HomeMy WebLinkAbout2011-02-08; City Council; 20448; REDEVELOPMENT PROJECTS S CARLSBAD COASTALCITY OF CARLSBAD AND
HOUSING AND REDEVELOPMENT COMMISSION
JOINT AGENDA BILL
AB#
MTG.
DEPT.
20,448
2/8/11HNS
Reimbursement and Repayment
Schedule Agreements for
Redevelopment Projects to Benefit the
South Carlsbad Coastal
Redevelopment Project Area
DEPT.
CITY ATTORNEY
CITY MANAGER
REC OMMENDED ACTION
That the City Council ADOPT Resolution No. 2011-021 , APPROVING Reimbursement and
Repayment Schedule Agreements between the Carlsbad Housing and Redevelopment
Commission ("Commission") and the City of Carlsbad ("City") for redevelopment projects and/or
programs to benefit the South Carlsbad Coastal Redevelopment Area.
That the Housing and Redevelopment Commission ADOPT Resolution No. 495
APPROVING Reimbursement and Repayment Schedule Agreements between the Carlsbad
Housing and Redevelopment Commission ("Commission") and the City of Carlsbad ("City") for
redevelopment projects and/or programs to benefit the South Carlsbad Coastal Redevelopment
Area.
ITEM EXPLANATION:
The South Carlsbad Coastal Redevelopment Area Plan was originally adopted by the City
Council in July, 2000. The plan has a thirty-one year effectiveness term, and forty-six year term
for collection of tax increment. The Plan will expire July, 2031. The Agency will then have ten
years within which to repay any indebtedness to the City, and an additional five years beyond that
date to collect tax increment for any remaining projects. December 31, 2020 is the time limit for
establishing new loans, advances and indebtedness to be repaid with tax increment and/or other
assets from the South Carlsbad Coastal Redevelopment Area. With these deadlines in mind, staff
has been reviewing the current status of the South Carlsbad Coastal Redevelopment Area
(SCCRA) and completing an analysis of additional desirable redevelopment activities and debt
capacity.
Existing financial obligations for the SCCRA consist of $7.8 million in loans from the City General
and General Capital Construction Funds for various public infrastructure projects, planning
documents, land use strategies, miscellaneous redevelopment activities, as well as general
administrative costs of approximately $250,000 annually, with cost of living increases as
appropriate.
DEPARTMENT CONTACT: Debbie Fountain 760-434-2935 debbie.fountain@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
O
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF O
OTHER - SEE MINUTES D
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At this time, there is no bond debt. However, it is anticipated that bonds will be issued in the
future to finance various public improvement and infrastructure projects. An analysis of the
projects/programs and other redevelopment activities that the Agency has contracted with the
City to complete on its behalf indicates that the Agency will need additional loans in an
approximate total amount of $24 million over the next twenty years of redevelopment
implementation.
All funding advances and loans provided to the Commission on behalf of the South Carlsbad
Coastal Redevelopment Area will be repaid in full with future tax increment funds and/or other
assets of the Agency by no later than July, 2041. After reviewing the goals and objectives of the
redevelopment plan and completing a projects' needs analysis for the SCCRA, staff has prepared
a list of redevelopment projects and/or other activities that are anticipated to be undertaken over
the next thirty to thirty-five years. The projects include the following and are described in greater
detail within the Reimbursement Agreement:
1. Street Enhancements, including the realignment of Carlsbad Boulevard
2. Public Infrastructure Improvements
3. Land Use Strategies or other Planning Studies and Documents
4. Construction and/or Installation of Recreational Amenities and/or other redevelopment
or development-inducing projects/activities.
5. Enhanced Entryway Treatments
It is anticipated that other advances of funds may be required in the last five years of the period of
time allowed for collecting tax increment. Due to the timing of when tax increment is paid to the
Agency, there may be a timing gap which will require funding advances from the City. However, it
is anticipated that there will be adequate tax increment available to reimburse the City for these
funding advance by the end of each fiscal year.
Staff is recommending that the City Council and Housing and Redevelopment Commission take
action to enter into the attached Reimbursement and Repayment Schedule Agreements in which
the City agrees to pay or provide initially for the development costs associated with carrying out
one or more of the projects listed above and further described in the Reimbursement Agreement.
To insure the City will be reimbursed for all costs initially provided, the projects will be
implemented in a cost manner which does not exceed the maximum debt capacity of the SCCRA.
The Agreement further stipulates the Commission agrees to reimburse the City, with interest,
from the date of expenditure by the City until reimbursed. The rate of interest shall be based on
the City's annual average investment rate.
ENVIRONMENTAL IMPACT:
For the purposes of environmental review, the proposed agreements represent 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
Reimbursement and Repayment Agreements will require separate environmental review and
approval, as stated in the agreements, and will not be approved for implementation until
environmental review has been completed and mitigation measures have been adopted, as
appropriate.
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FISCAL IMPACT:
Adoption of the attached resolutions will confirm approximately $7.8 million in existing
indebtedness for the SCCRA and provide for future loans of the City in an amount not to exceed
approximately $24 million from the City for non-housing redevelopment projects and/or other
activities over the next approximately twenty years. The Council will loan the funds to the
Commission for the cost of the redevelopment projects and/or other activities, and the
Commission shall repay this indebtedness as tax increment revenues become available. Full
repayment of all loans, which are approved and accepted by the Commission from the Council,
will occur no later than July, 2041. If there are inadequate tax increment revenues to repay the
Council, the Commission may provide in-lieu payments with real and/or personal property and/or
other assets of the Redevelopment Agency. Advances of funds will be repaid at the end of each
fiscal year as appropriate. If tax increment funds are not available to repay these advances prior
to the end of the fiscal year, the advances shall become loans and subject to interest payments,
and shall be repaid according to the reimbursement and repayment schedule agreements.
Pursuant to Health and Safety Code Section 33333.8, in effect as of January 1, 2011, for as long
as the Commission receives any tax increment funds, an amount that is not less than twenty
percent (20%) of all the tax increment funds allocated to the Commission must be set aside into
the Low/Moderate Income Housing Fund and used exclusively for affordable housing purposes
by the Agency and/or the Carlsbad Housing Authority. By approving the attached Reimbursement
and Repayment Schedule Agreements, the Commission is expected to receive approximately
$31.5 million by fiscal year 2045 -2046 for low and moderate income housing.
EXHIBITS:
1. City Council Resolution No. 2011-021 approving Reimbursement and Repayment
Schedule Agreements between the Carlsbad Housing and Redevelopment Commission
and the City of Carlsbad.
2. Housing and Redevelopment Commission Resolution No. 495 approving
Reimbursement and Repayment Schedules Agreement between the Carlsbad Housing
and Redevelopment Commission and the City of Carlsbad.
3. Reimbursement and Repayment Schedule Agreements between the Carlsbad Housing
and Redevelopment Commission and the City of Carlsbad.
1 RESOLUTION NO. 2011-021
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING
3 REIMBURSEMENT AND REPAYMENT SCHEDULE
, AGREEMENTS BETWEEN THE CITY OF CARLSBAD AND
THE CARLSBAD HOUSING AND REDEVELOPMENT
5 COMMISSION FOR REIMBURSEMENT AND REPAYMENT
OF ADMINISTRATIVE COSTS AND PROVISION OF
6 FINANCIAL ASSISTANCE FOR IMPLEMENTATION OF
REDEVELOPMENT ACTIVITIES TO BENEFIT THE SOUTH
7 CARLSBAD COASTAL REDEVELOPMENT AREA.
8
WHEREAS, the City Council of the City of Carlsbad activated the Housing and
10 Redevelopment Commission in October 16, 1979 and declared itself to constitute the
1 1 Commission for the purposes of implementing redevelopment activities within the City of
12 Carlsbad; and
13 WHEREAS, the Commission is engaged in activities necessary to execute and
14 implement the Redevelopment Plan for the South Carlsbad Coastal Redevelopment
15 Area; and
16
WHEREAS, pursuant to Section 33445(a) of the California Community
17
Redevelopment Law ("CRL"), in effect as of January 1, 2011, the Commission may, with
18
the consent of the City Council, pay all or part of the value of the land for and the cost of
20 the installation and construction of any building, facility, structure, or other
21 improvements which is publicly owned either within or outside a project area, if the City
22 Council makes certain determinations; and
23 WHEREAS, pursuant to Section 33455(c) of the CRL, in effect as of January 1 ,
2011, when the value of the land or the cost of installation and construction of the
25 building, facility, structure or other improvement, or both, has been, or will be, paid or
26
provided for initially by the City, the Commission may enter into a contract with the City
27
under which the Commission agrees to reimburse the City for all or part of the value of
1 the land or a part of the cost of the building, facility, structure or other improvement, or
2 both; and
3 WHEREAS, pursuant to Section 33678 of the CRL, in effect as of January 1,
4 2011, the Commission may pay for employee or contractual services of the City if the
5 services are directly related to the purposes of redevelopment, as set forth in Sections
6
33020 and 33021 of the CRL, as in effect as of January 1, 2011, and primarily benefit
7
the Project Area ("Redevelopment Activity Costs"); and
o
9 WHEREAS, the City Council has determined that it is in the best interest of the
JO City and for the common benefit of citizens residing in the City to provide for, among
11 other things, the reimbursement to the City for the following: (1) Redevelopment Activity
12 Costs, and (2) the value of land for and the installation and construction of any building,
13 facility, structure, or other improvements which is public owned either within or outside
14 the Project Area ("Development Costs"), specifically including, but not limited to the
15 Redevelopment Activity Costs and the Development Costs (collectively referred to as
16
"Costs") in connection with the acquisition and construction of certain improvements, as
17
more specifically described in Section No. 1 of the Reimbursement Agreement (the
19 "Project"); and
20 WHEREAS, the Project consists of one or more buildings, facilities, structures, or
21 other improvements which are or will be publicly owned and which are located both
22 within and outside of the Project Area. The City Council and Commission have
23 determined that the Project is of benefit to the Project Area; and
24 WHEREAS, in accordance with Sections 33445 and 33678 of the CRL, in effect
25 as of January 1, 2011, the Commission desires to enter into these Agreements to
26
provide for the reimbursement to the City of the Costs, specifically including, but not
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1 limited to, the Costs of the Project, to the extent paid or provided for initially by the City;
2 and
3 WHEREAS, the Council desires to enter into said agreements to ensure
4
repayment of existing Commission indebtedness to the City, and affirm its intent to loan
5
an additional estimated $24 million to the Commission over the next approximately
6
twenty years to continue redevelopment activities within the South Carlsbad Coastal
7
Redevelopment Area, and shall advance funds as necessary to the Commission to
o
Q provide for annual administration and/or other costs of the Commission to implement
10 the South Carlsbad Coastal Redevelopment Project Area.
11 WHEREAS, any legislation by the State of California which shall threaten or
12 otherwise hinder the lawful implementation of redevelopment activities within the South
13 Carlsbad Coastal Redevelopment Area as well as the Village Redevelopment Project
14 Area, and/or cause one or more contractual defaults by the Commission shall be
15 opposed by the Commission and legal action shall be taken as appropriate to protect
16
these contractual agreements and ensure compliance by the Commission.
17
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
lo
Commission of the City of Carlsbad, California, as follows:
20 1 - That the above recitations are true and correct.
21 2. That pursuant to the Reimbursement and Repayment Schedule Agreements,
22 attached hereto and incorporated herein, the City agrees to pay or provide
23 initially for any Costs associated with carrying out the Project in a cost
24
manner which does not exceed the maximum debt capacity of the South
25
Carlsbad Coastal Redevelopment Project Area.
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1 3. That pursuant to the Reimbursement and Repayment Schedule Agreements,
2 the Commission under subdivision (b) of Section 33670 of the CRL, in effect
3 as of January 1, 2011, shall pay for all such Costs, with interest, from the date
4 of expenditure by the City until fully reimbursed at the rate of interest earned
5
from time-to-time by the City on its portfolio of investments.
6
4. The City Council does hereby approve the Reimbursement and Repayment
8 Schedule Agreements between the City of Carlsbad and the Carlsbad
9 Housing and Redevelopment Commission for the provision of staff services
10 and facilities and/or other resources, as necessary, and to reconfirm the
11 reimbursement of administrative costs and provision of financial assistance
for continued implementation of redevelopment activities in the South
13 Carlsbad Coastal Redevelopment Areas, including any activities agreed upon
14
following expiration of said redevelopment plans as allowed per
15
redevelopment law in effect as of January 1, 2011.
16
17 5. The City Manager and City Attorney are hereby authorized to oppose, legally
18 and/or otherwise, any legislation by the State of California that threatens or
19 jeopardizes the implementation of redevelopment activities within the South
20 Carlsbad Coastal and Village Redevelopment Project Areas, and/or will
21 prevent the lawful compliance of the Commission with the contractual
22 arrangement set forth in the attached agreements.
23
6. The Mayor is hereby authorized to execute said Reimbursement and
24
Repayment Schedule Agreements in substantially the form approved by the
25
City Council and subject to final approval by the City Attorney.26
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1 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
2 Carlsbad City Council and Carlsbad Housing and Redevelopment Commission held on
3 the 8th day of February, 2011, by the following vote to wit:
4
5 AYES: Council Members Hall, Kulchin, Blackburn, Douglas and Packard.
6
NOES: None.
7
ABSENT: None.8
9
10 ~ . ~MATT HALL, Mayor
11
ATTEST:
12"
13
14 v ^"""'NEM. WOOD, City Clerk
15 (SEAL)
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1 RESOLUTION NO. 495
2 A RESOLUTION OF THE HOUSING AND
REDEVELOPMENT COMMISSION OF THE CITY OF
3 CARLSBAD, CALIFORNIA, APPROVING
. REIMBURSEMENT AND REPAYMENT SCHEDULE
AGREEMENTS BETWEEN THE CITY OF CARLSBAD AND
5 THE CARLSBAD HOUSING AND REDEVELOPMENT
COMMISSION FOR REIMBURSEMENT AND REPAYMENT
6 OF ADMINISTRATIVE COSTS AND PROVISION OF
FINANCIAL ASSISTANCE FOR IMPLEMENTATION OF
7 REDEVELOPMENT ACTIVITIES TO BENEFIT THE SOUTH
CARLSBAD COASTAL REDEVELOPMENT AREA.8
9 WHEREAS, the City Council of the City of Carlsbad activated the Housing and
10 Redevelopment Commission in October 16, 1979 and declared itself to constitute the
11
Commission for the purposes of implementing redevelopment activities within the City of
12
Carlsbad; and13
14 WHEREAS, the Commission is engaged in activities necessary to execute and
15 implement the Redevelopment Plan for the South Carlsbad Coastal Redevelopment
16 Area; and
17 WHEREAS, pursuant to Section 33445(a) of the California Community
18 Redevelopment Law ("CRL"), in effect as of January 1, 2011, the Commission may, with
19 the consent of the City Council, pay all or part of the value of the land for and the cost of
20 the installation and construction of any building, facility, structure, or other
21
improvements which is publicly owned either within or outside a project area, if the City
22
Council makes certain determinations; and
23
WHEREAS, pursuant to Section 33455(c) of the CRL, in effect as of January 1,
25 2011, when the value of the land or the cost of installation and construction of the
26 building, facility, structure or other improvement, or both, has been, or will be, paid or
27 provided for initially by the City, the Commission may enter into a contract with the City
28 Q
1 under which the Commission agrees to reimburse the City for all or part of the value of
2 the land or a part of the cost of the building, facility, structure or other improvement, or
T both; and
4 WHEREAS, pursuant to Section 33678 of the CRL, in effect as of January 1,
5 2011, the Commission may pay for employee or contractual services of the City if the
6
services are directly related to the purposes of redevelopment, as set forth in Sections
7
33020 and 33021 of the CRL, as in effect as of January 1, 2011, and primarily benefit
o
9 the Project Area ("Redevelopment Activity Costs"); and
10 WHEREAS, the City Council has determined that it is in the best interest of the
11 City and for the common benefit of citizens residing in the City to provide for, among
12 other things, the reimbursement to the City for the following: (1) Redevelopment Activity
13 Costs, and (2) the value of land for and the installation and construction of any building,
14 facility, structure, or other improvements which is public owned either within or outside
the Project Area ("Development Costs"), specifically including, but not limited to the
16
Redevelopment Activity Costs and the Development Costs (collectively referred to as
17
"Costs") in connection with the acquisition and construction of certain improvements, as
more specifically described in Section No. 1 of the Reimbursement Agreement (the
20 "Project"); and
21 WHEREAS, the Project consists of one or more buildings, facilities, structures, or
22 other improvements which are or will be publicly owned and which are located both
23 within and outside of the Project Area. The City Council and Commission have
determined that the Project is of benefit to the Project Area; and
25 WHEREAS, in accordance with Sections 33445 and 33678 of the CRL, in effect
26
as of January 1, 2011, the Commission desires to enter into this Agreement to provide
27
28 IO
1 for the reimbursement to the City of the Costs, specifically including, but not limited to,
2 the Costs of the Project, to the extent paid or provided for initially by the City.
3 WHEREAS, pursuant to the Community Redevelopment Law, in effect as of
4 January 1, 2011, and the previously approved Cooperative Agreement, the Housing and
5
Redevelopment Commission is continuing to perform a public function of the City of
6
Carlsad and may have access to staff and other administrative services and facilities of
7
the City, and may accept financial assistance from the City to complete redevelopment
8
9 activities and/or projects for benefit of the South Carlsbad Coastal Redevelopment
10 Areas; and
11 WHEREAS, the City of Carlsbad and Housing and Redevelopment Commission
12 have a need to approve Reimbursement and Repayment Schedule Agreements to
13 confirm the existing indebtedness of the Agency for the South Carlsbad Coastal
14 Redevelopment Area, and to set forth the anticipated loans required in subsequent
years to complete redevelopment projects and other activities within the South Carlsbad
16
Coastal Redevelopment Area; and
17
WHEREAS, any legislation by the State of California which shall threaten or
18
otherwise hinder the lawful implementation of redevelopment activities within the South
20 Carlsbad Coastal Redevelopment Area as well as the Village Redevelopment Project
21 Area, and/or cause one or more contractual defaults by the Commission shall be
22 opposed by the Commission and legal action shall be taken as appropriate to protect
23 these contractual agreements and ensure compliance by the Commission.
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1 NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
2 Commission of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
4
2. That pursuant to the Reimbursement and Repayment Schedule Agreements,
5
attached hereto and incorporated herein, the City agrees to pay or provide
6
initially for any Costs associated with carrying out the Project in a cost
g manner which does not exceed the maximum debt capacity of the South
9 Carlsbad Coastal Redevelopment Project Area, and the Commission agrees
10 to repay the City for said advances and loans.
11 3. That pursuant to the Reimbursement and Repayment Schedule Agreements,
12 the Commission under subdivision (b) of Section 33670 of the CRL, in effect
13 as of January 1, 2011, shall pay for all such Costs, with interest, from the date
14
of expenditure by the City until fully reimbursed at the rate of interest earned
15
from time-to-time by the City on its portfolio of investments.
17 4. The Housing and Redevelopment Commission does hereby approve the
18 Reimbursement and Repayment Schedule Agreements between the City of
19 Carlsbad and the Carlsbad Housing and Redevelopment Commission for the
20 provision of staff services and facilities and/or other resources, as necessary,
21 and to reconfirm the reimbursement of administrative costs and provision of
22 financial assistance for continued implementation of redevelopment activities
23
in the South Carlsbad Coastal Redevelopment Areas, including any activities
24
agreed upon following expiration of said redevelopment plans as allowed per
25
redevelopment law in effect as of January 1, 2011.26
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1 5. The Housing and Redevelopment Commission affirms existing indebtedness
2 to the City of approximately $2.2 million for redevelopment activities approved
3
to date, as well as approximately $250,000 in annual administrative costs for
4 the South Carlsbad Coastal Redevelopment Area, which have not yet been
5
repaid to the City.
6
6. The Housing and Redevelopment Commission hereby accepts additional
8 indebtedness of approximately $5.6 million which has been previously
9 appropriated by the City for the Carlsbad Boulevard Realignment Study and
10 the Encinas Creek Bridge Replacement/Repair project on behalf of the
H Commission, and finds that these projects are of benefit to, and consistent
12 with the goals and objectives, of the South Carlsbad Coastal Redevelopment
13 Project Area Plan. The Commission also finds that these projects will
14
eliminate blight or blighting influences within the Area as set forth in the
15
Reimbursement Agreement.
16
7. The Executive Director/City Manager and City Attorney, as legal Counsel to
18 the Commission, are hereby authorized to oppose, legally and/or otherwise,
19 any legislation by the State of California that threatens or jeopardizes the
20 implementation of redevelopment activities within the South Carlsbad Coastal
21 and Village Redevelopment Project Areas, and/or will prevent the lawful
22 compliance of the Commission with the contractual arrangement set forth in
23 the attached agreements.
24
8. The Chairman of the Commission is hereby authorized to execute said
25
Reimbursement and Repayment Schedule Agreements in substantially the26
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1 form approved by the Housing and Redevelopment Commission and with
2 prior approval of the City 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.
MATT HALL, Chairman
ATTEST:
LISA HILDABRAND, Secretary
(SEAL)
r o/ESTABUSHED\%c
^, 1970 ./||
Exhibits
REIMBURSEMENT AGREEMENT
(Public Improvements)
(Community Redevelopment Law Section 33445)
This REIMBURSEMENT AGREEMENT ("Agreement") is entered into by and between the
CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION ("Commission"), a body corporate
and politic, and the City of Carlsbad, a municipal corporation ("City") as of the
day of ,2011.
RECITALS
A. The City Council of the City of Carlsbad ("City Council"), acting pursuant to the provisions of
the California Community Redevelopment Law (California Health and Safety Code Section
33300, et seq.) ("CRL.,"), 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 previously declared itself to constitute the Commission for the purposes of
implementing redevelopment activities within the City of Carlsbad.
C. The Commission is engaged in activities necessary to execute and implement the
development Plan for the South Carlsbad Coastal Redevelopment Project Area ("Project
Area").
D. Pursuant to Section 33445(a) of the CRL, in effect as of January 1, 2011, the Commission
may, with the consent of the City Council, pay all or part of the value of the land for and the
cost of the installation and construction of any building, facility, structure, or other
improvements which is publicly owned either within or outside a project area, if the City
Council makes certain determinations.
E. Further, pursuant to Section 33445(c) of the CRL, in effect as of January 1, 2011, when the
value of the land or the cost of the installation and construction of the building, facility,
structure or other improvement, or both, has been, or will be, paid or provided for initially by
the City, the Commission may enter into a contract with the City under which the
Commission agrees to reimburse the City for all or part of the value of the land or all or a
part of the cost of the building, facility, structure, or other improvement, or both.
F. Pursuant to Section 33678 of the CRL, in effect as of January 1, 2011, the Commission
may pay for employee or contractual services of the City if the services are directly related
to the purposes of redevelopment, as set forth in Sections 33020 and 33021 of the CRL,
and primarily benefit the Project Area ("Redevelopment Activity Costs").
G. The City Council has determined that it is in the best interests of the City and for the
common benefit of citizens residing in the City to provide for, among other things, the
reimbursement to the City for the following: (1) Redevelopment Activity Costs, and (2) the
value of the land for and the cost of the installation and construction of any building, facility,
structure, or other improvements which is publicly owned either within or outside the Project
Area ("Development Costs"), specifically including, but not limited to the Redevelopment
Activity Costs and the Development Costs in connection with the acquisition and
construction of certain improvements, as more specifically described in Section No. 1 below
(the "Project"). Redevelopment Activity Costs and Development Costs shall collectively be
referred to herein as the "Costs".
REIMBURSEMENT AGREEMENT
Page 1 of 6
H. The Project consists of one or more buildings, facilities, structures, or other improvements
which are or will be publicly owned and which are located both within and outside of the
Project Area. The City Council and Commission have determined that the Project is of
benefit to the Project Area.
In accordance with Sections 33445 and 33678 of the CRL, in effect as of January 1, 2011,
the Commission desires to enter into this Agreement to provide for the reimbursement to
the City of the Costs, specifically including, but not limited to, the Costs of the Project, to the
extent paid or provided for initially by the City.
TERMS
Project Description. The Project is comprised of the following list of potential improvements
and services which the City agrees shall be initially provided by or paid for by the City, to be
reimbursed by the Commission. The following projects shall be implemented in a cost
manner which does not exceed the maximum debt capacity of the South Carlsbad Coastal
Redevelopment Project Area Plan:
a. Street Enhancements. These improvements will include realignment of Carlsbad
Boulevard and related projects such as street overly construction, traffic control
upgrades, curb and gutter replacement, new and rehabilitated sidewalks, bikeway
improvements, bridge rail replacement, landscape installation, enhancements or other
improvements, additional turn lanes and other improvements which will enhance or add
recreational type amenities to the area. The goal is to improve inadequate, aging or
dilapidated infrastructure and to improve the area for residents and visitors.
b. Public Infrastructure Improvements. These improvements will include various public
infrastructure projects that will repair, upgrade, replace and/or install sewer and water
systems, storm drain systems, trail and beach access and/or provide for additional
public parking.
c. Land Use Strategies or other planning documents. This project includes planning efforts
to allow for the redevelopment of the power plant property into a new center for tourist-
visitor-resident activities, such as hotel, restaurants, recreational amenities, parking and
other public infrastructure. It also includes other planning efforts to convert vacant
property into tourist-serving commercial uses and/or to create a comprehensive land
use strategy or Master Plan for the entire South Carlsbad Coastal Redevelopment
Area.
d. Construction and/or installation of recreational amenities and/or other development
inducing projects. This project allows for the Redevelopment Agency to construct
and/or install improvements that will enhance the South Carlsbad Coastal
Redevelopment Area for visitors and residents, and encourage other private
development within the area to complement these improvements. The goal is to
enhance the area by removing incompatible uses and buildings and infrastructure that
are dilapidated, unsafe and/or unhealthy while adding new uses and projects that
effectively result in successful redevelopment of the project area.
REIMBURSEMENT AGREEMENT
Page 2 of 6 n
Enhanced Entrvwav Treatments - A design solution will be developed by the City and
Agency to modify the intersection of Carlsbad Boulevard and Palomar Airport Road to
create a T-lntersection and to improve the intersection as a key entryway. The Agency
will also incorporate other enhanced entryway designs for the southern and northern
entrances into the area.
2. Development Costs. In addition to the Development Costs of the Project, the Commission
hereby agrees that the following, for purposes of this Agreement, shall constitute
Development Costs for which the Commission will reimburse the City, to the extent such
Development Costs are paid or provided for initially by the City: (a) the value of the land for
and the cost of the installation and construction of any building, facility, structure, or other
improvements which are publicly owned either within or outside the Project Area, and (b)
the cost of the construction, expansion, addition to, or reconstruction of, buildings, facilities,
structures or other improvements which are publicly owned. "Development Costs", for
purposes of this Agreement, shall not include the normal maintenance or operation of
buildings, facilities, structures or other improvements which are publicly owned.
3. Redevelopment Activity Costs. In addition to the Redevelopment Activity Costs of the
Project, the Commission hereby agrees that, for purposes of this Agreement,
Redevelopment Activity Costs for which the Commission will reimburse the City shall
include the cost of employee or contractual services provided by the City, to the extent such
services are paid for initially by the City and are directly related to the following: (a) the
planning, development, replanning, redesign, clearance, reconstruction, or rehabilitation, or
any combination of these, of all or part of a survey area, and the provision of those
residential, commercial, industrial, public, or other structures or spaces as may be
appropriate or necessary in the interest of the general welfare, including recreational and
other facilities incidental or appurtenant to them, (b) the alteration, improvement,
modernization, reconstruction, or rehabilitation, or any combination of these, of existing
structures in the Project Area, (c) the provision for open-space types of use, such as streets
and other public grounds and space around buildings, and public or private buildings,
structures and improvements, and improvements of public or private recreation areas and
other public grounds, (d) the replanning or redesign or original development of undeveloped
areas as to which either of the following conditions exist: (1) the areas are stagnant or
improperly utilized because of defective or inadequate street layout, faulty lot layout in
relation to size, shape, accessibility, or usefulness, or for other causes; or (2) the areas
require replanning and land assembly for reclamation or development in the interest of the
general welfare because of widely scattered ownership, tax delinquency, or other reasons.
4. Reimbursement. To the extent the City pays or provides initially for any Costs, the
Commission agrees to reimburse the City from and to the extent of available resources,
which include personal and real property, and taxes levied in the Project Area and allocated
to the Commission under subdivision (b) of Section 33670 of the CRL for all such Costs,
with interest, from the date of expenditure by the City until reimbursed, at the rate of interest
earned from time-to-time by the City on its portfolio of investments. The Commission's
obligation under this Agreement shall constitute an indebtedness of the Commission for the
purpose of carrying out the redevelopment of the Project Area.
5. Binding on Successors. This Agreement shall be binding on the Commission and the City,
and their successors and assigns.
6. Further Action. The parties shall execute such other documents and shall take such other
action as may be reasonably necessary to further the purposes of this Agreement.
REIMBURSEMENT AGREEMENT
Page 3 of 6
Invalidity. If any provision of this Agreement is determined by a court of competent
jurisdiction to be illegal, invalid or enforceable, such provision will be deemed to be severed
and deleted from the Agreement as a whole and neither such provision, nor its severance
and deletion shall in any way affect the validity of the remaining provisions of this
Agreement.
[The remainder of this page intentionally left blank.]
REIMBURSEMENT AGREEMENT
Page 4 of 6
CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION, a public
body, corporate and politic
Approved as to form:
By:
Matt Hall, Chairman
By:
Attorney to the Commission By:
Lisa Hildabrand, Executive
Director/Secretary
(Signatures continue on following page.)
REIMBURSEMENT AGREEMENT
Page 5 of 6
Approved as to form:
By:
City Attorney
CITY OF CARLSBAD, a municipal corporation
By:
Matt Hall, Mayor
By:.
Lorraine Wood, City Clerk
REIMBURSEMENT AGREEMENT
Page 6 of 6
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 , 2011.
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.
APPROVED AS TO FORM:CITY OF CARLSBAD
A Municipal Corporation
RONALD R. BALL
City Attorney
By:
Matt Hall
Mayor
APPROVED AS TO FORM:ATTEST:
RONALD R. BALL
Attorney to the Commission
By:
LORRAINE WOOD
City Clerk
CARLSBAD HOUSING AND
REDEVELOPMEMT COMMISSION
A Body Corporate and Politic
By:
Matt Hall
Chairman
ATTEST:
By:
LISA HILDABRAND
Executive Director/Secretary
SCCRA Redevelopment - Debt Service/Loan Repayment Schedule (+$24 million)
Year
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
2027-28
2028-29
2029-30
2030-31
2031-32
2032-33
2033-34
2034-35
2035-36
2036-37
2037-38
2038-39
2039-40
2040-41
2041-42
2042-43
2043-44
2044-45
2045-46
Total
Tl
$
$
$
$
$
$ 1,806,424
$ 1,867,842
$ 1,931,349
$ 1,997,015
$ 2,064,913
$ 2,135,120
$ 4,135,120
$ 4,275,714
$ 4,421,088
$ 4,571,405
$ 4,726,833
$ 4,887,545
$ 5,053,722
$ 5,225,549
$ 5,403,217
$ 5,586,927
$ 5,776,882
$ 5,973,296
$ 6,176,388
$ 6,386,385
$ 6,603,522
$ 6,828,042
$ 7,060,196
$ 7,300,242
$ 7,548,451
$ 7,805,098
$ 5,684,924
$ 5,878,211
$ 6,078,071
$ 6,284,725
$ 6,498,406
Set-
Aside
$
$
$
$
$
$ 361,285
$ 373,568
$ 386,270
$ 399,403
$ 412,983
$ 427,024
$ 827,024
$ 855,143
$ 884,218
County
Fee
$ -
$ -
$ -
$ -
$ -
$ 10,116
$ 10,460
$ 10,816
$ 11,183
$ 11,564
$ 11,957
$ 23,157
$ 23,944
$ 24,758
$ 914,281 $ 25,600
$ 945,367
$ 977,509
$ 1,010,744
$ 1,045,110
$ 1,080,643
$ 1,117,385
$ 1,155,376
$ 1,194,659
$ 1,235,278
$ 1,277,277
$ 1,320,704
$ 1,365,608
$ 1,412,039
$ 1,460,048
$ 1,509,690
$ 1,561,020
$ 1,136,985
$ 1,175,642
$ 1,215,614
$ 1,256,945
$ 1,299,681
$ 26,470
$ 27,370
$ 28,301
$ 29,263
$ 30,258
$ 31,287
$ 32,351
$ 33,450
$ 34,588
$ 35,764
$ 36,980
$ 38,237
$ 39,537
$ 40,881
$ 42,271
$ 43,709
$ 31,836
$ 32,918
$ 34,037
$ 35,194
$ 36,391
Debt
Svc
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$.
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
Other
Income
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
$-
Ops/
Admin
$ 250,000
$ 258,750
$ 267,806
$277,179
$ 286,881
$ 296,922
$307,314
$318,070
$ 329,202
$ 340,724
$ 352,650
$ 364,992
$ 377,767
$ 390,989
$404,674
$418,837
$ 433,497
$ 448,669
$ 464,372
$ 480,625
$ 497,447
$514,858
$ 532,878
$551,529
$ 570,832
$590,811
$611,490
$ 632,892
$ 655,043
$ 677,969
$701,698
$ 726,258
$751,677
$ 777,986
$805,215
$ 833,398
Redev.
Project
$
$
$2,500,000
$2,500,000
$5,000,000
$5,000,000
$5,000,000
$4,000,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$3,789,846
$3,917,974
$4,050,434
$4,187,370
$4,328,936
Ending
Cash
$ (250,000)
$ (258,750)
$(2,767,806)
$(2,777,179)
$(5,286,881)
$(3,861,898)
$(3,823,500)
$(2,783,806)
$1,257,226
$ 1,299,643
$ 1,343,490
$ 2,919,947
$ 3,018,860
$3,121,124
$ 3,226,851
$ 3,336,159
$ 3,449,170
$ 3,566,008
$ 3,686,803
$3,811,690
$ 3,940,807
$ 4,074,297
$ 4,212,309
$ 4,354,994
$4,502,512
$ 4,655,027
$ 4,812,707
$ 4,975,728
$ 5,144,270
$ 5,318,520
$ 5,498,671
$ (0)
$ 0
$ (0)
$ 0
$ (0)
City
Advance/Debt
$ 7,764,928
$ 8,197,379
$ 11,148,561
$ 14,175,134
$ 19,779,112
$ 25,518,493
$ 31,591,361
$ 36,857,172
$ 39,029,233
$ 40,064,192
$ 41,120,409
$ 42,197,932
$ 41,765,648
$ 41,226,060
$ 40,570,913
$ 39,791,445
$ 38,878,355
$ 37,821,772
$ 36,611,225
$ 35,235,608
$ 33,683,145
$ 31,941,353
$ 29,997,001
$ 27,836,071
$ 25,443,713
$ 22,804,197
$ 19,900,870
$ 16,716,098
$ 13,231,218
$ 9,426,479
$ 5,280,982
$
$
$
$
$
Interest
$ 173,701
$ 183,375
$ 249,393
$ 317,098
$ 442,459
$ 765,555
$ 947,741
$ 1,842,859
$ 1,951,462
$ 2,003,210
$ 2,056,020
$ 2,109,897
$ 2,088,282
$ 2,061,303
$ 2,028,546
$ 1,989,572
$ 1,943,918
$ 1,891,089
$ 1,830,561
$ 1,761,780
$ 1,684,157
$ 1,597,068
$ 1,499,850
$ 1,391,804
$ 1,272,186
$ 1,140,210
$ 995,043
$ 835,805
$ 661,561
$ 471,324
$ 264,049
$
$
$
$
$
Loan
Payment
$
$
$
$
$
$
$
$
$1,257,226
$1,299,643
$1,343,490
$2,919,947
$3,018,860
$3,121,124
$3,226,851
$3,336,159
$3,449,170
$3,566,008
$3,686,803
$3,811,690
$3,940,807
$4,074,297
$4,212,309
$4,354,994
$4,502,512
$4,655,027
$4,812,707
$4,975,728
$5,144,270
$5,318,520
$5,498,671
$
$
$
$
$
Loan
Balance
$ 7,938,629
$ 8,380,755
$11,397,954
$14,492,232
$20,221,571
$26,284,047
$32,539,102
$38,700,031
$39,723,468
$40,767,759
$41,832,939
$41,387,881
$40,835,071
$40,166,239
$39,372,608
$38,444,858
$37,373,103
$36,146,852
$34,754,982
$33,185,698
$31,426,495
$29,464,123
$27,284,542
$24,872,881
$22,213,386
$19,289,380
$16,083,206
$12,576,175
$ 8,748,509
$ 4,579,283
$ 46,359
$
$
$
$
$
f\)
Notes/Assumptions:
1. 3.4% growth in tax increment is projected; Year 2021-22 staff has projected for additional private development which would net $2 million in Tl
2. Redevelopment Plan expires in July, 2031
3. Post-1994 debt must be repaid within 10 years of expiration of Redevelopment Plan; contract for employee services to be paid to 2041.
4. 20% of tax increment for affordable housing must be set-aside as long as tax increment is being collected to pay debt.
5. Estimated County Fee at 0.56% of total tax increment (Tl) each year.
6. Estimated increase in Ops/Admin costs of 3.5% per year.
7. An annual interest rate of 2.2% for FY 2010-11 and increase by 2017-18 to 5%, was applied to the City advance.
8. Years 2041 to 2045 the tax increment generated will be used for redevelopment activities, but no advances from the City will be required.
N