HomeMy WebLinkAbout2003-12-02; City Council; 17393; Repayment Schedule Agreement for DebtCITY COUNCIL AND
AB# 17,393
MTG. 12-2-03
DEPT. HlRED
I3
TITLE: REPAYMENT SCHEDULE AGREEMENT BETWEEN DEPT. H
THE CARLSBAD HOUSING AND REDEVELOPMENT
COMMISSION AND THE CITY OF CARLSBAD FOR DEBT OF CITY ATTY. @
THE VILLAGE REDEVELOPMENT PROJECT AREA. +=- CITY MGR.
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. 2003- 313 , APPROVING a Repayment
Schedule Agreement between the Carlsbad Housing and Redevelopment Commission and the City of
Carlsbad for debt of the Village Project Redevelopment Area.
That the Housing and Redevelopment Commission ADOPT Resolution No.
APPROVING a Repayment Schedule Agreement between the Carlsbad Housing and Redevelopment
Commission and the City of Carlsbad for debt of the Village Redevelopment Project Area.
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ITEM EXPLANATION:
On February 8, 1980, the City of Carlsbad and the Housing and Redevelopment Commission entered
into a Cooperation Agreement for the purpose of implementing redevelopment activities within the
Village Redevelopment Area, which was established in July 1981. This agreement was updated and
restated in July 2000 to include the City’s second redevelopment area known as the South Carlsbad
Coastal Redevelopment Area. This Cooperation Agreement sets forth the terms for reimbursement of
administrative costs and for the provision of financial assistance for the implementation of
redevelopment activities in both redevelopment project areas.
Consistent with the subject Cooperation Agreement, the City advanced the Village Redevelopment
Project Area approximately $4.2 million for administrative costs and for the implementation of various
redevelopment activities for the period 1976 to 1989. Beginning in 1990, revenues for the Village
Redevelopment Project Area were sufficient to cover expenses, and no further funding advances were
required. To date, the accrued interest totals approximately $9.1 million. The Housing and
Redevelopment Commission has repaid $750,000 in principal and interest on this debt to the City. As
of June 30, 2003, the Housing and Redevelopment Commission’s outstanding debt to the City was
approximately $1 2.8 million for redevelopment activities within the Village Area.
The Cooperation Agreement requires the repayment of the debt incurred by the Housing and
Redevelopment Commission and sets forth the terms for the debt repayment. Because the Village
Redevelopment Plan will expire within approximately four (4) years, staff believes it would be
appropriate to adopt a repayment schedule agreement at this time. Consequently, the attached
Repayment Schedule Agreement (see Exhibit 3) provides a final accounting of the Housing and
Redevelopment Commission’s debt to the City pursuant to the Cooperation Agreement and a schedule
by which the Commission shall repay the indebtedness to the City.
The Housing and Redevelopment Commission has an outstanding indebtedness to the City which, as
of June 30, 2003, equals $12,821,574. Approval of the attached Repayment Schedule Agreement
generally establishes the time frame for the repayment of this debt, with variations permitted to reflect
the actual amount of funds legally available to the Housing and Redevelopment Commission to repay
said debt. As indicated in the attached repayment schedule, this existing debt will begin to be repaid in
fiscal year 2017-18. The repayment schedule is based upon the assumption that the City Council and
the Housing and Redevelopment Commission will take separate action to incur additional debt of
approximately $14.4 million to be used for new, non-housing related redevelopment projects. If the CouncWComrnission decide to incur the additional debt, this debt must be repaid first. Therefore,
payments on this new debt will begin as soon as funds are advanced in fiscal year 2003-04. If the
17,393 AB #
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CounciVCommission does not incur additional debt, the repayment schedule will need to be revised to
reflect that decision. This will mean that payments on the existing debt will begin as soon as this fiscal
year. Staff recommends approval of the attached Repayment Schedule Agreement.
FISCAL IMPACT:
The Housing and Redevelopment Commission has an existing indebtedness to the City of
$12,821,574. This debt must be repaid once funds are available to the Housing and Redevelopment
Commission. The Housing and Redevelopment Commission has the capacity to incur additional debt of
approximately $14.4 million for new projects or to enhance funding for existing redevelopment projects
in the Village Area. If the Commission decides to incur this debt under separate action, it must be
repaid by July 7, 2017. The attached loan or advance repayment schedule sets forth the timing as to
which the Commission’s indebtedness to the City will be repaid. Any new debt will be repaid by 2017.
Existing debt will be repaid by 2032.
EXHIBITS:
1. City Council Resolution No. 2003 - 313 , APPROVING a Repayment Schedule
Agreement between the Carlsbad Housing and Redevelopment Commission and the City of
Carlsbad for debt of the Village Redevelopment Area.
2. Housing and Redevelopment Commission Resolution No. 376 , APPROVING a
Repayment Schedule Agreement between the Carlsbad Housing and Redevelopment Commission
and the City of Carlsbad for debt of the Village Redevelopment Area.
3. Repayment Schedule Agreement between the Carlsbad Housing and Redevelopment Commission
and the City of Carlsbad.
DEPARTMENT CONTACT: Craig Ruiz, (760) 434-281 7, cruiz@ci.carlsbad.ca.us
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CITY COUNCIL RESOLUTION NO. 2003 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING A REPAYMENT
SCHEDULE AGREEMENT BETWEEN THE CARLSBAD HOUSING
AND REDEVELOPMENT COMMISSION AND THE CITY OF
CARLSBAD FOR DEBT OF THE VILLAGE REDEVELOPMENT
PROJECT AREA
WHEREAS, the Housing and Redevelopment Commission and the City entered into a
Cooperation Agreement dated February 8, 1980, and updated August 20,2001, pursuant to which the City
sgreed to incur certain costs and the Commission agreed to reimburse the City for such costs, including
sosts incurred by the City both before and after the date of said agreement; and
WHEREAS, the City has previously made loans and advances to and for the benefit of the
Housing and Redevelopment Commission to pay capital and operating expenses of the Commission,
which, as of June 30, 2003, including principal and interest total $12,821,574 for redevelopment activities
with the Village Redevelopment Project Area; and
WHEREAS, the Housing and Redevelopment Commission and the City mutually desire to
implement the Cooperation Agreement and subsequent Resolutions approving advances of funding by
jetting forth a final accounting of the Commission’s Indebtedness to the City and a schedule by which the
:ommission shall repay the Commission Indebtedness to the City in satisfaction of the Cooperation
4greement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad
1s follows:
1. That the above recitations are true and correct.
2. Pursuant to the Cooperation Agreement and the subsequent Resolutions approving
advances of funding, the Commission is obligated to reimburse the City the full
principal and all accrued interest on the Commission’s Indebtedness, which the
parties estimate to be the sum of $12,821,574 as of June 30,2003 for redevelopment
activities within the Village Redevelopment Project Area.
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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 project area. The parties
hereto acknowledge that the Commission Indebtedness Amount consists of the sum of
the following: (a) $12,821,574, which the parties estimate to be the principal and
accrued interest as of June 30,2003 on costs incurred by the City pursuant to the
Cooperation Agreement and subsequent Reimbursement Agreement and/or
Resolutions; plus (b) $14,479,325, 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 after December 3 1 , 2003.
4. Except as expressly amended hereby, the Cooperation Agreement and the subsequent
Resolutions approving advances of funding shall remain in full force and effect.
5. The Mayor is hereby authorized to execute said Repayment Schedule Agreement in
substantially the form approved by the City Council, subject to the review and
approval of the City Attorney.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City
of Carlsbad, California, on the 2nd day of December, 2003, by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
- ' -". p
LOJUbIN M. WOOD, City Clerk f ..A'
CC ResolutionNo. 2003-313
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HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 376
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT
COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA,
APPROVING A REPAYMENT SCHEDULE AGREEMENT BETWEEN
THE CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION
AND THE CITY OF CARLSBAD FOR DEBT OF THE VILLAGE
REDEVELOPMENT PROJECT AREA
WHEREAS, the Housing and Redevelopment Commission and the City entered into a
Cooperation Agreement dated February 8, 1980, and updated August 20,2001, 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 said agreement; and
WHEREAS, the City has previously made loans and advances to and for the benefit of the
Housing and Redevelopment Commission to pay capital and operating expenses of the Commission,
which, as of June 30,2003, including principal and interest total $12,821,574 for redevelopment activities
with the Village Redevelopment Project Area; and
WHEREAS, the Housing and Redevelopment Commission and the City mutually desire to
implement the Cooperation Agreement and subsequent Resolutions approving advances of funding by
setting forth a final accounting of the Commission’s Indebtedness to the City and a schedule by which the
Commission shall repay the Commission’s Indebtedness to the City.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Zommission of the City of Carlsbad as follows:
1.
2.
3.
That the above recitations are true and correct.
Pursuant to the Cooperation Agreement and the subsequent Resolutions approving
advances of funding, the Commission is obligated to reimburse the City the full
principal and all accrued interest on the Commission Indebtedness, which the parties
estimate to be the sum of $12,821,574 as of June 30,2003 for redevelopment
activities within the Village Redevelopment Project Area.
The Commission shall repay to the City the full amount of the Commission
Indebtedness Amount for the Village Redevelopment Area, 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 5
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for said project area. The parties hereto acknowledge that the Commission
Indebtedness Amount consists of the sum of the following: (a) $12,821,574, which
the parties estimate to be the principal and accrued interest as of June 30,2003 on
costs incurred by the City pursuant to the Cooperation Agreement and subsequent
Reimbursement Agreement and/or Resolutions; plus (b) $14,479,325, 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 after December 3 1 , 2003.
4. Except as expressly amended hereby, the Cooperation Agreement and the subsequent
Resolutions approving advances of funding shall remain in full force and effect.
5. The Chairman of the Commission is hereby authorized to execute said Repayment
Schedule Agreement in substantially the form approved by the Housing and
Redevelopment Commission, subject to the review and approval of the Legal Counsel
to the Commission.
PASSED, APPROVED AND ADOPTED at a special meeting of the Housing and
Redevelopment Commission of the City of Carlsbad, California, on the
~y the following vote, to wit:
2nd day of December, 2003,
AYES: Board Members Lewis, Finnila, Kulchin, Hall and Packard
NOES: None
ABSENT: None
ABSTAIN: None
2RC Resolution No. 376
?age 2
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 of .&,L-’ /O ,2003.
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 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 redevelopment
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.
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D. 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
Agreements and subsequent Resolutions shall be referred to collectively as the
“Commission Indebtedness”.
E. The Commission and the City mutually desire to implement the Cooperation Agreement
and the subsequent Resolutions (collectively . 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 Agreement 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 $12,821,574 as of
June 30, 2003 (the “Commission Indebtedness Amount”) for redevelopment activities
within the Village Redevelopment Project Area.
2. 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) $12,821,574, which the parties estimate to be the principal and accrued
interest as of June 30, 2003 on costs incurred by the City pursuant to the Cooperation
Agreement and subsequent Reimbursement Agreement and/or Resolutions; plus (b)
$14,479,325, 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 after December 3 1,2003.
3. Except as expressly amended hereby, the Cooperation- Agreement and the subsequent
Resolutions shall remain in full force and effect.
CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION
By:
Chairman
Attest:
& r Om R. PATCHETT
Executive DirectorBecre t ary U
Approved as to form:
RONALD R. BALL,
Commission General Counsel
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the day and year first above written.
Mayor
Attest :
BY &%- LO W City Clerk
Approved as to form:
RONALD R. BALL, City Attorney
EXHIBIT "A"
REPAYMENT SCHEDULE
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