HomeMy WebLinkAbout2013-003 SA2/14/13 LES
SUCCESSOR AGENCY RESOLUTION NO. 2013-003
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA
ACTING AS SUCCESSOR AGENCY TO THE FORMER COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA
ESTABLISHING A SCHEDULE TO REPAY FUNDS ADVANCED FROM
THE SOUTH MAIN CORRIDOR FUND FOR SUPPLEMENTAL
EDUCATIONAL REVENUE AUGMENTATION FUND LOAN PURSUANT
TO PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND
SAFETY CODE ("DISSOLUTION ACT")
BE IT RESOLVED BY THE MEMBERS OF THE SUCCESSOR AGENCY OF THE CITY OF
SANTA ANA, AS FOLLOWS:
Section 1. The City Council of Santa Ana, acting as Successor Agency, conclusively
finds, determines and declares as follows:
A. Pursuant to the Dissolution Act, on January 9, 2012, pursuant to section
34173 of the California Health & Safety Code, the City of Santa Ana ("City") elected to
serve as the Successor Agency for the dissolved Community Redevelopment Agency
("Agency') of the City of Santa Ana and selected the Housing Authority of the City of
Santa Ana to act as "Successor Housing Agency'.
B. The City Council serves as the governing body of the Successor Agency
under the Dissolution Act to administer the enforceable obligations of the Agency and
otherwise unwind the Agency's affairs. Many actions of the Successor Agency are
subject to the review and approval of a seven member Oversight Board of the Successor
Agency to the former Community Redevelopment Agency of the City of Santa Ana
("Oversight Board").
C. The Oversight Board has been established to direct the Successor Agency
to take certain actions to wind down the affairs of the former Agency in accordance with
the California Health & Safety Code.
D. In order for the former Agency to make its Supplemental Educational
Revenue Augmentation Fund ("SERAF") payment to the State in May 2010, the Agency
borrowed funds in the amount of $6,302,827 from the South Main Commercial Corridor
Fund. Other funds were borrowed from the Agency's Low and Moderate Income
Housing fund in order to pay the balance to the State. The amount currently owed to the
South Main Commercial Corridor Fund is $6,000,000.
E. The repayment of this loan and use of the proceeds is under dispute with
the State Department of Finance, however they have indicated that the Oversight Board
needs to approve the repayment schedule. As required by the Dissolution Act [HSC
Sections 34180(a) and 34171(d)(1)], and pursuant to the December 18, 2012 ROPS
Determination Letter received from the State Department of Finance (DOF), the
Oversight Board must establish and approve repayment schedules or other mandatory
Resolution No. 2013-003
Page 1 of 3
loan terms. Successor Agency action is required to follow Oversight Board action
pursuant to Section 34180.
F. The Successor Agency and Oversight Board previously recognized and
approved the existing Supplemental Education Revenue Augmentation Fund (SERAF)
and Education Revenue Augmentation Fund (ERAF) loans as part of the Recognized
Obligations Payment Schedules (ROPS); and are concurrently considering the subject
loans as part of ROPS 13-14A.
Section 2. The Successor Agency hereby resolves and orders that the amount loaned
by the former Community Redevelopment Agency of the City of Santa Ana from the South Main
Commercial Corridor Fund be repaid to the Successor Agency for utilization for public
improvements within a specified area as prescribed in the Stipulated Judgment dated March 2,
1984 for the South Main Street Redevelopment Project [Peebler et al. v. City of Santa Ana,
Orange County Superior Court (1982) Case No. 38 58 59)] per the attached repayment
schedule, attached hereto as Exhibit A and incorporated herein by this reference, and be
included on future Recognized Obligation Payment Schedules.
Section 3. The Clerk of the Council shall certify to the adoption of this Resolution.
ADOPTED this 19th day of February 2013.
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:` ?.
Lisa E. Storck
Assistant City Attorney
YES: Councilmembers: Amezcua, Benavides, Martinez, Reyna, Pulido,
(5)
NOES: Councilmembers: None (0)
ABSTAIN: Councilmembers: None (0)
NOT PRESENT: Councilmembers: Sarmiento, Tinaiero (2)
Resolution No. 2013-003
Page 2 of 3
2/14/13 LES
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached Resolution
No. 2013-003 to be the original resolution adopted by the City Council acting as the Successor
Agency on February 19, 2013.
Date: =-; /.'2?&
Maria D. Huizar, Clerk of Council
Resolution No. 2013-003
Page 3 of 3
EXHIBIT A
CITY OF SANTA ANA, .?CT? NG AS SUCCESSOR AGENCY TO THE FORMER
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA
Supplemental Revenue Augmentation Fund (SERAF)
Loan Repayment Schedule
Funds Borrowed From: South Main Commercial Corridor Fund
Outstanding Balance Due as of 6130112: $ 6,000,000
Payment Date Repayment Amount Balance
June 30, 2013 $ - $ 6,000,000
December 31, 2013 500,000 5,500,000
June 30, 2014 500,000 5,000,000
December 31, 2014 500,000 4,500,000
June 30, 2015 500,000 4,000,000
December 31, 2015 500,000 3,500,000
June 30, 2016 500,000 3,000,000
December 31, 2016 500,000 2,500,000
June 30, 2017 500,000 2,000,000
December 31, 2017 500,000 1,500,000
June 30, 2018 500,000 1,000,000
December 31, 2018 500,000 500,000
June 30, 2019 500,000 -
Total $ 6,000,000