CIC Resolution 10-165COMMUNITY IMPROVEMENT COMMISSION
RESOLUTION NO. 10-165
AUTHORIZING THE PAYMENT OF $4,431,444 IN FY09 -10 AND
$912,356 IN FY 10 -11 TO THE STATE OF CALIFORNIA;
APPROVING THE USE OF BUSINESS AND WATERFRONT
IMPROVEMENT PROJECT LOW- AND MODERATE- INCOME
HOUSING FUNDS FOR THE SUPPLEMENTAL EDUCATIONAL
REVENUE AUGMENTATION FUND PAYMENT TO THE STATE OF
CALIFORNIA FOR FY09 -10 AND FY10 -11; AND APPROVING THE
PROMISSORY NOTES BETWEEN THE COMMUNITY
IMPROVEMENT COMMISSION, BUSINESS AND WATERFRONT
IMPROVEMENT PROJECT AREA LOW- AND MODERATE -
INCOME HOUSING FUND AND THE COMMUNITY
IMPROVEMENT COMMISSION ALAMEDA POINT IMPROVEMENT
PROJECT AREA REDEVELOPMENT CAPITAL PROJECTS FUND
AND THE COMMUNITY IMPROVEMENT COMMISSION,
BUSINESS AND WATERFRONT IMPROVEMENT PROJECT AREA
REDEVELOPMENT CAPITAL PROJECTS FUND EFFECTUATING
THE REQUISITE LOANS
WHEREAS, the California State Legislature recently enacted ABX4 -26,
which, among other things, added Sections 33690 and 33690.5 to the
Community Redevelopment Law (Health and Safety Code Section 33000 et
seq.) requiring redevelopment agencies to make certain payments to its county
Supplemental Educational Revenue Augmentation Fund ( "SERAF ") in fiscal
years 2009 -2010 and 2010 -2011; and
WHEREAS, the Community Improvement Commission of the City of
Alameda ( "Commission ") has been notified that its payment to the Alameda
County SERAF for FY09 -10 will be $4,431,444, which payment would be
required to be made by May 10, 2010; and
WHEREAS, the Commission has been notified that its payment to the
Alameda County SERAF for FY10 -11 will be $912,356, which payment would
be required to be made prior to the end of FY10 -11; and
WHEREAS, Health and Safety Code Section 33690(c) provides that if a
redevelopment agency is unable to make its full SERAF payment for FY09 -10
or FY10 -11, the agency may borrow from either the amount required to be
allocated to the agency's Low- and Moderate - Income Housing Fund for that
fiscal year, or any moneys in that fund, or both, in order to make the full SERAF
payment; and
WHEREAS, as a condition of borrowing from the Low- and Moderate -
Income Housing Fund, the agency must make a finding that there are
insufficient other moneys to make the required payment; and
WHEREAS, Health and Safety Code Section 33690(d) requires that by
March 1, 2010, the City Council shall report to the County Auditor as to how the
agency intends to fund the SERAF payment.
NOW, THEREFORE, THE COMMUNITY IMPROVEMENT
COMMISSION OF THE CITY OF ALAMEDA DOES HEREBY RESOLVE AS
FOLLOWS:
Section 1. The Commission hereby finds that it does not have
sufficient unencumbered funds to make the required SERAF payment for FYO9-
1 0 and FY1 0-11. The revenue to be received by the Commission in FY09 -10
and FY1O -11 is required for the payment of Commission debt service,
Commission administration, and existing programs and projects and is not
available to make the SERAF payment. This finding is supported by the
information and documents provided by staff to the Commission.
Section 2. The Commission hereby authorizes a loan of $555,465 (the
"LMIHF Loan ") from the Business and Waterfront Improvement Project Low -
and Moderate - Income Housing Fund to the Alameda Point Improvement Project
Redevelopment Capital Projects Fund for the sole purpose of making the
SERAF payments for FYO9 -10 and FY10 -11. The LMIHF Loan will accrue
interest at an annual rate of 6 %, and the Commission shall repay the LMIHF
Loan to the Low- and Moderate - income Housing Fund on or before June 30,
2015 (Exhibit 1). The LMIHF Loan shall not be made until such time as the
Commission is required to pay the SERAF Payment into the Alameda County
SERAF.
Section 3. The Commission hereby authorizes a total loan of $263,316
(the "LMIHF Loan ") from the Business and Waterfront Improvement Project
Low- and Moderate - income Housing Fund to the Business and Waterfront
Improvement Project Area Redevelopment Capital Projects Fund for the sole
purpose of making the SERAF payment for FY10 -11. The LMIHF Loan will
accrue interest at an annual rate of 6 %, and the Commission shall repay the
LMIHF Loan to the Low- and Moderate - Income Housing Fund on or before
June 30, 2015 (Exhibit 2).
Section 4. The Commission requests that the City Council report to
the Alameda County Auditor that the Commission intends to fund a portion of
the SERAF payment from the LMIHF Loan.
COMMUNITY IMPROVEMENT COMMISSION
BUSINESS AND WATERFRONT IMPRO'EMENT PROJECT LOW AND
MODERATE HOUSING FUND
PROMISSORY NOTE
$555,465.00 March 3, 2010
FOR VALUE RECEIVED, the undersigned, Community Improvement Commission, Alameda
Point Improvement Project Area Redevelopment Capital Projects Fund, (the "Maker "), hereby
promises to pay to the order of the Community Improvement Commission, Business and
Waterfront Improvement Project Low and Moderate Income Housing Fund, (the "Hover "), the
principal sum of FIVE HUNDRED AND FIFTY FIVE THOUSAND FOUR HUNDRED AND
SIXTY FIVE DOLLARS ($555,465.00), (the "Loan "), as set forth herein below. All sums
payable hereunder shall be payable in lawful money of the United States of America.
1. Repayment — The Loan shall be repaid IN COMPLIANCE WITH the California
State Legislature enacted ABX4 -26, which, added Sections 33690 and 33690.05 to the
Community Redevelopment Law requiring redevelopment agencies to make payments to its
county Supplemental Educational Revenue Augmentation Fund ( "SERAF ") in fiscal years 2009 -
2010 and in 2010 -2011 as follows:
(a) Health and Safety Code Section 33690(c) provides that if a redevelopment
agency is unable to make its full SERAF payment for FY 2009 -2010, the agency may borrow
from the agency's Low and Moderate Income fund, after making a finding that there are
insufficient other moneys to make the required SERAF payment; and
(b) At the January 26, 2010 Special Joint Meeting of the City Council and the
Community Improvement Commission, the proposed two year SERAF payment plan was
approved by the Community Improvement Commission; and
(c) The authorized loan of $555,465 is for making the SERAF payment for
fiscal years 2009 -2010 and in 2010-2011 and shall accrue interest at the rate of six percent (6 %)
per annum from the date of this Note untill payment in full on or before June 30, 2015; and
(d) Maker shall pay monthly installments of interest to Holder beginning on
April 1, 2010 and continuing on the 1st day of each month thereafter, untill the principal of
$555,465 is paid in full on or before June 30, 2015.
2. Prepayment Maker may prepay all or any part of the outstanding balance of this
Promissory Note at any tine, without penalty. Within thirty (30) days following such repayment,
in full, Holder shall return this Promissory Note to Maker marked "cancelled."
Exhibit 1
Pa cre 1
3. Amendments and Modifications — This Promissory Note may not be changed
orally, and may be amended only by an agreement in writing, signed by the party against whom
enforcement of any waiver, change, modification or dispute is sought.
5. Governing Law — This Promissory Note shall be construed and enforced in
accordance with the laws of the State of California, without reference to its choice of laws
provisions.
6. Severability — If any provision of this Promissory- Note shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall
not in any way be affected or impaired thereby.
IN WITNESS WHEREOF, the undersigned has executed this Promissory Note as of the
date first set forth above.
March 3, 2010
By: Community Improvement Commission
Business and Waterfront Improvement
Project Low and Moderate Income Housing
Fund
Name: Ann Marie Gallant
Its: Interim Executive Director
"HOLDER"
By: Community Improvement Commission
Alameda Point Improvement Project Area
Redevelopment Capital Projects Fund
Name: Ann Marie Gallant
Its: Interim Executive Director
"MAKER"
Exhibit 1
Page 2
COMMUNITY IMPROVEMENT COMMISSION
BUSINESS AND WATERFRONT IMPROVEMENT PROJECT LOW AND
MODERATE HOUSING FUND
PROMISSORY NOTE
$253,316.00 March 3, 2010
FOR VALUE RECEIVED, the undersigned, Community Improvement Commission, Business
and Waterfront Improvement Project Area Redevelopment Capital Projects Fund, (the
"Maker "), hereby promises to pay to the order of the Community Improvement Commission,
Business and Waterfront Improvement Project Area Low and Moderate Income Housing Fund,
(the "Holder "), the principal sum of TWO HUNDRED AND FIFTY THREE THOUSAND
THREE HUNDRED AND SIXTEEN DOLLARS ($253,316.00), (the "Loan "), as set forth
herein below. All sums payable hereunder shall be payable in lawful money of the United States
of America.
1. Repayment — The Loan shall be repaid IN COMPLIANCE WITH the California
State Legislature enacted ABX4 -26, which, added Sections 33690 and 33690.05 to the
Community Redevelopment Law requiring redevelopment agencies to make payments to its
county Supplemental Educational Revenue Augmentation Fund ( "SERAF ") in fiscal years 2009 -
2010 and in 2010 -2011 as follows:
(a) Health and Safety Code Section 33690(c) provides that if a redevelopment
agency is unable to make its full SERAF payment for FY 2009 -2010, the agency may borrow
from the agency's Low and Moderate Income fund, after making a finding that there are
insufficient other moneys to make the required SERAF payment; and
(b) At the January 26, 2010 Special Joint Meeting of the City Council and the
Community Improvement Commission, the proposed two year SERAF payment plan was
approved by the Community Improvement Commission; and
(c) The authorized loan of $253,316 is for making the SERAF payment for
fiscal years 2009 -2010 and in 2010 -2011 and shall accrue interest at the rate of six percent (6 %)
per annum from the date of this Note untill payment in full on or before June 30, 2015; and
(d) Maker shall pay monthly installments of interest to Holder beginning on
April 1, 2010 and continuing on the 1st day of each month thereafter, untill the principal of
$253,316 is paid in full on or before June 30, 2015.
2. Prepayment Maker may prepay all or any part of the outstanding balance of this
Promissory Note at any time, without penalty. Within thirty (30) days following such repayment,
in full, Holder shall return this Promissory Note to Maker marked "cancelled."
Exhibit 2
Page 1
3. Amendments and Modifications — This Promissory Note may not be changed
orally, and may be amended only by an agreement in writing, signed by the party against whom
enforcement of any waiver, change, modification or dispute is sought.
5. Governing. Law — This Promissory Note shall be construed and enforced in
accordance with the laws of the State of California, without reference to its choice of laws
provisions.
6. Severabilitv — If any provision of this Promissory Note shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall
not in any way be affected or impaired thereby.
IN WITNESS WHEREOF, the undersigned has executed this Promissory Note as of the
date first set forth above.
March 3, 2010
By: Community Improvement Commission
Business and Waterfront Improvement
Project Low and Moderate Income Housing
Fund
Name: Ann Marie Gallant
Its: Interim Executive Director
"HOLDER"
By: Community Improvement Commission
Business and Waterfront Improvement
Project Area Redevelopment Capital Projects
Fund
Name: Ann Marie Gallant
Its: Interim Executive Director
"MAKER"
Exhibit 2
Page 2
I, the undersigned, hereby certify that the foregoing Resolution was duly and
regularly adopted and passed by the Community Improvement Commission of the City of
Alameda in a Special Meeting of the Community Improvement Commission on the 3rd day
of March, 2010, by the following vote to wit:
AYES: Commissioners Gilmore, Matarrese and Tam - 3.
NOES: None.
ABSENT: Commissioners deHaan and Chair Johnson - 2.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, !have hereunto set my hand and affixed the official seal of said
Commission this 4th day of March, 2010,
everly J
Community
+wn,
it
r ve n en
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Commission
Lara Weisiger, Secre
Community Improver, Commission