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HomeMy WebLinkAboutCarlsbad Housing and Redevelopment Commission; 2009-07-08; (6)A COOPERATION AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION FOR REIMBURSEMENT OF ADMINISTRATIVE COSTS AND PROVISION OF FINANCIAL ASSISTANCE FOR IMPLEMENTATION OF REDEVELOPMENT ACTIVITIES This AMENDED AGREEMENT is entered into as of the 8 ^ day _, 2009, by and between the CITY OF CARLSBAD, a municipal corporation, (the "City") and the CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION, a body corporate and politic, (the "Commission"). RECITALS A. The City Council of the City of Carlsbad, acting pursuant to the provisions of the California Community Redevelopment Law (California Heath and Safety Code §3300, et seq.), declared a need for a Community Development Commission, by Ordinance No. 1223, and activated the Commission, as the Housing and Redevelopment Commission, on October 16,1979. B. The City Council of the City of Carlsbad previously declared itself to constitute the Commission for purposes of implementing redevelopment activities within the City of Carlsbad. C. The City of Carlsbad and the Carlsbad Housing and Redevelopment Commission previously entered into a cooperative agreement to set forth the relationships between the City and the Commission which was adopted on February 8, 1980 for the purposes of implementing redevelopment activities within the City of Carlsbad. Cooperation Agreement Pagel 6/19/09 D. The Cooperative Agreement adopted on Februray 8, 1980, which is incorporated herein by this reference, sets forth the City-Commission relationship with respect to the implementation of redevelopment activities and shall by restated within this Agreement and apply to both the Village Redevelopment Project Area and the South Carlsbad Coastal Redevelopment Area, adopted in July, 1981 and July, 2000, respectively. E. Pursuant to and in accordance with the powers and authorization provided to public bodies in California Health and Safety Code §33000, the City and the Commission desire to continue their relationship as set forth in the previously approved Cooperative Agreement for the implementation of activities both within the Village Redevelopment Project Area, during and after plan effectiveness to complete said activities as necessary, and within the South Carlsbad Coastal Redevelopment Area whereby the City has agreed and will provide the Commission on an as-needed basis, with loan proceeds, staff and other administrative services and facilities, and make expenditures on behalf of the Commission. F. Pursuant to the Community Redevelopment Law and previously approved Cooperative Agreement, the Commission is performing a public function of the City and may have access to staff and other administrative services and facilities of the City, and may accept financial assistance from the City. G. The City and the Commission desire to amend this Cooperative Agreement at this time for the following purposes: 1. To reaffirm the City and Commission's cooperative agreement whereby the City will provide staff, services and facilities to the Commission in Cooperation Agreement Page 2 6/19/09 furtherance of the activities and functions of the Commission under the Community Redevelopment Law for the Village Redevelopment Project Area as it currently exists and for an additional approximately ten (10) years following expiration of the Village Redevelopment Plan to complete redevelopment projects and/or activities and for the South Carlsbad Coastal Redevelopment Project Area for the remaining life of the project. 2. To reaffirm that the Commission will reimburse the City for actions undertaken and all costs and expenses incurred by it for and on behalf of the Commission, and will repay loans advanced to the Commission, according to applicable Community Redevelopment Law, for the Village Redevelopment Project Area as it currently exists and for an additional approximately ten (10) years following expiration of the Village Redevelopment Plan to complete redevelopment projects and/or activities as appropriate, and for the South Carlsbad Coastal Redevelopment Area for the remaining life of the project, and subject to the terms of any subsequent loan agreements. 3. To establish Administrative Funds for operation and support of the existing Village Redevelopment Project Area and for projects/activities implemented pursuant to approved contracts and/or agreements following expiration of the effectiveness date for the Village Redevelopment Plan as well as for operation and support of the South Carlsbad Coastal Redevelopment Project Area, as appropriate, with funds appropriated by the City Council to the Commission as a loan to be repaid as funds are available to the Commission for such purpose, and to establish a Revolving Fund for the purposes of depositing any loan proceeds provided by the City to the Commission. These Funds are to be established by the City and held in the City Treasury. Cooperation Agreement PageS 6/19/09 SECTION 1. PURPOSE OF CITY ASSISTANCE Upon the written request of the Commission's Executive Director, and as authorized by the Commission, the City agrees to loan to the Commission an amount equal to those costs incurred by the Commission in connection with the preparation and implementation of redevelopment plans and related projects and/or activities pursuant to the Community Redevelopment Law; which costs include, but shall not be limited to: the costs of surveys, planning, studies, and environmental assessments for the adoption of a redevelopment plan; the costs of acquisition of properties acquired, building and site preparation; public improvements; relocation assistance to displaced residential and nonresidential occupants as required by law; financial assistance provided to developers; and, other costs incurred by the Commission in increasing, improving and preserving the City's supply of low and moderate income housing availability at affordable housing costs both inside and outside redevelopment project areas, in accordance with Health and Safety Code Section 33334.2 et seq. SECTION 2. FORM OF CITY ASSISTANCE The City's assistance may take the form of: a) provision of services (through City employees, officers and/or special consultants), supplies, or facilities to the Commission, b) expenditure of City funds by the City on behalf of the Commission, and/or c) the loan of City funds to the Commission, or any combination thereof as determined and authorized by the City, and accepted by the Commission. In order to implement the loan of City funds to the Commission for services, facilities and other redevelopment purposes, the City will establish a community redevelopment agency Administrative Fund pursuant to California Health and Safety Code Sections 33610- 33615, and a redevelopment Revolving Fund pursuant to California Health and Safety Cooperation Agreement Page 4 6/19/09 Code Sections 33620-33626 in which such loan proceeds shall be deposited. The aggregate amount of such City assistance, (including the provision of services, the cost of which shall be determined by the City) will be paid to the Commission as requested by the Executive Director and shall be repaid to the City as further described in Section 4 of this Agreement. SECTION 3. INDEBTEDNESS CREATED The obligations of the Commission under this Agreement, whether to repay funds advanced or to reimburse the City for services rendered or expenditures made on the Commission's behalf, shall constitute an indebtedness of the Commission within the meaning of California Health and Safety Code §33000, et seq. for the South Carlsbad Coastal Redevelopment Project Area. The debt of the South Carlsbad Coastal Redevelopment Project Area will be due and payable by the Commission in accordance with the terms of this Agreement. The debt of the Village Redevelopment Project Area will be repaid according to a separate loan agreement, or agreements, to be approved separately. SECTION 4. REPAYMENT OF DEBT The Commission agrees to repay the City for all assistance rendered hereunder. On the basis of procedures to be established by the City Manager, the City shall compute the costs of the services and facilities provided hereunder, the amount of funds expended on the Commission's behalf and/or advanced to the Commission for services and facilities provided. Such costs and expended funds shall include a proration of the City's administrative and salary expense attributable to the rendition of services by City officials, employees and departments on behalf of the Commission, provided, however, that no City officer or employee shall be paid extra compensation for Cooperation Agreement PageS 6/19/09 any work performed for the Commission unless such compensation is expressly authorized and provided by the City Council. SECTION 5. TERMS OF REPAYMENT The Commission agrees to repay the City together with accrued interest calculated at a variable rate based upon the annual average rate of return earned on the City's investment portfolio as determined by the City's Treasurer, compounded annually, and to the extent that the Commission has funds available pursuant to California Health and Safety Code Section 33670 or from other sources, which are not otherwise needed to carry out the Commission's redevelopment projects. Interest shall be calculated annually by the City for the Commission. The parties agree, however, that the indebtedness of the Commission to the City created by this Agreement is subordinate to any pledge of tax increments made in connection with the issuance and sale of bonds which are or may be issued by the Commission or another public entity under contract with the Commission. SECTION 6. INCLUSION IN INSURANCE POLICY The City agrees to include the Commission within the terms of the City's insurance policy at a rate similar to charges made to other departments/districts of the City. SECTION 7. REMEDIES If either party defaults with regard to any of the provisions of this Agreement, the nondefaulting party shall serve written notice of such default upon the defaulting party. If the default is not cured by the defaulting party within ninety (90) days after service of notice of default, or if the default is not commenced to be cured within thirty (30) days after service of the notice of default and is not cured promptly within a Cooperation Agreement Page 6 6/19/09 reasonable period of time after commencement, the defaulting party shall be liable to the other party for damages caused by such default. SECTION 8. PRIOR AGREEMENTS This Agreement constitutes the entire Agreement between the parties pertaining to the subject matter contained herein, and supersedes all prior and contemporaneous agreements, representations and understandings of the parties. SECTION 9. SEVERABILITY The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by the mutual consent of the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. APPROVED AS TO FORM: CITY Oh CARLSBAD A Muoncyb^r Coroorjftion RONALD R. BALL City Attorney APPROVED AS TO FORM: Mayor CARLSBAD HOUSING AND REDEVELOPMEMT COMMISSION A Body/C*o>|5jJrate and Politic, RONALD R. BALL Attorney to the Commission By: 'LORRJMN City(derk OOD By: : »V ESTABLISHED V| • <75 ; ; w ';^Q\ 1970 /J? \V--. .^*Nc Cooperation AgreementPa§e7 6/19/09