HomeMy WebLinkAboutRES NO SA001-135 At �
RESOLUTION NO. 0 0
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAKERSFIELD AS THE GOVERNING BODY OF THE
SUCCESSOR AGENCY TO THE 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 2010 Loan Reimbursement Agreement (collectively, the
"Reimbursement Agreements "); and
WHEREAS, at the time of execution of the Reimbursement Agreements,
Health and Safety Code Section 33220, authorized the City to enter 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 the Reimbursement Agreements
and restate their terms, which restatement is specifically authorized by Health
and Safety Code 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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Bakersfield, as the Governing Body of the Successor Agency to the Bakersfield
Redevelopment Agency as follows:
SECTION 1. The City Council, as the governing body of the Successor
Agency to the Bakersfield Redevelopment Agency, hereby approves the
attached Amended and Restated Reimbursement Agreement.
SECTION 2. The City Council, as the governing body of the Successor
Agency to the Bakersfield Redevelopment Agency, hereby authorizes the
Mayor to execute on behalf of the City as the Successor Agency the Amended
and Restated Reimbursement Agreement.
SECTION 3. The City Council, as the governing body of the SuccessO�PQ&q�
Agency to the Bakersfield Redevelopment Agency, hereby authorizes aril
directs staff, acting on behalf of the Successor Agency, to take all acti4s
necessary and appropriate for the approval of the Amended and Restat(%WGINAL
Agreement under the process authorized by Health and Safety Code Section
34191.4(b).
SECTION 4. The Mayor, or presiding officer, is hereby authorized to affix his
signature to this Resolution signifying its adoption by the City Council of the City
of Bakersfield, as the governing body of the Successor Agency to the Bakersfield
Redevelopment Agency, and the City Clerk, or her duly appointed deputy, shall
attest thereto.
PASSED AND ADOPTED by the City Council of the City of Bakersfield, as the
Governing Body of the Successor Agency to the Bakersfield Redevelopment
Agency, on this 14th day of August, 2013.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted
by the Council of the City of Bakersfield at a regular meeting thereof held on
August 14, 2013, by the following vote:
.r V f ✓ ✓
AYE COUNCILMEMBER RIVERA, MAXWELL, WEIR, SMITH, HANSON, SULLIVAN, JOHNSON
ES: COUNCILMEMBER
AB IN: COUNCILMEMBER
ABSEN COUNCILMEMBER kvxNl,011
AP
By
mayor
APPROVED AS TO FORM:
ROBERTA GAFFORD, CM
CITY CLERK and Ex Officio Clerk of the
the City of Bakersfield
VIRGINIA GENNARO
City At orney
By &Z2Gl.—'
JOSHUA H. RUDNICK
Deputy City Attorney
Attachment: Amended and Restated Reimbursement Agreement
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S A 3- 0 0 �-
AGREEMENT NO. -
AMENDED AND RESTATED REIMBURSEMENT AGREEMENT X- RPf.�,>,�k.0" )
THIS AMENDED AND RESTATED AGREEMENT (this "Agreement ") is entered
into as of AUG 14 2013 , 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 Xl 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 Matosantos, etc., et al., Case No. S196861, 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 & 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 & 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 of
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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)(I)(G).
8. 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 OBLIGATIONS.
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
ITY OF BAKERSFIELD /*
HARVEY L. HALL
Mayor
[ADDITIONAL SIGNATURES FOLLOW ON NEXT PAGE]
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APPROVED AS TO CONTENT:
COMMUNITY DEVELOPMENT SERVICES COMMUNITY DEVELOPMENT SERVICES
By: By :_
DOUG MCISAAC DO MCISAAC
Co unity Development Director Commu ty Development Director
APPROVED AS TO FORM:
VIRGINIA GENNARO
CITY Attorney
By.
JOSHUA H. RUDNICK
Deputy CITY Attorney
COUNTERSIGNED:
By:
NELSON SMITH
Finance Director
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Attachment - Exhibit A
VIRGINIA GENNARO
City Attorney
By -2-1
OSHUA H. RUDNICK
Deputy CITY Attorney
By: _Z4 —
NELSON SMITH
Finance Director
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AGREEMENT NO. 09-128
Agr"ment Na
Approved rl2 0
REIMBURSEMENT AGREEMENT
THIS AGREEMENT entered into on SEP 2 3 2= by and between the
CITY OF BAKERSFIELD, a municipal corporation and charter city ( "CITY" herein) and
THE BAKERSFIELD REDEVELOPMENT AGENCY, a public body corporate and
politic, organized and existing under the laws of the State of California ( "AGENCY"
herein).
RECITALS
WHEREAS, AGENCY adopted the Old Town Kem- Pioneer Redevelopment
Project Area and the Southeast Bakersfield Redevelopment Project Area in 1999; and
WHEREAS, the redevelopment plans ( "the plans ") for the Old Town Kem -
Pioneer Project Area and Southeast Bakersfield Redevelopment Project Area were
adopted in 1999; and
WHEREAS, under the plans, the Agency is authorized to establish debt, to
increase and improve the City's supply of housing or persons and families of low- or
moderate - income, construct public improvements and acquire real property under the
ownership and control of the AGENCY; and
WHEREAS, the AGENCY is actively pursuing redevelopment projects that create
affordable housing, eliminate slum and blight and create new commercial and retail
opportunities In the Old Town Kem- Pioneer Redevelopment Project Area and the
Southeast Bakersfield Redevelopment Project Area; and
WHEREAS, on August 25, 2008 the AGENCY approved an Owner Participation
Agreement with 1 V Street Senior Housing, LLC for the development of 67 low and
moderate income senior rental units in the amount of $3,650,000; and
WHEREAS, the AGENCY has allocated its available cash reserves of $1.6
million in the Old Town -Kem Pioneer Affordable Housing Fund towards its financial
participation in the project; and
WHEREAS, the AGENCY has a project shortfall of approximately $2 million
dollars; and
WHEREAS, on March 31, 2009 the AGENCY approved a Disposition and
Development Agreement with Miilcreek Courtyard LLC. for the development of 57
affordable mufti - family units in the amount of $2,700,000; and
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WHEREAS, the AGENCY has allocated its available cast reserves of $1.2 million
in the Southeast Bakersfield Affordable Housing and towards its financial participation in
the project; and
WHEREAS, the AGENCY has a project short fall of approximately $1.5 million
dollars; and
WHEREAS, the AGENCY is requesting authorization for a loan in the amount of
$2 million at Five Percent (5%) annualized interest 7 year term from the City's
Equipment Fund to the Redevelopment Agency to provide construction assistance for
the 181' Street Senior Housing project; and
WHEREAS, the AGENCY is requesting authorization for a short term loan in the
amount of $1.5 million at Five Percent (5 %) annualized interest 7 year term from the
City's Self Insurance Fund to the Redevelopment Agency to provide construction
assistance for the Millcreek Courtyard project; and
NOW, THEREFORE, incorporating the foregoing recitals herein, CITY and
AGENCY mutually agree as follows:
1. LOAN. CITY agrees to loan AGENCY Two Million Dollars
($2,000,000.00) from the City's Equipment fund and One Million Five Hundred
Thousand Dollars ($1,500,000.00) from the City's Self Insurance Fund.
2. AGENCY's OBLIGATIONS. AGENCY hereby agrees to reimburse CITY
In an amount not to exceed Three Million Five Hundred Thousand Dollars
($3,500,000.00) in seven years from the future Old Town Kem- Pioneer and Southeast
Bakersfield Project Area low -mod housing funds. Payments shall be made in semi-
annual installments.
3. NO WAIVER OF DEFAULT. The failure of any party to enforce against
another party any provision of this Agreement shall not constitute a waiver 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. MERGER AND MODIFICATION. This Agreement sets forth the entire
agreement between the parties and supersedes 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.
5. BINDING EFFECT. The rights and obligations of this Agreement shall
inure to the benefit of, and be binding upon, the parties to this Agreement and their
heirs, administrators, executors, personal representatives, successors and assigns.
6. GOVERNING 60 The laws of the State of
validity of this Agreement, its Interpretation and performance
any way from this Agreement shall be brought in Kern County,
Agreement for Repayment of
Loan for BE Project Area
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7. ICE. Time is of the essence of this Agreement.
8. EXHIBITS. In the event of a conflict between the terms, conditions or
specifications set forth in this Agreement and those in exhibits attached hereto, the
terms, conditions or specifications set forth in this Agreement shall prevail. All exhibits
to which reference is made in this Agreement are deemed incorporated in this
Agreement, whether or not actually attached.
9. CORPORATE AUTHORITY. Each individual executing this Agreement
represents and warrants they are duly authorized to execute and deliver this Agreement
on behalf of the corporation or organization, if any, named herein, and this Agreement is
binding upon said corporation or organization in accordance with its terms.
10. EXECUTION. This Agreement is effective upon execution. It is the
product of negotiation and all parties are equally responsible for authorship of this
Agreement. Section 1654 of the California Civil Code shall not apply to the
interpretation of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed, the day and year first -above written.
"CITY"
CITY OF BAKERSFIELD
"AGENCY"
BAKERSFIELD REDEVELOPMENT
AGENCY
�t_— By B y. HA VEY L. HALL PHILIP BENT Y
Mayor hair
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
APPROVED AS TO FORM:
VIRGINIA GENNARO
General Counsel
By 4,& By: 4, e?,;-1
OSHUA H. RUDNICK ASHUA H. RUDNICK
Deputy City Attomey 11 Deputy City Attorney II
Apnement for Repayment of
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ORIGINAL
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APPROVED AS TO CONTENT:
ECONOMIC AND COMMUNITY
DEVELOPMENT DEPARTMENT
By. et ma , u.�
DONNA L. KUNZ ---.)
Economic Development Director
COUNTERSIGNED:
Sy:
NELSON K. SMITH
Finance Director
Apreemsont for Repayment of
Loan for SE Project Area
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APPROVED AS TO CONTENT:
ECONOMIC AND COMMUNITY
DEVELOPMENT DEPARTMENT
By: a s 2C
DONNA L. KUNZ
Deputy Executive Director
COUNTERSIGNED:
By:
NELSON K.75MITH
Finance Officer
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AGREEMENT NO. 10 - 1 2 1 0 10-010
LOAN REIMBURSEMENT AGREEMENT
THIS AGREEMENT entered Into on AUO 11 2010 by and between the
CITY OF BAKERSFIELD, a municipal corporation and charter city ( "CITY" herein)
and THE BAKERSFIELD REDEVELOPMENT AGENCY, a public body corporate and
politic, organized and existing under the laws of the State of California
( "AGENCY" herein).
RECITALS
WHEREAS, AGENCY adopted the Southeast Bakersfield Redevelopment
Project Area In 1999; and
WHEREAS, the redevelopment plan ( "the plan ") for the Southeast Project
Area was adopted in 1999; and
WHEREAS, under the plan, the Agency Is authorized to establish debt and
to acquire real property and manage property under the ownership and control
of the AGENCY; and
WHEREAS, the AGENCY is actively pursuing redevelopment projects that
create affordable housing, eliminate slum and blight and create new
commercial and retail opportunities In the Southeast Redevelopment Project
Area; and
WHEREAS, in March, 2007, the City of Bakersfield purchased from the
Bakersfield Redevelopment Agency a 1.95 acre linear strip of land to be used as
a freeway right-of-way for the future Centennial Freeway; and
WHEREAS, the CITY has found the cost prohibitive to continue with this
alternative as a route for the Centennial Freeway;
WHEREAS, the CITY holds an easement on certain real property owned by
the AGENCY with said easement valued at $950,000; and
WHEREAS, the AGENCY desires to repurchase the easement from the CITY
in order to facilitate the development on this property, generally located
between "Q" Street and "S" Street and between 14th Street and 15th Street,
commonly known as the Chelsea Housing project and Southeast Mill Creek
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WHEREAS, CITY originally used Transportation Development Funds to
purchase the easement from the AGENCY, thus the loan proceeds will be used
by the AGENCY to reimburse the CITY Transportation Development Fund, and
WHEREAS, AGENCY does not have sufficient resources currently available
to repay the CITY regarding the easement purchase;
NOW, THEREFORE, incorporating the foregoing recitals herein, CITY and
AGENCY mutually agree as follows:
1. LOAN. CITY agrees to loan AGENCY Nine Hundred Fifty Thousand
Dollars ($950,000.00) from the City's Equipment fund,
2. AGENCY's OBLIGATIONS. AGENCY hereby agrees to reimburse CITY
In an amount not to exceed' Nine Hundred Fifty Thousand Dollars ($950,000,00) of
principal plus Three Percent (3.0%) simple interest, from future tax Increment
proceeds generated from the Southeast Redevelopment project area as
detailed In the amortization schedule attached as Exhibit "A." The
reimbursement payments to CITY shall be paid on the 20th day of August In
annual installments In accordance with the amortization schedule,
commencing on August 20, 2011, with the final installment of One Hundred
Ninety Five Thousand Seven Hundred Dollars ($195,700.00) due on August 20,
2015 unless Agency has paid balance In full In advance.
3. NO WAIVER OF DEFAULT. The failure of any party to enforce against
another party any provision of this Agreement shall not constitute a waiver 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. MERGER AND MODIFICATION. CATION, This Agreement sets forth the entire
agreement between the parties and supersedes 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.
5. BINDING EFFECT. The rights and obligations of this Agreement shall
Inure to the benefit of, and be binding upon, the parties to this Agreement and
their heirs, administrators, executors, personal representatives, successors and
assigns.
6. GOVERNING . The laws of the State of California will govern
the validity of this Agreement, its interpretation and performance. Any litigation
arising in any way from this Agreement shall be brought in Kern County,
California.
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ORIGINAL
7. Ili,. Time is of the essence of this Agreement.
S. EXHIBITS. In the event of a conflict between the terms, conditions or
specifications set forth in this Agreement and those in exhibits attached hereto,
the terms, conditions or specifications set forth in this Agreement shall prevail. All
exhibits to which reference is made in this Agreement are deemed Incorporated
in this Agreement, whether or not actually attached,
9. CORPORATE AUTHORITY. Each Individual executing this Agreement
represents and warrants they are duly authorized to execute and deliver this
Agreement on behalf of the corporation or organization, if any, named herein,
and this Agreement Is binding upon said corporation or organization in
accordance with Its terms.
10. EXECUTION. This Agreement is effective upon execution. It is the
product of negotiation and all parties are equally responsible for authorship of
this Agreement. Section 1654 of the California Civil Code shall not apply to the
interpretation of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed, the day and year first -above written.
"CITY"
CITY OF BAKERSFIELD
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
"AGENCY"
BAKERSFIELD REDEVELOPMENT
AGENCY
By: UM4A/
. PHILIP BENT
Chair 0�r
APPROVED AS TO FORM:
VIRGINIA GENNARO
General Counsel
Agreement for Repayment of 3
Lorin for SE Project Area
SAAgwrnent \2010 Agreementslequlpment loon re cheL9ea easement.doc
Created on 8/2/2010 3:29 PM
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ORIGINAL
ORIGINAL�
APPROVED AS TO CONTENT:
ECONOMIC AND COMMUNITY
DEVELOPMENT DEPARTMENT
APPROVED AS TO CONTENT:
ECONOMIC AND COMMUNITY
DEVELOPMENT DEPARTMENT
1 � 04X �. - y
By; a fir.:... By:
DONNA L. KUNZ DONNA L. KUNZ
Economic Development Director Deputy Executive Director
COUNTERSIGNED:
By: .---
NELSON 'K. SMITH
Finance Director
COUNTERSIGNED:
By: kZ
NELSON K. SMITH
Finance Officer
Agmementfor Repayment of 4
Loan for SE Project Area
S;\Apreement \2010 Apfeements \equipment loon re chelsea easement.doc
Created on 8/2/2010 3:23 PM
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SCHEDULE OF TOTAL LOAN AMOUNT + INTEREST REPAYMENTS
EXHIBIT B
Payment
Date of Loan
Interest on Installment
Installment 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 accrued in prior 6 months
50% of increase in residual amount
over base year 2012 -13
3
12/31/2015
LAIF rate accrued in prior 6 months
50% of increase in residual amount
over base year 2012 -13
4
6/30/2016
LAIF rate accrued 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 accrued 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 accrued 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 installment period. This estimated amount
will later be determined and adjusted based on the AGENCY's application of the actual LAIF
rate.
EXHIBIT B
S:\ CommDevDpt \SuccessorAgency \Misc \Restated Re! mbursementAgr- ExB.docx
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