HomeMy WebLinkAbout84-160EJC:ar
12/11/84
RESOLUTION NO~ 841160
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA ESTABLISHING MODIFICATIONS TO
THE HOME IMPROVEMENT LOAN AND REBATE PROGRAMS
AND IN SETTLEMENT OF THAT LITIGATION ENTITLED
CITY OF ORANGE, ET AL. V. CITY OF SANTA ANA
ET AL., O.C.S.C. NO. 43-39-36
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WHEREAS, on May 15, 1984, the City Council of
City of Santa Ana, by Resolution No. 84-61, approved the sale of
property upon terms and conditions contained in a Participation
~eemen~ between the Community Redevelopment Agency of the City of
3ta Aha and Santa Ana Venture; and
WHEREAS, on May 15, 1984, the Community Redevelopment
3ncy of the City of Santa Aha, by Resolution No. 84-11, approved
id Participation Agreement for the redevelopment of the Fashion
uare Shopping Center.
WHEREAS, an action entitled City of Oran~e~ et al. v.
ty of Santa Anar et al., Orange County Superior Court No. 43-39-36
s been filed challenging the validity of the Participation Agree-
nt; and
WHEREAS, the City of Santa Ana and the Community Rede-
lopment Agency of the City of Santa Ana desire to settle and re-
lve the above-entitled litigation; and
WHEREAs, the relevant parties to the above-entitled
ti?n have agreed to a Settlement ~greement with Mutual Releases and
Stipulated jUdgment, copies of which are attached hereto as Exhibits
and 2, respectively, and incorporated herein by reference ; and
WHEREAS, the City Council of the City of Santa Ana and
e Community Redevelopment Agency of the City of Santa Ana in adopt-
g this resolution are acting in reliance on said Settlement Agree-
nt with Mutual Releases and the carrying out of its terms in good
ith by the parties thereto.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
A DOES RESOLVE AS FOLLOWS:
SECTION 1: That the City of Santa Ana and the Community
development Agency of the City of Santa Ana agree to the terms of,
d authorize the City Manager and the Executive Director to execute
e Settlement Agreement with Mutual Releases attached hereto as Ex-
bit 1.
SO
RE LUTION NO~ 84L160
PAGE TWO
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SECTION 2: That the City of Santa Aha and the Co,unity
]evelopment Agency of the City of Santa Ana agree to the terms, and
:horize the City Attorney and Agency Legal Counsel to obtain the
~ry of the Stipulated Judgment attached hereto as Exhibit 2.
ADOPTED this 10th day of December , 1984.
DEST:
liCE C. GUY- /
~.RK OF THE COUNCIL-
[ SWAnSOn,-EXECUTIVE DIRECTOR
RECORDING SECRETARY
DANIEL E. GRISET~ MAYOR
AND AGENCY CHAIRMAN
NClLMEMBERS:
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Absent
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APPROVED AS TO FORM:
~D~{RID J~,~, COOPER
CITY ATT]~R'N]~Y AND AGENCY
LEGAL COUNSEL
SETTLEMENT AGREEMENT WITH MUTUAL RELEASES
This Settlement Agreement with Mutual Releases (the
"Settlement Agreement") is executed and effective as of this 10th
day of December 1984, by and among Plaintiffs Samuel Romero,
Albert Pi Gipson, and Moses Brown (collectively "Plaintiffs'!, and
Defendants City of Santa Aha and Community Redevelopment Agency of
the City of Santa Aha (collectively "Defendants"), with reference
to the £ollowing facts:
WHEREAS,
1. On or about May 15, 1984, by Resolution 84-61, the
City Council of the City of Santa Ana ("City Council") adopted
~indings and approved the sale of real property upon terms and
;onditions contained in a Participation Agreement between the
]ommunity Redevelopment Agency of the City of Santa Aha and Santa
ina'Venture.
2. On or about May 15, 1984, by Resolution No. 84-11,
:he Community Redevelopeent Agency of the City of Santa Ana
["Agency") approved a Participation Agreement between the Agency
lnd Santa Aha Venture for the redevelopment of the Fashion Square
hopping Center in Santa Aha.
$. On July 13, 1984, the City o[ Orange filed an
ction, City of Orange v. City of Santa. Ana, et al., Orange County
EXHIBIT 1 .0417S/330-01
Superior Court No. 43-34-36 (the "lawsuit"), challenging the
ralidity of the Participation Agreeaent between the Agency and'
3anta Ama Venture and said Resolutions No. 84-61 and 84-11.
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4. On August 27, 1984, a First A~ended Complaint was
in the lawsuit by which, inter alia, Plainti£fs Romero,
lpson, and Brown joined said action.
$* Plaintiffs and Defendants have agreed upon mutually
cceplable terms £or the settlement o£ the lawsuit.
61 Defendants desire to obtain a Judgment herein
alidating the Participation Agreement~ Resolution No. 84-61 and
esolution No. 84-11,
7. Plaintiffs desire, pursuant to said Judgment, to
.ligate Defendants to carry out and abide by certain terms and
,nditions as more particularly set forth herein and in the
~dgment, which is attached hereto at "Exhibit A.'
8. Plaintiffs and
her from all claims, causes of
~e against each other relating
the lawsuit.
Defendants desire to release each
action, and demands that they may
to the Participation Agreement
NON, THEREFORE, IT IS HEREBY STIPULATED by and between
~intiffs and Defendants and their attorneys that:
EXHIBIT ! 0417s/330-01
1. Defendants shall, within thirty (30) days after
executing this Settlement Agreement, bring or cause to be brought
the resolution attached hereto as "Exhibit B" before the City
Council and the Agency for their approval or disapproval.
2. This Settlement Agreement shall be null and void if
the City Council or the Agency fails to approve said resolution.
Any party hereto shall be entitled to rescind this Settlement
Agreement by giving written notice to the other parties and their
attorneys if, within ten (10) days £rom the date of this
Settlement Agreement, a settlement agreement is not executed
between Plaintiffs and Santa Aha Venture, or a settlement
agreement is not executed between David L1ewellyn, on the one
hand, and Defendants and Santa Aha Venture, on the other hand.
3. If Defendants adopt said Resolution in the form
~ttached hereto, then, following the execution of Settlement
~greements between Plaintiffs and Santa Ana Venture, and between
David L1ewe11yn, on the one hand and Defendants and Santa Aha
~enture, on the other han~ the parties shall apply to the
~uperior Court of the County of Orange for the entry of Judgment
.th the terms and in the form of the Stipulated Judgment attached
~reto as Exhibit 'A,' the terms of which Judgment are
ncorporated herein by reference thereto. Said Judgment shall be
final judgment, resolving all of the issues raised in the
awsuit. Further, each of the parties hereby expressly and
rrevocably waives their right to appeal.
EXHIBIT.0417s/330-01
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4~ The parties agree that attorneys' fees, costs, and
~penses shal! not be awarded to either Plaintiffs or Defendants.
5. Defendant City of Santa Aha shall provide Santa Ana
~nture, or Santa Ana Venture's successor in interest as developer
Fashion Square, with information concerning minority- or women-
'ned business in Santa Ann. Such information shall be updated or
pplemented on a reasonable basis.
6. Plaintif£s and Defendants, and each of them, agree
take or cooperate in all actions reasonably necessary to ef£ect
try of said Judgment.
7. Except as provided in the Judgment or as
specifically provided herein, Plaintiffs, for themselves and for
their respective principals, former and current employees, agents,
attorneys, successors, and assigns, and each of them, hereby
re:eases, acquits, and £orever discharges Defendants and their
re~ )ective principals, £ormer and current officials, former and
cu] 'ent employees, agents,'attorneys,' successors, and assigns, and
each of them, of and from any and all demands, obligations,
lilbilities, causes of action, sums of money, and other claims of
every kind and nature, whether known or unknown, and whether
anticipated or unanticipated, which Plaintiffs, or any of them,
hav~, or may now claim to have, or may hereafter claim to have,
tel
val
ating to the validity of the Participation Agreement, the
idity of Resolution Nos. 84-61 and 84-11, or the lawsuit.
4 EXEI~II ~ .0417S/330-01 .....
8. Except as specifically provided herein, Defendants,
for themselves and for their respective principals, former and'
current officials, former and current employees, agents,
attorneys, successors, and assigns, and each of them hereby
releases, acquits, and forever discharges Plaintiffs and their
respective principals, former and current employees, agents,
attorneys, successors, and assigns, and each of them, of and from
any and all demands, obligations, liabilities, causes of action,
sums of money, and other claims of every kind and nature, whether
known.or unknown, and Whether anticipated or unanticipated, which
Defendants, or any of them, have, or may now claim to have, or may
hereafter claim to have, relating to Plaintiffs' prosecution of
the lawsuit or the payment of attorneys' fees relating thereto.
Defendants, and each of them, further agree not to encourage or
support any person in challenging Plaintiffs' prosecution of the
lawsuit or the payment of attorneys' fees relating thereto.
9. In connection with the foregoing releases,
?laintiffs and Defendants, and each of them, agrees to and does
~ereby waive and relinquish all rights and benefits afforded under
;ection 154l of the California Civil Code, which provides as
~ollows:
"A general
the creditor does not know or suspect to exist
his favor at the time of executing the release,
which if known by him must have materially
affected his settlement with the debtor."
release does not extend to claims which
in
~417S/130-01
EXHIBIT ! ....
10. Plaintiffs and Defendants, and each of them,
warrants and represents that none of its claims, causes of
acltion, or demands herein released have been assigned to any
person or entity.
11. This Settlement Agreement shall be governed by the
la~is of the State of California and any questions arising
hereunder shall be construed and determined according to such law.
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~2. Before initiating any litigation to remedy any
br~ach of this Settlement Agreement or the related Judgment,
Plaintiffs and Defendants, and each of them, agrees to provide
thirty (30) days' written notice of said breach to each breaching
patty to afford them an opportunity to correct the breach. Said
written notice will be sent by first class mail, postage prepaid,
ad~[ressed as follows:
To Plaintiffs:
Debra Fritz
10582 Sennit Avenue
Garden Grove, California 92643
To Defendants:
City Attorney
City of Santa Aha
20 Civic Center Plaza
Santa Ana, California 92702
13. This Settlement Agreement may be signed by the
par~ies in different counterparts and the signature pages combined
to Create a single document binding on all parties.
14, This Settlement Agreement contains the entire
agreement between the parties with respect to the matters refer'red
to herein,
signed by
supersedes
and may not be modified or amended except by'a document
the parties hereto. This Settlement Agreement
any prior agreements, whether written or oral.
15. This Settlement Agreement shall bind,
the benefit of, the respective successors, assigns,
representatives of each of the parties hereto.
and inure to
and personal
IN WITNESS WHEREOF, the parties hereto have executed this
~greement on the date first set forth above.
~TTORNE¥S FOR PLAINTIFFS:
)'DONNELL '~ GORDON
~O,~ EVE N F.- PFLt
ESQ.
THE PLAINTIFFS
ALBERT 'P. GIPSOy&' '
MOSES BROWN
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EXHIBIT 1'0417S/$30'01
ATTORNEY FOR AGENCY:
~-DwARD J. COOPER, Esq.
THE CO}~UNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA AIVA
By
EXECUTIVE DIRECTOR
ATTORNEY FOR CITY:
THE CITY OF SANTA ANA
~DWARD J. COOPER, ESQ.
By
CITY MANAGER
8 EXHl~ll' ~.' o4zTs/33o-o~
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0418S-01
EDWARD J. COOPER, City Attorney SB# 059253
RICHARD E. LAY, Assistant City Attorney
20 Civic Center Plaza
Santa Aha, California 92701
(714) 834-4900
Attorneys for Defendants City of Santa
Aha and Community Redevelopment Agency
of the City of Santa Ana
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF ORANGE
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CITY OF ORANGE, a General Law City,
et al.,
Plaintiffs,
v.
CITY OF SANTA ANA, a Municipal
Corporation, et al.,
Defendants.
Case No.
JUDGMENT
43-39-36
In the above-entitled cause, plaintiffs Samuel Romero,
Albert P. Gipson, and Moses Brown, and defendants City of Santa
Ana and Community Redevelopment Agency of the City of Santa Aha,
having stipulated that judgment be entered validating the
Participation Agreement on the terms set forth herein,
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED:
pursuant to Section 863 of the Code of Civil Procedure.
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That this Court has jurisdiction over this matter
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2. That the Participation Agreement between the
Community Redevelopment Agency of the City of Santa /ma and Shnta
Aha Venture, eniered into on or about Hay 15~ 1984, is law£ul and
valid in all respects and without qualification.
3. That Resolution No. 84-11 of the Community
Redevelopment Agency o£ the City o£ Santa Aha is law£ul and valid
in all respects and without qualification.
4. That Resolution No. 84-61 of the City of Santa Aha
is lawful and valid in all respects and without qualification.
5. That the implementation of the Fashion Square
iedevelopment Project from the adoption of the Amended Redevelop-
bent Plan for the City of Santa bna Redevelopment Project through
lnd including the adoption o£ the Community Redevelopment Agency
Of the City o£ Santa Ana's Resolution No. 8d-ll and the City of
.~anta Arians Resolution No. 84o61 is law£ul~ valid, and without
qualification.
)ther
Santa Ana for the
to the California
Section 16 of the
6. That the allocation and payment of tax revenues and
funds to the Community Redevelopment Agency of the City of
Fashion Square Redevelopment Project, pursuant
Community Redevelopment Law, Article XVI,
California Constitution, and such other laws or
regulations which specify the powers and authority of the agency,
and
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the receipt and expenditure of such
funds by the Commun'ity
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Redevelopment Agency for the Fashion Square Redevelopment Project
are lawful and valid and without qualification.
7. That Defendant City of Santa Ama shall modify and
implement its Residential Rehabilitation Loan Program and Deferred
Loan Program as follows:
Residential
scale from eight percent (8%) to five percent
the following table:
Applicantts Family Income
and Size Coefficient
(a) (1) The annual interest rate for the
Rehabilitation Loan Program shall be on a sliding
($%), as provided in
Annual Interest Rate
87.50% - 100.00% 8%
75100 - 87.49 7%
62.50 - 74.99 6%
50.00 - 62.49 5%
For purposes of this Judgment, an applicant's "Family Income and
Size Coefficient" is the percentage of the applicant's family
income, as determined by reference to the median income in Santa
Ama (according to current ItUD figures) for a family the size of
the applicant's family.
(2) However, if the annual interest rate on
residential rehabilitation home loans at any public lending
institution in Santa Ama is ten percent (10%) or lower, then the
annual interest rate for the Residential Rehabilitation Loan
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Program shall be on a sliding scale from eight percent (8%) to
four percent (4%), as provided in the following table:
Applicant's Family Income
and Size Coefficient
Annual Interest Rate
90,00% 100.00% 8%
80.00 - 89.99 7%
70.00 - 79.99
60~00 - 69.99 5%
$0.00 - 59.99
(3) Moreover, ii an applicant cannot qualify
[or a loan at the interest rate that corresponds to the appli-
:ant's income level, then the applicant shall receive a loan at
the highest annual interest rate, if any (within the range o£ the
~pplicable sliding scale o£ rates), for which the applicant can
qualify.
(b) (1) The Deferred Loan Program shall be
tvailable to applicants with a Family Income and Size Coefficient
Of less than fifty percent (50.0%).
(2) The annual interest rate for the
Deferred Loan Program shall be five percent (5%), unless the
annual interest rate on residential rehabilitation loans at any
~ublic lending institution in Santa Ama
l[ower, in which case the annual interest
~oan Program shall be four percent (4%).
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is ten percent (10%) or
rate for the Deferred
4 EXHIBIT 2' o4188/33O-Ol
(c) Santa Aha shall provide a total of a minimum
of Three Million Four Hundred Thousand Dollars ($5,400,000.00) per
year for its Residential Rehabilitation and Deferred Loan
Programs, out of which sum a minimum of Two Hundred Nifty Thousand
Dollars ($250,000.00) per year shall be allocated for the Deferred
Loan Program. However, if, after three months in a given year,
and after all of the funds budgeted for the Residential Rehabi-
litation Loan Program have been spent, Santa Aha believes in good
faith that the demand for said Deferred Loan Program will not
equal Two Hundred Fi£ty Thousand Dollars ($250,000.00) in that
year, it may make available for the Residential Rehabilitation
Loan Program such funds as it believes in good faith will not be
needed for the Deferred Loan Program.
(d) If the total demand for the Residential
Rehabilitation and Deferred Loan Programs exceeds Three Million
Four Hundred Thousand Dollars ($3,400,000.00) per year, the City
of Santa Aha shall make available from any legally authorized
source of funds an additional One Million One Hundred Thousand
Dollars ($1,100,000.00) for said programs.
Ce)
Thousand Dollar
annua! budget of
($1,100,000.00),
way to, administrative
spent on the loans.
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No portion of the Three Million Four Hundred
($3,400,000.00) annual budget, or additional
One Million One Hundred Thousand Dollars
if applicable, may be used for, or charged in any
costs. Said budgeted funds may only be
s EXHIBIT 2 o4 8s/ 3O-Ol
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(f) Santa Aha may not alter the applicant
quali£ications for, or the permissible uses or terms of, its
residential rehabilitation or deferred loans, to make such
ualifications~ uses, or terms more restrictive than those
g as o£ the date of this Judgment.
(g) Santa Aha shall advertise its Residential
~ehabilitation and Deferred Loan Programs at least once in
every
:welve (12) month period by placing notices in the water utility
~illing (either on a separate leaflet, or by prominent display on
!page one o£ an accompanying newsletter) and by including similar
)rominent notice at least once in every twelve month period on any
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~ublished during
lvailable to the
(if such newsletter should be
that period). Santa Ana shall also make leaflets
public explaining said programs.
(h) The provisions of this Section 7 shall take
effect immediately and continue in full force and effect through
~he end of Santa Anafs fiscal year 1990-1991.
8. That this Court retains continuing jurisdiction over
t]his matter to enforce the terms of this Judgment.
costs in
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That each party shall
this matter.
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bear its own attorneyst fees
0418S/330-01
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DATED: December , 1984
Approved as to form:
EDWARD J. COOPER
Attorney for City of Santa Aha
and Community Redevelopment
Agency of the City of Santa
Ana
O'DONNELL ~ GORDON
By
STEVEN F. PFLAU~
Attorneys for Samuel Romero,
Albert P. Gipson, and
~oses Brown
JUDGE OF THE SUPERIOR COURT
7 EXHIBIT