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HomeMy WebLinkAbout02-035 CC ResolutionRESOLUTION NO. 02-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE EXTENSION OF THE PROMISSORY NOTE FOR THE SIXTH STREET PROPERTY THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE AS FOLOWS: Section 1. The City Council hereby finds determines and declares as follows: a. Pursuant to the provisions of Health and Safety Code Sections 33220 and 33610 and other applicable law, the City is authorized and expected to cooperate with the Redevelopment Agency and may make grants or loans to the Agency and to sell, convey or lease any of its property to the Agency, with or without compensation. b. The City acquired the property generally located at 6th Street and Front Street, APN 922-023-020 (the "Property") and has conveyed the Property to the Agency. c. The City approved a five-year Promissory Note on March 12, 1996. d. The Property has been developed for redevelopment purposes. Section 2. The City Council hereby extends the Promissory Note dated March 12, 1996 and approves the revised Promissory Note in the form attached hereto as Exhibit A. Section 3. The City Clerk shall certify the adoption of the Resolution. PASSED, APPROVED AND ADOPTED by the City Council of the City of Temecula this 23rd day of ApriL, 2002. ~¢ ~ ~.~.~ Ron Roberts, Mayor ATTEST: i Michaela A. Ballreic'"'h · 'Deputy City Clerk ".[SEAL] R:/Resos 2002/Resos 02-35 1 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Michaela A. Ballreich, Deputy City Clerk for the City of Temecula, do hereby certify that the Resolution No. 02-35 was duly and regularly adopted by the Council of the City of Temecula at a regular meeting thereof held on the 23rd day of April 2002, by the following vote: AYES: 4 NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 1 COUNCILMEMBERS: Stone COUNCILMEMBERS: Comerchero, Naggar, Pratt, Roberts Mi~hael~ A.JBallreich Deputy City Clerk R:/Resos 2002/Resos 02-35 2 EXHIBIT "A" · PROMISSORY NOTE The Redevelopment Agency of the City of Temecula ("Agency") hereby promises, for consideration received, to pay the City of Temecula ("City") the sum of One Million Three Hundred Fifty Seven Thousand Five Hundred Dollars and NO/100 ($1,357,500.00) bearing simple interest at the rate of the prime interest rated charged by Union Bank as of the date of this Note. This Note and all accrued interest from March 12, 1996 shall be due and payable May 1, 2007 unless extended by mutual written agreement of the City and the Agency without interim payments by the Agency during the term of the Note, provided that the Agency may make partial payments or repay the amount of the Note in full prior to the due date without penalty. This Note is and will be subordinate to all existing debt of the Agency and such additional debt as the Agency may ingur during the term of this Note and no funds of the Agency are pledged to its repayment. In the event of a default by the Agency, the City shall have all legal and eqtiitable remedies available to it to enforce the terms of the Note. This Note is made as of April 23, 2002 at Temecula Californi.a. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA Jeff Comerchero Chairperson ATTEST: Susan W. Jones, CMC City Clerk Peter M. Thorson General Counsel R:\Oldtown~Sixth Street~Promissorynot¢.do¢