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Receive an update on the loan agreement between the Dixon Fire Station, LLC (Borrower) and the Redevelopment Agency of the City of Dixon (Lender)
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _X _
RECOMMENDATION:
Receive an update on the loan agreement between the Dixon Fire Station, LLC (Borrower) and the Redevelopment Agency of the City of Dixon.
DISCUSSION:
Under AB1X 26 (HSC section 34177(e)), successor agencies are required to "dispose of assets and properties of the former redevelopment agency as directed by the oversight board; provided, however, that the oversight board may instead direct the successor agency to transfer ownership of certain assets pursuant to subdivision (a) of Section 34181. The disposal is to be done expeditiously and in a manner aimed at maximizing value." If a successor agency violates their statutory duties any taxing entity, the department, and the Controller shall each have standing to file a judicial action to obtain injunctive or other appropriate relief. (HSC section 34177(a)(2).
The Dixon Successor Agency has yet to resolve the outstanding loan agreement between the Dixon Fire Station LLC and the Redevelopment Agency of the City of Dixon. The borrower has not made a payment since payments on the loan were due February 2020 and to date the Dixon Successor Agency has not taken any action to assume the existing debt obligations or foreclose on the property in order to pay the affected taxing entities. In September 2023, this Board gave direction to the SA to follow one of the legal options available to ensure the affected taxing entities receive their respective share of the entire loan proceeds in a timely manner and report to this Board.
The Dixon Successor Agency has communicated to this Board's counsel their plan is to either foreclose on the property or allow a short sale of the property with certain restrictions. A short sale would require this boar...
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