SA_FULL PACKET_2012-10-01 - Laserfiche WebLink

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Case law holds that where "detail" or non-essential terms of a contract are to be agreed in the future, the contract remains enforceable.18 While certain ministerial arrangements may remain outstanding, the material terms of the S.A. Venture Agreement are in place; hence, the S.A. Venture Agreement is enforceable. Pledges of Tax Increment are Honored by the Dissolution Act. The Successor Agency's obligation to repay the Fee Loan under the S.A. Venture Agreement is supported by a pledge of tax revenues from the Site. Section 34175(a) specifically protects pledges of tax revenues made by the Former Agency, as follows: It is the intent of this part that pledges of revenues associated with enforceable obligations of the former redevelopment agencies are to be honored. It is intended that the cessation of any redevelopment agency shall not affect either the pledge, the legal existence of that pledge, or the stream of revenues available to meet the requirements of the pledge. Section 34174(a) provides further support for the conclusion that the obligation to pay the Fees is an enforceable obligation protected by the Dissolution Act: [N]othing herein is intended to absolve the successor agency of payment or other obligations due or imposed pursuant to the enforceable obligations; and provided further, that nothing in the act adding this part is intended to be construed as an action or circumstance that may give rise to an event of default under any of the documents governing the enforceable obligations. The legislature was clearly mindful that the Dissolution Act would be unconstitutional if it impaired existing contractual obligations of the Former Agency. 19 18 City of Los Angeles v. Superior Court (1959) 51 Cal.2d 423, 433. 19 See footnote [5], above. Page 9 of 9 3-27