HomeMy WebLinkAboutRES NO OB002-13RESOLUTION NO. O'S 002-13
A RESOLUTION OF THE OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY TO THE DISSOLVED BAKERSFIELD
REDEVELOPMENT AGENCY APPROVING THE AMENDED
AND RESTATED REIMBURSEMENT AGREEMENT BETWEEN
THE CITY OF BAKERSFIELD AND THE SUCCESSOR AGENCY
TO THE BAKERSFIELD REDEVELOPMENT AGENCY
WHEREAS, the former Bakersfield Redevelopment Agency ( "Former RDA ")
and the City of Bakersfield ( "City ") entered into a 2009 Reimbursement
Agreement and a 2010 Reimbursement Agreement (collectively,
"Reimbursement Agreements "); and
WHEREAS, at the time of execution of the Reimbursement Agreements,
Health and Safety Code Section 33220 authorized the City entered into an
agreement with the Former RDA for the purpose of aiding and cooperating in
the planning, undertaking, construction, or operation of redevelopment projects
located within the City, upon the terms and with or without consideration as
determined by the City; and
WHEREAS, AB xl 26 and AB 1484 (the "Dissolution Laws ") dissolved all
redevelopment agencies in the State of California as of February 1, 2012; and
WHEREAS, the City and the Successor Agency to the Bakersfield
Redevelopment Agency, now desire to enter into a restatement of the
Reimbursement Agreements to consolidate and restate their terms, which
restatement is specifically authorized by Health and Safety Section 34191.4(b)
(the "Amended and Restated Reimbursement Agreement "). A true and correct
copy of the Amended and Restated Reimbursement Agreement is attached
hereto; and
WHEREAS, pursuant to Health and Safety Code Section 34179(e), all
actions taken by the Oversight Board shall be adopted by resolution; and
WHEREAS, pursuant to Health and Safety Code Section 34191.4(b) (1), the
Oversight Board shall make a finding that the Reimbursement Agreements were
made for legitimate redevelopment purposes, thus qualifying the Amended and
Restated Reimbursement Agreement is an enforceable obligation.
NOW, THEREFORE, BE IT RESOLVED by the Oversight Board as follows:
SECTION 1. The Oversight Board hereby finds that the Reimbursement
Agreements were made for legitimate redevelopment purposes, including,
without limitation, aiding and cooperating in the planning, undertaking,
construction, or operation of redevelopment projects located within the City.
Further, prior to enactment of the Dissolution Laws, the Community
Redevelopment Law specifically authorized redevelopment agencies to entero�eAKF9�
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into agreements with other public bodies "for the purposes of aiding and co-
operating in the planning, undertaking, construction, or operation of
redevelopment projects" located within the public body's jurisdiction.
Agreements were statutorily defined as a legitimate exercise of redevelopment
powers. Based on these findings of fact, the Oversight Board hereby declares
the Amended and Restated Reimbursement Agreement to be an "enforceable
obligation" pursuant to Health and Safety _Code Section 34191(b).
SECTION 2. The Oversight Board hereby finds that the Amended and
Restated Reimbursement Agreement has been drafted in a manner consistent
with the requirements of Health and Safety Code Section 34191.4(b), including,
without limitation: (a) the Amended and Restated Reimbursement Agreement
contains a recalculation of accumulated interest on the remaining principal
amount of the loan from origination at the interest rate earned by funds in the
Local Agency Investment Fund (LAIF); and (b) the Amended and Restated
Reimbursement Agreement contains a defined schedule over a reasonable
term of years at an interest rate not to exceed the interest rate earned by funds
deposited into the Local Agency Investment Fund.
SECTION 3. Based on the foregoing findings, the Oversight Board hereby
approves the Amended and Restated Reimbursement Agreement between the
City and the Successor Agency to the Bakersfield Redevelopment Agency.
SECTION 4. The Chair, or presiding officer, is hereby authorized to affix his
signature to this Resolution signifying its adoption by the Oversight Board for the
Dissolved Bakersfield Redevelopment Agency, and the Secretary, or her duly
appointed deputy is directed to attest thereto.
SECTION 5. The Secretary shall deliver a copy of this Resolution to the Kern
County Auditor - Controller and the Department of Finance.
PASSED AND ADOPTED by the Oversight Board at the regular meeting held on
September 6, 2013.
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ATTEST:
STATE OF CALIFORNIA
COUNTY OF KERN
CITY OF BAKERSFIELD
I, ROBERTA GAFFORD, Acting Secretary to the Oversight Board, hereby
certify that the foregoing resolution was duly adopted at the regular meeting of
the Oversight Board on SEP 0 6 2013 2013.
AYES- BOARD MEMEBERS: "VA i ttrroJ 10-41 Q%A I vN5 iIT��►
ES: BOARD MEMBERS: MV4-
BOARD MEMMBERS: 'gv►CV.Qr
RO ERTA GAFFORD, Acting Secr tary
APPROVED SEP 0 6 2013
By
r
CHAIR, Oversigh Board
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
By -?,/
JOSHUA H. RUDNICK
Deputy City Attorney II
JHR /vl
Attachment: Amended and Restated Reimbursement Agreement
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SA 13 -00`V13. ALA
AGREEMENT NO.
l �
THIS AMENDED AND RESTATED AGREEMENT "
this "Agreement")
into as of AUG 141013 ( g 1 is entered
by and between the CITY OF BAKERSFIELD ("CITY"
herein) and the SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE
CITY OF BAKERSFIELD ( "AGENCY" herein).
R E C I T A L S
WHEREAS, pursuant to the provisions of the California Redevelopment Law
(Health & Safety Code Section 33000 et seq.), the City Council of the City of
Bakersfield activiated the former Redevelopment Agency of the City of
Bakersfield ( "Former RDA" herein) and adopted the Redevelopment Plan
( "Redevelopment Plan" herein) for the Downtown Bakersfield Redevelopment
project area, Southeast Bakersfield Redevelopment project area, and the Old
Town Kern - Pioneer Redevelopment project area ( "Project areas" herein); and
WHEREAS, pursuant to the Community Redevelopment Law prior to
Ferbruary 1, 2012, the Former RDA was performing a public function and had
access to services and facilities of the CITY; and
WHEREAS, during the Former RDA's existence, the Former RDA and the
CITY entered into a 2009 Reimbursement Agreeement and a 2010 Loan
Reimbursement Agreement attached hereto and incorporated by reference as
Exhibit A (collectively, the "Reimbursement Agreements "); and
WHEREAS, as part of the 2011 -2012 State budget bill, the California
Legislature enacted, and the Governor signed, companion bills AB X1 26 (AB 26)
and AB X1 27 (AB 27), requiring that each redevelopment agency be dissolved
unless the community that created it enacts an ordinance committing it to
making certain payments. On December 29, 2011, the California Supreme
Court issued its opinion In the case of California Redevelopment Association, et
al. v. Ana Matosontos, etc., et al., Case No. S 196861, and upheld the validity of
AB 26 and invalidated AB 27. The Court's decision resulted in the
implementation of AB26, which dissolved all redevelopment agencies in the
State of California as of February 1, 2012; and
WHEREAS, by operation of law under AB 26, the Successor Agency serves
as the entity to which all powers and duties of the Former RDA inured, with the
Successor Agency being charged primarily with the function of winding down
the redevelopment activities of the Former RDA under AB 26; and
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WHEREAS, the redevelopment dissolution laws purport to invalidate
contracts executed between cities and their former redevelopment agencies,
except where such interagency agreements were entered within two years of
the former redevelopment agencies' formation. (Health & Safety Code
§34171(d)(2).) Under this precept, the Reimbursement Agreements between
the Former RDA and the City were deemed by the State Department of Finance
( "DOF ") to be invalid; and
WHEREAS, even though DOF considers the Reimbursement Agreements to
be currently invalid, Health & Safety Code §34191.4 provides that a successor
agency that secures a "finding of completion" from the DOF pursuant to Section
34179.7 may thereafter reinstate "loan agreements entered into between the
redevelopment agency and the city, county, or city and county that created
by the redevelopment aency.. ." Such reinstated interagency agreements
"shall be deemed to be enforceable obligations provided that the oversight
board makes a finding that the loan was for legitimate redevelopment
purposes." (Health & Safety Code §34191.4(b) (1); and
WHEREAS, the Reimbursement Agreements were for legitimate
redevelopment purposes. Pursuant to Health and Safety Code §33220, any
public body was authorized to enter into an agreement with a redevelopment
Agency for the purpose of aiding and cooperating in the planning, undertaking,
construction, or operation of redevelopment projects located within the
jurisdiction in which such pubic body is authorized to act, upon the terms and
with or without consideration as such public body determined. Pursuant to
Health & Safety Code §33220 and municipal police powers, cities had the
authority to aid and cooperate with redevelopment agencies in the planning,
undertaking, construction or operation of redevelopment projects within the
area in which city and AGENCY were authorized to act. Pursuant to Health &
Safety Code §33126(b), redevelopment agencies were allowed to enter into a
contract with any other public agency pursuant to which such public agency
furnishes necessary staff services associated with or required by redevelopment.
These are the precise purposes for which the Reimbursement Agreements
between the City and the Former RDA were developed and implemented; and
WHEREAS, on March 25, 2013, the AGENCY received a "finding of
completion" from the DOF. On September 6, 2013, the AGENCY will have
applied to the Oversight Board to the Successor Agency of the Dissolved
Bakersfield Redevelopment Agency to have the Reimbursement Agreements
established as enforceable obligations. The parties' Reimbursement
Agreements were for legitimate redevelopment pursposes and therefore qualify
as enforceable obligations under Health & Safety Code §34191.4. Based on the
foregoing, this Agreement shall not be effective if the Oversight Board does not
approve it.
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WHEREAS, the CITY and the AGENCY desire to enter into this Agreement to
restate the terms of the Reimbursement Agreements for the following reasons:
(1) To consolidate and restate loan terms to include the limitations on
interest, requirements of a set repayment schedule and other
requirements applicable to interagency loans under Health & Safety
Code §34191.4;
(2) To set forth activities, services, and facilities which the City will render
for, and make available to, the AGENCY in furtherance of the
enforceable obligations of the AGENCY under AB 26/AB1484 and the
Community Redevelopment Law;
(3) To provide for the AGENCY to reimburse the CITY for actions
undertaken and costs and expenses incurred by CITY in the course of
performing enforceable obligations for and on behalf of the AGENCY;
and
(4) To provide for the CITY's assistance in delivering certain public
improvements and affordable housing projects in the implementation
of the AGENCY's enforceable obligations.
NOW, THEREFORE, based on the foregoing recitals, the Parties agree as
follows:
1. PROVISION OF STAFF i SERVICES. The City agrees to provide the AGENCY
such staff assistance, supplies, technical services, and other services and
facilities of the CITY as the AGENCY may require in carrying out its functions and
duties to perform enforceable obligations. Such assistance and services may
include the services of officers and employees and special consultants.
2. PURPOSE OF REIMBURSEMENT AGREEMENT LOANS. The CITY has advanced
necessary funds to the AGENCY or expended funds on behalf of the AGENCY
for implementation of the AGENCY's enforceable obilgations, including, but not
limted to, the costs of surveys, planning, studies, and environmental assessments
for implementation of enforceable obligations established under the
Redevelopment Plan, the costs of acquisition of property within the Project
areas, demolition and clearance of properties acquired, building and site
preparation, public improvements, construction and development assistance
for affordable housing, and relocation assistance to displaced residential and
nonresidential occupants, if any, as required by law.
3. ACCOUNTING OF COSTS. The CITY has kept records of activities and
services undertaken pursuant to the Reimbursement Agreements and this
Agreement and the costs thereof so an accurate record of the AGENCY's
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liability to the CITY can be ascertained. The CITY shall periodically, but not less
than annually, submit to the AGENCY a statement of the costs incurred by the
CITY in rendering activities and services of the CITY to the AGENCY pursuant to
this Agreement. Such statement of costs may include a proration of the CITY's
administrative and salary expense atrributable to services of CITY officials,
employees and departments rendered for the AGENCY.
4. TOTAL PRINCIPAL /AMOUNT OUTSTANDING As of June 30, 2013, the total
outstanding principal amounts owing to the CITY under the Agreements equal
Two Million, Eight Hundred Fifty Nine Thousand, One Hundred Fifty Eight Dollars
($2,859,158).
5. LAIF INTERST ACCRUAL APPLIED FROM DATES OF LOAN ORIGINATION The
AGENCY has calculated the accumulated interest on the outstanding principal
amount of the loans under the Reimbursement Agreements from their
origination at the interest rate earned by funds deposited into the Local
AGENCY Investment Fund ( "LAIF "). As of June 30, 2013, that amount of unpaid
interest accrual from the date of loan origination is $11,361.00.
6. TOTAL LOAN AMOUNT OUTSTANDING, The outstanding principal amount
plus the unpaid interest accrual identified in Section 5 comes to a total of Two
Million, Eight Hundred Seventy Thousand, Five Hundred Nineteen Dollars
($2,870,519) (the "Total Loan Amount ").
7. REPAYMENT AMOUNTS i SCHEDULE. Repayments on the Total Loan
Amount shall be made every six (6) months, bearing the LAIF interest rate then in
effect, compounding every six (6) months, and shall not be made prior to the
2014 -15 fiscal year.
Repayments of Reimbursement Agreement loans (the Total Loan Amount
plus interest accrued over each payment period) shall be calculated pursuant
to the following restrictions:
a. Interest on the Total Loan Amount shall accrue during an approximate
term of 6 years (represented in the below schedule) at an interest rate
not to exceed the interest rate earned by funds deposited into the
LAIF.
b. Beginning in the 2013 -14 fiscal year, the maximum repayment amount
authorized each fiscal year for repayments of the Total Loan Amount
with interest (as such interest is set forth in Section 7.a) shall not exceed
half (50%) of the increase in the "residual amount" paid to local
agencies and school entities for that present Fiscal Year compared to
said residual amount distributed in fiscal year 2012 -13, all as further
described in Health & Safety Code §34191.4(b)(2)(A). For purposes 6AKFq
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this Agreement, the term "residual amount" means the monies
payable to local agencies and school entities in accordance with
Health & Safety §34183(a) (4).
C. The AGENCY warrants and acknowledges that it does not have any
repayments of loans or deferrals owed to the Low and Moderate
Income Housing Fund pursuant to Health and Safety Code
§34171(d)(1)(G).
S. REPAYMENT SCHEDULE. Based on the parameters set for in Section 7, the
AGENCY agees to repay the Total Loan to the CITY, with accrued interest, in
accordance with the set schedule attached hereto as Exhibit B and
incorporated by reference herein.
9. RESTRICTIONS ON CITY'S USE OF REPAID MONIES: SENIOR OB UGATIONS,
Repayments received by the CITY pursuant to this Agreement shall first be used
to retire any outstanding amounts borrowed and owed to the Low and
Moderate Income Housing Fund of the former RDA for purposes of the
Supplemental Educational Revenue Augmentation Fund and shall be
distributed to the Low and Moderate Income Housing Assert Fund established by
subdivision (d) of Section 34176 of the Health & Safety Code. Twenty percent
(20%) of any loan repayment shall be deducted from the loan repayment
amount and shall be transferred to the Low and Moderate Income Housing
Asset Fund, after all outstanding loans from the Low and Moderate Income
Housing Fund for purposes of the Supplemental Educational Revenue
Augmentation fund have been paid.
10. GENERAL /MISCELLANEOUS. The parties agree no other instrument,
including, but not limited to, any promissory note, is required to confirm,
memorialize or effectuate the indebtedness memorialized by this Agreement.
IN WITNESS WHEREOF, this Agreement has been executed and delivered
by the Parties as of the date first written above.
"CITY"
CITY OF BAKERSFIELD
HARVEY L. HALL
Mayor
"AGENCY"
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE
IT
By:
Mayor
[ADDITIONAL SIGNATURES FOLLOW ON NEXT PAGE]
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APPROVED AS TO CONTENT:
COMMUNITY DEVELOPMENT SERVICES COMMUNITY DEVELOPMENT SERVICES
By: By:
D UG MCISAAC DO MCISAAC
Co unity Development Director Commu Development Director
APPROVED AS TO FORM:
VIRGINIA GENNARO
CITY Attorney
VIRGINIA GENNARO
City Attorney
By By
JOSHUA H. RUDNICK +j� A H. RUDNICK
Deputy CITY Attorney epuy CITY Attorney
COUNTERSIGNED:
By:
NELSON SMITH
Finance Director
JHR /vl
Attachment - Exhibit A
By: oeov-.000e�l
NELSON SMITH
Finance Director
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All REEMENr No. 09- 12 8
ftrrsmsnt Na Ri909-01
MEMENT AGENT Appxoved 01M
TM AEMENT entered Into on SEP _ by end between the
CITY OF EAKEALp a munbipal oorpora0on and charter city (sCIN" herein) and
THE t1lELOP NT AGENCY, a pubk body Corporate and
a
pantaed and
) eodetlp under the lours of the 8t te of CaWwft ("AGENCY'
RECITAL$
WMEAEAE. AGENCY adoplad the Old Town Kem-Pionser Fisdevebprnernt
Projaot Area and the 8outfnsast BalrerefWd Redev�elopmant project Area in 1999; and
WNEIIEA� the redevelopment playa (VII plum") for the Old Town Kam -
Pbr>Nr Project Area and BgtMneaet galcMSflNd R�devsbprnsnt Project Am were
adopted in 1909; and
1 IEAi, urtdsr the plane, the AOMV a authorised to astabW debt, to
in =M and Mnprow the CWl supply of h Wft or persons and Waft$ of low- or
ino M'� », OWSMO PJft InVIO wnerMr and aoquhs real property under the
owneretnifn and Control of the AGENCY; and
tNf1ElINAE4 the AGENCY M actively pur'au" ndrMelopmen" projeate that create
aflonfable t=ft, dmkm* An and Mgt and Create. new oonv woW and r@W
oppoilu In the Old Town Kem- Pion Redeusloprnernt Project Area and the
8oulheast 9ala�rafiMd RedevNopnarnt eer Project Area; and
W v on Aupuat 26, 2009 the AGENCY approval an Owrner Particip-Hon
Agwinnt wNh W 8traet gar& Hou ft, LLC for the devrloprnent of 67 low and
moderate income savior rental unb in the amount of S9,a60,000; and
rllllEllE&& the AGENCY has ANooated Its available cash reserves of $1.6
m4la In the Old Town -KCem Plonssr Aftondsbls Houshp Fund bwards its finanoW
PsrtioipsMan
In the pnejeot; and
; and E. the AGENCY has a WOW shortfaN of approximatsy $2 million
doNare; and
MMEI�AS. an hkmh 31, 2000 the AGENCY approved a Disposition and
Devsloprrnait Apreanwd whin MlWrm* Courtyard LLC. for the devsiopmsnt of 67
@1110 OWN muNi AMNy tmb In the smourd of $2,700,000; and
oil pilot
or
rrh
'IM EMlaff A 9
Aw�rM 1r11�n�nt d 0A
ianM►ae�.a�.. _ 1 _ o�a�
yo
IMFf MUk the AGENCY has allocated lie avaftle cam reesrvisa :1,2 million
In #10 &XMOW arid
8skers sold AflomWft Housing and towards its Mancial Participation in
MIlitAlA�, the AGENCY has a project short fail of appro�a" :1.5 million dollars; and
MIt1E11EAS the AGENCY is requ"ft authodMon for a ban in the amount of
12 rrdllion at Five PW"d (5 %) ararwi MId Wei 7 year term from the Cky's
tIM 1 eetFund to rft RsdleveioprMN Agenoy to provide asaiwnoe for
0 pr'oNCt, and
N11tOMM the AGENCY is requastlrg authorintion for a Short term ban in the
amouru of $1.5 million at Flo P"M1 annualized Interest 7 year tsrm from the
CWs SW Insurance Fund to the Rsdsvrlopmant Agency to pie oonnruction
aeaistance br the MiNcrrek Courtyard project; acrd
NOW$ In0cPOWft the bmp*g rodtab heroin, CITY and
AGENCY muwally apes as follows:
1. LOAN. CITY apnea b ban AGENCY Two Million Dollars
(12,000, 000.00) from the CWB Equipment fund and One LOW Fhra Hundred
Thoueend Dollars ( :1,500,000.00) from the City's Self insurance Fund.
L A41I W* OELIOATIONE. AGENCY hereby apnea to reimburse CITY
in an amount not to elooeed Three NMOM Fie Hundred Thousand Dollars
(19,500,000.00) in Seven years from the future Old Town Kern - Pioneer and Southeast
AM- ellsid Project Area low` mod hou@ft hinds. Payments shall be made in semi -
annwl NMtaN VWIW.
L NO WMM n %I" M 7 The failure of ay Ply to doroopm
aw" Ply a�1300 OMMnt
shall not oormftft a walwr of that parWs
right to enbroe such a provision at a InOw time and Shad not serve to vary this toms of
this ApreemerK.
4 This rwoori nt sate forth this er&@
agreement between ilte piss an suparaadrs all other oriel oar writlan naarltatiorM.
This Apreemard maybe n-oM@d only in a wrkk approved by the AGENCY and Signed
by all 1ho parli s.
S. ' The rights and obNgallonis of this Agime ant shah
inue to the bans , and be bb ick upon, this parties to #M Agresmere and thek
heirs, adminiab Ogre, a nculors, Personal nprea - ug ies, Suooiseadrre and assigns.
L 9jDfljM . The NnMS of the Okla of CoNomia will govern this
validity of this Aprsniarrt, Is bib pntation and perlormenoe. Any Nligation at," in
any way from this ApnenMnt shall be brought in Kam CW"' CaNfomia.
APWLMW1WR4MPMFwd 0
UMOWU PWW AM -2-
Jill 1111 F 11=11 Cw�Md Roy13 AIN "W W bin Ift «d MftmdLdw Its
ORI(31W40J R1GMlAL
76 In. Time Is of the essence of this AWm meet.
L . In the event of a conflict betwsn the terms, conditions or
�pefle"ce ns set ft1h in this Agnernent and thme in exhtbib attached honft, the
Isnris• conditions or spsoiNostlons set to in this Apnement shah provd. AN exhibits
to which mfom oe 1s made In this Apnernent are deemed inoorporated in this
Agreement, whether or not aclusNy attached.
a YI M. Each individual �acucir,o this Agroerrwit
WI Mn— and wWmft t sy aro duly aulhortssd to execute and d@ wr this Agreerwn
on bsiwlf of the corporaMon or orpsnizatlon, if any, named hsnin, end this AgrMmsnt Is
g mm am oorpontion or orpsnhation in a000eft nos with its %mns.
10. ji:�Mvs This Agte fw" is eflsotlw upon execution. It Is the
p^Dduct Of n OW sN PMU aro equ* respn whis for aulhomhIp of Ups
kftqwotMbn �8scoon ��. the Caftmia CM Cods ehd not apply to the this
IN WMW MIMOOMP, ft parft hm to hays cawed this Agreement to be
efo CAW, the day and ynr tNst-abow wrkten.
M • � • 1 _ f 1 � _1 1 • - �
f
A
By;�'��
M. lIUDMCK N111A M. MIDINCK
aPwY AMY Al1ortNY 0 MputY dlY AIbrtNY II
#*vWd I1Wftp"WMMd
umfwupwmmn
- _NINOO� 11 *di Am rr loin 120 Md WAKSWLdn
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r1R1�:IN01 A01IS�Ne�
APPROVED AS TO CONTENT:
ICa-I -M W AID IT
DEVELOPMENT DEPARTMENT
ar. (Zft.S�C�n a
DOMIA L KINQ
Eaonomb D lopnMm Wncoor
COUNTERSIGNED:
By:
Final wo Dirwbr
AWSWAof tftwp Otd
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�A IOA
� AOAt�nrM�CNSr �qkp N� bM►1Mh end nioiM.doo
3 AM
APPROVED AS TO CONTENT:
ECONOMIC AND COMM�NWTY
DEVELOPMENT DEPARTNT
COUNTERSIGNED:
A
ORIGINAL ORIGINA;.
� No. .1 0- 1121kA 1 o -o1 o
Low 111111a�uRsEM1iNTAOREEMENT
Cwf re err entered Into on __M i 1 mt9 by and between the
and r#* D a nxurlaW corporaflon and charter city CCITY" herein)
REDIVIUMMENT AOENM a pt dDNc body corporate *and
POft, orgalnlsed and exafing under the k:mm of the State of Colifomia
('AGENCY' herein).
RECITALS
WIERM AGENCY adopted the Southeast 8c�cerstield Redevelopment
Project Area In 1949; and
WdMW the redevelopment plan ( "the plan`) for the Southeast Project
Area was adopted in 1949; and
WHOREA under the plan, the Agency Is authorised to estabMsh debt and
to OcqukO red PrOPOrty and manage property under the ownership and control
of the AGENCY; and
WI RiAE, the AGENCY le actively pursuing redevelopment projects that
create affordable housing, ell *xft slum and blight and create new
ca'rnnercl— and M*A opportunities In the Southeast Redevelopment Project
Area and
WNEREAE, In Meech, 20137, the City of Bakera III ski purchased from the
9ckersfleld Redevelopmsnt Agency a 1.95 acre **or strip of land to be used ca
a freeway right-of-way for the future Centennial Freeway; and
MA EAi, the CITY has found the cost prohibitive to continue with this
alternative as a route for the Centennial Freeway;
WRAF, the AGENCY do*u to rel:x,rchase the scuernent from the CITY
in order to facuif t the developnnent on this property, generally loc ed
between 'O" Street and 'S' Sinet and between 141+ Street and 151+ Sk"t,
corrwnonly known as the Chelsea Housing project and Southeast MCI Creek
conxnerclal; and
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.,
800OW "MIOA 'Nqu�xn�rK�oan�an.wo.aMrtnmdoc v
Ci. l' an AIM10 sO PM ORIGI
.AMMO,.....
WMERM CITY originally used TrOnVortatlon Development Funds to
purchase the easement from the AGENCY, thus the loan proceeds wkl be L,,
by the AGENCY to reimburse the CITY TWWWation Development Fund; and
WMER 1A8v AGENCY does not have sufficient resources currently, available
to repay the CITY regarding the easement purchase;
NM' 1' M�corporating the foregoing recitals hereln, CITY and
AGENCY muluaNy agree as follows:
1. LOAN. CITY agrees to loan AGENCY Nine Hundred Fifty Thousand
Dollars ($980,000.00) from the City's Equipment fund.
Z. AOENCY's OlLIeATiONE. AGENCY hereby agrees to reimburse CITY
In an amount not to exceed Nine Hundred Fifty Thousand Dopars ($950,000.00) of
Principal pkUs Three Percent (9,0%) simple Interest from future tax Increment
Pfteads generated from the &wtheaet Redevelopment project area as
detailed In the amortlsotlon schedule CftK:hed as 1~ «A« the
Mhftrsement payments to CITY shall be paid on the 20th day of August in
annual W*dkmnb In accordance with the amortiaatlon schedule.
corrxr0encing on August 20. 2011, with the End k1ta1llment of One Hundred
Ninety Rve Thousand Seven Hundred Dollars ($195,700.00) due on August 20,
2015 Unless Agency has paid balance In full in advance.
S. NO WA OF MA U, The failure of any party to enforce against
another party any proms of this Agreement shah not constitute a waterer of
that party's right to enforce such a provision at a later time and shall not serve to
vary the terms of this Agreement.
4. This Agreement sets forth the untie
aprosmsnt brlwren the Ion rtlss and wpeaedes all other oral or written
representations. This Agreement may be modified only In a writing approved by
the AGENCY and signed by all the parties.
.. . ..
.. W 7711011-o't
6. Q,Q � The laws of the State of CONOMlo wo govern
the validity of this AWN 0- sr►t, its Interpretaibn and performance. Any M pact m
arising in any way from this Agramw t shall be brought In Kern County.
CdMornio.
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Omabdan81=103.23 PM 01�ONAf
7. M. Time Is of the essence of this Agreement.
& MOM In the event of a conflict between the terms, conditions or
s 'twficationa Set forth in #* ant and thole In 0* IbNs attached hereto,
the terms, cor difions or apealflcatlons set forth in this Agreement shall prevail. A l
exhibits to which rehwence Is mode in the Agmem9nt are deemed irx orporcftd
In this Agreement, whether or not actually attached
9. A Each Individual executing this Agreentent
rests and wNraft are duly autxxiged to execute and dellver this
Agreement on behalf of the corporation or orgonixotlon, If any, named herein,
and this Agreement is binding upon said corporation 'or orgonbK tion In
accordance wish Its terms.
10. DRUM, This Agreement is effective
Product of negotiation and all parties are upon execution. it is the
this Agroement. Section 1664 of t o CaiNornia CM Code shall riot apply to�the
of this
IN W M WNWI EOF, the parties hereto have caused this Agreement to be
executed. the day and year first -above written.
"CITY"
CITY OF 111AItER1FIELD
M
HARVEY L HALL
APPROVED AS TO FORM:
VI1119IINIA ONNNARO
City Attorney
"AGENCY"
8111 LD REDEVELOPWNT
AGENCY
By:
oINNIM
Chair
APPROVED AS TO FORM:
VNNNMA law
General Counsel
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APPROVED AS TO CONTENT:
-ECONOMIC AND COw11MUNITY
DEVILOPMW DEPAMMENT
APPROVED AS TO CONTENT:
ECONOMIC AND COMMUNITY
DEVELOl LUW DEPAR AMM
By: 7V,.�.. By. —Cox—, Jl"" .1
DONNA L KUNZ 1400, DONNA LOW
Economlc Development Director Deputy Executive Director
COUNTERSIGNED:
•
COUNTERSIGNED:
•
AgAKE9
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SCHEDULE OF TOTAL LOAN AMOUNT + INTEREST REPAYMENTS
EXHIBIT B
Payment
Date of Loan
Inmeres! on Instaknent
Indalment Payment on Total Loan
No.
Payment
Amount Plus Interest
1
12/31/2014
LAIF rate upon Total Loan Amount since
50% of increase in residual amount
March 31, 2013.
over base year 2012 -13
2
6/30/2015
LAIF rate accred in prior 6 months
50% of increase in residual amount
over base year 2012 -13
3
12/31/2015
LAIF rate accred in prior 6 months
50% of increase in residual amount
over base year 2012 -13
4
6/30/2016
LAIF rate accred in prior 6 months
50% of increase in residual amount
over base year 2012 -13
5
12/31/2016
LAIF rate accrued in prior 6 months
50% of increase in residual amount
over base year 2012 -13
6
6/30/2017
LAIF rate accred in prior 6 months
50% of increase in residual amount
over base year 2012 -13
7
12/31/2017
LAIF rate accrued in prior 6 months
50% of increase in residual amount
over base year 2012 -13
8
6/30/2018
LAIF rate accred in prior 6 months
50% of increase in residual amount
over base year 2012 -13
9
12/31/2018
LAIF rate accrued in prior 6 months
50% of increase in residual amount
over base year 2012 -13
10
6/30/2019
LAIF rate accrued in prior 6 months
50% of increase in residual amount
over base year 2012 -13
The estimated term of repayments may be rendered longer or shorter, depending on the
residual amount that will actually be available each fiscal ear to repay the Total Loan Amount
plus interest. Actual installment amounts on the Total Loan Amount plus interest will also
fluctuate from payment period -to- period as a result of the unknown residual amount and limits
thereon, and the fluctuation of the LAIF interest rate, among other unknown factors. Therefore,
in each six -month installment payment period, and in conjunction with the AGENCY's approval
and submission of a "Recognized Obligation Payment Schedule" ( "ROPS "), the AGENCY will
calculate and adopt an updated schedule showing actual past repayment amounts and a
projected payment for the upcoming installment to be paid with each ROPS period. The
AGENCY may utilize its then - effective LAIF rate as the basis for determining the estimated interest
accrual that will be due in the upcoming six -month instalment period. This estimated amount
wil later be determined and adjusted based on the AGENCY's application of the actual LAIF
rate.
EXHIBIT B
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ORIGINAL