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HomeMy WebLinkAboutReso 1987-13246 RESOLUTION NO. 13246 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO ENTER INTO A COOPERATION AND REIMBURSEMENT AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WHEREAS, the Redevelopment Agency and the City are parties to agreements with the Homart Development Company and the County of San Diego in order to implement the Town Centre II Redevelopment Project; and, WHEREAS, the Redevelopment Agency will not derive sufficient tax increment revenues to fully support the debt service needed to implement the project; and, WHEREAS, the City of Chula Vista has agreed to offer the Boys' Club property, adjacent fillet parcels, and to provide funds to the County of San Diego in settlement of tax increment sharing in order to implement the Town Centre II Redevelopment Project. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency obligates all revenues derived from the Town centre II project including tax increments and other funds that may be derived from the project area to reimburse the City in accordance with the terms and conditions of the Cooperation and Reimbursement Agreement attached hereto as though fully set forth. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista shall sign on behalf of the City of Chula Vista as a party to this agreement. Pre Approved as to form by P ~ ~tyas J. r on Community Development At Director ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF JLA VISTA, CALIFORNIA, this 15th day of September ...... 19 87 , by the following vote, to-wit: AYES: Councilmembers cox, Moore, Nader, McCandliss NAYES: Counci 1 members Malcolm ABSTAIN: Councilmembers None ABSENT: Councilmembe~'s None M&lJ~or~6f the City of Chulo Vista ATTEST ~ '~/~'2 CZ~'~'~d,-,-~ _- ~ ~ city C~,r~ '~ TE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California, DO HEREBY CERTIFY thot the above and foregoing is 0 full, true and correct copy of RESOLUTION N0. 13246 ,ond that the same hos not been omended or repealed DATED ~ City Clerk CITY OF CHULA VISI'A CC-660 0309m 090887/MS ~ COOPERATION AND REIMBURSEMENT AGREEMENT THIS AGREEMENT is entered into this 15th day of September ., 1987, by and between the REDEVELOPMENT XGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA, a public body corporate and politic (the "Agency"), and the CITY OF CHULA VISTA, a municipal corporation (the "City"). RECITALS 1. The City Council of the City has adopted and approved the Town Centre II Redevelopment Plan for the Town Centre II Redevelopment Project (the "Plan") by Ordinance No. 1827 adopted August 15, 1978. 2. Pursuant to the Community Redevelopment Law of the State of California (Sections 33000 e__t. seq. of the Health and Safety Code) the Agency is a duly constituted redevelopment agency under the laws of the State of California and pursuant to said laws is carrying out the Plan for the above referenced project. 3. In order to implement the Plan, Agency has entered into a Disposition and Development Agreement (the "Development Agreement") with Homart Development Co. (the "Developer") for expansion and improvemment of the existing Chula Vista Shopping Center (the "Project"). Pursuant to the Development Agreement certain real property owned by City has been or will be trans- ferred from the City to the Agency and from the Agency to the Developer and the Agency will make a financial contribution to the completion of the Project. 4. On May 19, 1987 by Agency Resolution No. 818 and Council Ordinance NO. 2207, the Agency and City approved an amendment to the Plan which provides Agency with the authority to receive tax increments in accordance with Section 33670 of the Health and Safety Code. 5. In conjunction with the amendment to the Plan to pro- vide for tax increments, Agency and the County of San Diego (the "County") have reached agreement pursuant to which the Agency is obligated to expend $1.3 million toward improvement of the County's South Bay Regional Administrative Center. The terms of the agreement between the Agency and County were approved by the County by Resolution No. 23 adopted by the County Board of Supervisors on July 28, 1987. 6. City is authorized and desires to assist Agency in implementation of the Project. In order to assist the Agency ir implementation of the Project, City on September 1, 1987 entered into a lease from Agency of public parking within the Project (the "Series A Lease"). City concurrently entered into a lease from Agency of certain public parking located within the City but outside of the Project Area (the "Series B Lease"). The Series A and Series B Leases may be referred to jointly herein as the "Leases". 7. The lease payments due to Agency from City pursuant to the Series A and Series B Leases are an obligation of the City's General Fund. 8. The execution by City of the Series A and Series B Leases and the financial obligations thereby assumed by City provide for funding of the Agency's direct financial contribu- tion to the Project as required by the Development Agreement and among other things, payment of Agency's $1.3 million obligation to County by issuance of Certificates of Participation in the lease payments due to Agency from City pursuant to the Leases. AGREEMENTS THE AGENCY AND CITY HEREBY AGREE AS FOLLOWS: 1. City has conveyed or will convey to Agency two parcel~ of real property owned by City and generally referred to as the "Boys Club Site" and fee title to that portion of the bed of Fifth Avenue located within the Project Site. The parcels are designated as Parcel 1 and Parcel 2, respectively, on the Pro- ject Map attached hereto and incorporated herein as Attachment NO. 1 and are legally described in the Legal Description of Parcels 1 and 2 attached hereto and incorporated herein as Attachment No. 2. 2. City and Agency hereby agree that the value of Par- cel 1 is ONE MILLION SEVENTY-SIX THOUSAND DOLLARS ($1,076,000.00) and the value of Parcel 2 is ONE THOUSAND DOLLARS ($1,000.00). 3. In consideration for the transfer of Parcels 1 and 2 from City to Agency, Agency hereby agrees to pay to City the full value of the Parcels as set forth in Paragraph 2 above. Such payment shall be in accordance with the provisions set forth below. 4. In consideration for City's entering into the Series A Lease, Agency hereby agrees to reimburse City the full amount of all lease payments made by City to Agency (or Agency's assignee) pursuant to the Series A Lease. Agency hereby further agrees, to the extent that City is required by the terms of the Series A -2- Lease to make additional payments and is not reimbursed by other e u but not limited to the payment by City, if required, of taxes and assessments on the Series A leased premises. Such reimbursement shall be in accordance with the provisions set forth below. 5. In consideration for City's entering into the Series B Lease, and the obligation of the City to pay that portion of the Series B Lease payments necessary to finance Agency's obligation to pay $1.3 million to the County of San Diego pursuant to the agreement between Agency and County relative to the amendment of the Town Centre II Redevelopment Plan authorizing use of tax increment financing within the Town Centre II Project area, Agency hereby agrees to reimburse City $1.3 million. Such pay- ment shall be in accordance with the provisions set forth below. 6. The Agency's obligation to pay and reimburse City shall be subject to the following terms: a. Agency agrees to pay City interest at a rate equal to the City Treasurer's average portfolio yield, calculated semi-annually. b. Interest shall accrue on $1,076,000.00 from the date of recordation of a deed from City to Agency for Parcel 1. Interest shall accrue on $1,000.00 from the date of recordation of a deed from City to Agency for Parcel 2. c. Interest shall accrue on the amounts paid by City to Agency (or AgenCy's assignee) pursuant to the Series A Lease from the date of each such payment. d. Interest on the $1.3 million or portion thereof financed by the Series B Lease shall accrue from the date of payment by City to County of $1.3 million or any portion thereof in fulfillment of the Agency's obligation to County pursuant to the agreement between Agency and County. e. Payments by Agency to City shall be applied first to accrued interest. f. Agency hereby agrees and acknowledges that cer- tain expenditures or actions by City which qualify for reim- bursement pursuant to this Agreement occurred prior to the effective date of this Agreement. Agency and City hereby agree Agency shall be obligated to reimburse City for all actions and payments authorized herein which acts occurred or payments were made prior to the effective date of this Agreement. g. Agency agrees to pay and reimburse City for all amounts due to City pursuant to this Cooperation and Reimburse- ment Agreement including interest from and to the extent that -3- property tax increments attributable to the Town Centre II Redevelopment Project are available to Agency for such purpose pursuant to Section 33670 of the Health and Safety Code or from other sources; provided, however, that the Agency shall have the sole and exclusive right to pledge any such sources of funds to the repayment of other indebtedness heretofore or hereafter incurred by Agency in carrying out the Town Centre II Redevelop- ment Plan. In the event of any such pledge, the Agency's obli- gations hereunder shall be subordinate to the indebtedness which is secured by such pledge. h. Agency's payments to City shall be made within thirty (30) days of Agency's receipt of tax increments and shall be in the full amount of all tax increments attributable to the Town Centre II Redevelopment Project less any amounts withheld in conformance with legal requirements, pre-existing pass- through agreements with other taxing entities or funds pledged in accordance with paragraph g above. 6. Although City and Agency recognize that reimbursement of City will take several years and that reimbursement may be made on an irregular basis over a period of time due to the necessity to use tax increment funds to complete other projects within the Project Area, it is the express intent of the parties that the City shall be entitled to reimbursement of all amounts due to City pursuant to this Agreement and the interest thereon, consistent with the Agency's financial ability, in order to make the City whole as soon as practically possible. 7. Agency and City agree that the amounts due to City pursuant to this Agreement and the accrued interest thereon shall be an indebtedness of the Agency for purposes of Sec- tion 33670 et. seq. of the Community Redevelopment Law. IN WITNESS WHEREOF, the parties have executed this Agree- ment as of the date first above written. City THE CITY OF CHULA VISTA, Dated: October 2, I987 ~ . ATTEST: ity clerk -4- APPROVED AS TO FORM: ~! Thomas J. Har~, City Attorney ~ency REDEVELOP~NT AGENCY OF THE CITY OF CH~~ ~. ~.~ Dated:~eptember 17~ 1987 By: Cox, Chairman ~aul Desr~hers, Secretary APPROVED AS TO FORM: Agency Counsel