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HomeMy WebLinkAbout84-160EJC:ar 12/11/84 RESOLUTION NO~ 841160 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING MODIFICATIONS TO THE HOME IMPROVEMENT LOAN AND REBATE PROGRAMS AND IN SETTLEMENT OF THAT LITIGATION ENTITLED CITY OF ORANGE, ET AL. V. CITY OF SANTA ANA ET AL., O.C.S.C. NO. 43-39-36 t~ Ag Sa Ac. C v( s( ac a 1 tf ir m( fi A~ R( ar tl hi WHEREAS, on May 15, 1984, the City Council of City of Santa Ana, by Resolution No. 84-61, approved the sale of property upon terms and conditions contained in a Participation ~eemen~ between the Community Redevelopment Agency of the City of 3ta Aha and Santa Ana Venture; and WHEREAS, on May 15, 1984, the Community Redevelopment 3ncy of the City of Santa Aha, by Resolution No. 84-11, approved id Participation Agreement for the redevelopment of the Fashion uare Shopping Center. WHEREAS, an action entitled City of Oran~e~ et al. v. ty of Santa Anar et al., Orange County Superior Court No. 43-39-36 s been filed challenging the validity of the Participation Agree- nt; and WHEREAS, the City of Santa Ana and the Community Rede- lopment Agency of the City of Santa Ana desire to settle and re- lve the above-entitled litigation; and WHEREAs, the relevant parties to the above-entitled ti?n have agreed to a Settlement ~greement with Mutual Releases and Stipulated jUdgment, copies of which are attached hereto as Exhibits and 2, respectively, and incorporated herein by reference ; and WHEREAS, the City Council of the City of Santa Ana and e Community Redevelopment Agency of the City of Santa Ana in adopt- g this resolution are acting in reliance on said Settlement Agree- nt with Mutual Releases and the carrying out of its terms in good ith by the parties thereto. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA A DOES RESOLVE AS FOLLOWS: SECTION 1: That the City of Santa Ana and the Community development Agency of the City of Santa Ana agree to the terms of, d authorize the City Manager and the Executive Director to execute e Settlement Agreement with Mutual Releases attached hereto as Ex- bit 1. SO RE LUTION NO~ 84L160 PAGE TWO Re au en AT RE AN~ COl GrJ Jo~ Ac( Ha] Lu] Mc( Yo~ SECTION 2: That the City of Santa Aha and the Co,unity ]evelopment Agency of the City of Santa Ana agree to the terms, and :horize the City Attorney and Agency Legal Counsel to obtain the ~ry of the Stipulated Judgment attached hereto as Exhibit 2. ADOPTED this 10th day of December , 1984. DEST: liCE C. GUY- / ~.RK OF THE COUNCIL- [ SWAnSOn,-EXECUTIVE DIRECTOR RECORDING SECRETARY DANIEL E. GRISET~ MAYOR AND AGENCY CHAIRMAN NClLMEMBERS: set nson ,sta t embourger luigan lng Aye Aye Absent Aye Aye A,¥e Aye APPROVED AS TO FORM: ~D~{RID J~,~, COOPER CITY ATT]~R'N]~Y AND AGENCY LEGAL COUNSEL SETTLEMENT AGREEMENT WITH MUTUAL RELEASES This Settlement Agreement with Mutual Releases (the "Settlement Agreement") is executed and effective as of this 10th day of December 1984, by and among Plaintiffs Samuel Romero, Albert Pi Gipson, and Moses Brown (collectively "Plaintiffs'!, and Defendants City of Santa Aha and Community Redevelopment Agency of the City of Santa Aha (collectively "Defendants"), with reference to the £ollowing facts: WHEREAS, 1. On or about May 15, 1984, by Resolution 84-61, the City Council of the City of Santa Ana ("City Council") adopted ~indings and approved the sale of real property upon terms and ;onditions contained in a Participation Agreement between the ]ommunity Redevelopment Agency of the City of Santa Aha and Santa ina'Venture. 2. On or about May 15, 1984, by Resolution No. 84-11, :he Community Redevelopeent Agency of the City of Santa Ana ["Agency") approved a Participation Agreement between the Agency lnd Santa Aha Venture for the redevelopment of the Fashion Square hopping Center in Santa Aha. $. On July 13, 1984, the City o[ Orange filed an ction, City of Orange v. City of Santa. Ana, et al., Orange County EXHIBIT 1 .0417S/330-01 Superior Court No. 43-34-36 (the "lawsuit"), challenging the ralidity of the Participation Agreeaent between the Agency and' 3anta Ama Venture and said Resolutions No. 84-61 and 84-11. o c; ot an P1 [iled 4. On August 27, 1984, a First A~ended Complaint was in the lawsuit by which, inter alia, Plainti£fs Romero, lpson, and Brown joined said action. $* Plaintiffs and Defendants have agreed upon mutually cceplable terms £or the settlement o£ the lawsuit. 61 Defendants desire to obtain a Judgment herein alidating the Participation Agreement~ Resolution No. 84-61 and esolution No. 84-11, 7. Plaintiffs desire, pursuant to said Judgment, to .ligate Defendants to carry out and abide by certain terms and ,nditions as more particularly set forth herein and in the ~dgment, which is attached hereto at "Exhibit A.' 8. Plaintiffs and her from all claims, causes of ~e against each other relating the lawsuit. Defendants desire to release each action, and demands that they may to the Participation Agreement NON, THEREFORE, IT IS HEREBY STIPULATED by and between ~intiffs and Defendants and their attorneys that: EXHIBIT ! 0417s/330-01 1. Defendants shall, within thirty (30) days after executing this Settlement Agreement, bring or cause to be brought the resolution attached hereto as "Exhibit B" before the City Council and the Agency for their approval or disapproval. 2. This Settlement Agreement shall be null and void if the City Council or the Agency fails to approve said resolution. Any party hereto shall be entitled to rescind this Settlement Agreement by giving written notice to the other parties and their attorneys if, within ten (10) days £rom the date of this Settlement Agreement, a settlement agreement is not executed between Plaintiffs and Santa Aha Venture, or a settlement agreement is not executed between David L1ewellyn, on the one hand, and Defendants and Santa Aha Venture, on the other hand. 3. If Defendants adopt said Resolution in the form ~ttached hereto, then, following the execution of Settlement ~greements between Plaintiffs and Santa Ana Venture, and between David L1ewe11yn, on the one hand and Defendants and Santa Aha ~enture, on the other han~ the parties shall apply to the ~uperior Court of the County of Orange for the entry of Judgment .th the terms and in the form of the Stipulated Judgment attached ~reto as Exhibit 'A,' the terms of which Judgment are ncorporated herein by reference thereto. Said Judgment shall be final judgment, resolving all of the issues raised in the awsuit. Further, each of the parties hereby expressly and rrevocably waives their right to appeal. EXHIBIT.0417s/330-01 e V tc e[ 4~ The parties agree that attorneys' fees, costs, and ~penses shal! not be awarded to either Plaintiffs or Defendants. 5. Defendant City of Santa Aha shall provide Santa Ana ~nture, or Santa Ana Venture's successor in interest as developer Fashion Square, with information concerning minority- or women- 'ned business in Santa Ann. Such information shall be updated or pplemented on a reasonable basis. 6. Plaintif£s and Defendants, and each of them, agree take or cooperate in all actions reasonably necessary to ef£ect try of said Judgment. 7. Except as provided in the Judgment or as specifically provided herein, Plaintiffs, for themselves and for their respective principals, former and current employees, agents, attorneys, successors, and assigns, and each of them, hereby re:eases, acquits, and £orever discharges Defendants and their re~ )ective principals, £ormer and current officials, former and cu] 'ent employees, agents,'attorneys,' successors, and assigns, and each of them, of and from any and all demands, obligations, lilbilities, causes of action, sums of money, and other claims of every kind and nature, whether known or unknown, and whether anticipated or unanticipated, which Plaintiffs, or any of them, hav~, or may now claim to have, or may hereafter claim to have, tel val ating to the validity of the Participation Agreement, the idity of Resolution Nos. 84-61 and 84-11, or the lawsuit. 4 EXEI~II ~ .0417S/330-01 ..... 8. Except as specifically provided herein, Defendants, for themselves and for their respective principals, former and' current officials, former and current employees, agents, attorneys, successors, and assigns, and each of them hereby releases, acquits, and forever discharges Plaintiffs and their respective principals, former and current employees, agents, attorneys, successors, and assigns, and each of them, of and from any and all demands, obligations, liabilities, causes of action, sums of money, and other claims of every kind and nature, whether known.or unknown, and Whether anticipated or unanticipated, which Defendants, or any of them, have, or may now claim to have, or may hereafter claim to have, relating to Plaintiffs' prosecution of the lawsuit or the payment of attorneys' fees relating thereto. Defendants, and each of them, further agree not to encourage or support any person in challenging Plaintiffs' prosecution of the lawsuit or the payment of attorneys' fees relating thereto. 9. In connection with the foregoing releases, ?laintiffs and Defendants, and each of them, agrees to and does ~ereby waive and relinquish all rights and benefits afforded under ;ection 154l of the California Civil Code, which provides as ~ollows: "A general the creditor does not know or suspect to exist his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." release does not extend to claims which in ~417S/130-01 EXHIBIT ! .... 10. Plaintiffs and Defendants, and each of them, warrants and represents that none of its claims, causes of acltion, or demands herein released have been assigned to any person or entity. 11. This Settlement Agreement shall be governed by the la~is of the State of California and any questions arising hereunder shall be construed and determined according to such law. ! ~2. Before initiating any litigation to remedy any br~ach of this Settlement Agreement or the related Judgment, Plaintiffs and Defendants, and each of them, agrees to provide thirty (30) days' written notice of said breach to each breaching patty to afford them an opportunity to correct the breach. Said written notice will be sent by first class mail, postage prepaid, ad~[ressed as follows: To Plaintiffs: Debra Fritz 10582 Sennit Avenue Garden Grove, California 92643 To Defendants: City Attorney City of Santa Aha 20 Civic Center Plaza Santa Ana, California 92702 13. This Settlement Agreement may be signed by the par~ies in different counterparts and the signature pages combined to Create a single document binding on all parties. 14, This Settlement Agreement contains the entire agreement between the parties with respect to the matters refer'red to herein, signed by supersedes and may not be modified or amended except by'a document the parties hereto. This Settlement Agreement any prior agreements, whether written or oral. 15. This Settlement Agreement shall bind, the benefit of, the respective successors, assigns, representatives of each of the parties hereto. and inure to and personal IN WITNESS WHEREOF, the parties hereto have executed this ~greement on the date first set forth above. ~TTORNE¥S FOR PLAINTIFFS: )'DONNELL '~ GORDON ~O,~ EVE N F.- PFLt ESQ. THE PLAINTIFFS ALBERT 'P. GIPSOy&' ' MOSES BROWN 7 EXHIBIT 1'0417S/$30'01 ATTORNEY FOR AGENCY: ~-DwARD J. COOPER, Esq. THE CO}~UNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA AIVA By EXECUTIVE DIRECTOR ATTORNEY FOR CITY: THE CITY OF SANTA ANA ~DWARD J. COOPER, ESQ. By CITY MANAGER 8 EXHl~ll' ~.' o4zTs/33o-o~ 1 11 0418S-01 EDWARD J. COOPER, City Attorney SB# 059253 RICHARD E. LAY, Assistant City Attorney 20 Civic Center Plaza Santa Aha, California 92701 (714) 834-4900 Attorneys for Defendants City of Santa Aha and Community Redevelopment Agency of the City of Santa Ana SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF ORANGE 13 14 15 16 17 21 23 25 CITY OF ORANGE, a General Law City, et al., Plaintiffs, v. CITY OF SANTA ANA, a Municipal Corporation, et al., Defendants. Case No. JUDGMENT 43-39-36 In the above-entitled cause, plaintiffs Samuel Romero, Albert P. Gipson, and Moses Brown, and defendants City of Santa Ana and Community Redevelopment Agency of the City of Santa Aha, having stipulated that judgment be entered validating the Participation Agreement on the terms set forth herein, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED: pursuant to Section 863 of the Code of Civil Procedure. Itll IIII That this Court has jurisdiction over this matter ! HIBIT 2 1 4 5 6 ? 9 10 11 12 14 15 16 17 18 19 20 ~6 2. That the Participation Agreement between the Community Redevelopment Agency of the City of Santa /ma and Shnta Aha Venture, eniered into on or about Hay 15~ 1984, is law£ul and valid in all respects and without qualification. 3. That Resolution No. 84-11 of the Community Redevelopment Agency o£ the City o£ Santa Aha is law£ul and valid in all respects and without qualification. 4. That Resolution No. 84-61 of the City of Santa Aha is lawful and valid in all respects and without qualification. 5. That the implementation of the Fashion Square iedevelopment Project from the adoption of the Amended Redevelop- bent Plan for the City of Santa bna Redevelopment Project through lnd including the adoption o£ the Community Redevelopment Agency Of the City o£ Santa Ana's Resolution No. 8d-ll and the City of .~anta Arians Resolution No. 84o61 is law£ul~ valid, and without qualification. )ther Santa Ana for the to the California Section 16 of the 6. That the allocation and payment of tax revenues and funds to the Community Redevelopment Agency of the City of Fashion Square Redevelopment Project, pursuant Community Redevelopment Law, Article XVI, California Constitution, and such other laws or regulations which specify the powers and authority of the agency, and 1111 the receipt and expenditure of such funds by the Commun'ity 2 0418S/330-01 .- .. CVUID]~ . ~.:.. 1 2 $ 4 5 6 7 8 9 10 11 15 17 18 ~0 ~2 ~5 '>7, I ~8 Redevelopment Agency for the Fashion Square Redevelopment Project are lawful and valid and without qualification. 7. That Defendant City of Santa Ama shall modify and implement its Residential Rehabilitation Loan Program and Deferred Loan Program as follows: Residential scale from eight percent (8%) to five percent the following table: Applicantts Family Income and Size Coefficient (a) (1) The annual interest rate for the Rehabilitation Loan Program shall be on a sliding ($%), as provided in Annual Interest Rate 87.50% - 100.00% 8% 75100 - 87.49 7% 62.50 - 74.99 6% 50.00 - 62.49 5% For purposes of this Judgment, an applicant's "Family Income and Size Coefficient" is the percentage of the applicant's family income, as determined by reference to the median income in Santa Ama (according to current ItUD figures) for a family the size of the applicant's family. (2) However, if the annual interest rate on residential rehabilitation home loans at any public lending institution in Santa Ama is ten percent (10%) or lower, then the annual interest rate for the Residential Rehabilitation Loan //// 1 2 3 4 5 8 10 11 12 14 15 11~ 17 18 ~0 ~2 ~5 ~7 g8 Program shall be on a sliding scale from eight percent (8%) to four percent (4%), as provided in the following table: Applicant's Family Income and Size Coefficient Annual Interest Rate 90,00% 100.00% 8% 80.00 - 89.99 7% 70.00 - 79.99 60~00 - 69.99 5% $0.00 - 59.99 (3) Moreover, ii an applicant cannot qualify [or a loan at the interest rate that corresponds to the appli- :ant's income level, then the applicant shall receive a loan at the highest annual interest rate, if any (within the range o£ the ~pplicable sliding scale o£ rates), for which the applicant can qualify. (b) (1) The Deferred Loan Program shall be tvailable to applicants with a Family Income and Size Coefficient Of less than fifty percent (50.0%). (2) The annual interest rate for the Deferred Loan Program shall be five percent (5%), unless the annual interest rate on residential rehabilitation loans at any ~ublic lending institution in Santa Ama l[ower, in which case the annual interest ~oan Program shall be four percent (4%). IIII 1711 is ten percent (10%) or rate for the Deferred 4 EXHIBIT 2' o4188/33O-Ol (c) Santa Aha shall provide a total of a minimum of Three Million Four Hundred Thousand Dollars ($5,400,000.00) per year for its Residential Rehabilitation and Deferred Loan Programs, out of which sum a minimum of Two Hundred Nifty Thousand Dollars ($250,000.00) per year shall be allocated for the Deferred Loan Program. However, if, after three months in a given year, and after all of the funds budgeted for the Residential Rehabi- litation Loan Program have been spent, Santa Aha believes in good faith that the demand for said Deferred Loan Program will not equal Two Hundred Fi£ty Thousand Dollars ($250,000.00) in that year, it may make available for the Residential Rehabilitation Loan Program such funds as it believes in good faith will not be needed for the Deferred Loan Program. (d) If the total demand for the Residential Rehabilitation and Deferred Loan Programs exceeds Three Million Four Hundred Thousand Dollars ($3,400,000.00) per year, the City of Santa Aha shall make available from any legally authorized source of funds an additional One Million One Hundred Thousand Dollars ($1,100,000.00) for said programs. Ce) Thousand Dollar annua! budget of ($1,100,000.00), way to, administrative spent on the loans. //// No portion of the Three Million Four Hundred ($3,400,000.00) annual budget, or additional One Million One Hundred Thousand Dollars if applicable, may be used for, or charged in any costs. Said budgeted funds may only be s EXHIBIT 2 o4 8s/ 3O-Ol 1 2 3 5 6 ? 9 10 11 12 (f) Santa Aha may not alter the applicant quali£ications for, or the permissible uses or terms of, its residential rehabilitation or deferred loans, to make such ualifications~ uses, or terms more restrictive than those g as o£ the date of this Judgment. (g) Santa Aha shall advertise its Residential ~ehabilitation and Deferred Loan Programs at least once in every :welve (12) month period by placing notices in the water utility ~illing (either on a separate leaflet, or by prominent display on !page one o£ an accompanying newsletter) and by including similar )rominent notice at least once in every twelve month period on any 13 !recreation and park newsletter 14 15 16 17 18 19 20 21 22 2~ 27 ~ublished during lvailable to the (if such newsletter should be that period). Santa Ana shall also make leaflets public explaining said programs. (h) The provisions of this Section 7 shall take effect immediately and continue in full force and effect through ~he end of Santa Anafs fiscal year 1990-1991. 8. That this Court retains continuing jurisdiction over t]his matter to enforce the terms of this Judgment. costs in Ii111 /i/11 /?1/ That each party shall this matter. 6 bear its own attorneyst fees 0418S/330-01 1 3 § 6 7 10 11 12 14 17 18 ~0 ~2 ~3 g5 ~7 ~8 DATED: December , 1984 Approved as to form: EDWARD J. COOPER Attorney for City of Santa Aha and Community Redevelopment Agency of the City of Santa Ana O'DONNELL ~ GORDON By STEVEN F. PFLAU~ Attorneys for Samuel Romero, Albert P. Gipson, and ~oses Brown JUDGE OF THE SUPERIOR COURT 7 EXHIBIT