993 by
and between the Agency and Developer (collectively, the "Existing OPA"); and
WHEREAS, pursuant to Article IV of the Existing OPA, the Agency issued its
$45,000,000 Redevelopment Agency of the City of West Covina Community Facilities District
No. 1989-1 (Fashion Plaza) 1989 Special Tax Bonds (the 'Bonds"); and
WHEREAS, the Agency is currently attempting to refund the Bonds; and
WHEREAS, in the event that the Agency refunds the Bonds, it is anticipated that certain
debt service savings will be realized (the "Debt Service Savings"); and
WHEREAS, Agency and Developer now desire to further amend the Existing OPA by
(i) confirming the existence and continued validity of that certain obligation relating to the
generation of sales tax revenue arising from all businesses and activities conducted in the
Eastland Center in the City of West Covina (the "Sales Tax Guarantee") and (ii) providing for
the allocation of any Debt Service Savings realized upon refunding of the Bonds; and
WHEREAS, in order to carry and implement and Redevelopment Plan and make the
amendments to the Existing OPA as set forth above, the Agency proposes to enter into that
PusL:35788_11376122740.0002
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certain Agreement Re Debt Service Savings and Sales Tax Guarantee by and between the Agency
and Developer (the "Agreement"); and
WHEREAS, the City Council has duly considered all terms and conditions of the
Agreement.
. NOW, THEREFORE, be it resolved by the City Council of the City of West Covina as
follows:
Section 1. The City Council finds that it has received and heard all oral and written
objections to the proposed Agreement and to any matters pertaining to this transaction and that all
such oral and written objections are hereby overruled.
Section 2. The City Council finds and determines that the redevelopment of the West
Covina Redevelopment Project pursuant to the Agreement will assist in the elimination of blight.
Section 3. The City Council consents to and approves the execution of the Agreement
substantially in the form attached hereto as Exhibit 1 by the Agency.
Section 4. The City Clerk shall place on file in the Office of the City Clerk a copy of
the Agreement when executed by the Agency.
Section 6. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 20th day of February , 1996.
ATTEST:
rua1,:35788_11376122740.0002
CITY OF WEST COVINA
By: �Et I d .J T—
Mayor
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I HEREBY CERTIFY, that the foregoing Resolution No. 9288 was duly adopted
by the City Council of the City of West Covina at a regular meeting thereof, held on the
loth day of February
1996 by the following vote:
Manners, McFadden,
AYES: Council Members Touhey Wong; 'Herfert
40 NOES: Council Members None
ABSENT: Council Members
ABSTAIN: Council Members
APPROVED AS TO FORM:
CITY OF WEST COVINA
(c,p), Ct l qk Cl/lra--,
CityAAorney
PUBL:35788_11376122740.0002
CITY OF WEST COVINA
By: IAA j .2a
City Clerk
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