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HomeMy WebLinkAboutAgenda Statement 1987/04/07 Item 6 COUNCIL AGENDA STATEMENT Item 6 Meeting Date 4/7/87 ITEM TITLE: Resolution/Z9 the c General Approving Fund Bal Balance appropriation for spe and loan of counsel $10,000 from services for the Town Centre II Redevelopment Project SUBMITTED BY: Community Development Director -,- REVIEWED BY: City Manager (4/5ths Vote: Yes X No ) On July 18, 1985, the Redevelopment Agency approved a contract with the firm of McDonough, Holland and Allen for special legal services regarding redevelopment activities in the Town Centre II Project Area. The Agency is currently involved in negotiations regarding the preparation of a Disposition and Development Agreement for the Chula Vista Shopping Center Project and require additional assistance from McDonough, Holland and Allen. Since the Town Centre II project involves no tax increment, the Agency must borrow funds from the City's General Fund to finance these activities. RECOMMENDATION: That the Council adopt the resolution approving appropriation and loan of $10,000 from the General Fund Balance for special counsel services. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The McDonough, Holland and Allen legal firm has assisted the Agency in negotiation of financial agreements for both Bayfront and Town Centre II Redevelopment Projects. The current negotiations for the proposed Chula Vista Shopping Center project are particularly complex and challenging, and the Agency is in need of special legal counsel support. Since insufficient funds were budgeted for this activity, funds must be loaned from the General Fund to the Town Centre II Professional Services account. An amendment to the contract with McDonough, Holland and Allen for continued assistance in the negotiation of the Town Centre II Project DDA is attached. FISCAL IMPACT: There are sufficient funds in the General Fund Balance to finance the appropriation of $10,000 to the Town Centre II Professional Services Account (#992-9920-5201). Although the Agency does not currently have the ability to collect tax increments for Town Centre II, it is expected that the Agency will have this ability in the future, following amendment of the Town Centre II Redevelopment Plan. Following that action, tax increment proceeds will be used to reimburse the General Fund. The $10,000 involved in this item will from rthetGeneral Fund to Town CentDreA.II to dateotalling $240,671 ed to the Agency in the have been made WPC 2784H y the City Council of Chula Vista, California Dated -----