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HomeMy WebLinkAboutRES NO RA006-07 . RESOLUTION NO. PAll 0 6 - 0 7 RESOLUTION OF THE BAKERSFIELD REDEVELOPMENT AGENCY REGARDING THE EXPENDITURE OF TAX INCREMENT FUNDS FOR PUBLIC IMPROVEMENTS INSIDE AND OUTSIDE THE OLD TOWN KERN-PIONEER REDEVELOPMENT PROJECT AREA, AND APPROVING AND AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK FOR THE MILLCREEK LINEAR PARK AND CANAL REFURBISHMENT PROJECT WHEREAS, the City of Bakersfield, by Ordinance No. 3905, adopted the Old Town Kern Redevelopment Plan and Project (the "Old Town Kern Project") for the Old Town Kern Redevelopment Project Area ("Project Area") in June, 1999; and WHEREAS, the Bakersfield Redevelopment Agency ("Agency"), is implementing the Old Town Kern Project, pursuant to the California Redevelopment Law, and is receiving tax increment from the Project Area; and WHEREAS, the City of Bakersfield seeks to install and construct improvements along portions of the Kern Island Canal, including flood control improvements, exercise and art areas, and a walking path designed to enhance the commercial/residential potential for downtown Bakersfield and supplement drinking water for the City (collectively known as the "Millcreek Linear Park and Canal Refurbishment Project" or "Project"); and WHEREAS, the Agency has previously adopted an Implementation Plan for the Old Town Kern Project, and the Implementation Plan identifies the Millcreek Linear Park and Refurbishment Project, consisting of canal improvements and a linear park along Kern Island Creek, as a project designed to eliminate blight and enhance the commercial/residential potential for the Project Area, as well as the downtown Bakersfield area; and WHEREAS, the California Infrastructure and Economic Development Bank ("1- Bank") operating pursuant to the Bergeson-Peace Infrastructure and Economic Development Bank Act, has reviewed a Preliminary Application prepared by the Agency for a loan in the amount of Ten Million Dollars ($10,000,000) and has indicated the Agency's preliminary eligibility for such a loan; and WHEREAS, the Agency is negotiating an Agreement with the California Infrastructure and Economic Development Bank ("I-Bank") setting forth the terms and conditions of the financing and development of the Project; and WHEREAS, pursuant to the terms of the Agreement, the Agency will pledge tax increment revenue from the Old Town Kern Project Area to repay the loan to be provided by the I-Bank; and AGENCY ORIGINAL WHEREAS, Health & Safety Code Section 33445 provides that a redevelopment agency may, with the consent of the legislative body (here, the City Council of the City of Bakersfield), pay for all or a part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement which is publicly owned, if the legislative body makes certain findings; and WHEREAS, Health & Safety Code Section 33679 requires that the legislative body hold a public hearing before a redevelopment agency commits to use a portion of tax increment for the purpose of paying all or a part of the value of land for, and/or the cost of the installation and construction of any publicly owned building; and WHEREAS, the Agency has also chosen to hold a public hearing under Health & Safety Code Section 33679; and WHEREAS, the Agency intends to assist the City in the financing of the improvements to the Millcreek Linear Park and Canal Refurbishment Project by entering into a loan with the I-Bank; and WHEREAS, pursuant to Health & Safety Code Section 33679, the City and Agency made available to the public a Summary Report on the Project, dated October 5, 2007 ("Summary Report"), which includes: (a) a description of the Project; (b) an explanation of the sources of public and private funds necessary to finance the development of the Project, including an estimate of the amount of taxes proposed to pay for development of the Project; (c) facts supporting the determinations to be made by the City herein; and (d) an explanation of why the Millcreek Linear Park and Canal Refurbishment Project will assist in the elimination of blight and primarily benefit the Old Town Kern-Pioneer Project Area; and WHEREAS, pursuant to Health & Safety Code Section 33679, the Agency's public hearing was advertised once a week for two successive weeks in a newspaper of general circulation in the community prior to the hearing; and WHEREAS, after the City's public hearing, it is anticipated that the City will make the findings required by Health & Safety Code Section 33445. NOW, THEREFORE, BE IT RESOLVED: Section 1. The Agency is authorized to assist in the financing of public facilities both inside and outside a redevelopment project area if the legislative body of the community has found that such assistance will be of benefit to the project area, if there is no other reasonable means of financing the improvements, and if such assistance will assist in the elimination of blight and is consistent with the implementation plan for the project area. Section 2. Based upon the information submitted at the time of the public hearing on this matter, the Agency hereby finds and determines: AGENCY ORIGINAL A. The proposed Millcreek Linear Park and Canal Refurbishment Project is of primary benefit to the Old Town Kern-Pioneer Project Area. B. No other reasonable means of financing the Millcreek Linear Park and Canal Refurbishment Project are available to the community except for the loan anticipated to be made by the I-Bank. C. The payment of funds for the development and construction of the publicly owned facilities constitutfng the Millcreek Linear Park and Canal Refurbishment Project will assist in the elimination of one or more blighting conditions inside the Old Town Kern-Pioneer Redevelopment Project Area. D. The Millcreek Linear Park and Canal Refurbishment Project is in compliance with, and such tax increment use is consistent with, the Redevelopment Plan and the Five Year Implementation Plan for the Project Area. Section 3. The Millcreek Linear Park and Canal Refurbishment Project is consistent with the Implementation Plan for the Old Town Kern-Pioneer Redevelopment Project and will assist in the elimination of blight within the Project Area. Section 4. The California Infrastructure and Economic Development Bank has conditionally offered to lend the Agency the amount of Ten Million Dollars ($10,000,000) in order to assist in the construction the Millcreek Linear Park and Canal Refurbishment Project, in exchange for a pledge of tax increment revenues generated by the Old Town Kern-Pioneer Redevelopment Project Area (the "I-Bank Loan"). Section 5. The tax increment revenues generated by the Old Town Kern- Pioneer Redevelopment Project are sufficient to repay the I-Bank Loan. Section 6. To the extent that revenues from the Old Town Kern-Pioneer Redevelopment Project are used to assist in the installation of that portion of the Millcreek Linear Park and Canal Refurbishment Project outside the Old Town Kern- Pioneer Redevelopment Project Area, the use of such revenues is found to be of benefit to the Old Town Kern-Pioneer Redevelopment Project, and to assist in the elimination of blight within the Old Town Kern-Pioneer Redevelopment Project Area. Section 7. The Executive Director of the Agency, or his or her designee, is hereby authorized and directed to execute and deliver the I-Bank Loan Agreement proposed to be entered into by the Agency and the California Infrastructure and Economic Development Bank, for and on behalf of the Agency, upon the adoption by the City Council of the City of Bakersfield of a Resolution approving the provision of assistance by the Agency for the Millcreek Linear Park and Canal Refurbishment Project and to take such actions as necessary to implement the Agreement. AGENCY ORIGINAL Section 8. The Executive Director of the Agency, or his or her designee, is hereby authorized and directed, in the name of and on behalf of the Agency, to take any and all steps and to execute and deliver any and all certificates, contracts, and other documents which they deem necessary or appropriate in order to consummate the delivery of the I-Bank Loan Agreement and other to effectuate the purposes of this Resolution, including the execution of a tax certificate, and such actions previously taken by the employees of the Agency with respect to the Agreement are hereby ratified and confirmed. As executed and delivered, such Agreement shall be in substantially the form presented at this meeting, with such minor additions or modifications as the officers executing the Agreement shall require or approve, such approval to be conclusively evidenced by the execution and delivery of the I-Bank Loan Agreement. Section 9. The Agency acknowledges that subsequent to the execution and delivery of the Agreement, the I-Bank may determine to issue bonds to fund all or a portion of the Millcreek Linear Park and Canal Refurbishment Project, as defined in the Agreement. In such event, the Agency hereby authorizes the Executive Director, or his or her designee, to execute any necessary documentation, as requested by the I-Bank, including a new agreement, so long as such documentation is consistent with this Resolution and substantially identical to the terms and conditions of the Agreement approved herein. Section 10. This Resolution and authorizations contained herein are contingent upon the City Council of the City of Bakersfield has made the findings required of Health & Safety Code Section 33445 to permit the Agency to provide financial assistance in the provision of the public facilities constituting the Millcreek Linear Park and Canal Refurbishment Project by means of a Resolution (the "City Council Resolution"). The approval of the City Council Resolution by the City immediately satisfies and removes the contingency stated in this Section. This Resolution shall take effect from and after the passage, approval and adoption of the City Council Resolution. I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Bakersfield Redevelopment Agency at a regular meeting thereof held on OCT 9. 2 10n7 , by the following vote: ~ ~ ABSTAIN: ABSENT: AGENCY MEMBER BE~LEY, CO~N, KO~, MIS~E, ORDIZ, PRI~, TA~ AGENCY MEMBER ~ AGENCY MEMBER VI f'TYV) AGENCY MEMBER orlij 2- ~ Ll.. fh SECRETARY of the Bakersfiel Redevelopment Agency AGENCY ORIGINAL APPROVED: ERICK PRINCE, CHAIRPERSON BAKERSFIELD REDEVELOPMENT AGENCY APPROVED AS TO FORM: VIRGINIA GENNARO GENERAL COUNSEL By: ~ ij'. h~D;~ AGENCY ORIGINAL