Resolution No. 2625197
RESOLUTION NO. 2625
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CYPRESS APPROVING THE EXTENSION OF A LINE
OF CREDIT FROM THE CITY'S GENERAL FUND ON
BEHALF OF THE CYPRESS REDEVELOPMENT AGENCY
FOR THE. ACQUISITION OF PROPERTY IN THE CIVIC
CENTER PROJECT AREA
WHEREAS, on July 19, 1982 the City Council of the City of Cypress ("City")
adopted Ordinance No. 692 approving and adopting a Redevelopment Plan for the
Civic Center Project Area ("Project Area"); and
WHEREAS, Health and Safety Code Section 33601 authorizes the Agency to
borrow money or accept financial assistance from any public agency for any
redevelopment project within its area of operation; and
WHEREAS, the City desires to extend a line of credit from the City's
general fund in the amount of $900,000.00 on behalf of the Agency to be used
by the Agency for the acquisition of property located in the Project Area from
time to time as a loan to the Agency in order for the Agency to implement the
Redevelopment Plan for the Project Area.
NOW, THEREFORE, the City Council of the City of Cypress DOES HEREBY RESOLVE
as follows:
SECTION 1: The City Council of the City hereby authorizes the extension of
a line of credit from the City's general fund in the amount of $900,000.00 on
behalf of the Redevelopment Agency to be drawn upon from time to time by the
Agency as determined in the sole discretion of the Agency for the acquisition
of property in the Project Area.
SECTION 2: The outstanding balance of any draws upon such line of credit
by the Agency shall be an indebtedness of the Agency and shall bear interest at
the rate of 12 percent per annum. The Agency's obligation to repay amounts
drawn against said line of credit including the interest thereon shall be paid
from (1) property taxes allocated to the Agency pursuant to Health and Safety
Code Section 33670 ("Tax Increment'), but only if and to the extent that Tax
Increment is received, or (2) other funds that the Agency receives and the
Agency chooses to use to repay said amounts. The Agency's obligation to repay
draws upon said line of credit including the interest thereon from Tax Increment
shall be automatically subordinated to any other obligation of the Agency
secured by Tax Increment or a pledge of a Tax Increment in connection with the
issuance of bonds or Certificates of Participation in connection with the
implementation of the Redevelopment Plan for the Project Area.
SECTION 3: The City Attorney is hereby authorized and directed to prepare
the appropriate instruments and agreements required in order to consummate the
transactions referred to herein. The Mayor, City Manager and City Clerk are
hereby authorized and directed to execute any and all instruments and agreements
which are required in order to consummate the transactions referred to herein.
PASSED AND ADOPTED by the City Council of the City of Cypress atan adjourned
regular meeting held on the 7th day of March 1983.
ATTEST:
CYPRESS CLERK
:RK OF THE CITY F
198
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY CERTIFY
that the foregoing Resolution was duly adopted at an adjourned regular meeting
of the said City Council held on the 7th day of March 1983; by the following
roll call vote:
AYES:
NOES:
ABSENT:
4 COUNCIL MEMBERS: Kanel, Mullen, Partin, and Lacayo
0 COUNCIL MEMBERS: None
1 COUNCIL MEMBERS: Coronado
CITY CLERK 0 THE CI OF CYPRESS