CRA - 31RESOLUTION NO. CRA-31
RESOLUTION OF THE CYPRESS REDEVELOPMENT
AGENCY APPROVING THE ACQUISITION OF CERTAIN
REAL PROPERTY FROM THE CYPRESS SCHOOL
DISTRICT, AUTHORIZING EXECUTION OF AN
AGREEMENT TO PURCHASE REAL PROPERTY AND
AUTHORIZING EXECUTION OF A PROMISSORY NOTE
WHEREAS, the Cypress School District (the "District") has
offered to sell to the Cypress Redevelopment Agency (the
"Agency") certain real property (the "Site") pursuant to an
agreement for the sale of property submitted herewith (the
"Agreement" ); and
WHEREAS, the Agency has undertaken negotiations for the
disposition and development of the Site to,promote the public
policies of the Agency, particularly the provision of affordable
housing for senior citizens; and
WHEREAS, the Agency has confirmed that the purchase price to
be paid for the Site does not exceed the fair market value of
the Site, based upon an appraisal by an independent and
qualified appraiser; and
WHEREAS, the Agency desires to borrow from the City of
Cypress (the "City") funds sufficient to effect the purchase of
the Site, to be repaid in annual installments on terms described
in the accompanying promissory note (the "Note");
NOW, THEREFORE, the Cypress Redevelopment Agency does
resolve as follows:
1. The Cypress Redevelopment Agency approves and
authorizes the Chairman to execute the "Agreement" substantially
in the form submitted herewith, and further authorizes and
directs the Chairman and the Executive Director to receive title
to the Site, and to execute such documents and take such
measures as may be necessary and proper to effectuate the
acquisition of the Site pursuant to the Agreement. The Agency
authorizes receipt of title to the Site. Staff is authorized
and directed to take all appropriate action to effectuate the
terms of the foregoing Agreement.
PASSED, APPROVED AND ADOPTED by the governing body of the
Cypress Redevelopment Agency at a meeting held on the 23rd day
of March 1987. ES~~ M~AN~~
CHAI
CY VELOPMENT AGENCY
ATTEST:
SE~c~E~2ARY -x ~.
CYPRESS REDEVELOPMENT AGENCY
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
I, DARRELL ESSEX, Secretary of the Cypress Redevelopment
Agency, DO HEREBY CERTIFY that the foregoing Resolution
was duly adopted at a meeting of the said Agency held
on the 23rd day of March 1987; by the following roll
call vote:
AYES: 4 AGENCY MEMBERS: Arnold, Davis, Mullen and .Kanel
NOES: 0 AGENCY MEMBERS: None
ABSENT: 1 AGENCY MEMBERS: Coronado ~
' ~E~RE~ARY z/
CYPRESS REDEVELOPMENT AGENCY
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REPAYMENT AGREEMENT
This RepaymentlAgreement is entered into as of the 23rd day of March,
1987, by and between the Cypress Redevelopment Agency, a public body
corporate and politic (the "Agency,') and the City. of Cypress, a municipal
corporation (the "City").
RECITALS
A. On March 23, 1987, the Cypress Redevelopment Agency adopted Re-
solution No. CRA-31 authorizing~the purchase of certain real prbperty
located within the Civic Center Project Area (-the "Project Arsa") from
the C~press Elementary School District ("District").
B. Pursuant to Resolution No. CRA-31 adopted on March 23,~ 1987,
the City loaned to the Agency's Low-to-Moderate Income Housing Fund (the
"Fund") the sum of Five Hundred and Fifty Thousand DollArs'($550,000) for
the purpose'of the Agency to purchase certain real property set forth in
Resolution No. CRA-~l.
C. Resolution No. CRA-Bi of the City Council of the City provided
that the Agency's obligation to pay the loan shall be evidenced by a
Promissory Note inthe full principal amount of Five Hundred and Fifty
'l~ousand Dollars ($550,000), which shall bear interest at the rate of
twelve percent (12%) per ~num.
D. In accordance with Said resolution of the Agency and the City
approving the purchase of the property by ~he Agency and ~he loan from the
City's General'Fund to the Fund, the parties hereto desire to enter into
this Repayment Agreement regarding the method and sources of payment of
the loan and the interest thereon.
NOW, THEREFORE, in consideration of the foregoing the mutual con-
venants and conditions set forth herein, the parties hereto agree as
follows:
Section 1. T~e Agency hereOy agrees to pay the City as full con-
sideration for the loan referred to in the recitals hereinabove, the total
sum of Five Hundred Fifty Thousand Dollars ($550,000) with interest there-
on calculated at the rate of twelve percent (125) per annum. The Agency's
obligations hereunder shall be evidenced by a Promissory Note s~ostantial-
ly in the form attached hereto as "ExhibitA" and incorporated herein by
reference (the '~Purchase Money Promissory Note"). Payments of interes~
only small be due ~n~ually with respect to the Purchase Money Promissory
Note commencing April 1, 1988, and on each April 1 thereafter, until April,
1992, at which time all the unpaid principal and accrued interes~ with
respect to the Purchase Money Promissory Note shall be due and payable un-
less extended by mutual agreement of the parties hereto. The Agency shall
execute and deliver the Purchase Money Promissory Note as of the date of
the execution of this Agreement.
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Section 2. The Agency's obligation to make payments to the City pur-
suaut to the Purchase Money Promissory Note shall be payable solely from ·
(a) property taxes allocated to the Agency from the Project Area in accor-
dance with Health and Safety Codes Section 33670(b) ("Ta~ Increment") but
only if andto the extent Tax Increment is received, or (b~ other funds
that the Agency receives and determines in its sole discretion to use to
repay said amounts. In the event that there are 'zusufficient funds from
the sources identified herein to make the required payments with respect
to the Purchase Money Promissory Note in the year in which such payments
are to be made, the City shall reasonably~ considsr (but shall not be
obligated to) extend the time for payment by adding such amounts to the
principal balance evidenced by the Purchase Money Promissory Note and
interest at the rate set forth in the Purchase Money Promissory Note.
Section 3. The parties hereto acknowledge and agree that the Agency's
obligation to pay the amounts evidenced by the Purchase Money Promissory
Note shall be automatically subordinatea to any other Qbligation of the
Agency secured by Tax Increment or for Which Tax. Increment is otherwise
pledged in connection with the issuance of bonds or certificates of parti-
cipation as part of the implementation of the Redevelopment Plan for the
?roject Area.
Section ~. The Agency shall have the right at any time, from time to
time, upon at least ten (10) days written notice to the City, to prepay,
without premium or penalty, the outstanding balance of the Purchase Money
Promissory Note, or any portion thereof, with interest payable through the
date of such prepayment,
Section 5. This Agreemenu embodies the entire Agreement understanding
between the parties hereto with respect to the matters set forth herein
and supersedes all prior agreements and understandings related to the sub-
ject matter hereof.
Section 6. This Agreement shall terminate when all obligations of
the Agency as evidenced by ~the Purchase Money Promissory Note shall nave
been discharged in full.
Section 7. In case any one or more of the provisions contained in
this Agreement should be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions con-
tained herein shall not in anyway be effected or impaired thereby.
Section 8. No member, officer, agent or employee of the Agency shall
be individually or personally liable for the payment of, the principal of
or interest on the Purchase Money Promissory Note.
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Section 9. The parties hereto acknowledge and agree t~at the obligations
of the Agency evidenced by the Purchase Money Promissory Note constitute an
"indebtedness" within the meaning of.Health and Safety Code Section B36?O(b).
IN WITNESS WHEREOF, the parties have executed this Repayment Agreement
as of the date first above written.
CITY OF CYPRESS
City Manager
ATTEST:
Deputy City Clerk
CYPRESS REDEVELOPMENT AGENCY
By
Executive Director
ATTEST:
Deputy City Clerk
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EXHIBIT A
PURCHASE MONEY PROMISSORY NOTE
$550,000
Cypress, California
March 2B, 1987
The Cypress Redevelopment Agency, a public body corporate and politic
(the "Agency"), for value received, hereby promises. to pay to the City of
Cypress, a municipal corporaOion (t~e "City") The priucipal sum of Five
Hundred Fifty ~Thousand Dollars ($550,000), in lawful money of the United
States of America, together with interest thereon on .t~e unpaid balance
thereof from the date hereof at the rate of twelve percent (125) per ~nnum.
The Agency shall annually pay interest only with respect to this ~Purchase
Money Promissory Note commencing April 1, 1988 and each~April 1 thereafter
until April 1, 1992, at which time all of the unpaid principal balance and
Accrued interest with respect to this Purchase Money Promissory Note s~al±
be due and payable. Interest shall be computed upon the basis on a three
hundred sixty (360) day year and a thirty (30) day month.
This Note is the Purchase Money Promissory Note referred to in the Re-
payment Agreement dated as of March 23, 1987 between the City .and the
Agency and is entitled to all the benefits and is subject to all the limi-
tations provided for therein. Reference is made to said Agreement for,
inter alia, the rights of prepayment and the sources of payment of the
principal of and interest on this Purchase Money Promissory Note.
CYPRESS REDEVELOPMENT AGENCY
By.
Executive Director
ATTEST:
DepuTy City Clerk