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Home My WebLink AboutCARLSBAD HOUSING AND REDEVELOPMENT COMMISSION; 2011-02-23; (4)REPAYMENT SCHEDULE AGREEMENT This 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 oU ^jJ^jjuou^^- $ 2011.v-~'O 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 and with completion of said projects and/or activities no later than July 21, 2019. D. The Commission and the City updated and amended the Cooperation Agreement on February 8, 2011 to affirm and restate the cooperative agreement between both parties, and re-confirm the City's intent to loan the Agency funding for redevelopment activities (current and future) in both the Village and South Carlsbad Coastal Redevelopment Project Areas. E. The City has made numerous loans and advances to date for the benefit of the Commission to pay capital and operating expenses of the Commission for redevelopment projects and programs within the South Carlsbad Coastal Redevelopment Project Area, including but not limited to loans and advances described in the following resolutions and instruments (collectively referred to as the "Resolutions"): City Council Resolution No. 99-265, dated July 20, 1999, providing a loan from the General Fund to the Agency for plan adoption costs; Commission Resolution No. 468 and City Council Resolution No. 2009-143, dated June 16, 2009, providing an advance from the General Capital Construction Fund for the Carlsbad Boulevard Realignment Study and from the General Fund for operating costs for the Project Area; Commission Resolution No. 486 and City Council Resolution No. 2010-097, dated April 27, 2010, providing a loan from the General Fund for Agency response to a California Energy Commission application for a second power plant in the project area; Commission Resolution No. 495 and City Council Resolution No. 2011-021, dated February 8, 2011, providing a loan from the General Fund and the Planned Local Drainage Areas Fund for the Carlsbad Boulevard Realignment Project and the Encinas Bridge Replacement, respectively. F. The City will also provide loans to the Commission up to an additional estimated $24 million, and approximately $20 million in funding advances, for non-housing redevelopment projects/programs over the next thirty to thirty-five years, and the Commission has agreed to repay said advances and loan funds with tax increment revenue and/or other assets (including real and personal property) as made available to Commission for said repayment. G. The City and Commission entered into a Reimbursement Agreement on February 8, 2011 which set forth the existing debt as well as a list of projects/programs to be financed initially by the City and subsequently reimbursed by the Commission, and may update and amend said Agreement as appropriate in future years for redevelopment activities within the South Carlsbad Coastal Redevelopment Project Area. H. The loans and advances made by the City to or for the benefit of the South Carlsbad Coastal 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". I. The Commission and the City mutually desire to implement the Cooperation and Reimbursement Agreements and the subsequent Resolutions (collectively referred to as the "City-Commission Agreements") by setting forth (1) an accounting of the Commission existing Indebtedness to the City pursuant to the City-Commission Agreements for the South Carlsbad Coastal Redevelopment Project Area; (2) an accounting of the future debt for the Area; and (3) a payment schedule by which the Commission shall repay the Commission Indebtedness to the City in satisfaction of the City-Commission Agreements for the South Carlsbad Coastal 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 approximately $7.8 million as of December 31, 2010 (the "Commission Indebtedness Amount") for Redevelopment activities within the South Carlsbad Coastal Redevelopment Project Area as of December 31, 2010. 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 supplemental Commission Indebtedness, which the parties estimate will be the total sum of approximately $24 million as of December 31, 2020. 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 2010 and 2046 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 and other resources legally available to the Commission for said South Carlsbad Coastal Redevelopment Project Area. The parties hereto acknowledge that the Commission Indebtedness Amount consists of the sum of the following: (a) $7.8 million, which the parties estimate to be the principal and accrued interest as of December 31, 2010 on costs incurred by the City pursuant to the Cooperation Agreement and subsequent Reimbursement Agreement and/or Resolutions; plus (b) $24 million, which is the estimate of the principal debt 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 Commission after December 31, 2010 and extending to December 31, 2020, which is the last day to incur debt for the South Carlsbad Coastal Redevelopment Project Area. 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, 2046, with all loans repaid no later than June 30, 2041 and all additional funding advances to be repaid within each fiscal year from July 1, 2041 to the end of the fiscal year 2046, which is the last year tax increment may be collected for the South Carlsbad Coastal Redevelopment Project Area. 5. Except as expressly amended hereby, the Cooperation, Reimbursement and Repayment Schedule Agreements and the subsequent Resolutions shall remain in full force and effect until the dates set forth in the South Carlsbad Coastal Redevelopment Project Area Plan, as approved by the Council and Commission in July, 2000. These agreements shall supersede and survive any revisions and/or reforms to California Redevelopment Law that may be approved by the State legislature, electorate and/or Governor of California after January 1, 2011. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. CITY OF CARLSBAD, a municipal corporation Attest: Lorfaine'M. Wood, City 0%1 Approvers to form: By: Ronald R. Ball, City Attorney Attest: Lisa Hildabrand, Executive Director/Secretary Approved as to form: By:. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION, a body corporate and politic Matt Hall, Chairman <^» ^P R'onalcTR. Ball, Commission GeneraLCounsel