4 - RESO - ESTABLISH REPAYMENT SCHEDULE

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REVISED 2/14/13 LES SUCCESSOR AGENCY RESOLUTION NO. 2013- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACTING AS SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ESTABLISHING A SCHEDULE TO REPAY FUNDS ADVANCED FROM THE SOUTH MAIN CORRIDOR FUND FOR SUPPLEMENTAL EDUCATIONAL REVENUE AUGMENTATION FUND LOAN PURSUANT TO PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE ("DISSOLUTION ACT") BE IT RESOLVED BY THE MEMBERS OF THE SUCCESSOR AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of Santa Ana, acting as Successor Agency, conclusively finds, determines and declares as follows: A. Pursuant to the Dissolution Act, on January 9, 2012, pursuant to section 34173 of the California Health & Safety Code, the City of Santa Ana ("City") elected to serve as the Successor Agency for the dissolved Community Redevelopment Agency ("Agency') of the City of Santa Ana and selected the Housing Authority of the City of Santa Ana to act as "Successor Housing Agency". B. The City Council serves as the governing body of the Successor Agency under the Dissolution Act to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs. Many actions of the Successor Agency are subject to the review and approval of a seven member Oversight Board of the Successor Agency to the former Community Redevelopment Agency of the City of Santa Ana ("Oversight Board"). C. The Oversight Board has been established to direct the Successor Agency to take certain actions to wind down the affairs of the former Agency in accordance with the California Health & Safety Code. D. In order for the former Agency to make its Supplemental Educational Revenue Augmentation Fund ("SERAF") payment to the State in May 2010, the Agency borrowed funds in the amount of $6,302,827 from the South Main Commercial Corridor Fund. Other funds were borrowed from the Agency's Low and Moderate Income Housing fund in order to pay the balance to the State. The amount currently owed to the South Main Commercial Corridor Fund is $6,000,000. E. The repayment of this loan and use of the proceeds is under dispute with the State Department of Finance, however they have indicated that the Oversight Board needs to approve the repayment schedule. As required by the Dissolution Act [HSC Sections 34180(a) and 34171(d)(1)], and pursuant to the December 18, 2012 ROPS Determination Letter received from the State Department of Finance (DOF), the Oversight Board must establish and approve repayment schedules or other mandatory Exhibit 4 4-11