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HomeMy WebLinkAboutCVRC Reso 2006-016 CVRC RESOLUTION NO. 2006-016 RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION RECOMMENDING APPROVAL AND EXECUTION BY THE REDEVELOPMENT AGENCY OF THE EDUCATIONAL REVENUE AUGMENTATION FUND (ERAF) LOAN AGREEMENT AND ASSOCIATED DOCUMENTS WITH THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY WHEREAS, Municipal Code Section 2.55.060(B) authorizes the Chula Vista Redevelopment Corporation (CVRC) to make recommendations to the Redevelopment Agency (Agency) on approvals and agreements requiring the expenditure of funds; and WHEREAS, on March 21, 2006, the Agency will be considering an agreement with the California Statewide Communities Development Authority to participate in 2006 in the CRA/ERAF Loan Program created by the California Redevelopment Association (CRA) for payments to the state's Educational Revenue Augmentation Funds (ERAF); and WHEREAS, as part of the effort to balance the 2005/2006 Budget of the State of California, redevelopment agencies are obligated to make payments totaling $250 million to ERAF; and WHEREAS, this is the second year that such payments will be required; and WHEREAS, the magnitude of the ERAF payment imposes a significant burden on the Agency's cash flow; and WHEREAS, as part of the legislation mandating the payment, the CRA created the CRA/ERAF Loan Program allowing agencies to spread the payment over the next 10 years; and WHEREAS, the Agency participated in this program in 2005; and WHEREAS, by participating in the Loan Program, the Agency will be able to improve its cash flow by spreading the payment over time; and WHEREAS, by pooling loan requests from several redevelopment agencies in the State and by using standardized documents and processing procedures, the cost of this program will be kept low for the Agency's benefit. NOW, THEREFORE, BE IT RESOLVED that the Chula Vista Redevelopment Corporation does hereby recommend approval and execution by the Redevelopment Agency of the ERAF loan agreement with the California Statewide Communities Development Authority. Presented by: 9~~ fir ~ Dana M. Smith Assistant City Manager/Director of Community Development Approved as to form by ~?/;/~kJj~A .~ oore ( General Counsel ' CVRC Resolution No. 2006-016 Page 2 PASSED, APPROVED, and ADOPTED by the Chula Vista Redevelopment Corporation of the City ofChula Vista, this 9th day of March 2006, by the following vote: AYES: Directors: Chavez, Desrochers, Lewis, McCann, Paul, Rooney NAYS: Directors: None ABSENT: Directors: Padilla ABSTAINED: Directors: Castaneda, Rindone ATTEST: Cilvv~ /1(. ~ Dana M. Smith, Secretary STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA ) ) ) I, Dana M. Smith, Secretary of the Chula Vista Redevelopment Corporation of the City of Chula Vista, California, do hereby certify that the foregoing CVRC Resolution No. 2006-016 was duly passed, approved, and adopted by the Chula Vista Redevelopment Corporation at a regular meeting of the Chula Vista Redevelopment Corporation held on the 9th day of March 2006. Executed this 9th day of March 2006. ~q~ Dana M. Smith, Secretary