O2313City Council Meeting: May 25, 2010 Santa Monica, California
ORDINANCE NO. 2313 (CCS)
(CITY COUNCIL SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA APPROVING THE ACT
OF ENTERING INTO CERTAIN LEASE AND
REIMBURSEMENT AGREEMENTS
WHEREAS, the Redevelopment Agency of the City of Santa Monica (the
"Agency") has authorized the acquisition of the property located within the City of Santa
Monica (the "City") commonly known as 1301 - li33 Fourth Street (the "Property); and
WHEREAS, the Agency proposes to acquire the Property through a Purchase and
Sale Agreement, receiving fee title to the property subject to installment Agency
promissory notes in favor of the sellers and, under the proposed transaction, the Agency
would lease the property to the City ("Agency Lease"), and the City and Agency would
enter into a Reimbursement Agreement so that Agency funds would reimburse the City
for the annual rent payments; and
WHEREAS, under the proposed transaction, the Agency Lease would not exceed
99 years, the City's annual lease payments would not extend beyond 2042 nor exceed the
total sum set forth in Exhibit A attached hereto, and the City will have the option to
purchase the Property from the Agency for $1.00 at the end of the lease; and
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WHEREAS, the rental payments to be made by the City pursuant to the Agency
Lease will be used by the Agency for payment of the Agency's promissory notes or other
evidences of indebtedness to finance the purchase of the Property; and
WHEREAS, the Agency'constitufe's a "public leaseback corporation," as such
term is defined in subsection (c) of Section 54240 of the California Government Code;
and
WHEREAS, the proposed Lease and Reimbursement agreement constitutes a
"public leaseback," as such term is defined in subsection (b) of Section 54240 of the
California Government Code; and
WHEREAS, Section 54241 of the California Government Code provides that no
public lease back, the term of which will exceed five years or more, shall be entered into
until the act of entering into a formal agreement with the public leaseback corporation
shall have been approved by ordinance; and
WHEREAS, the City desires to approve, by this Ordinance, the act of entering
into the Agency Lease and the act of entering into the Reimbursement Agreement;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES ORDAIN, AS FOLLOWS:
The act of entering into the Agency Lease is hereby approved.
Section 1. The act of entering into the Reimbursement Agreement is hereby
approved.
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Section 2. This Ordinance is subject to the provisions for referendum applicable
to the City.
Section 3. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, are hereby repealed or modified to that extent necessary to
affect the provisions of this Ordinance.
Section 4. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of any competer_t jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance,-and each and every section, subsection, sentence, clause or
phrase not declared invalid or unconstitutional without regard to whether any portion of
this Ordinance would be subsequently declared invalid or unconstitutional.
Section 5. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption.. This Ordinance shall become effective after
30 days from its adoption.
APPROVED AS TO FORM:
-~a~~f~
Mar ha Jo es outrie
Cit Attor ey
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Approved and adopted this 26tt' day of May, 20~
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Bobby Shri er, Mayor
State of California )
County of Los Angeles) ss.
City of Santa Monica )
I, Maria Stewart, City Clerk of the City of Santa Monica, do hereby certify that the
foregoing Ordinance No. 2313 (CCS) had its introduction oh May 11th, 2010, and was
adopted at the Santa Monica City Council meeting held on May 25th, 2010, by the
following vote:
Ayes: Council members: Bloom, Holbrook., Davis, McKeown
Mayor Pro Tem O'Connor, Mayor Shriver
Noes: Council members: None
Abstain: Council members: None
Absent: Council members: O'Day
A summary of Ordinance No. 2313 (CCS) was duly published pursuant to California
Government Code Section 40806.
ATTEST:
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Maria Stewart, City clerk