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HomeMy WebLinkAboutCarlsbad Housing and Redevelopment Commission; 2009-07-08;REPAYMENT SCHEDULE AGREEMENT This AMENDED REPAYMENT SCHEDULE AGREEMENT ("Agreement") is entered into by and between the CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION, a body corporate and politic ("Commission") and the CITY OF CARLSBAD, a municipal corporation ("City") as of 'Jo ly <O , 2009. RECITALS A. The Commission and the City entered into a Cooperation Agreement dated February 8, 1980, pursuant to which the City agreed to incur certain costs and the Commission agreed to reimburse the City for such costs, including costs incurred by the City both before and after the date of the such agreement for redevelopment activities within the Village Redevelopment Project Area; and B. The Commission and the City updated and restated the Cooperation Agreement on August 20, 2001 to include redevelopment activities within both the Village Redevelopment and South Carlsbad Coastal Redevelopment Project Areas; and C. The Commission and the City updated and amended the Cooperation Agreement on July 7, 2009 to include completion of unfinished and/or incomplete projects and/or activities within the Village Redevelopment Area following expiration of the Village Redevelopment Plan expiration date on July 21, 2009 with completion of said projects and/or activities no later than July 21, 2019. D. The City has made numerous loans and advances to and for the benefit of the Commission to pay capital and operating expenses of the Commission for development projects and programs within the Village Redevelopment Project Area, including but not limited to loans and advances described in the following resolutions and instruments (collectively referred to as the "Resolutions"): Commission Resolution No. 3 dated September 21, 1976; City Council Resolution No. 3958 dated July 6, 1976; Redevelopment Agency Resolution No. 4 accepting the City Council's Allocation of Funds for Redevelopment Agency Operation Fiscal Year 1977-78; Commission Resolution No. 15 dated September 28, 1982; City Council Resolution No. 7023 dated September 28, 1982; Commission Resolution No. 031 dated August 16, 1983; Commission Resolution No. 55 dated August 20, 1985; Commission Resolution No. 52 dated July 30, 1985; Commission Resolution No. 091 dated October 20, 1987; City Council Resolution No. 7897 dated February 5, 1985; City Council Resolution No. 8 183 dated September 17, 1985; City Council Resolution No. 88-278 dated August 9, 1988; Agreement between the City and the Carlsbad Redevelopment Agency for a Loan of Funds for Property Acquisition dated September 29, 1999; Commission Resolution No. 041 dated August 2 1, 1984; Commission Resolution NO. 058 dated September 17, 1985; Commission Resolution No. 48 dated June 18, 1985; City Council Resolution No. 8070 dated June 18, 1985; Commission Resolution No. 063 dated February 18, 1986; City Council Resolution No. 8329 dated January 7, 1986; Commission Resolution No. 102 dated April 5, 1988; City Council Resolution No. 88-115 dated April 5, 1988; Commission Resolution No. 115 dated August 16/1988; and City Council Resolution No. 88-224 dated July 5, 1988. E. The City agreed to loan the Commission up to an additional $14.4 million for non-housing redevelopment projects/programs on December 2, 2003, and the Commission agreed to repay said loan funds with tax increment revenue as made available to Commission for said repayment. F. The City and Commission entered into a Reimbursement Agreement on December 2, 2003 which set forth the list of projects/programs to be financed initially by the City and subsequently reimbursed by the Commission, and updated and amended said Agreement on July 7, 2009. G. The loans and advances made by the City to or for the benefit of the Village Redevelopment Project Area through the Commission pursuant to the Cooperation and Reimbursement Agreements and subsequent Resolutions shall be referred to collectively as the "Commission Indebtedness". H. The Commission and the City mutually desire to implement the Cooperation and Reimbursement Agreements and the subsequent Resolutions (collectively T referred to as the "City-Commission Agreements") by setting forth (1) a final accounting of the Commission Indebtedness to the City pursuant to the City- Commission Agreements for the Village Redevelopment Project Area; and (2) a payment schedule by which the Commission shall repay the Commission Indebtedness to the City in satisfaction of the City-Commission Agreements for the Village Redevelopment Project Area. Now, therefore, it is agreed by and between the parties to this Agreement as follows: 1. Pursuant to the Cooperation and Reimbursement Agreements and the subsequent Resolutions, the Commission is obligated to reimburse the City the full principal and all accrued interest on the existing Commission Indebtedness, which the parties estimate to be the sum of $15,215,571 as of June 30, 2009 (the "Commission Indebtedness Amount") for Redevelopment activities within the Village Redevelopment Project Area as of June 30, 2009. 2. Pursuant to the Cooperation and Reimbursement Agreements and the subsequent Resolutions, the Commission shall be obligated to reimburse the City the full principal and all accrued interest on the additional Commission Indebtedness, which the parties estimate will be the total sum of $19,068,441 as of June 30, 2019. This total sum of indebtedness may be more or less depending upon the total amount ultimately borrowed from the City and the payments actually made to the City by the Commission in any given year for projects/programs to be implemented between 2009 and 2019. 3. The Commission shall repay to the City the full amount of the Commission Indebtedness Amount, with interest equal to the annual average rate of return earned on the City's investment portfolio as determined by the City Treasurer, compounded annually, until paid, generally in accordance with the Repayment Schedule attached to this Agreement as Exhibit "A", with variations permitted to reflect the actual amount of funds legally available to the Commission for said Village Redevelopment Project Area. The parties hereto acknowledge that the Commission Indebtedness Amount consists of the sum of the following: (a) $15,215,571, which the parties estimate to be the principal and accrued interest as of June 30, 2009 on costs incurred by the City pursuant to the Cooperation Agreement and subsequent Reimbursement Agreement and/or Resolutions; plus (b) $19,068,441, which is the estimate of the principal and interest on costs to be incurred by the City pursuant to the Cooperation Agreement and subsequent Reimbursement Agreement and/or Resolutions for all projects initially funded by the City on behalf of the after December 31,2003 and extending to June 30, 2019. 4. The Commission shall reimburse the City the full amount of all Indebtedness related to fees and services provided by the City to the Commission for implementation of redevelopment projects/programs up and until June 30, 2019. 5. Except as expressly amended hereby, the Cooperation, Reimbursement and Repayment Schedule Agreements and the subsequent Resolutions shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. CITY Qf)CARLSBAD, a municipal corpo/ Attest: By: Lorraine M. Wood, Qijy Clerk A-oA Ronald R. Ball, City Attorney <ecutive Director/Secretary Approved asto-zform: Ronald R. Ball, Commission General Counsel CARLSBAD HOUSING AND REDEVELOPMENT COMMIS^N, a body/£>flzfprate and/politic zvt.,/W/s/u y-^ ^6c^^ tide A. Lewis, Chairman io/ESTABLISHED\%i- z\ : v> - ~-\\ 1970 /| 5 Village Redevelopment - Debt Service/Loan Repayment Schedule (+$14.4 million) - July, 2009 Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 Total Tl $ 2,300,230 $ 2,970,662 $ 3,330,530 $ 3,324,432 $ 3,457,409 $ 3,491,983 $ 3,610,711 $ 3,733,475 $ 3,860,413 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 669,581 Set- Aside $ 460,046 $ 594,132 $ 666,106 $ 664,886 $ 691,482 $ 698,397 $ 722,142 $ 746,695 $ 772,083 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 133,916 County Fee $ 15,958 $ 14,822 $ 18,429 $ 18,392 $ 19,361 $ 19,555 $ 20,220 $ 20,907 $ 21,618 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 22,400 $ 3,750 Debt Svc $1,045,977 $1,040,634 $1,044,240 $1,041,665 $1,042,909 $1,042,840 $1,041,459 $1,038,765 $1,039,628 $1,038,915 $1,036,628 $1,037,634 $1,036,803 $1,034,134 $1,034,496 $1,032,759 $1,028,706 $1,027,200 $1,028,175 $1,026,500 $ $ $ $ $ $ $ $ $ $ $ Other Income $ 125,668 $ 132,947 $ 168,526 $ 255,616 $ 150,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 8,370 ERAF $ 202,778 $ 293,376 $ $ $ 278,000 $ 314,279 $ 324,964 $ 336,013 $ 347,437 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 360,000 $ 60,262 Ops/ Admin $ 374,308 $ 468,458 $ 579,527 $ 509,787 $ 672,794 $ 458,727 $ 474,782 $491,400 $ 508,599 $ 526,400 $ 544,824 $ 563,893 $ 583,629 $ 604,056 $ 625,323 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Major Acq $2,201,717 $ 24,577 $ 336,313 $ 836,311 $ 431,563 $2,300,000 $2,000,000 $2,000,000 $1,850,000 $1,500,000 $1,500,000 $ 457,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Change Asset/ Liabilities $ (59,034) $ (18,068) $ 251,294 $ (102,785) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Ending Cash $ 1,319,762 $ 1,969,284 $ 3,075,019 $ 3,481,240 $ 4,875,000 $17,483,186 $ 15,060,329 $12,710,024 $10,581,072 $ 8,783,358 $ 6,969,506 $ 5,778,579 $ 5,025,747 $ 3,255,158 $ (0) $ (0) $ (0) $ <0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) City Advance/Debt $ $ $ $ $ $ 14,400,000 $ 14,476,000 $ 13,699,800 $ 12,884,790 $ 12,029,030 $ 11,030,481 $ 9,982,005 $ 8,481,105 $ 6,905,161 $ 4,250,419 $ 25,530,459 $ 24,972,141 $ 24,381,854 $ 23,760,547 $ 23,109,149 $ 22,423,506 $ 20,677,082 $ 18,843,336 $ 16,917,903 $ 14,896,198 $ 12,773,408 $ 10,544,478 $ 8,204,102 $ 5,746,707 $ 3,166,442 $ 457,165 Interest $ $ $ $ $ $ 576,000 $ 723,800 $ 684,990 $ 644,240 $ 601,451 $ 551,524 $ 499,100 $ 424,055 $ 345,258 $ 212,521 $ 1,276,523 $ 1,248,607 $ 1,219,093 $ 1,188,027 $ 1,155,457 $ 1,121,175 $ 1 ,033,854 $ 942,167 $ 845,895 $ 744,810 $ 638,670 $ 527,224 $ 410,205 $ 287,335 $ 158,322 $ 22,858 Loan Payment $ $ $ $ $ 500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,600,000 $ 1,600,000 $ 2,000,000 $ 2,000,000 $ 3,000,000 $ 4,462,939 $ 1,834,841 $ 1,838,894 $ 1,840,400 $ 1,839,425 $ 1,841,100 $ 2,867,600 $ 2,867,600 $ 2,867,600 $ 2,867,600 $ 2,867,600 $ 2,867,600 $ 2,867,600 $ 2,867,600 $ 2,867,600 $ 2,867,600 $ 480,023 Loan Balance $ $ $ $ $ $14,476,000 $13,699,800 $12,884,790 $12,029,030 $11,030,481 $ 9,982,005 $ 8,481,105 $ 6,905,161 $ 4,250,419 $ 0 $24,972,141 $24,381,654 $23,760,547 $23,109,149 $22,423,506 $20,677,082 $18,843,336 $16,917,903 $14,896,198 $12,773,408 $10,544,478 $ 8,204,102 $ 5,746,707 $ 3,166,442 $ 457,165 $ 0 Notes/Assumptions: 1. A 1% growth in tax increment is projected for FY 2009-10, a 3.4% growth in tax increment is projected from FY 2010-11 to 2012-13; tax increment is capped at $4,000,000 per redevelopment plan. 2. Redevelopment Plan expires in July, 2009 3. Post-1994 debt must be repaid within 10 years of expiration of Redevelopment Plan; contract for employee services to be paid to 2019. 4. 20% of tax increment for affordable housing must be set-aside as long as tax increment is being collected to pay debt. 5. Estimated County Fee at 0.56% of total tax increment (Tl) each year. 6. Estimated increase in Ops/Admin costs of 3.5% per year. 7. An annual interest rate of 4% for FY 2008-09 and 2009-10 and 5% thereafter, was applied to the City advance. S.Ending Cash or Net tax increment (Tl) is available for debt service and/or new projects or programs up to FY 2008-09; new projects proposed. 9. Assumption that payments would begin on City debt in FY 2009-10, with post-1994 debt repaid first (within 10 years) then pre-1994 debt starting in 2019-20 10.Major acquisition expenditures are the projects identified in the FY 2009-10 CIP ($2.4 million) and projects to be included by July 7, 2009 (additional $11.6 million). 11 .Assumption is made that ERAF payments will continue indefinitely at a rate of 9% of total tax increment.