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HomeMy WebLinkAbout1995-01-17; City Council; 12982; Early Repayment To Aviara Forward FundingCIT” OF CARLSBAD - AGENr\ BILL APPROVAL OF EARLY REPAYMENT TO AVIARA Adopt Resolution No. q 5 - 1 1 approving early repayment to Aviara Land Associates for amounts advanced under a Forward Funding, Mitigation and Reimbursement Agreement. ITEM EXPLANATION: On June 8, 1991, an Agreement approved by Council on June 18, 1991, with Aviara Land Associates (Aviara) became effective for forward funding and reimbursement of design and other preconstruction work on the Poinsettia Lane/Interstate 5 overpass (the Project). Under the agreement, Aviara was to advance up to $913,000 and would be reimbursed when sufficient Bridge and Thoroughfare District fees were collected. Since that time the City has formed Community Facilities District #l (CFD) in which has been incorporated this Project and the related Bridge and Thoroughfare fees. Aviara has met their obligation under the agreement and has advanced the full amount of $913,000 which has been used to pay for the preconstruction work on the project. Under current projections, the CFD will have sufficient funds to repay Aviara for their advance in fiscal year 1995-96. Thus, the repayment has been scheduled in the Capital Improvement Program (CIP) for payment in 1995-96. In November 1994, Aviara requested that the City look into a modification of the CIP which would move the repayment of their funds forward to the earliest possible date. After reviewing the financial status of the CFD, staff is recommending allowing this modification contingent on Aviara’s willingness to discount the amount to be reimbursed for the loss of interest earnings to the City for the early payment. Aviara has sent the City a letter stating that this plan for repayment is acceptable by them (Exhibit 2). Thus, staff recommends that Council adopt the attached Resolution allowing early repayment of the advance at a discounted amount in full satisfaction of the City’s obligation under the agreement. FISCAL IMPACT: Early repayment of this amount from CFD funds will not jeopardize any current projects in the CFD. Sufficient funds are available to pay all anticipated project costs through July 1, 1995. By discounting the repayment at a rate similar to the yield on the City’s portfolio, the CFD financial status will be similar to what it would have been if the repayment was made as scheduled. - PAGE TWO OF AGENDA BILL NO. 12, g= The City’s portfolio is now earning approximately 6%, thus staff would recommend that the repayment be discounted at an annual rate of 6% for the period from the date of payment to July 1, 1995. Assuming the payment date was February 1, 1995, the discount amount would be $22,825 ($913,000 at 6% for 5 months) which would result in a repayment amount of $890,175. Aviara has concurred with this discount as indicated in their letter dated December 6, 1994. EXHIBITS: 1. Resolution No. 94 H 1 \ approving early repayment to Aviara Land Associates for amounts advanced under a Forward Funding, Mitigation and Reimbursement Agreement. 2. Letter from Aviara to the City of Carlsbad. 2 EXHIBIT 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 95 - 11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING THE EARLY REPAYMENT TO AVIARA UNDER AN AGREEMENT FOR FORWARD FUNDING, MITIGATION AND REIMBURSEMENT FOR PUBLIC FACILITIES WHEREAS, On July 8, 1991, the City entered into an Agreement for Forward Funding and Reimbursement for Public Facilities (the Agreement) with Aviara Land Associates (Aviara) under which Aviara was to advance up to $913,000 to the City for the design and other pre-construction work on the Poinsettia Lane/Interstate 5 overpass (the Project); and WHEREAS, such advance has been made by Aviara and used by the City to fund the work on the Project; and WHEREAS, under the Agreement, reimbursement was to occur when sufficient Bridge and Thoroughfare District fees were collected and allocated to the Project or when bonds were issued for the Project under an assessment district or community facilities district; and WHEREAS, the City has since formed Community Facilities District #1 (CFD) which incorporated this Project and the related Bridge and Thoroughfare fees; and WHEREAS, the CFD will have sufficient funds allocated to the Project to repay Aviara for their advance in fiscal year 199596 and such repayment has been scheduled in the Capital Improvement Program (CIP) for payment in 1995- 96; and WHEREAS, in November 1994, Aviara requested that the City make reimbursement of the advance prior to its scheduled date; and IfI Ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, staff has determined that the CFD does have sufficient funds to make such early repayment subject to a discount for the loss of interest earnings to the CFD. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: 1. That the above recitations are true and correct. 2. That the City Council authorizes staff to reimburse Aviara $913,000 less the discount as further described below in full satisfaction of the City’s obligations under the Agreement for Forward Funding and Reimbursement for Public Facilities dated July 8, 1991. 3. That the reimbursement shall be discounted at an annual rate of 6% for the period from the date of payment to July 1, 1995. 4. The Finance Director shall require Aviara to execute the attached Full Release as a condition simuftaneous with said payment. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 17th day of JANUARY , 1995, by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall NOES: None ABSENT: None Al-i-EST: 124t22bRG% ALETHA L. RAUTENKRANZ, City Cler ww II I/ AlTACHMENT “A” That the Undersigned, being of lawful age, for sole consideration of Eight hundred ninety thousa+olpyt( paid to Aviara Land Associates Limited Partnership, a Delaware Limited Partnership (“Aviara”), does hereby and for its heirs, executors, administrators, successors and assigns release, acquit and forever discharge the City of Carlsbad and its agents, servants, successors, heirs, executors, administrators and all other persons, firms, corporations, associations or partnerships from any and all claims, actions, causes of action, demands, rights, damages, costs, loss of service, expenses and compensation whatsoever, which the undersigned now has or which may hereafter accrue relating to the reimbursement of funds advanced by Aviara pursuant to the July 8, 1991 Agreement for Forward Funding, Mitigation and Reimbursement approved by the City Council on the 18th day of June, 1991 in Carlsbad California, by Resolution No. 91-207. THE UNDERSIGNED HAS READ THE ABOVE AND FULLY UNDERSTANDS IT TO BE A FULL AND FINAL RELEASE OF ALL CLAIMS. Signed and delivered this 30th day of January ,19=. SEE ATTACHED Signature Signature Resolution No. 95-11 . AVLARA LAN-D ASSOCWES LIMITED PARTNERSHIP, a Delaware limited partnership Jo#$,hpelke, Assistant Secretary By'?fTk2$$~~F21q General Partner - CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT - STATE OF CALIFORNIA ) /- COUNTY OF \ ,<J‘ [ /J&/H / 1 .G.. “JANE DOE. NOTARY PUBLIC” personally appeared. o! L. c/ cn?m. 3 t’ <T~IQ / . %$=I ,4?Le personally known to me .I jr ) to be the person(s) whose name(s)+siare subscribed to the wrthin Instrument and acknowledged to me thatb&belthey executed the same in b&her/their authorized capacrty(ies). and that by b&her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted. executed the Instrument. ‘WITNESS mv hand and official seal. && ! & n( ‘Ai /LL/ &mm. #lo10938 (SEAL) NOTARY PUBLIC SIGNATURE / - OPTIONAL INFORMATION - TITLE OR TYPE OF DOCUMENT DATE OF DOCUMENT NUMBER OF PAGES SIGNER(S) OTHER THAN NAMED ABOVE -~~ - AVURA LAND ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership f-&eike, Assistant Secretary ion, General Partner - CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT - STATE OF CALIFORNIA 1 COUNTY OF &,, AI&or ) personally appeared, /I. / l/_ Ffi /g NjBN./3 5’ , . \/ personally known to me (0) to be the person(s) whose name(s) *‘are subscribed to the wlthln instrument and acknowledged to me that We/they executed the same in WfW!their authortzed capaclty(ies;. and that by h&bWtheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted. executed the instrument. , /&A hi : /;;/,I/ ai NOTARY PUBLIC SIGNATURE (SEAL) \A/IThlECC mtr hqnrl =nrl nffirrical cn=l COdRfR. #IO18938 m WK: CAL )iGFiNIA w#00colJNrY 0 1 OPTIONAL INFORMATION - TITLE OR TYPE OF DOCUMENT DATE OF DOCUMENT NUMBER OF PAGES SIGNERIS) OTHER THAN NAMED ABOVE -~ December 6, 1994 Mr. Jim Elliott Financial Management Director City of Carlsbad 1200 Carlsbad Village Drive G&bad, CA 92008-1989 Dear Jim: As outlined in your letter dated November 30, 1994, Aviara Land Associates is willing to accept a $22,825 discount in order to receive our Poinsettia Lane Bridge Reimbursement on February 1, 1995. With the City Council’s approval, we will expect a check for approximately $890,175 on or about February 1, 1995, and understand that there will be a slight adjustment when the exact payout date is known. Thank you for your cooperation. Sincerely, Lrcr J D. Larry Clemens Vice President DLC/er cc: Scott Medansky Curt Noland brdgre.im.alz 2011 PAL~MAK AIRPORT ROAD SUITE 206 CARLSKAD, CALIFORNIA 92009 (619) 931-1190 F~x:(619) 931-7950 c FULL RELEASE KNOW ALL MEN BY THESE PRESENTS: AlTACHMENT “A” That the Undersigned, being of lawful age, for sole consideration of Eight hundred ninety thousa~olp-p( ed sea-five z-s-- paid to Aviara Land Associates Limited Partnership, a Delaware Limited Partnership (“Aviara”), does hereby and for its heirs, executors, administrators, successors and assigns release, acquit and forever discharge the City of Carlsbad and its agents, servants, successors, heirs, executors, administrators and all other persons, firms, corporations, associations or partnerships from any and all claims, actions, causes of action, demands, rights, damages, costs, loss of service, expenses and compensation whatsoever, which the undersigned now has or which may hereafter accrue relating to the reimbursement of funds advanced by Aviara pursuant to the July 8, 1991 Agreement for Forward Funding, Mitigation and Reimbursement approved by the City Council on the 18th day of June, 1991 in Carlsbad California, by Resolution No. 91-207. THE UNDERSIGNED HAS READ THE ABOVE AND FULLY UNDERSTANDS IT TO BE A FULL AND FINAL RELEASE OF ALL CLAIMS. Signed and delivered this 30th day of January ,19=. SEE ATTACHED Signature Signature Resolution No. 95-11 - CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT - STATE OF CALIFORNIA 1 COUNTY OF czi?4 AL ‘@ ) NAME, TITLE OF OFFICER - E.G., “JA DOE, NOTARY PUBLIC” personally appeared, B. ( . &J!?M&N~ 5’ i%‘fl7T M. h’i’f%!ANZ$k Y personally known to me (2) to be the person(s) whose name(s) Ware subscribed to the within instrument and acknowledged to me that befebe/they executed the same in +%&her/their authorized capacity(ies), and that by h&her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. \AIIThlCCC m\r h~mrl nnrl nffini.,l mm01 m#oo COUNTY (SEAL) - OPTIONAL INFORMATION - TITLE OR TYPE OF DOCUMENT DATE OF DOCUMENT NUMBER OF PAGES SIGNER(S) OTHER THAN NAMED ABOVE - CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT - STATE OF CALIFORNIA ) <& &z&&d COUNTY OF *c-j / ) On /,h~[T+.T before me,/C/14irHLE&/ ~Ah/~h,Qhf’~ /V87M Y Fu& L- NAME, TITLE OF OFFICER - .G.. “JANE DOE, NOTARY PUBLIC” personally appeared, 4. L. c/&m&5. z’ ZN /-. r ?&/kc personally known to me (C ) to be the person(s) whose name(s)-is/are subscribed to the within instrument and acknowledged to me that-e/they executed the same in h&her/their authorized capacity(ies), and that by b&her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS mv hand and official seal. - ---I ---.~- -. - -...-.I. --_.. 4/iii&ti NOTARY PUBLIC SIGNATURE / (SEAL) - OPTIONAL INFORMATION - , TITLE OR TYPE OF DOCUMENT DATE OF DOCUMENT NUMBER OF PAGES - SIGNER(S) OTHER THAN NAMED ABOVE AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership General Partner By: By: . . , 1. .