CC Resolution 2009-077 Financing Agrmt - FA, City, RDA, & HARESOLUTION NO. 2009 - 077
A RESOLUTION OF THE CITY OF LA QUINTA
APPROVING A FINANCING AGREEMENT AMONG THE
CITY, THE LA QUINTA REDEVELOPMENT AGENCY, AND
THE LA QUINTA HOUSING AUTHORITY FOR THE
PROVISION OF FINANCIAL ASSISTANCE TO THE
HOUSING AUTHORITY
WHEREAS, the City Council of the City of La Quinta ("City" or "City
Council," as applicable) has established the La Quinta Housing Authority (the
"Housing Authority") to function in the City of La Quinta in accordance with the
California Housing Authorities Law (Health and Safety Code Section 34200 et
seq.); and
WHEREAS, the Housing Authority presently has no funds with which to
carry out its purposes; and
WHEREAS, the City desires to provide financial assistance to the Housing
Authority by making periodic advances of funds in order to finance the operations
of the Housing Authority; and
WHEREAS, City, La Quinta Redevelopment Agency ("Agency"), and Housing
Authority staff have prepared a Financing Agreement pursuant to which the City
and Agency could make such periodic advances of funds (the "Financing
Agreement").
NOW, THEREFORE, the City Council of the City of La Quinta does hereby
resolve as follows:
SECTION 1. The Financing Agreement, a copy of which is on file with the City
Clerk, is hereby approved.
SECTION 2. The City Manager is authorized and directed to execute the Financing
Agreement and to take such other actions and execute such other documents as
may be necessary to implement and effect this Resolution and the Financing
Agreement on behalf of the City.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
-1-
Resolution No. 2009-077
Housing Authorhy Financing Agreement
Adopted: October 6, 2009
Page 2
PASSED, APPROVED and ADOPTED at a regular meeting of the City Council
of the City of La Quinta held this 6t" day of October 2009.
AYES: Council Members Evans, Franklin, Henderson, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
V~
DON ADOL H, Ma
City of La Quinta, California
ATTEST:
VERONICA J~IONTE
City of, La Quinta, Cal
(City Se
NO, CMC, City Clerk
APPROVED AS TO FORM:
~IVL KATHIERINE JE
City of La Quinta,
all
FINANCING AGREEMENT
This FINANCING AGREEMENT ("Agreement") is entered into as of this
g� day of 0C4bo&Lv , 2009, by and among the CITY OF LA QUINTA, a
California municipal corporation and charter city ("City"), the LA QUINTA
REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"), and
the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic
("Authority"1.
WHEREAS, Agency is a public body, corporate and politic, organized under
the California Community Redevelopment Law (Health & Safety Code § 33000 et
seq.); and
WHEREAS, City is a municipal corporation and a charter city of the State of
California, organized and existing under the Constitution of the State of California;
and
WHEREAS, the City established the Authority in accordance with the
California Housing Authorities Law (Health and Safety Code Section 34200 et seq.)
in order to provide suitable, safe and sanitary housing opportunities for City
residents; and
WHEREAS, the Authority presently has no funds with which to carry out its
purposes; and
WHEREAS, the City and Agency desire to provide financial assistance to the
Authority by making periodic advances of funds in order to finance the operations
of the Authority; and
WHEREAS, it is anticipated that the loan financing set forth herein shall be
repaid by Authority from future revenues generated by the Authority's ownership
and operation of housing projects within the City.
NOW, THEREFORE, the City, Agency, and Authority agree as follows:
1 . Agency/City Financing; Interest; Use of Loan Principal.
The City and/or Agency may, from time to time, advance funds to the
Authority to finance the operations and projects of the Authority. Interest shall
accrue on the outstanding principal advanced at the earning rate of the City's
Investment Pool Funds, and shall be adjusted quarterly. The advanced funds shall
be used only for the purpose of financing the operations and projects of the
Authority and for no other purpose.
2. Repayment.
The total funds advanced by the City and/or the Agency, plus all interest
accrued thereon, shall be repaid by the Authority when funds generated from
Authority operations are available. Authority shall be entitled to repay all or part of
the loan principal at any time with no other charges, fees, or penalties. All
amounts due under this Agreement shall be payable at the offices of the Agency or
City (as applicable).
3. Future Financing of Specific Projects.
Notwithstanding anything to the contrary in this Agreement, the parties may
enter into separate agreements with different terms and conditions to finance
particular projects.
4. Recordkeeping.
The Finance Director/Treasurer of the City shall keep appropriate records and
accounts to document all borrowings herein.
5. Non -Recourse Obligation.
No officer, official, employee, agent, or representatives of Authority shall be
liable for any amounts due hereunder, and no judgment or execution thereon
entered in any action hereon shall be personally enforced against any such officer,
official, employee, agent, or representative.
6. Entire Agreement; Amendments.
This Agreement shall constitute the entire agreement of the parties. This
Agreement may be amended or modified only by an agreement in writing signed by
the parties.
This FINANCING AGREEMENT is executed by the duly authorized
representatives of the City, Agency and Authority as of the date first herein above
written.
IfGTel 0,10va
LA QUINTA REDEVELOPMENT
AGENCY, a public body, corporate and
politic
/b�g�y ? (//'may✓!"l�� �-y�-L
Dated Thomas P. Genovese, Executive Director
ATTEST:
veronica j. wwritecino, —
Agency Sec fary
APPROVED,AS'.TO; FORI1/f:
RUTAN & ,TRUCK€R,—LLP
le� — A=�'— —
Katherine Jen
Agency Counseln
"CITY"
CITY OF LA QUINTA, a California
un cipal corpo,5ati and charter city
Dated Thomas P. Genovese, City Manager
IA09:61 I
Veronica J. f�A�(itecino,
City Clerk //
(signatures continued on next page)
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
/ P - lam-
M. Katherine Jen
City Attorney
"AUTHORITY"
LA QUINTA HOUSING AUTHORITY,
a public body, corporate and politic
ioA X) g
Dated Thomas P. Genovese, Executive Director
ATTEST:
Veronica J. Mprqdc
Authority Se tart'
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
M. kathe'rine Jenso
Authority Counsel