HomeMy WebLinkAbout2011-02-08; City Council; 20447; AGREEMENT ADMIN SUPPORT VILLAGE S CARLSBAD COASTALCITY OF CARLSBAD AND
HOUSING AND REDEVELOPMENT COMMISSION
JOINT AGENDA BILL
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MTG.
DEPT.
20.447
278/11
HNS
Cooperation Agreement for
Administrative Support, and Related
Costs for the Village and South
Carlsbad Coastal Redevelopment
Project Areas
DEPT. DIRECT
CITY ATTORNE
CITY MANAGER
RECOMMENDED ACTION:
1. Adopt City Council Resolution No. 2011-020 APPROVING amendments to the
Cooperation Agreement between the City of Carlsbad and the Carlsbad Housing and
Redevelopment Commission for administrative and other project support for the Village and
South Carlsbad Coastal Redevelopment Project Areas.
2. Adopt Housing and Redevelopment Commission Resolution No. 494
APPROVING amendments to the Cooperation Agreement between the City of Carlsbad and
the Carlsbad Housing and Redevelopment Commission for administrative and other project
support for the Village and South Carlsbad Coastal Redevelopment Project Areas.
ITEM EXPLANATION:
On October 16, 1979, the City Council declared a need for a Community Development
Commission to implement redevelopment activities within the City of Carlsbad. The
Commission was activated as the Carlsbad Housing and Redevelopment Commission, and
the City Council declared itself to constitute the Commission.
The City of Carlsbad and the newly created Housing and Redevelopment Commission
entered into a Cooperative Agreement on February 8,1980 for the purposes of implementing
redevelopment activities. At that time, the Cooperative Agreement was specifically related to
reimbursement of administrative costs and provisions of financial assistance for
implementation of redevelopment activities within the Village Redevelopment Area which was
established on July 21,1981.
In July, 2000, the City Council and Housing and Redevelopment Commission took action to
establish a second redevelopment area in Carlsbad, known as the South Carlsbad Coastal
Redevelopment Area. The noted Cooperation Agreement was subsequently amended and
updated in August, 2001 to include references to both the Village and South Carlsbad
Coastal Redevelopment Areas.
DEPARTMENT CONTACT: Debbie Fountain 760-434-2935 debbie.fountain@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
Xcrn
a
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
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Consistent with the Cooperation Agreement, the City has been providing funding to the
Agency for redevelopment activities and/or projects within the Village Area, as needed, and
providing the administrative support and other resources for redevelopment activity
implementation since July, 1981. The City's advances and the Agency's outstanding financial
obligations, as well as approval of up to an additional $14.4 million in future loans and
advances, was reconfirmed and documented within reimbursement and repayment
agreements in 2003.
In order to adequately document the financial obligations of the Redevelopment Agency as
related to the South Carlsbad Coastal Redevelopment Area, the Council and Commission
are being asked under separate cover to approve a Repayment Schedule and a
Reimbursement Agreement for this second redevelopment project area.
The Cooperation Agreement is being presented at this time for amendments to reconfirm
the City's intent to provide administrative support and resources and funding necessary to
complete identified projects and/or redevelopment activities for the South Carlsbad Coastal
Redevelopment Area for the next approximately twenty years.
Staff is recommending approval of the amendments to the Cooperation Agreement to update
and confirm the projects/activities to be administratively supported and implemented by the
City within the South Carlsbad Coastal Redevelopment Area on behalf of the Agency, but to
be paid for by the Agency with future tax increment revenue and/or other assets of the
Agency (which may include land and/or other assets that may be or become available).
FISCAL IMPACT:
As a result of several reassessments of the power plant property, the assessed value of the
South Carlsbad Coastal Redevelopment Area is below the base value set in 2000 by
approximately $64 million. This means that the Carlsbad Redevelopment Agency currently
receives no tax increment proceeds for the annual operation of the South Carlsbad Coastal
Redevelopment Area, and/or for capital or other projects/programs within the area. It is
anticipated that there will be no additional tax increment until such time as there is private
development in the area, which will include the approved Desalination Plant and the Hilton
Beachfront Resort. Therefore, advances in the form of loan proceeds from the City are
required in order to implement redevelopment activities and administratively support the
activities set forth within the South Carlsbad Coastal Redevelopment Plan, and will be
necessary for many years to come.
The Agency has current debt of approximately $7.8 million that must be repaid to the City for
redevelopment activities to date in the South Carlsbad Coastal Redevelopment Area. It is
anticipated at this time that the City will be required to loan the South Carlsbad Coastal
Redevelopment Area additional funds up to a maximum of $24 million over the next twenty
years to complete identified redevelopment projects and other activities. From a repayment
perspective, it is anticipated that the Agency will not entirely repay all of its South Carlsbad
Coastal Redevelopment Project Area debt to the City until the end of fiscal year 2031. Upon
its final payment, the Agency will have repaid approximately $24 million in principal loan
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payments to the City and nearly $40.4 million in interest payments. In addition to City loans,
the Agency intends to issue bonds for public improvements when appropriate to implement
redevelopment activities in the South Carlsbad Coastal Redevelopment Area. Repayment of
any bonds will take precedence to the repayment of debt to the City. It is not known at this
time the amount of said bonds to be issued at a later date. However, the bond amount shall
not exceed the capacity of the Agency to repay said bonds with tax increment funds.
It is important to note that the Governor of the State of California has proposed to eliminate
redevelopment programs and agencies by July 1, 2011. This is a serious threat to the future
financing for the South Carlsbad Coastal Redevelopment Area and the related programs
and/or projects. Staff is recommending approval of the attached agreements to provide
greater financial security for implementation of the redevelopment activities set forth with the
redevelopment plan through contractual obligations with the City of Carlsbad. It is staffs
understanding that the governor's proposal will respect the contractual obligations of a
redevelopment agency. Therefore, it is important to confirm the existing debt and future debt
expectations and appropriately document the financial obligations of the Agency as well as
the related support services required to satisfy the conditions of these contracts.
ENVIRONMENTAL IMPACT:
For the purposes of environmental review, the proposed agreement represents an
organizational or administrative activity of governments that will not result in direct or indirect
physical changes in the environment. Therefore, the action is not a "project" under the
California Environmental Quality Act (CEQA 15378(b)(5)). All projects listed within the
separate Reimbursement and Repayment Agreements will require separate environmental
review and approval, as stated in the agreement, and will not be approved for implementation
until environmental review has been completed and mitigation measures have been adopted,
as appropriate.
EXHIBITS:
1. City Council Resolution No. 2011-020 approving amendments to the
Cooperation Agreement between the City of Carlsbad and the Carlsbad Housing and
Redevelopment Commission for costs and other support services related to both the Village
and South Carlsbad Coastal Redevelopment Project Areas.
2. Housing and Redevelopment Commission Resolution No. 494 approving
amendments to the Cooperation Agreement between the City of Carlsbad and the Carlsbad
Housing and Redevelopment Commission for costs and other support services related to the
Village and South Carlsbad Coastal Redevelopment Project Areas.
3. Cooperative Agreement between the City of Carlsbad and Carlsbad Housing and
Redevelopment Commission (redline and final versions).
1 RESOLUTION NO. 2011-020
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING AMENDMENTS
3 TO THE COOPERATION AGREEMENT BETWEEN THE
4 CITY OF CARLSBAD AND THE CARLSBAD HOUSING
AND REDEVELOPMENT COMMISSION FOR
5 REIMBURSEMENT OF ADMINISTRATIVE COSTS AND
PROVISION OF FINANCIAL ASSISTANCE FOR
6 IMPLEMENTATION OF REDEVELOPMENT ACTIVITIES.
7
WHEREAS, the City of Carlsbad and the Housing and Redevelopment8
9 Commission previously entered into a cooperative agreement to set forth the
10 relationships between the City and the Commission which was adopted on February 8,
11 1980 for the purposes of implementing redevelopment activities within the City of
12 Carlsbad; and
13 WHEREAS, the City of Carlsbad and the Housing and Redevelopment
14 Commission desire to continue their relationships as set forth in the previously approved
15 Cooperative Agreement, as amended from time to time, for the completion of
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redevelopment implementation activities for both the Village and South Carlsbad
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Coastal Redevelopment Project areas during and following expiration of the
effectiveness dates for both areas; and
20 WHEREAS, the City of Carlsbad has previously agreed, and agrees to continue,
21 to provide the Housing and Redevelopment Commission, on behalf of the Carlsbad
22 Redevelopment Agency, access to staff and other administrative services and facilities
23 of the City, and to provide financial assistance provided in the forms of advances and
O A
loans, as needed, to complete redevelopment activities and/or projects identified for
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both redevelopment project areas; and
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WHEREAS, the City of Carlsbad and Housing and Redevelopment Commission
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have a need to amend and update their cooperative agreement as related to the
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1 establishment of an Administrative Fund with funds appropriated by the City of Carlsbad
2 as a loan to be repaid by the Housing and Redevelopment Commission as funds are
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available, and to establish a Revolving Fund for the purposes of depositing any loan
4 proceeds provided by the City to the Commission for continuing redevelopment
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activities.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
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Carlsbad, California, as follows:
9 1 . That the above recitations are true and correct.
10 2. The City Council does hereby approve the amended Cooperation Agreement
1 ! between the City of Carlsbad and the Carlsbad Housing and Redevelopment
12 Commission for the provision of staff services and facilities and/or other
13 resources, as necessary, and to reconfirm the reimbursement of
14
administrative costs and provision of financial assistance for continued
15
implementation of redevelopment activities in the Village and South Carlsbad
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Coastal Redevelopment Areas, including any activities agreed upon following
« g expiration of said redevelopment plans as allowed per redevelopment law in
19 effect as of January 1 , 201 1 .
20 3. The Mayor is hereby authorized to execute said amended Cooperation
21 Agreement in substantially the form approved by the City Council and with
22 prior approval of the City Attorney.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad City Council and Carlsbad Housing and Redevelopment Commission held on
the 8th day of February, 2011, by the following vote to wit:
AYES: Council Members Hall, Kulchin, Blackburn, Douglas and Packard.
NOES: None.
ABSENT: None.
MATT HALL, Mayor
NE M. WOOD, City Clerk
1 RESOLUTION NO. 494
2 A RESOLUTION OF THE HOUSING AND
REDEVELOPMENT COMMISSION OF THE CITY OF
3 CARLSBAD, CALIFORNIA, APPROVING AMENDMENTS
4 TO THE COOPERATION AGREEMENT BETWEEN THE
CITY OF CARLSBAD AND THE CARLSBAD HOUSING
5 AND REDEVELOPMENT COMMISSION FOR
REIMBURSEMENT OF ADMINISTRATIVE COSTS AND
6 PROVISION OF FINANCIAL ASSISTANCE FOR
IMPLEMENTATION OF REDEVELOPMENT ACTIVITIES.
7
8 WHEREAS, the City Council of the City of Carlsbad activated the Housing and
9
Redevelopment Commission in October 16, 1979 and declared itself to constitute the
10
Commission for the purposes of implementing redevelopment activities within the City of
11
Carlsbad; and
12
WHEREAS, the City of Carlsbad and the Housing and Redevelopment
Commission previously entered into a cooperative agreement to set forth the
!5 relationships between the City and the Commission which was adopted on February 8,
16 1980 for the purposes of implementing redevelopment activities within the City of
17 Carlsbad; and
18 WHEREAS, the City of Carlsbad and the Housing and Redevelopment
19 Commission desire to continue their relationships as set forth in the previously approved
20 Cooperative Agreement, as amended from time to time, for the completion of
21
redevelopment implementation activities for both the Village and South Carlsbad
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Coastal Redevelopment Project areas during and following expiration of the
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effectiveness dates for both areas; and
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1 activities agreed upon following expiration of said redevelopment plans as
2 allowed per redevelopment law as in effect as of January 1, 2011.
3. The Chairman of the Commission is hereby authorized to execute said
4 amended Cooperation Agreement in substantially the form approved by the
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Housing and Redevelopment Commission and with prior approval of the City
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Attorney.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Housing and Redevelopment Commission and Carlsbad City Council held on
the 8th day of February, 2011, by the following vote to wit:
AYES: Commission Members Hall, Kulchin, Blackburn, Douglas and Packard.
NOES: None.
ABSENT: None.
tiSA HILDABRAND, Secretary
'f. ~^RLS»^,
''Mill'**
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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 ff^dav of
_, 201109, 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
1/31/111/31/116/19/09
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 restatedment
within this Agreement and shall 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 Safely Code §33000, in effect as of January 1.
2011. 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 advances or 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 amendentor into 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
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/ £
furtherance of the activities and functions of the Commission under the Community
Redevelopment Law for both the existing 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 jor the newly adopted 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, as in effect as of January 1. 2011. for both the
existing 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 newly
adopted South Carlsbad Coastal Redevelopment Area for the remaining life of the
project and beyond as set forth within this and subsequent agreements, and subject to
the terms of any subsequent loan, and reimbursement and repayment agreements.
3. To establish Administrative Funds for operation and support of the
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 and newly adopted
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
Cooperation Agreement
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by the City to the Commission. These Funds are to be established by the City and held
in the City Treasury.
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
Cooperation Agreement
Page 4
l/31/l 11/31/116/19/09
Administrative Fund pursuant to California Health and Safety Code Sections 33610-
33615, and a redevelopment Revolving Fund pursuant to California Health and Safety
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 Village
Redevelopment and South Carlsbad Coastal Redevelopment Project Areas 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
reimbursement and repayment schedule agreements loan agreement, or agreements.
which have been4o-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
Cooperation Agreement
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(5
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
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 and/or other assets 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
Cooperation Agreement
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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
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:
By:
LORRAINE WOOD
City Clerk
RONALD R. BALL
City Attorney
APPROVED AS TO FORM:
RONALD R. BALL
Attorney to the Commission
Cooperation Agreement
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n
CITY OF CARLSBAD
A Municipal Corporation
By:
Matt Hall CLAUDE A. LEWIS
Mayor
CARLSBAD HOUSING AND
REDEVELOPMEMT COMMISSION
A Body Corporate and Politic
By:
By:
Matt Hall CLAUDE A. LEWIS
Chairman
LISA HILDABRAND
Executive Director/Secretary
Cooperation Agreement
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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 day of
, 2011, 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
1/31/11
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 shall 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, in effect as of January 1,
2011, 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 advances or 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
1/31/11
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, as in effect as of January 1, 2011, 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 beyond as set
forth within this and subsequent agreements, and subject to the terms of any
subsequent loan, and reimbursement and repayment agreements.
3. To establish Administrative Funds for operation and support of the
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
Cooperation Agreement
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21
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.
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
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Administrative Fund pursuant to California Health and Safety Code Sections 33610-
33615, and a redevelopment Revolving Fund pursuant to California Health and Safety
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 Village Redevelopment
and South Carlsbad Coastal Redevelopment Project Areas will be repaid according to
separate reimbursement and repayment schedule agreements which have been
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,
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provided, however, that no City officer or employee shall be paid extra compensation for
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 and/or other assets 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
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thirty (30) days after service of the notice of default and is not cured promptly within a
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.
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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.
APPROVED AS TO FORM:
RONALD R. BALL
City Attorney
APPROVED AS TO FORM:
Wj-
CITY OF CARLSBAD
A Municipal Corporation
By:
Matt tiall
Mayor
RONAtD R. BALL
Attorney to the Commission
CARLSBAD HOUSING AND
REDEVELOPMEMT COMMISSION
A Body Corporate and Politic
By:
By:
Maid Hall "
Chairman
HILDABRAND
^cutive Director/Secretary
ll,\ 1970 /! =~',*\ /*$
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