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HomeMy WebLinkAbout2011-013 - Implementation of Programs and Projects Established in the 2010/11-2014/153-1-11 LES RESOLUTION NO. 2011-013 A RESOLUTION OF THE CITY COUNCIL OF SANTA ANA APPROVING A COOPERATIVE AGREEMENT REGARDING THE IMPLEMENTATION OF PROGRAMS AND PROJECTS ESTABLISHED IN THE 2010/11-2014/15 FIVE-YEAR IMPLEMENTATION PLAN WITH THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND MAKING CERTAIN FINDINGS RELATED THERETO PURSUANT TO SECTION 33445 OF THE HEALTH & SAFETY CODE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Community Redevelopment Agency of the City of Santa Ana (hereinafter referred to as the "Agency") is engaged in activities necessary to execute and implement the Redevelopment Plan for the Merged Project Area (the "Redevelopment Plan"). B. The intent of the Redevelopment Plan is, in part, to provide for the construction and installation of necessary public infrastructure and facilities, and to facilitate the repair, restoration and/or replacement of existing public facilities and to perform specific actions necessary to promote the redevelopment and the economic revitalization of the Project Area, and to expend tax increment to accomplish the goals and objectives of the respective redevelopment projects. C. The Agency has adopted its Five-Year Implementation Plan (2010/11-2014/15) for the Project Area, as amended from time to time (the "Implementation Plan"), with established goals to support affordable housing, economic development, community revitalization, and institutional revitalization. To implement the projects, programs and activities associated with each goal, the Agency has made redevelopment fund commitments based on estimated available tax increment revenue and debt financing structures. D. The Agency and City of Santa Ana (the "City") wish to cooperate with one another to bring about the redevelopment of the Merged Project Area and accomplish various projects and programs set forth in the Redevelopment Plan and the Implementation Plan. Resolution No. 2011-013 Page 1 of 10 E. Pursuant to Section 33220 of the Community Redevelopment Law (Health and Safety Code section 33000, et seq.) (the "CRU) certain public bodies, including the City may aid and cooperate in the planning, undertaking, construction, or operation of redevelopment projects. F. The Agency and City have prepared a Cooperative Agreement (the "Agreement") to provide for the implementation of certain projects set forth in the Implementation Plan attached hereto as Exhibit 1 (the "Projects"), and to make payments by the Agency to the City to reimburse the City for the cost to the City for performing its obligations thereunder. The programs and activities associated with the Projects include, but are not limited to, acquisition and disposition of property, design, planning, preparation of construction bid documents, financial analysis, financing and new construction or rehabilitation. To carry out the Projects in accordance with the objectives and purposes of the Redevelopment Plan for the Project Area and the Implementation Plan, the Agency desires assistance and cooperation in the implementation and completion of the Projects. The City wishes to enter into the Agreement with the Agency to aid the Agency and cooperate with the Agency to expeditiously implement the Projects in accordance with the Redevelopment Plan for the Project Area and the Implementation Plan and undertake and complete all actions necessary or appropriate to ensure that the objectives of the Redevelopment Plan for the Project Area and the Implementation Plan is fulfilled within the time effectiveness of the Project Area. G. The Agency wishes to enter the Agreement with the City for the pledge of net available tax increment to finance the Projects. The purpose of the agreement is to facilitate the implementation of the Projects and to provide funding necessary to effectuate the completion of the Projects with net available tax increment in this current fiscal year and forthcoming fiscal years. "Net tax increment" is defined as gross tax increment, less County Administrative Fees, statutory pass-throughs and debt service. By approving and entering into the Agreement, the Agency will approve the pledge of net available increment from the Project Area to pay for the Projects. G. Section 33445 of the Health & Safety Code, part of the California Redevelopment Law, provides that the Agency may pay for all or part of the cost of installation and construction of any building, facility, structure or other improvement which is publicly owned either within or without the project area, upon the consent of the City, if the following findings can be made: 1. That the public improvement is of benefit to the project area or the immediate neighborhood in which the project is located and helps to eliminate blight; Resolution No. 2011-013 Page 2 of 10 2. That no other reasonable means of financing the publicly owned improvement is available to the community; and 3. That the payment of funds for the cost of the publicly owned improvement is consistent with the Implementation Plan. H. The City finds that the Projects will be of benefit to the merged Project Area as well as benefit the immediate neighborhood and all residents and visitors to the City. This finding is supported by the fact that public improvements in general facilitate the removal of blight and help create a safe, more cohesive and economically dynamic community. Development of library, park and recreational facilities, as well as public parking and open space improvements assist in removal of blight within densely populated neighborhoods currently underserved with these types of amenities. Public safety and street improvements eliminate blight, improve traffic flow, increase the safety of residents, promote job create and promote business attraction and retention. The City, public and business community will significantly benefit from the proposed public facilities on the Schedule of Projects. These public improvements will beautify public streets, promote business, and improve public infrastructure necessary to spur economic revitalization in the Project Area. 1. The City determines that it lacks funds to pay for the Projects at this time, and there are no other reasonable means of financing said improvements. It has been difficult for the City, by itself, to provide sufficient funds to support the implementation of major public projects, programs, and activities. The limited resources of the City's General Fund are committed to previously incurred obligations and planned projects. J. The City further finds and determines that the payment of funds for the implementation of the public projects, programs and activities is consistent with the Implementation Plan adopted pursuant to Health and Safety Code Section 33490. K. The City finds that it is in the best interests of the City and the common benefit of residents, employees, business tenants and property owners within the Project Area and the City as a whole for the Projects to be developed and constructed. L. The use of funds in the Agency's low and moderate income housing fund for the Projects located outside of the Project Area can be used in accordance with Section 33334.2 of the CRL because the use of such funds will be of benefit to the Project Area. M. The City Council has received and heard all oral and written Resolution No. 2011-013 Page 3 of 10 objections to the proposed payments by the Agency to the City for the Projects as described in the Agreement, and to other matters pertaining to this transaction, and all such oral and written objections are hereby overruled. N. The City Council hereby finds and determines that the foregoing findings are true and correct. Section 2. The City Council hereby consents to the payment by the Agency of up to $210,000,000.00 in Agency funds from the Merged Project Area for these public projects, programs and activities, in accordance with that certain Cooperative Agreement to be executed between the Agency and the City. Section 3. The City Manager or his designees is hereby authorized to take all steps, and to sign all documents and instruments necessary to implement and carry out and implement the Agreement, and to administer the City's obligations, responsibilities and duties to be performed under the Cooperative Agreement on behalf of the City. Section 4. The Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution No. 2011-013 Page 4 of 10 ADOPTED this 7th day of March 2011. Miguel Mayor APPROVED AS TO FORM: Joseph Straka, Interim City Attorney By Lisa E. Storck Assistant City Attorney Pulido AYES: Councilmembers: Alvarez, Benavides, Bustamante, Martinez Pulido, Sarmiento, Tinajero (7) NOES: Councilmembers: None (0) ABSTAIN: Councilmembers: None (0) NOT PRESENT: Councilmembers: None (0) CERTIFICATION OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2011-013 to be the original resolution adopted by the City Council of the City of Santa Ana on March 7, 2011. Date: ?i??= Clerk of Council City of Santa Ana Resolution No. 2011-013 Page 5 of 10 COOPERATIVE AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY AND THE CITY OF SANTA ANA FOR THE PAYMENT OF COSTS ASSOCIATED WITH CERTAIN REDEVELOPMENT AGENCY FUNDED PROJECTS/PROGRAMS THIS COOPERATIVE AGREEMENT is entered into this 7" day of March, 2011, by and between the CON AUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public body corporate and politic (the "Agency"), and the CITY OF SANTA ANA, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "City"). WITNESSETH A. The Agency is undertaking certain activities necessary for the execution of the City of Santa Ana redevelopment projects (the "Projects") under the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) ("CRV) and pursuant to the Redevelopment Plan for the Projects. B. The intent of the Redevelopment Plan is, in part, to provide for the construction and installation of necessary public infrastructure and facilities and to facilitate the repair, restoration and/or replacement of existing public facilities and to perform specific actions necessary to promote the redevelopment and the economic revitalization of the Project Areas; to increase, improve and preserve the community's supply of low and moderate income housing, some of which may be located or implemented outside the Project Areas; and to take all other necessary actions to implement the redevelopment plans for the respective Project Areas and to expend tax increment to accomplish the goals and objectives of the respective redevelopment projects. C. The Agency has adopted its Five-Year Implementation Plan (2010/11-2014/15) for the Merged Project Area, as amended from time to time (the "Implementation Plan'), with established goals to support affordable housing, economic development, community revitalization, and institutional revitalization. To implement the projects, programs and activities associated with each goal ("Projects"), the Agency has made redevelopment fund commitments based on estimated available tax increment revenue and debt financing structures. D. The Agency and City of Santa Ana (the "City") wish to cooperate with one another to bring about the redevelopment of the Project Area and accomplish various projects and programs set forth in the Redevelopment Plan and the Implementation Plan. Pursuant to Section 33220 of the Community Redevelopment Law (Health and Safety Code section 33000, et seq.) (the "CRL') certain public bodies, including the City may aid and cooperate in the planning, undertaking, construction, or operation of redevelopment projects. E. In considering the Agency's desire to ensure timely implementation and Resolution No. 2011-013 Page 6 of 10 completion of the Projects, the Agency wishes to enter this Agreement with the City for the pledge of net available tax increment to finance the Projects. The purpose of this Agreement is to facilitate the implementation of the Projects and to provide funding necessary to effectuate the completion of the Projects with net available tax increment in this current fiscal year and forthcoming fiscal years. "Net tax increment" is defined as gross tax increment, less County Administrative Fees, statutory pass-throughs and debt service. By approving and entering into the Agreement, the Agency will approve the pledge of net available increment from the Project Area to pay for the Projects. F. The City and Agency by resolution have each found that the use of Agency redevelopment funding for the Publicly Owned Improvements included herein is in accordance with Section 33445 and 33445.1 of the CRL and other applicable law. Such Council and Agency resolutions are each based on the authority, with the consent of the Council, to pay all or part of the cost of the installation and construction of any building, facility, structure, or other improvernent which is publicly owned, either within or outside a Project Area, if the City Council makes certain determinations. G. By approving and entering into this Agreement, the Agency has approved the pledge of net available tax increment from the Project Areas to pay for the Projects and Programs. H. The obligations of the Agency under this Agreement shall constitute an indebtedness of the Agency for the purpose of carrying out the Redevelopment Plan for the Merged Project Area. I. The Recitals are an integral part of this Agreement and set forth the intentions of the parties and the conditions on which the parties have decided to enter into this Agreement. NOW, THEREFORE, the parties hereto do mutually agree as follows: 1. AGENCY OBLIGATIONS A. The Projects are those projects, programs and activities which are listed in the attached Implementation Plan. The Agency wishes to pay to the City an amount equal to the cost to the City to carry out the Projects. The Agency's obligations under this agreement, including without limitation the Agency's obligation to make the payments to the City required by this Agreement, shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment of the Merged Project Area and are obligations to make payments authorized and incurred pursuant to redevelopment law. The obligations of the Agency set forth in this Agreement are contractual obligations that, if breached, could subject the Agency to damages and other liabilities or remedies. B. The obligations of Agency under this Agreement shall be payable out of net available tax increment, as defined in above Recitals and/or as defined or provided for in any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, levied by or for the benefit of taxing agencies in the Merged Project Area, and allocated to the Agency and/or any lawful successor entity of the Agency and/or any entity established by law to Resolution No. 2011-013 Page 7 of 10 carry out any of the redevelopment plans for the Merged Project Area and/or expend tax increment or pay indebtedness of the Agency to be repaid with tax increment, pursuant to Section 33670 of the CRL or any applicable constitutional provision, statute or other provision of law now existing or adopted in the future. In the event that additional funds are required in order to make the Agency payments to the City required by this Agreement, the Agency shall make such other payments from income received by the Agency from its projects and programs or any other additional funds available to it. C. The indebtedness of Agency under this Agreement shall be subordinate to the rights of the holder(s) of any existing bonds, notes or other instruments of indebtedness (all referred to herein as "indebtedness') of the Agency incurred or issued to finance the Merged Project Area, including without limitation any pledge of tax increment revenues from the Merged Project Area to pay any portion of the principal (and otherwise comply with the obligations and covenants) of any bond(s) issued or sold with respect to the Merged Project Area. 2. CITY OBLIGATIONS A. The City shall accept any funds offered by the Agency pursuant to this Agreement and shall devote those ftmds to completion of the projects, programs and activities by (i) reimbursing the City of using such funds to make City expenditures to perform the work required to carry out and complete the Projects; (ii) utilizing such funds to pay debt service on bonds or other indebtedness or obligations that the City has or will incur for such purposes; and/or paying such funds into a special fund of the City to be held and expended only for the purpose of satisfying the obligations of the City hereunder. B. It is the responsibility of the City to pay all development and construction costs in connection with the Projects from funds paid to the City by the Agency under this Agreement. C. The City shall perform its obligations hereunder in accordance with all applicable provisions of federal, state and local laws, including its obligation to comply with environmental laws such as CEQA, and shall timely complete the work required for each of the Projects set forth in the Plan. 3. COMPENSATION AND METHOD OF PAYMENT The Agency shall contribute to the projects, programs and activities set forth in the Implementation Plan in an amount not to exceed Two Hundred Ten Million Dollars ($210,000,000.00), with the breakdown of Project costs as shown in Exhibit A attached hereto and incorporated herein. The Agency shall reimburse the City for the cost to the City of performing its obligations hereunder. The amount to be paid by the Agency hereunder shall be paid in the same fiscal year as the year in which the debts are incurred by the City. 4. LIABILITY AND INDEMNIFICATION Resolution No. 2011-013 Page 8 of 10 In contemplation of the provisions of Section 895.2 of the Government Code of the State of California imposing certain tort liabilityjointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of said Code, the parties hereto, as between themselves, pursuant to the authorization contained in Section 895.4 and 895.6 of said Code, will each assume the full liability imposed upon it, or any of its officers, agents or employees by law for injury caused by negligent or wrongful act or omission occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Section 895.2 of said Code. To achieve the above-stated purpose each party indemnifies and holds harmless the other party for any loss, costs or expense that may be imposed upon such other party solely by virtue of said Section 895.2. The provisions of Section 2778 of the California Civil Code are made a part hereof as if fully set forth herein. 5. SEVERABILITY If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. 6. EFFECTIVE DATE OF AGREEMENT This Agreement shall take effect from and after the date of adoption and approval by the City and the Agency pursuant to official action of the governing bodies thereof and shall be effective for a duration not to exceed the time necessary for the City to complete the work and for the Agency to pay the City in full. This Agreement shall apply to all activities carried out by the City as set forth in Section 1 hereto. BINDING ON SUCCESSORS This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law. IN WITNESS WHEREOF, the parties hereto have executed this Cooperative Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA Resolution No. 2011-013 Page 9 of 10 Maria D. Huizar Clerk of the Council ATTEST: Maria D. Huizar Secretary APPROVED AS TO FORM: Joseph Straka Interim City Attorney/Agency General Counsel By: Lisa E. Storck Assistant City Attomey/Assistant Counsel By David N. Ream City Manager COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA By: Nancy T. Edwards Interim Executive Director Resolution No. 2011-013 Page 10 of 10