Resolution - 2005-50RESOLUTION NO. 2005-50
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, AUTHORIZING AND DIRECTING THE
EXECUTION AND DELIVERY OF A SALES AND USE TAX
REIMBURSEMENT AGREEMENT, AND AUTHORIZING CERTAIN
OTHER ACTIONS IN CONNECTION THEREWITH
• WHEREAS, pursuant to its Ordinance No. 1818, adopted July 10, 1989, the City Council
of the City of West Covina (the "City") amended Article II of chapter 21 of the West Covina
Municipal Code to add Sections 21-32 thereto, providing, among other things, for a credit
against the payment of sales and use taxes due under such Chapter in the amount of sales and use
taxes due to the Redevelopment Agency of the City of West Covina (the "Agency") under
Section 7202.6 of the California Revenue and Taxation Code; and
WHEREAS, the City adopted its Ordinance No. 1818 in connection with the Agency's
adoption of Agency Ordinance No. 1, which provides for the levy by the Agency of sales and use
tax (the "Agency Sales and Use Tax") within that portion of the Agency's redevelopment project
areas (collectively, the "Project Area") commonly known as the West Covina Fashion Plaza, a
regional shopping center of approximately one and one half million square feet of building area;
and
WHEREAS, the Agency and the City entered into their respective sales tax ordinances
for the purpose of providing the Agency with a source of revenue necessary for the Agency to
undertake the financing of public infrastructure improvements (the "Shopping Center
Improvements") essential to the success of the West Covina Fashion Plaza; and
WHEREAS, the Agency undertook the financing of the Shopping Center Improvements
by means of its pledge of Agency Sales and Use Tax to the repayment of the $51,220,000
Redevelopment Agency of the City of West Covina Community Facilities District No. 1989-1
(Fashion Plaza) 1996 Special Tax Refunding Bonds (the "Agency Bonds"); and
WHEREAS, the West Covina Fashion Plaza has generated Agency Sales and Use Tax
payable to the West Covina Community Development Commission (the "Commission",
formerly the Redevelopment Agency of the City of West Covina) and pledged to the
Commission's obligations and not otherwise reimbursable to the City (the "Reimbursable Sales
and Use Tax") in the amount of approximately $9.6 million from its inception through June 30,
2005, and continues to generate Reimbursable Sales and Use Tax in excess of $1.2 million per
year; and
WHEREAS, the Commission and the City recognize that the Reimbursable Sales and
Use Tax constitutes a contribution of sales and use tax by the City for the payment of the costs of
construction and acquisition of the Shopping Center Improvements, in that the City has foregone
the receipt of that sales tax by adopting its Ordinance No. 1818; and
WHEREAS, the Commission, under Section 33445 of the California Health and Safety
Code ("Section 33445"), is authorized to reimburse the City for the cost of the installation and
construction of public capital improvements initially paid for by the City (such as the Shopping
Center Improvements) with the consent of and upon the making of certain determinations by the
legislative body of the Agency; and
WHEREAS, the Commission and the City desire that the Commmission shall reimburse
to the City the cost of the Shopping Center Improvements borne by the City in the form of the
Reimbursable Sales and Use Tax.
• NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West
Covina as follows:
Section 1. The foregoing recitals are true and correct.
Resolution No.2005-50 • •
July 25, 2005
Section 2. The City Council hereby finds and determines that the Shopping Center
Improvements are of benefit to the Project Area; that the contribution of sales tax revenue by the
City through the adoption of its Ordinance No. 1818 was necessary to the successful financing of
the Shopping Center Improvements; that no other reasonable means of financing the Shopping
Center Improvements was available to the community; and the payment of funds for the
Shopping Center Improvements has served and continues to serve to alleviate blight within the
Project Area..
• Section 3. The form of Sales Tax Reimbursement Agreement, between the
Commission and the City, substantially in the form presented to this meeting, is hereby
approved, with such revisions, amendments and completions as shall be approved by any one of
the Mayor, the City Manager and the City Clerk of the City, and each of them, and any designee
of any of them (each, an "Authorized Officer"), such approval to be conclusively evidenced by
the execution and delivery thereof by an Authorized Officer.
Section 4. The Authorized Officers are hereby authorized and directed to execute and
deliver any and all documents and instruments and to do and cause to be done any and all acts
and things necessary or proper for carrying out the transactions contemplated by this Resolution.
Section 5. This Resolution shall take effect from and after its passage and approval.
Section 6. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED THIS 25`n day of July 2005.
ayor Shelley Sanderson
ATTEST:
i _ Gnu
City Clerk/Laurie Carrico
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a special meeting thereof held on the 25°i day of July 2005, by the following vote
of the City Council:
AYES: Herfert, Hernandez, Miller, Wong, Sanderson
NOES: None
ABSENT: None
ABSTAIN: None
i
City Clerk faurie Carrico
APPROVED AS TO FORM:
• "A,
-A�-
City Attorney Arnold varez-Glasman