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SA - Resolution SA-2012-10RESOLUTION NO. SA- 2012 -10 RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA ROSA AUTHORIZING THE ACCEPTANCE OF A LOAN IN THE AMOUNT OF $183,000 FROM THE CITY OF SANTA ROSA, AND EXECUTION OF PROMISSORY NOTE, TO ALLOW THE SUCCESSOR AGENCY TO MEET THE ADDITIONAL REQUIREMENTS IMPOSED BY AB 1484 WHEREAS, the Redevelopment Agency of the City of Santa Rosa was dissolved according to AB 1X 26 and the City Council elected to become the Successor Agency to the City of Santa Rosa Redevelopment Agency by Resolution No. 28029 on January 10, 2012; and WHEREAS, Governor Jerry Brown signed Assembly Bill 1484 into law on June 27, 2012, with the law becoming effective immediately upon signature; and WHEREAS, Assembly Bill 1484 is a budget trailer bill that makes substantial changes to the redevelopment agency dissolution process implemented by AB 1X 26; and WHEREAS, the Bill is lengthy, complex and includes key provisions that will immediately affect the redevelopment agency dissolution process; and WHEREAS, amended section 34173(h) of the Health & Safety Code provides that a city that authorized the creation of a redevelopment agency may loan funds to a successor agency for administrative costs, enforceable obligations, or project - related expenses at the city's discretion, but the receipt and use of these funds must be reflected on the Recognized Obligation Payment Schedule (ROPS) or the administrative budget and are subject to the oversight and approval of the Oversight Board. This section also makes clear that the loan is an enforceable obligation that is deemed to be created for the repayment of such loan; and WHEREAS, the need for the lengthy, complex work needed to meet the requirements of AB 1484 was not anticipated in the City's 2012/2013 Fiscal Year budget; and WHEREAS, the City and Successor Agency desire to ratify Successor Agency's obligation to repay the loan, and desire to enter into a Promissory Note stating terms for repayment of the loan. NOW, THEREFORE, BE IT RESOLVED that the Successor Agency accepts a loan from the City of Santa Rosa in the amount of $183,000 for administrative costs necessitated by the additional compliance requirements imposed by AB 1484 and which loan is made pursuant to Health and Safety Code Section 34173(h). BE IT FURTHER RESOLVED that the Successor Agency authorizes the Director of Economic Development and Housing to execute a Promissory Note for the amount of $183,000, in substantially the same form as attached, and to take any other action necessary to deliver it to the City. Reso. No. SA- 2012 -10 Page 1 of 2 BE IT FURTHER RESOLVED that the loan and Promissory Note shall be reflected on the ROPS subject to the approval of the Oversight Board. IN SUCCESSOR AGENCY DULY PASSED this 14th day of August, 2012. AYES: (7) Mayor Olivares, Vice Mayor Sawyer, Council Members Bartley, Gorin, Vas Dupre, Wysocky NOES: (0) ABSENT: (0) ABSTAIN: (0) 7 � ATTEST: PPROV Secretary Chairman AP PROVED TO URM: Successor Agency Attorney Reso. No. SA- 2012 -10 Page 2 of 2 Promissory Note $183,000 Santa Ros , California u uS' , 2012 FOR VALUE RECEIVED, the Successor Agency to the Redevelopment Agency of the City of Santa Rosa promises to pay to the City of Santa Rosa, a Charter City, at 90 Santa Rosa Avenue, Santa Rosa, California 95404 or such other place as the City shall designate to the Successor Agency in writing, the principal sum of One Hundred Eighty Three Thousand Dollars ($183,000), with no interest, payable on January 1, 2013. Execution of this Note has been approved by resolution duly adopted by the governing board of the Successor Agency pursuant to Health & Safety Code Section 34173(h). This Note may be prepaid at anytime without penalty. IN WITNESS WHEREOF, Successor Agency has executed and delivered this Note as of the date first written above. THE REDEVELOPMENT AGENCY OF THE CITY OF 4= �v� ATTEST: By: 4 APPROVED A TO FO Successor Agency Counsel