AgdaPkt 2016-02-08 Closed and Joint SA PFA

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The Projects contemplated by the City/RDA Loan were consistent with the Redevelopment Plan and Implementation Plan, as the goals and programs provide for the elimination of inadequate public improvements and the provision of public infrastructure of benefit to the Project Area. These public improvements were identified in the Redevelopment Plan, and in the five-year Implementation Plan adopted by the Redevelopment Agency pursuant to Health and Safety Code Section 33490, as public improvement projects to be undertaken by the Redevelopment Agency. The projects being financed were included in the Redevelopment Agency budget adopted by the Agency Board on August 11, 2003. Pursuant to this Council and Agency Board authorization, Agency bonds were sold in October 2003. And on January 24, 2005, the City Council and Agency Board, by Minute Order Nos. 05-13 and RD05-01, approved a loan agreement for $3 million to the Agency from the City’s capital projects fund to finance the balance of the Agency’s project budget. Key business terms of the loan included an interest rate of 4.12%, a term of June 2019 or until all outstanding principal and accrued interest was paid and interest only payments until June 2009 at which point principal payments were to begin. Interest payments were made from June 2005 through December 2011 and principal payments were made from June 2009 to December 2011. After this point, the State Department of Finance disallowed future loan repayments pending the issuance of a Finding of Completion and a process to reinstate the loans, as described below. The outstanding principal owed on this City/RDA loan is $2,269,544. Redevelopment Dissolution Act Assembly Bill 1X 26 (“AB 26”), enacted in June 2011, as modified by the Supreme Court of the State of California in the matter of California Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. S194861, and as further modified by Assembly Bill 1484, enacted in June 2012, and other subsequently adopted legislation (all collectively, the “Dissolution Act”) dissolved and set out procedures for the wind-down of all redevelopment agencies throughout the State effective February 1, 2012. The Successor Agency to the Redevelopment Agency of the City of Redwood City (the “Successor Agency”) is the successor entity to the former Redevelopment Agency and, pursuant to the Dissolution Act, is responsible for the wind-down of the affairs of the former Redevelopment Agency, including without limitation the performance and repayment of all enforceable obligations of the former Redevelopment Agency. Pursuant to Health and Safety Code Section 34176, the City elected to retain the housing assets and functions previously performed by the Redevelopment Agency. Health and Safety Code Section 34171(d)(2) provides, with a few exceptions, that “enforceable obligation” does not include any agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency. Health and Safety Code Section 34179.7 provides that upon completion of certain 6.1.D. - Page 4