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HomeMy WebLinkAboutBent West LLC; 2013-09-13;REIMBURSEMENT AGREEMENT FOR SPECIAL FINANCING DISTRICT FORMATION DEPOSITS BENT WEST, LLC This Reimbursement Agreement dated as of Od^CMnC^T' .,2013 ("Agreement") is by and between the City of Carisbad, a municipal corporation ("City ), for itself and on behalf of the proposed City of Carlsbad, California, Assessment District for Local Facilities Management Plan Zone 15 ("AD") and Bent-West, LLC, a California Limited Liability Company ("Developer"), collectively ("the Parties"), with reference to the following recitals: RECITALS WHEREAS, the Developer has requested that the City consider the formation of the AD and the Issuance of bonds for the AD ("Bonds") under the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915 (collectively, the "Act"); and WHEREAS, the Developer is willing to deposit funds with the City to ensure payment of the costs of the City in forming the AD and othenwise in connection with the issuance of Bonds for the AD and the proposed expenditure of the proceeds thereof, provided that such funds so advanced are reimbursed to the Developer from the proceeds of any Bonds issued by the City for the AD to the extent provided herein; and NOW, THEREFORE, the City and Developer agree as follows: 1. Recitals. The Recitals are true and correct and incorporated herein by this reference. 2. Deposits. The Developer hereby agree to advance amounts necessary ("Deposit" and collectively "Deposits") to be used by the City to pay the costs in conducting proceedings for the formation of the AD and the issuance of Bonds for the AD (as more fully described in Section 3 below, the "Initial Costs"). The Deposit(s) shall be kept in a separate fund and the City shall maintain records as to the expenditure of the Deposit(s). (a) The Developer hereby agrees to advance amounts within ten (10) business days upon written demand by the Finance Director of the City. The City Manager, in his/her sole discretion, may direct City staff and consultants to cease all work related to the formation of the AD and the issuance of Bonds until all monies, so demanded, have been received by the City. If the City Manager, in his/her sole discretion, directs City staff and consultants to cease all work related to the fomiation of the AD and the issuance of Bonds, the Finance Director ofthe City shall, within ten (10) business days after receipt of such direction, return the then unexpended Deposits to the Developer, without interest, less an amount equal to any costs incurred by the City or that the City is othenwise committed to pay, which costs would be subject to payment under Section 3(a) below but have not yet been so paid, and terminate the proceedings. 3. Use of Funds. The Deposits shall be administered as follows: (a) The Finance Director of the City may draw upon the Deposits from time to time to pay the Initial Costs, including but not limited to: (i) the fees and expenses of any consultants to the City employed in connection with the formation of the AD, the Issuance ofthe Bonds, and the proposed expenditure of the proceeds thereof (such as assessment engineering, legal counsel, including the City Attorney/ Bond Counsel, and financial advisory fees); (ii) the co^s of market absorption, appraisal and feasibility studies and other reports necessary or deemed advisable by City staff or consultants in connection with the AD or Bonds; (iii) the costs of publication of notices, preparation and mailing of ballots and other costs related to any election with respect to the AD, the assessments to be levied therein, and any bonded indebtedness thereof; (iv) a reasonable charge for City staff time, as determined by the Finance Director in their sole discretion, in analyzing the AD, the Bonds, and the expenditure of the proceeds thereof, including a reasonable allocation of City overhead expense related thereto; and (v) any and all other actual costs and expenses incurred by the City with respect to the AD or the Bonds after the date of execution of this Agreement. (b) If the Bonds are issued under the Act by the City secured by assessments levied upon the land within the AD, the City shall provide for reimbursement to the Developer, without interest, of all amounts charged against the Deposits, said reimbursement to be made solely from the proceeds of the Bonds and only to the extent othenwise permitted under the Act. On or within ten (10) business days after the date of issuance and delivery of the Bonds, the Finance Director of the City shall return the then unexpended Deposits to the Developer, without interest, less an amount equal to any costs incurred by the City of that the City is otherwise committed to pay, which costs would be subject to payment under Section 3(a) above, but have not yet been so paid. (c) If the Bonds are not issued, or the City decides to terminate proceedings under the Act with respect to the formation of the AD and the issuance of the Bonds, the Finance Director of the City shall, within ten (10) business days after receipt of a request by the Developer, return the then unexpended Deposits to the Developer, without interest, less an amount equal to any costs incurred by the City or that the City is othenwise committed to pay, which costs would be subject to payment under Section 3(a) above but have not yet been so paid. 4. Agreement Not Debt or Liabilitv of Citv. It is hereby acknowledged and agreed that this Agreement is not a debt or liability of the City. The City shall not in any event be liable hereunder other than to return the unexpended and uncommitted portions of the Deposits as provided in Section 3 above and provide an accounting under Section 6 below. The City shall not be obligated to advance any of its own funds with respect to the AD or for any of the other purposes listed in Section 3(a) hereof. No member ofthe City Council, or officer, employee or agent of the City shall to any extent be personally liable hereunder. 5. No Obligation to Issue Bonds. The provision of this Agreement shall in no way obligate the City to form the AD, to issue Bonds, or to expend any of its own funds in connection with the AD. 6. Accounting. The City Finance Director shall provide the Developer with a written accounting of moneys expended under this Agreement, within ten (10) business days of receipt by the Finance Director of the City of a written request therefore submitted by an authorized officer of the Developer. No more than one accounting will be provided in any calendar month and the cost of providing the accounting shall be charged to the Deposits. 7. Notices. Unless othenwise specifically provided herein, all notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly delivered upon personal delivery, or served by certified mail postage prepaid. Delivery of notice to Developer shall be presumed to have been made on the date of mailing regardless of receipt by Developer. Notices shall be address as follows: Notices to the City shall be delivered to: City of Carisbad Attn: Finance Director 1635 Faraday Avenue Carlsbad, CA 92008-7314 Notices to Developer shall be delivered to: Bent-West, LLC Attn: Steve Powell, Project Manager 5796 Armada Drive, Suite 300 Carlsbad, CA 92008 Phone: 520-331-1720 Email: PoweH@theriver.com 8. Successor and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. The Parties agree and acknowledge that the Developer may, in its sole discretion, assign its rights and obligations under this Agreement to a third-party (a "Successor Developer"), tn the event of such assignment, all previously advanced Deposits shall be deemed to have been made by such Successor Developer and any unexpended Deposits shall, to the extent provided for in the Agreement, be returned to such Successor Developer. In the event of such assignment and within 14 calendar days of such assignment. Developer shall notify City, in writing, of such assignment and provide City with Successor Developer's complete contact information. 9. Counterparts. This Agreement may be execute in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute one and the same instrument. 10. Governing Law and Venue. This Agreement shall be interpreted and enforced under the laws of the State of California and venue shall be in San Diego County, California. 11. Council Policv No. 33. The process to fonn the AD and issue Bonds shall comply with Council Policy No. 33: Policy for Use of Assessment Districts, Community Facilities Districts, and Bridge and Thoroughfare Districts. 12. Complete Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter contained herein, and supersedes all negotiations, discussions, and prior drafts with respect to this subject matter. 13. Amendment. This Agreement may be amended only by a written instrument executed by the City and Developer. 14. Severabilitv. The invalidity or unenforceability of any provision of this Agreement, as determined by a court of competent jurisdiction, shall in no way affect the validity or enforceability of any other provision hereof REMAINDER OF PAGE INTENTIONALL Y LEFT BLANK IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. DEVELOPER CITY OF CARLSBAD, a municipal corporation ofthe State of California By: By: (sign here) Dennis O'Brien, Member/Manager (print name/title) dobrien(^westpartners.com City Manager >eF-M9yoii.0f-Btfeetor ATTEST: (Email address) By: (sign here) BARBARA ENGLESON City Clerk (print name/title) If required by City, proper notarial acknowledgment of execution by Developer must be attached. If a corporation. Agreement must be signed by one corporate officer from each of the following two groups: Group A. Chairman, President, or Vice-President Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the offlcer(s) signing to bind the corporation. APPROVED AS TO FORM: CELIA A. BREWER, City Attorney By: ssistant City Attorney ^— ACKNOWLEDGMENT State of California County of f^H D&^O ) On P^rHBh before me, l^kHji^A vUpght. (OrfattU ^ (insert name a~n<sLiiite of the officer) * personally appeared "T^ehnfE> O&Kirin who proved to me on the basis of satisfactory evidence to be the personOaO whose name^@afe subscribed to the within instrument and acknowledged to me that^)iishe/tl=»ey executed the same in (^h«t#»eir authorized capaclty(i39<, and that b/^hetv!their signa!ure^<f on the Instrument the personCs^, or the entity upon behalf of which the pi^rsotj^ acted, executed the instrument. I certify under PENALTY OF PERJURY under the taws of the State of California that the foregoing paragraph Is tme and correct. AAMMMMiMtHM^ !18 I fint i Signature TjdHouzJ^^)hO^Lkh^ (Seal) WITNESS my hand and official seal. i j^X^ IffiNNE A.VO " CommittioQ # 1W1218 Nottry IHiMic • Ctiifonilt ' Stn Dit90 Cottflty ^ My Comm. Exptftt Oct 3.2Q1Sl CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT State of California County of ^/Wvt^ .1Xi^D On i^X^ lO^i'^l^ before me, n\e^ 1^4, )^D--t7Lv^u\ ^tAMxC^ , \ (Here ii'iSert name and title of tlWofficer) personally appeared dohiA (jJpJC-eJ^ > who proved to me on the basis of satisfactory evidence to be the person(-^ whose name^s) is/ape subscribed to the within instrument and acknowledged to me that he/sbe/^*^ executed the same in his/hep/their authorized capacity(tes), and that by his/herZ^r signature^) on the instrument the person(9), or the entity upon behalf of which the person(«') acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws ofthe State of Califomia that the foregoing paragraph is true and correct. WITNESS my hand and official seal Signature of Notary Pub (Notary Seal) MORGEN FRY Commission # 1918442 Notary Public - Caiilornia I y San Diego County ^ Mv Comm. Expires Dec 24.2014 j ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT (Title or description ofattached document) * (Title or description of attacned document continued) Number of Pages Document Date (Additional information) CAPACITY CLAIMED BY THE SIGNER • Individual (s) • Corporate Officer (Title) • Partner(s) • Attorney-in-Fact • Trustee(s) • Other INSTRUCTIONS FOR COMPLETING THIS FORM Any acknowledgment completed in Califomia must contain verbiage exactly as appears above in the notary section or a separate acknowledgment form must be properly completed and attached to that document. The only exception is if a document is to be recorded outside of California. In such instances, any alternative acknowledgment verbiage as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in California (i.e. certifying the authorized capacity of the signer). Please check the document carefully for proper notarial wording and attach this form if required. • State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. • Indicate the correct singular or plural forms by crossing otT incorrect forms (i.e. he/she/they, is /afe) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area pennits, otherwise complete a different acknowledgment form. • Signature of the notary public must match the signature on file with the office of the county clerk. • Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. • Indicate title or type of attached document, number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate thc title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document 2008 Version CAPA v 12.10.07 800-873-9865 www.NotaryClasses.com