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Home My WebLink AboutReso 1979-9480RESOLUTION N0. 9480 (Redevelopment Agency Resolution No. 158) RESOLUTION OF THE CITY COUNCIL/REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING ACQUISITION SECURITY AGREEMENT BETWEEN THE CITY OF CHULA VIf;TA AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA The City CouncilyRedevelopment Agency of the City of Chula ista does hereby resolve as follpws: WHEREAS, the Redevelopment Agency of the City of Chula Vista 'sires to enter into an Acquisition Guarantee Agreement with Title Insurance id Trust Company; and, WHEREAS, in order to enter into said Agreement the commitment the City of Chula Vista is required; and, WHEREAS, the City of Chula Vista desires to assist the Redevelopment ency in meeting its obligations under said agreement. NOW, THEREFORE B~ IT RESOLVED that the Acquisition Security reement attached hereto and incorporated herein, the same as though fully set rth is hereby approved. BE IT FURTHER RE50LVED that the Mayor on behalf of the City of ula Vista is hereby authorized to execute said Security Acquisition Agreement, d that the Chairman on behalf of the Redevelopment Agency is hereby authorized execute same. sented by Sul G. Desrochers, Community ~velopment Director Approved as to form by ~~ ~ .. 'J~ 9/ /r O ' George D. Lindberg, City Attorney CHULA 197 9 AYES: NAPES ABSEN`. ADOPTED AND APPROVED BY'',THE CITY COUNCIL OF THE CITY OF VISTA, CALIFORNIA this last day of February key the following vote , ' to-wit CounoiZmen Hyde, Gillo~}, Cox, Egdahl Count i Zmen Scott C: CounoiZmen None Mayor of the City of Chula Vista ATTES , City CZerki STAT OF CALIFORNIA ) COUN Y OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, ~IENNIE Mo FULASZ, C1V2C, CITY CLERK of the City of Chula Vista, Cal; ornia, DO HEREBY CERTIFY that the above and foregoing is a f~uZZ, t~~de and correct Dopy of and that the same has not been amended or repeaZedo DATE City CZer CC-660 (,S'EAL J ~~~ ACQUISITION SECURITY AGREEMENT THIS AGREEMENT is made and entered into between the CITY OF HULA VISTA (hereinafter referred to as the "CITY"), and the CHULA ISTA REDEVELOPMENT AGENCY (hereinafter referred to as the "AGENCY"). RECITALS. 1. AGENCY has entered into an Acquisition Guarantee Agree- ment with Title Insurance and Trust Company, a California corpora- tion (hereinafter referred,to as "TI"), pursuant to which TI has agreed to provide policies'Of title insurance on certain parcels of property being acquired'~by eminent domain by AGENCY. 2. Pursuant to the Acquisition Guarantee Agreement, the AGENCY has agreed to encumber funds in its Town Centre Development Fund as security for its obligations under said Agreement. 3. At the present time the AGENCY does not have a sufficient sum of money in said Fund ~o meet its projected obligations under such Agreement. 4. CITY desires to a$sist AGENCY in meeting its obligations under said Agreement. NOW, THEREFORE, the C$TY and the AGENCY agree as follows: 1. The above recitals are incorporated herein as if set out in full. 2. CITY agrees that din the event the AGENCY is required to encumber funds in its Town'Centre Development Fund pursuant to the Acquisition Guarantee Agreement between AGENCY and TI and if, at such time, AGENCY is without sufficient funds to do so, the CITY will loan the AGENCY the sums necessary for AGENCY to comply with said Agreement. 3. AGENCY agrees than all such loans shall bear interest at the legal rate of interest and shall be secured by a lien upon tax increment revenues receivable by the AGENCY pursuant to Health and Safety Code Section 331670 from the Town Centre Redevelopment Project Area. 4. The provisions of'this Agreement are made for the express benefit of TI. DATED: February 1, 1979 ', CITY OF CHULA VISTA By~ Mayor CHULA VISTA REDEVELOPMENT AGENCY Chairman The provisions of this Agreement are accepted. TITLE INSURANCE & TRUST COMPANY By: N~~ JO I f JT COUiJC I L/AGENCY MEET I PdG CITY OF CHULA VISTA Item No. 3 REDEVELOPMENT AGENCY AGENDA STATEMENT For meeting of 2/1/79 ITEM TITLE a. RESOLUTION 9480/Apprgving City/Agency Acquisition Security Agreement 158 b. RESOLUTION 159 Apprpving Property Acquisition Guarantee Agreement SUB ITTED BY Community Development', Director ITE EXPLANATION (4/5TH'S VOTE REQUIRED YES NO X ) Tit e Insurance & Trust Company, their officers and counsel, together with our Special Cou sel and staff, have provided a means whereby TI will issue a Title Policy to us for the conveyance of two parcels upon which we have obtained orders for "Immediate Pos ession" through the Courts. While we have not yet reached settlement or obtained tit e, the Agency has deposited $57p,000 in Court as probable just compensation based upo Agency appraisals. The Court fiction could take a year or more to reach trial. Unt 1 the cases are settled or litigated to conclusion, the City does not actually have mar etable title. Therefore, a meams has been devised so that construction may begin des ite the lack of title. As condition of issuing title, the Company requires that they be assured that we, the Age cy, follow through with the litigation and/or reach settlement. A cash deposit equ 1 to one and one-half times the ', appraisal was suggested as acceptable security. Sin e there is not a demand by either the courts or the owners, it would be costly and the efore premature to provide such',security. It is at this point that the City has bee asked to lend its name to the agreement. The Agency, on the other hand, will pro- vid the City with the guarantee that when the funds are required, they will be provided. The purpose of the first resolution'is therefore to assure Title Insurance & Trust Com any that adequate security will'be provided when Court litigation is resolved or set lement is reached with the owners. The second resolution authorizes the Agency to ent r into an agreement with Title insurance & Trust Company whereby the Agency agrees to ctually acquire said properties now in litigation. The resources for the funding have been assured by Stone & Youngberg, Agency financing con ultants,with two weeks notice. In addition, the merger of the Bayfront and Town Cen re projects will provide a more than adequate back up source while the proceeds fro sale of other properties (with, clear title) gives evidence that funds can be exp diently raised to secure the agreement. PGD a ''EXHIBITS A reement X Resolution(s) X Ordinance Plat Notification List 0 her ENVIRONMENTAL DOCUMENT: Attached Submitted on FINANCIAL IMPACT STAFF RECOMMENDATION Adobt resolutions. BOARS/COMMITTEE RECOMMENDATION REDEI~ELOPMENT AGENCY ACTION olutions adopted 4-1 (Scott voted "no") RA-4 (REV. 10/77) . ~~~a01~ ~' :rl~~i(rr:,I~(f~ _- -- . .-- ... _. _ _ Z is.~l J "_. _ . _ ..... C061MUNIT DEVELOPMENT DEPARTMENT ~_~ tit ~ 3, ~~"- ~, - ~~t~ o~ c~~u.Qa ~Uista CALIFORNIA ATE: 0: TiL1~ Insure~ca t~ Trust C.Q+~~any ~.;~. ~x la~~ Sin ;71~~ct. CA ~~ll UBJECT: (X) Resolution(s) No.' ( )Ordinance(s) No. (C) Agreement ou will find enclosed a certified copy of the Redevelopment Agency document(s) pproved at the meeting of Eist~~`c4~rx~r 1, 117~'~. 1 ,~' /~'~ ~ ~ ~~ ~ ' ~/ i~/ i ; Paul G. besrocFiers Redevelopment Agency Secretary/ Community Development Director nclosure(s) Please publish this documenit on and send us a proof of publication notice.., Please record said document 'and return it to us at your earliest convenience. The above ordinance was filed with the Secretary of State on ~) For your files. A-7 276 FOURTH AVENUE CHUL.q VISTA, CALIFORNIA 92010 TELEPHONE 575-5047 ~~