SR-414-001 (17)
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City Council Meeting 12-09-86
Santa Monica,
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California
STAFF REPORT
TO:
city Council
FROM:
city Staff
SUBJECT:
Re-affirmation of Reimbursement Agreement
Between the City of Santa Monica and the
Santa Monica Redevelopment Agency
Introduction
This Staff Report transmits resolutions by the City Council
and the Redevelopment Agency which reaffirms a Reimbusement
Agreement between the City and the Agency previously entered into
in connection with issuance of the Agency's 1978 Parking Lease
Revenue Bonds.
This reaffirmation is necessary because the
original Reimbursement Agreement cannot be located.
Backqround
On December 1, 1978, Parking Lease Revenue Bonds ("Bonds")
of the Santa Monica Redevelopment Agency were issued.
These
Bonds are secured by and payable from Base Rental Payments
("Rental Payments") to be received pursuant to the terms of a
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Lease Agreement between the City and the Agency dated December 1,
1978. Under such Lease Agreement, the Agency agreed to finance
construction of a Parking Facility (the "Facility") in the
Downtown Redevelopment Project Area, and the city agreed to make
Rental Payments for the completed Facility in an amount
sufficient to pay annual debt service on the Bonds.
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DEC - 9 J986
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The City derives the funds for payment of debt service from
a combination of Developer payments (payable pursuant to a
Payment Agreement and Sublease pertaining to the Facility), and
from tax increment revenue ("tax increment") which the Agency
receives and a portion of which is transferred to the City
pursuant to the Reimbursement Agreement.
The City's outside redevelopment counsel (Weiser, Kane,
Ballmer & Berkman) has been unable to locate the original or
copies of such Reimbursement Agreement. It was therefore deemed
advisable that city Staff and its counsel reconstruct such
Reimbursement Agreement and submit it to the City council and the
Agency members for re-affirmation of the existing obligations.
Discussion
The reaffirmation of the reconstructed Reimbursement
Agreement will provide necessary documentation to support the
existing obligations of the City and the Agency pertaining to the
Parking Facility located in the Downtown Redevelopment Proj ect
Area.
city Staff believes such action is advisable to preserve a
clear record of the intended rights and obligations on the date
of issuance of such Parking Lease Revenue Bonds. Re-affirmation
will provide necessary information to future City Staff and
members of its City Council and Redevelopment Agency.
Budqet/Financial Impact
The re-affirmation of the Reimbursement Agreement by
adoption of the attached resolutions will not have any budget or
financial impact other than to provide documentation pertaining
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to the Agency's existing obligation to provide certain funds to
the city.
Recommendation
It is respectfully recommended that:
1. The City Council adopt the attached Resolution (Exhibit
"A"); and
2. The Redevelopment Agency adopt the attached Agency
Resolution (Exhibit "B").
Prepared By:
Robert M. Myers, City Attorney
Linda A. Moxon, Deputy city Attorney
C.M. Dennis, Director of Finance
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