REPORT TO THE CITY COUNCIL, JOINT MEETING OF THE CITY OF FRESNO AND THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF FRESNO
DATE: February 9, 2017
FROM: MARLENE MURPHEY, Executive Director
SUBJECT:
Title
Actions pertaining to Successor Agency litigation expenses:
1. ***RESOLUTION - Authorizing the Provision of Funds to the Successor Agency to the Redevelopment Agency of the City of Fresno for Litigation Expenses, and the Execution of a
Loan/Funding Agreement (City action)
2. ***RESOLUTION - Authorizing the Acceptance of Funds from the City of Fresno for Legal Expenses and Authorizing Execution of a Loan/Funding Agreement (Successor Agency action)
Body
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing the City to provide funds to the Successor Agency to the Redevelopment Agency of the City of Fresno ("Successor Agency") for legal expenses, and authorizing execution of a Loan/Funding Agreement.
EXECUTIVE SUMMARY
Health & Safety Code Section 34171(d)(1)(F) provides that sponsoring jurisdictions may provide funds to successor agencies for payment of legal expenses related to civil actions relating to the Dissolution Act. These funds may be repaid as an enforceable obligation if the successor agency prevails in the litigation; otherwise they are considered a grant. The City Council is asked to approve the provision of funds to the Successor Agency in an amount not to exceed $220,000 for legal expenses associated with two litigation matters, and the execution of a Loan/Funding Agreement that provides for repayment of the funds in accordance with the Dissolution Act if the Successor Agency prevails in the litigation.
BACKGROUND
Pursuant to Health and Safety Code Section 34171(d)(1)(F), the City is authorized to provide funds to the Successor Agency for payment of legal expenses related to civil actions initiated by the Successor Agency challenging the validity or implementation of the Dissoluti...
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