R 3938
RESOLUTION NO. 3938
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING A FINANCING AGREEMENT BETWEEN THE
CITY AND THE ARROYO GRANDE REDEVELOPMENT AGENCY TO
FACILITATE THE AGENCY'S ACQUISITION OF THE VACANT LOT AT
FAEH STREET AND EL CAMINO REAL (APN 006-151-027)
WHEREAS, the Arroyo Grande Redevelopment Agency ("Agency") is a public body,
corporate and politic, organized and existing under the California Community
Redevelopment Law (Health & Safety Code S 33000 et seq.); and
WHEREAS, the Agency and the City Council of the City of Arroyo Grande ("City" or
"City Council," as appropriate), in accordance with all applicable law, previously adopted
the Redevelopment Plan for the Arroyo Grande Redevelopment Project Area, as
amended ("Project Area"); and
WHEREAS, the City is proposing to acquire. that certain parcel of real property
consisting of a vacant lot at Faeh Street and EI Camino Real identified as Assessor
Parcel No. 006-151-027 (the "Property"); and
WHEREAS, the Property is located in the Redevelopment Project Area; and
WHEREAS, the Agency and seller propose to enter into that certain Vacant Land
Purchase Agreement and Joint Escrow Instructions ("Agreement") for Agency's
acquisition of the Property for a purchase price of Eight Hundred Twenty-Five Thousand
Dollars ($825,000), plus escrow and other closing costs which are estimated to not
exceed Five Thousand Dollars ($5,000) for a total in acquisition costs not to exceed
Eight Hundred Thirty Thousand Dollars ($830,000) (collectively, the "Acquisition
Costs"); and
WHEREAS, to enable the Agency to fund the Acquisition Costs, the City and Agency
propose to enter into a Financing Agreement to effectuate a loan to the Agency in the
amount not to exceed Eight Hundred Thirty Thousand Dollars ($830,000) from the City's
In-Lieu Affordable Housing Fund, with interest at a rate equal to rate earned by the City
from the Local Agency Investment Fund; and
WHEREAS, the City. and Agency are authorized to enter into such Financing
Agreement pursuant to Health and Safety Code Section 33601; and
WHEREAS, all actions required by applicable law to be taken by the Agency precedent
to the adoption of this Resolution have been taken in accordance with applicable law.
NOW, THEREFORE, the City Council of the City of Arroyo Grande resolves as follows:
Section 1. The foregoing Recitals are true and correct and are incorporated herein.
,
RESOLUTION NO. 3938
PAGE 2
Section 2. The City Council hereby:
(i) approves the Financing Agreement between the City and the Agency, in the form
presented to the City Council concurrent with this Resolution, to effect the City's loan to
the Agency of the amount not to exceed Eight Hundred Thirty Thousand Dollars
($830,000), with interest payable by the Agency at a rate equal to the rate of interest
earned on City funds on deposit with the Local Agency Investment Fund, and authorizes
the Mayor or City Manager, each as the sole required signatory on behalf of the City, to
execute the Financing Agreement on behalf of the City; and
(ii) authorizes and directs the City Manager and authorized designees to take such
other and further actions, and sign such other and further documents as are necessary
and proper to implement this Resolution on behalf of the City.
On motion of Council Member Dickens, seconded by Council Member Arnold, and on
the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
Council Members Dickens, Arnold, Costello, Guthrie, and Mayor Ferrara
None
None
the foregoing Resolution was passed and adopted this 25th day of July, 2006.
RESOLUTION NO. 3'138
PAGE 3
TONY M. FER
, MAYOR
APPROVED AS TO CONTENT:
5~/--. '
STEVEN ADAMS, CITY MANAGER
"
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that Resolution
No. 3938 is a true, full, and correct copy of said Resolution passed and adopted at a
regular meeting of the City Council/Redevelopment Agency of the City of Arroyo Grande
on the 25th day of July 2006.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 26th day of
July 2006.
lIU.-
RE, CITY CLERK