HomeMy WebLinkAbout2009-07-07; Housing & Redevelopment Commission; 19885; Village Redevelopment Area agreementsHOUSING AND REDEVELOPMENT COMMISSION
AND CITY COUNCIL 1 2
JOINT AGENDA BILL
AB#
MTG.
DEPT.
19,885
07/07/09
HRED
AGREEMENT AMENDMENTS FOR
PROVISION OF STAFF SUPPORT AND
PROJECT MANAGEMENT, AND
REIMBURSEMENT OF RELATED COSTS
FOR THE VILLAGE REDEVELOPMENT
AREA
DEPT. HEAD/
CITYATTY.
CITY MGR.
RECOMMENDED ACTION:
1. Adopt City Council Resolution No. 2009-174 APPROVING amendments to
the Cooperation, Reimbursement and Repayment Agreements between the City of
Carlsbad and the Carlsbad Housing and Redevelopment Commission for staff
support and project management as well as reimbursement of administrative costs,
and provision and repayment of financial assistance for continued implementation
of incomplete or unfinished redevelopment activities/projects in the Village
Redevelopment Area.
2. Adopt Housing and Redevelopment Commission Resolution No. 472
APPROVING amendments to the Cooperation, Reimbursement and Repayment
Agreements between the City of Carlsbad and the Carlsbad Housing and
Redevelopment Commission for staff support and project management as well as
reimbursement of administrative costs, and provision and repayment of financial
assistance for continued implementation of incomplete or unfinished
redevelopment activities/projects in the Village Redevelopment Area.
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.
DEPARTMENT CONTACT: Debbie Fountain 760-434-2815, debbie.fountain@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COMMISSION ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER - SEE MINUTES D
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In July, 2000, the City Council and Housing and Redevelopment Commission took action to
establish a second redevelopment area in Carlsbad, which is 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.
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 advanced the Agency approximately $4.2 million during the period from
1976 to 1990. As of 1990, the Agency was able to adequately support the administrative and
project costs with tax increment revenue with no further advances required from the City. The
Agency has an outstanding obligation to repay the City for all loans with interest.
In December, 2003, the City Council agreed to loan the Agency up to an additional $14.4 million
for additional redevelopment projects and/or activities in the Village Area. These funds have not
been expended by the Agency as of this date. However, it is important to note that this debt
must be repaid in full to the City, with interest, no later than July, 2019. Payments on the
previously incurred debt to the City will begin in fiscal year 2020, once the additional $14.4
million is repaid. It is anticipated at this time that the entire debt of the Agency for Village
redevelopment will be paid in full as of the end of fiscal year 2034, assuming the entire $14.4
million is loaned to the Agency, a certain level of tax increment is received and it also assumes
the State of California continues to take ERAF payments from the Agency.
In order to adequately document the financial obligations of the Redevelopment Agency as
related to the Village Area, the Council and Commission approved two additional agreements in
December, 2003 - a Repayment Schedule Agreement and a Reimbursement Agreement.
These two agreements documented the debt to the City, its intended redevelopment purpose
and indicated the intended schedule for repayment of the debt. These documents require
amendments at this time to reconfirm and update the project list and debt repayment schedule.
The previously noted Cooperation Agreement is also being presented for an amendment to
reconfirm the City's intent to provide administrative support and resources and initial funding to
complete a number of unfinished projects and/or redevelopment activities for the Village Area
over the next approximately ten (10) years.
The noted amendments are necessary at this time because the Carlsbad Village
Redevelopment Plan's effectiveness date will expire on July 21, 2009, but there remains a
number of redevelopment activities and/or projects to be completed for the Village Area and
resources need to be recommitted to allow for completion of these projects. Even though the
plan is expiring, the Agency may continue to pay for previously incurred debt (including the
noted $14.4 million) and enforce existing contracts or agreements. The noted agreements are
existing contracts which the Agency may continue to enforce beyond July 21, 2009, and which
require the City to complete the noted Village projects on behalf of the Agency and to provide
the administrative support and related resources needed to complete said projects. The Agency
may pay for the costs of these projects and the related staff to ensure completion, per the
Agreement. The subject projects, however, must be completed and full payment of the related
debt must be made no later than July 21, 2019 (no later than ten years following expiration of
the plan).
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Staff is recommending approval of the amendments to the Cooperation, Reimbursement and
Repayment Schedule Agreements to update and confirm the projects/activities to be
administratively supported and implemented by the City on behalf of the Agency, but to be paid
for by the Agency with future tax increment revenue.
FISCAL IMPACT:
The Carlsbad Redevelopment Agency currently receives approximately $3.5 million in total tax
increment proceeds and other revenue for the annual operation of the existing Village
Redevelopment Area, administration of contracts as well as payment of debt. A total of 20% of
these revenues, or approximately $700,000, per year is set-aside for affordable housing. The
remainder is used for operational costs, contract implementation and debt repayment, as
appropriate.
With the assumption that the City will provide up to $14.4 million in loan proceeds (as approved
in 2003) to the Agency to complete redevelopment projects and/or activities over the next
approximately 10 years, it is anticipated that the Agency will not entirely repay all of its debt until
the end of fiscal year 2033-34. Upon its final payment, the Agency will have repaid
approximately $18.6 million in principal loan payments to the City and nearly $18.9 million in
interest payments. In addition to City loans, the Agency issued bonds for public improvement
(capital) projects in the total amount of $15.5 million. With principal and interest payments, it is
estimated that the Agency will have repaid approximately $37.3 million total in bond debt. The
Agency's total bond and loan debt which is best viewed as a financial investment in the Village,
therefore, will exceed $74.8 million. Additional costs to support administration and project
management are also part of this investment.
Although the City has agreed to loan the Agency up to $14.4 million in loan proceeds for
completion of Village redevelopment projects, it is important to note that this loan of funds
equates to approximately $10.2 million in actual funding available for new projects. The reason
for this reduced project specific funding is related to the requirement that the loan be repaid
within 10 years maximum. Therefore, some funds will need to be used to pay for operating
costs, including related loan payments. In addition, with an assumption that the State will take,
and continue to take, funding from the Redevelopment Agency through the Education Revenue
Augmentation Fund (ERAF) payments, there is more limited revenue from the Agency to repay
the loans. Therefore, the actual amount of financial capital for projects is reduced. Within the
approved CIP budget for 2009-10, there is currently $1.4 million in projects to be funded
through the Agency. An additional $10.2 million in new project costs are anticipated for future
CIP budgets, if the City agrees to loan the Agency the funds.
The past, present and future financial investment by the Redevelopment Agency has been
substantial in the Village Area. However, the success has also been substantial with current
assessed property values in the Village estimated at over $386 million. In 1981, the assessed
property value for all properties within the Village was $45 million. The total assessed property
value for Village properties has increased by approximately $341 million, or 758% since 1981.
Sales tax generated in the area has also increased over time, and new hotels have been
constructed which have provided additional transient occupancy tax revenue to the City.
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Commercial vacancy rates have declined substantially (from over 50% to 5 to 7%), and a
variety of new businesses have opened through the years together with many new
developments.
Although there are still a number of projects to be completed before the formal "redevelopment"
efforts come to an end in the Village, the information noted above provides confidence for the
statement that "redevelopment efforts in the Village have been very successful to date in
Carlsbad" from both a financial and blight elimination perspective.
ENVIRONMENTAL IMPACT:
For the purposes of environmental review, the proposed agreements represent organizational
or administrative activities 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 (Cost)
Reimbursement Agreement 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. 2009-174 approving amendments to the Cooperation,
Reimbursement and Repayment Schedule Agreements between the City of Carlsbad
and the Carlsbad Housing and Redevelopment Commission for costs and support
services related to the Village Redevelopment Area.
2. Housing and Redevelopment Commission Resolution No. 472 approving
amendments to the Cooperation, Reimbursement and Repayment Schedule
Agreements between the City of Carlsbad and the Carlsbad Housing and
Redevelopment Commission for costs and support services related to the Village
Redevelopment Area.
3. Cooperation Agreement between City of Carlsbad and Carlsbad Housing and
Redevelopment Commission.
4. Reimbursement Agreement between City of Carlsbad and Carlsbad Housing and
Redevelopment Commission.
5. Repayment Schedule Agreement between City of Carlsbad and Carlsbad Housing and
Redevelopment Commission.
6. Redline and Strikeout versions of amendments to Cooperation, Reimbursement and
Repayment Schedule Agreements.
1 CITY COUNCIL RESOLUTION NO. 2009-174
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING AMENDMENTS TO THE COOPERATION,
3 REIMBURSEMENT AND REPAYMENT SCHEDULE AGREEMENTS BETWEEN THE
CITY OF CARLSBAD AND THE CARLSBAD HOUSING AND REDEVELOPMENT
4 COMMISSION FOR REIMBURSEMENT OF ADMINISTRATIVE COSTS AND
PROVISION OF FINANCIAL ASSISTANCE FOR IMPLEMENTATION OF
5 REDEVELOPMENT ACTIVITIES.
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WHEREAS, the City of Carlsbad and the Housing and Redevelopment Commission previously
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entered into a cooperative agreement to set forth the relationships between the City and the Commission
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which was adopted on February 8, 1980 for the purposes of implementing redevelopment activities within
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the City of Carlsbad, including both the Village and South Carlsbad Coastal Redevelopment Areas; and,
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WHEREAS, the City of Carlsbad and the Housing and Redevelopment Commission previously
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entered into a reimbursement agreement and a repayment schedule agreement, approved December 2,
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2003, for the purposes of appropriately documenting the debt of the Carlsbad Redevelopment Agency and
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the requirements to repay said debt to the City of Carlsbad for implementation of redevelopment activities
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within the Village Redevelopment Area; and,
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WHEREAS, the City and the Housing and Redevelopment Commission desire to continue their
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relationships as set forth in the previously approved Cooperative, Reimbursement and Repayment
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Schedule Agreements for the completion of redevelopment implementation activities for the Village
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Redevelopment Area following expiration of the effectiveness date for the Village Redevelopment Plan on
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July 21,2009; and
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WHEREAS, the City of Carlsbad has previously agreed, and agrees to continue, to provide the
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Housing and Redevelopment Commission, on behalf of the Carlsbad Redevelopment Agency, access to
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staff and other administrative services and facilities of the City, and to provide financial assistance, as
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needed, to complete redevelopment activities and/or projects identified specifically for the Village
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Redevelopment Area; and,
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WHEREAS, the City of Carlsbad and Housing and Redevelopment Commission have a need to
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amend and update their agreements as related to the establishment of an Administrative Fund with funds
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appropriated by the City of Carlsbad as a loan to be repaid by the Housing and Redevelopment
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Commission as funds are available for such purposes, and to establish a Revolving Fund for the purposes
of depositing any loan proceeds provided by the City to the Commission for continuing redevelopment
activities, and to re-establish the amount of the debt of the Commission to the City and the repayment
schedule for said debt.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad City Council, as follows:
1. That the above recitations are true and correct.
2. The City Council does hereby approve the amended Cooperation, Reimbursement, and Repayment
Schedule Agreements between the City of Carlsbad and the Carlsbad Housing and Redevelopment
Commission for the provision of staff services and facilities and/or other resources, as necessary,
and to reconfirm the reimbursement of administrative costs and provision of financial assistance
for continued implementation of redevelopment activities in the Village Redevelopment Area
following expiration of the Village Redevelopment Plan on July 21, 2009.
3. The Mayor is hereby authorized to execute said amended Cooperation, Reimbursement and
Repayment Schedule Agreements in substantially the form approved by the City Council and with
prior approval by 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 7th day of July, 2009, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
1AUDE A LEWIS, Mayor
ATTEST:
1 HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 472
2 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE
CITY OF CARLSBAD, CALIFORNIA, APPROVING AMENDMENTS TO THE
3 COOPERATION, REIMBURSEMENT AND REPAYMENT SCHEDULE AGREEMENTS
BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD HOUSING AND
4 REDEVELOPMENT COMMISSION FOR REIMBURSEMENT OF ADMINISTRATIVE
COSTS AND PROVISION OF FINANCIAL ASSISTANCE FOR IMPLEMENTATION OF
5 REDEVELOPMENT ACTIVITIES.
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WHEREAS, the City Council of the City of Carlsbad activated the Housing and Redevelopment
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Commission on October 16, 1979 and declared itself to constitute the Commission for the purposes of
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implementing redevelopment activities within the City of Carlsbad; and,
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WHEREAS, the City of Carlsbad and the Housing and Redevelopment Commission previously
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entered into a cooperative agreement to set forth the relationships between the City and the Commission
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which was adopted on February 8,1980 for the purposes of implementing redevelopment activities within
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the City of Carlsbad; and,
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WHEREAS, the City of Carlsbad and the Housing and Redevelopment Commission previously
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entered into a reimbursement agreement and a repayment schedule agreement, approved December 2,
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2003, for the purposes of appropriately documenting the debt of the Carlsbad Redevelopment Agency and
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the requirements to repay said debt to the City of Carlsbad for implementation of redevelopment activities
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within the Village Redevelopment Area; and,
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WHEREAS, the City and the Housing and Redevelopment Commission desire to continue their
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relationships as set forth in the previously approved Cooperative, Reimbursement and Repayment
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Schedule Agreements for the completion of redevelopment implementation activities for the Village
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Redevelopment Area following expiration of the effectiveness date for the Village Redevelopment Plan on
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July 21,2009; and
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WHEREAS, pursuant to the Community Redevelopment Law and previously approved
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Cooperative Agreement, the Housing and Redevelopment Commission is continuing to perform a public
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function of the City of Carlsbad and may have access to staff and other administrative services and
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facilities of the City, and may accept financial assistance from the City to complete the identified
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redevelopment activities and/or projects for the Village Redevelopment Area; and,
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WHEREAS, the City of Carlsbad and Housing and Redevelopment Commission have a need to
amend and update their agreements as related to the establishment of an Administrative Fund with funds
appropriated by the City of Carlsbad as a loan to be repaid as funds are available to the Housing and
Redevelopment Commission for such purposes, and to establish a Revolving Fund for the purposes of
depositing any loan proceeds provided by the City to the Commission for continuing redevelopment
activities, and to re-establish the amount of the debt of the Commission to the City and the repayment
schedule for said debt.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Housing and Redevelopment
Commission, as follows:
1. That the above recitations are true and correct.
2. The Housing and Redevelopment Commission does hereby approve the amended Cooperation,
Reimbursement, and Repayment Schedule Agreements between the City of Carlsbad and the
Carlsbad Housing and Redevelopment Commission for the provision of staff services and
facilities and/or other resources, as necessary, and to reconfirm the reimbursement of
administrative costs and provision of financial assistance for continued implementation of
redevelopment activities in the Village Redevelopment Area following expiration of the Village
Redevelopment Plan on July 21, 2009.
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3. The Chairman of the Commission is hereby authorized to execute said amended Cooperation
Reimbursement and Repayment Schedule Agreements in substantially the form approved by the
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21 Commission Counsel.
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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 7th day of July, 2009, by the following vote to wit:
AYES: Commission Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
EXHIBIT 3
COOPERATION AGREEMENT
CITY OF CARLSBAD
AND
CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION
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 o
_, 2009, 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
Page 1
6/19/09
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 restated within
this Agreement and 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, 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 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
6/19/09
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, 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 subject to the terms of any subsequent loan agreements.
3. To establish Administrative Funds for operation and support of 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 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 by the City to the
Commission. These Funds are to be established by the City and held in the City
Treasury.
Cooperation Agreement
Page 3
6/19/09
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
Administrative Fund pursuant to California Health and Safety Code Sections 33610-
33615, and a redevelopment Revolving Fund pursuant to California Health and Safety
Cooperation Agreement
Page 4
6/19/09
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 Carlsbad
Coastal Redevelopment Project Area 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 loan agreement, or agreements, to
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
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
Cooperation Agreement
PageS
6/19/09
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 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
thirty (30) days after service of the notice of default and is not cured promptly within a
Cooperation Agreement
Page 6
6/19/09
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:
RONALD R. BALL
City Attorney
APPROVED AS TO FORM:
Mayor
CARLSBAD HOUSING AND
REDEVELOPMEMT COMMISSION
A Body/C"ox5jiJrate and Politic/
RONALD R. BALL
Attorney to the Commission
By:
LORRAIN
CityCderk
OOD
o / ESTABLISHED \f '". Cooperation Agreement
11 ll= Pa§e7
•. 1970 ; Z 6/19/09
\*''"- •••'"*/
EXHIBIT 4
REIMBURSEMENT AGREEMENT
CITY OF CARLSBAD
AND
CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION
REIMBURSEMENT AGREEMENT
(Public Improvements)
(Community Redevelopment Law Section 33445)
This AMENDED 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
P"" day of £XujU* 2009.
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 Village Redevelopment Project Area ("Project Area"), which
includes continued implementation of unfinished/incomplete redevelopment projects and
program as of the Village Redevelopment Plan effectiveness expiration date of July 21,
2009.
D. Pursuant to Section 33445(a) of the CRL, 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 and appropriate environmental review has been completed for each project.
E. Further, pursuant to Section 33445(c) of the CRL, 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, 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
REIMBURSEMENT AGREEMENT
Page 1 of 6
(the "Project"). Redevelopment Activity Costs and Development Costs shall collectively be
referred to herein as the "Costs".
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.
I. In accordance with Sections 33445 and 33678 of the CRL, the Commission desires to
amend this Agreement to provide for the continued reimbursement to the City of the Costs,
specifically including, but not limited to, the Costs of the unfinished and/or incomplete
Redevelopment Projects and/or Programs, to the extent paid or provided for initially by the
City and as agreed to within this Agreement and following completion of environmental
review for each project and adoption of appropriate mitigation plans
TERMS
1. Project/Program Descriptions. The Project/Program is comprised of the following list of
potential improvements and services which were intended for completion but remain
unfinished or incomplete as of the expiration of the effectiveness date for the Village
Redevelopment Plan, and which the City and Commission agree to complete by no later
July 21, 2019 and to be initially provided by or paid for by the City, to be reimbursed by the
Commission as tax increments or other funds are available to the Commission. The
following projects/programs shall I be Implemented in a cost manner which does not
exceed the maximum debt capacity of the Village Redevelopment Plan, and only after
environmental review has been completed for the subject projects/programs and mitigation
plans adopted, as appropriate, and as set forth in separate loan repayment agreement(s):
a. Grand and State Business/Arts Incubator - Commission/Agency owned property and
related improvements, as appropriate, will be used to support new business
development, including, but not limited to restaurants, retail, arts, culture and
entertainment, as well as public parking and area beautification improvements.
b. Project on Roosevelt Street - Proposed improvements will consist of a multi-story
parking structure flanked on up to three sides by ground floor retail uses with residential
and/or office uses above. The parking structure will provide parking for the on-site uses,
as well as additional public parking for the downtown area. The proposed location of
this project is located on the east side of Roosevelt Street between Grand Avenue and
Carlsbad Village Drive.
c. Public Parking Structure -One or more multi-level or surface parking structures or lots to
be located within or in close proximity to the Redevelopment Project (Village) area,
including within the transportation corridor, which will provide additional public parking
to the downtown area.
d. Enhanced Streetscape Improvements to North State Street -Proposed improvements
will include the design and construction of an enhanced Streetscape plan to promote
greater pedestrian activity north of Grand Avenue, including, but not limited to, the
following: acquisition of additional right-of-ways where needed, installation of street
trees, root barriers, tree grates, drip irrigation systems, electrical conduits for outdoor
REIMBURSEMENT AGREEMENT
Page 2 of 6
lighting, additional decorative lighting, decorative paving, and new curbs, gutters, and
sidewalks.
e. Enhanced Streetscape Improvements on other streets within the Village
Redevelopment Area as appropriate. - Proposed improvements will include the design
and construction of an enhanced streetscape plan to promote greater pedestrian
activity, including the following; installation of street trees, root barriers, tree grates, drip
irrigation systems, electrical conduits for outdoor lighting, additional decorative lighting,
decorative paving, and new curbs, gutters, and sidewalks.
f. Right of Way Analysis and Conceptual Streetscape Plan -A comprehensive right-of-way
analysis will be conducted by the City to determine how to maximize on-street parking
in the Project (Village) Area. The analysis will identify existing right-of-way and potential
right-of-way to be obtained from future development in order to maximize on-street
parking, or to be retained for the purposes of providing on-street public parking. The
analysis will also include drawings depicting design standards for maximizing utilization
of right-of-ways for purposes of providing additional public parking (either diagonal
and/or parallel) and enhanced landscaping.
g. Miscellaneous Street Improvements -Proposed improvements may include street
widening and curb, gutter, and sidewalk improvements at all locations within the Project
(Village) Area where standard road improvements do not currently exist, including, but
not limited to the following locations: Madison Street between Arbuckle and Laguna
Drive and portions of Grand Avenue east of Jefferson Street. The street improvements
will also include the acquisition of additional right-of-ways where needed.
h. Enhanced Entrvwav Treatment -An engineering analysis will be conducted by the City
and a design solution will be developed by the City to modify the intersection of
Carlsbad Boulevard and State Street, which serves as the northernmost entrance to the
Village. The modifications may include a realignment of southbound Carlsbad
Boulevard, the installation of a traffic signal or a roundabout, and the installation of a
pedestrian pathway on State Street and Carlsbad Boulevard to the intersection at
Oceanside, providing that the City determines that the pathway is feasible from both a
physical and financial standpoint.
i. Business Revitalization Grant Program - The program will provide financial assistance
to support services and/or programs, as determined to be appropriate by the
Commission, for business support, revitalization, development and redevelopment.
These programs/services may include, but are not limited to, business storefront
improvements, enhanced exterior building lighting to encourage businesses to remain
open in the evening and/or attract customers, promotional activities including special
events, "shop the Village" campaigns, and other related activities.
Oak Yard - Arts. Culture and Entertainment Center - Development Strategy and
construction of an Arts, Culture and Entertainment Center on the Oak Yard property
owned by the Agency to eliminate blight and/or blighting influences and to create a
community amenity that will assist in the effort to further revitalize the Village Area. This
project may include, but is not limited to, a private-public partnership to develop "artist
in action" space, retail sales of artist products, performing arts center, culture/art center,
artist lofts, a permanent location for the Farmer's Market, additional public parking, etc.
REIMBURSEMENT AGREEMENT
Page 3 of 6
2. Development Costs. In addition to the Development/Activity Costs of the Project, the
Commission hereby agrees that the following, for purposes of this Agreement, shall
constitute Development/Activity Costs for which the Commission will reimburse the City, to
the extent such Development/Activity 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 without
the Project Area, and (b) the cost of the activity and/or 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 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.
7. 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
REIMBURSEMENT AGREEMENT
Page 4 of 6
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 5 of 6
Approved as tojorm:
Attorney to the CJonTTntesion
CARLSEJAD HOUSING AND
REDEyEL/p^MENT CQMMISSION^ public
bodyj
(Signatures continue on following page.)
REIMBURSEMENT AGREEMENT
Page 6 of 6
municig^corporation
City Attorney
REIMBURSEMENT AGREEMENT
EXHIBIT 5
REPAYMENT SCHEDULE AGREEMENT
CITY OF CARLSBAD
AND
CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION
REPAYMENT SCHEDULE AGREEMENT
This AMENDED 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 'Jol^f ^9 , 2009.
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 expiration date on July
21, 2009 with completion of said projects and/or activities no later than July 21,
2019.
D. 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
development 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.
E. The City agreed to loan the Commission up to an additional $14.4 million for
non-housing redevelopment projects/programs on December 2, 2003, and the
Commission agreed to repay said loan funds with tax increment revenue as
made available to Commission for said repayment.
F. The City and Commission entered into a Reimbursement Agreement on
December 2, 2003 which set forth the list of projects/programs to be financed
initially by the City and subsequently reimbursed by the Commission, and
updated and amended said Agreement on July 7, 2009.
G. 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 and Reimbursement Agreements and subsequent Resolutions
shall be referred to collectively as the "Commission Indebtedness".
H. 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) 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 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 $15,215,571 as of June 30, 2009
(the "Commission Indebtedness Amount") for Redevelopment activities within
the Village Redevelopment Project Area as of June 30, 2009.
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 the additional Commission
Indebtedness, which the parties estimate will be the total sum of $19,068,441 as
of June 30, 2019. 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 2009 and 2019.
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
Village Redevelopment Project Area. The parties hereto acknowledge that the
Commission Indebtedness Amount consists of the sum of the following: (a)
$15,215,571, which the parties estimate to be the principal and accrued interest
as of June 30, 2009 on costs incurred by the City pursuant to the Cooperation
Agreement and subsequent Reimbursement Agreement and/or Resolutions;
plus (b) $19,068,441, 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 for all projects
initially funded by the City on behalf of the after December 31,2003 and
extending to June 30, 2019.
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, 2019.
5. Except as expressly amended hereby, the Cooperation, Reimbursement and
Repayment Schedule Agreements and the subsequent Resolutions shall remain
in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.
CITY QFJCARLSBAD, a municipal
corpo/ati/
Attest:
By:
Lo/raine M. Wood, Ctty Clerk7
Ronald R. Ball, City Attorney
Kecutive Director/Secretary
Approved
Ronald R. Ball,
Commission General Counsel
CARLSBAD HOUSING AND
REDEVELOPMENT COMMIS^ON
body/^fprate and/politic /S
\^/
. Lewis, Chairman
= o! ESTABLISHED \%iz z ; ; w -
~-\\ 1910 /| 5
, a
Village Redevelopment - Debt Service/Loan Repayment Schedule (+$14.4 million) - July, 2009
Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
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
2024-25
2025-26
2026-27
2027-28
2028-29
2029-30
2030-31
2031-32
2032-33
2033-34
Total
Tl
$ 2,300,230
$ 2,970,662
$ 3,330,530
$ 3,324,432
$ 3,457,409
$ 3,491,983
$ 3,610,711
$ 3,733,475
$ 3,860,413
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ 669,581
Set-
Aside
$ 460,046
$ 594,132
$ 666,106
$ 664,886
$ 691,482
$ 698,397
$ 722,142
$ 746,695
$ 772,083
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 800,000
$ 133,916
County
Fee
$ 15,958
$ 14,822
$ 18,429
$ 18,392
$ 19,361
$ 19,555
$ 20,220
$ 20,907
$ 21,618
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 22,400
$ 3,750
Debt
Svc
$1,045,977
$1,040,634
$ 1 ,044,240
$1,041,665
$1,042,909
$1,042,840
$1,041,459
$1,038,765
$1,039,628
$1,038,915
$1,036,628
$1,037,634
$1,036,803
$1,034,134
$1,034,496
$1,032,759
$1,028,706
$1,027,200
$1,028,175
$1,026,500
$
$
$
$
$
$
$
$
$
$
$
Other
Income
$ 125,668
$ 132,947
$ 168,526
$ 25S,«16
$ 150,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 50,000
$ 8,370
ERAF
$ 202,778
$ 293,376
$
$
$ 278,000
$ 314,279
$ 324,964
$ 336,013
$ 347,437
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 360,000
$ 60,262
Ops/
Admin
$ 374,308
$ 468,458
$ 579,527
$ 509,787
$ 672,794
$ 458,727
$ 474,782
$491,400
$ 508,599
$ 526,400
$ 544,824
$ 563,893
$ 583,629
$ 604,056
$ 625,323
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Major
Acq
$2,201,717
$ 24,577
$ 336,313
$ 836,311
$ 431,563
$2,300,000
$2,000,000
$2,000,000
$1 ,850,000
$1 ,500,000
$1,500,000
$ 457,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Change Asset/
Liabilities
$ (59,034)
$ (18,068)
$ 251,294
$ (102,785)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Ending
Cash
$ 1,319,762
$ 1,969,284
$ 3,075,019
$ 3,481,240
$ 4,875,000
$17,483,186
$15,060,329
$ 12,710,024
$10,581,072
$ 8,783,358
$ 6,969,506
$ 5,778,579
$ 5,025,747
$ 3,255,158
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
$ (0)
City
Advance/Debt
$
$
$
$
$
$ 14,400,000
$ 14,476,000
$ 13,699,800
$ 12,884,790
$ 12,029,030
$ 11,030,481
$ 9,982,005
$ 8,481,105
$ 6,905,161
$ 4,250,419
$ 25,530,459
$ 24,972,141
$ 24,381,854
$ 23,760,547
$ 23,109,149
$ 22,423,506
$ 20,677,082
$ 18,843,336
$ 16,917,903
$ 14,896,198
$ 12,773,408
$ 10,544,478
$ 8,204,102
$ 5,746,707
$ 3,166,442
$ 457,165
Interest
$
$
$
$
$
$ 576,000
$ 723,800
$ 684,990
$ 644,240
$ 601,451
$ 551,524
$ 499,100
$ 424,055
$ 345,258
$ 212,521
$1,276,523
$1,248,607
$1,219,093
$1,188,027
$ 1,155,457
$1,121,175
$ 1,033,854
$ 942,167
$ 845,895
$ 744,810
$ 638,670
$ 527,224
$ 410,205
$ 287,335
$ 158,322
$ 22,858
Loan
Payment
$
$
$
$
$ 500,000
$ 1,500,000
$ 1,500,000
$ 1,500,000
$ 1,600,000
$ 1,600,000
$ 2,000,000
$ 2,000,000
$ 3,000,000
$ 4,462,939
$ 1,834,841
$ 1,838,894
$ 1 ,840,400
$ 1 ,839,425
$ 1,841,100
$ 2,867,600
$ 2,867,600
$ 2,867,600
$ 2,867,600
$ 2,867,600
$ 2,867,600
$ 2,867,600
$ 2,867,600
$ 2,867,600
$ 2,867,600
$ 480,023
Loan
Balance
$
$
$
$
$
$14,476,000
$13,699,800
$12,884,790
$12,029,030
$11,030,481
$ 9,982,005
$ 8,481,105
$ 6,905,161
$ 4,250,419
$ 0
$24,972,141
$24,381,854
$23,760,547
$23,109,149
$22,423,506
$20,677,082
$18,843,336
$16,917,903
$14,896,198
$12,773,408
$10,544,478
$ 8,204,102
$ 5,746,707
$ 3,166,442
$ 457,165
$ 0
Notes/Assumptions:
1. A 1 % growth in tax increment is projected for FY 2009-10, a 3.4% growth in tax increment is projected from FY 2010-11 to 2012-13; tax increment is capped at $4,000,000 per redevelopment plan.
2. Redevelopment Plan expires in July, 2009
3. Post-1994 debt must be repaid within 10 years of expiration of Redevelopment Plan; contract for employee services to be paid to 2019.
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 4% for FY 2008-09 and 2009-10 and 5% thereafter, was applied to the City advance.
S.Ending Cash or Net tax increment (Tl) is available for debt service and/or new projects or programs up to FY 2008-09; new projects proposed.
9. Assumption that payments would begin on City debt in FY 2009-10, with post-1994 debt repaid first (within 10 years) then pre-1994 debt starting in 2019-20
10.Major acquisition expenditures are the projects identified in the FY 2009-10 CIP($2.4 million) and projects to be included by July 7, 2009 (additional $11.6 million).
11 .Assumption is made that ERAF payments will continue indefinitely at a rate of 9% of total tax increment.
04
EXHIBIT 6
REDLINE & STRIKEOUT VERSIONS OF AMENDED AGREEMENTS
CITY OF CARLSBAD
AND
CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION
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
., 2009, 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
Page 1
6/19/09
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 restatedmert
within this Agreement and 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, 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 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 amendenter 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
Page 2
6/19/09
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
andjor 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, for teeth 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 subject to the terms of
any subsequent loan 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
PageS
6/19/09
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
6/19/09
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 Carlsbad
Coastal Redevelopment Project Area 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 loan agreement, or agreements, to
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
proration of the City's administrative and salary expense attributable to the rendition of
Cooperation Agreement
PageS
6/19/09
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 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
Cooperation Agreement
Page 6
6/19/09
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
Page?
6/19/09
CITY OF CARLSBAD
A Municipal Corporation
By:
CLAUDE A. LEWIS
Mayor
By:
By:
CLAUDE A. LEWIS
Chairman
CARLSBAD HOUSING AND
REDEVELOPMEMT COMMISSION
A Body Corporate and Politic
LISA HILDABRAND
Executive Director/Secretary
Cooperation Agreement
Page 8
6/19/09
REIMBURSEMENT AGREEMENT
(Public Improvements)
(Community Redevelopment Law Section 33445)
This AMENDED 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 , 2009.
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 Village Redevelopment Project Area ("Project Area"), which
includes continued implementation of unfinished/incomplete redevelopment projects and
program as of the Village Redevelopment Plan effectiveness expiration date of July 21,
2009..
D. Pursuant to Section 33445(a) of the CRL, 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 and appropriate environmental review has been completed for each project.
E. Further, pursuant to Section 33445(c) of the CRL, 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, 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
REIMBURSEMENT AGREEMENT
Page 1 of 6
(the "Project"). Redevelopment Activity Costs and Development Costs shall collectively be
referred to herein as the "Costs".
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.
I. In accordance with Sections 33445 and 33678 of the CRL, the Commission desires to
amend enter into this Agreement to provide for the continued reimbursement to the City of
the Costs, specifically including, but not limited to, the Costs of the unfinished and/or
incomplete Redevelopment Projects and/or Programs, to the extent paid or provided for
initially by the City and as agreed to within this Agreement and following completion of
environmental review for each project and adoption of appropriate mitigation plans-
TERMS
1. Project/Program Descriptions. The Project/Program is comprised of the following list of
potential improvements and services which were intended for completion but remain
unfinished or incomplete .as of the expiration of the effectiveness date for the Village
Redevelopment Plan, and which the City and Commission agree to complete by no later
July 21, 2019 and to beagroos shall bo initially provided by or paid for by the City, to be
reimbursed by the Commission as tax increments or other funds are available to the
Commission. The following projects/programs shall be prioritized by the Commission and
shall be Implemented in a cost manner which does not exceed the maximum debt capacity
of the Village Redevelopment Plan, and only after environmental review has been
completed for the subject projects/programs and mitigation plans adopted, as appropriate,
and as set forth in separate loan repayment agreement(s):
a—Wlage-Greeft- Protest -at or near the Northwest Comer of State Street an4 Grand
Avefttte- Proposed improvements will consist of a "Village Green", flanked on two sides
by mixed use buildings consisting of retail/restaurant uses on the ground floor and
residential and/or office space above. A joint parking structure is proposed to bo
constructed on adjacent-North Cewity Transit Distf46t-f>FOBefty-4&-pFQv4cle-t<4e-Fe^fei4fed
parking for the mixed use development and additional parking for Coaster Station
rid GTS
a. .Grand and State Business/Arts Incubator - Commission/Agency owned property angv
related improvements, as appropriate, will be used to support new business
development, including, but not limited to restaurants, retail, arts, culture and
entertainment, as well as public parking and area beautification improvements,
<.
b. Project on Roosevelt Street - Proposed improvements wijl consist of a multi-story
parking structure flanked on up to three sides by ground floor retail uses with residential
and/or office uses above. The parking structure will provide parking for the on-site uses,
as well as additional public parking for the downtown area. The proposed location of
this project is located on the east side of Roosevelt treet between Grand Avenue and
Carlsbad Village Drive.
c. Public Parking Structure -One or more multi-level or surface parking structures or lots to
be located within or in close proximity to the Redevelopment Project (Village) area,
Formatted: No underline
Formatted: Justified, Numbered + Level: 1 +
Numbering Style: a, b, c,... + Start at: 1 +
Alignment: Left + Aligned at: 0.5" + Indent at:
0.75"
'f Formatted! Underline
f Formatted; Justified, Indent: Left: 0.75"
'I Formatted: Underline
REIMBURSEMENT AGREEMENT
Page 2 of 6
including within the transportation corridor, which will provide additional public parking
to the downtown area.
d. Enhanced Streetscape Improvements to North State Street -Proposed improvements
will include the design and construction of an enhanced Streetscape plan to promote
greater pedestrian activity north of Grand Avenue, including, but not limited to, the
following: acquisition of additional right-of-ways where needed, installation of street
trees, root barriers, tree grates, drip irrigation systems, electrical conduits for outdoor
lighting, additional decorative lighting, decorative paving, and new curbs, gutters, and
sidewalks.
ft—Enhanced Streetscape Improvements on other streets within the Village
Redevelopment Area as appropriatebetween Grand Avenue and Carlsbad Village-Pf. -
Proposed improvements will include the design and construction of an enhanced
Streetscape plan to promote greater pedestrian activity, including the following;
installation of street trees, root barriers, tree grates, drip irrigation systems, electrical
conduits for outdoor lighting, additional decorative lighting, decorative paving, and new
curbs, gutters, and sidewalks. The project area consists of the public right-of-way on
both sides of—Jeffefson Street, Madison StfeeV-Roosevelt Street, and State Street
extending from Grand Avenue to Carlsbad Village Drive.
e. ± *•
f-—Conversion of On-Street Parallel Parking-te-Oiaqenal Parking -A traffic analysis will-be
conducted by tho City and engineering drawings will be devolopod by the City to
assess: (i) the total number of spaces which will be provided by the conversion of on
street parallel parlung to diagonal parking, and (ii) the impact on through traffic on
Grand Avenue and Madison Street and all ourrounding streets as o result of such
conversion. Baood on the foregoing, if the City determines it will pursue the conversion
of the on-street parking, the improvements may include the construction of road
improvemefrts-
i Formatted: Underline
Formatted: Justified, Numbered + Level: 1 +
Numbering Style: a, b, c,... + Start at: 1 +
Alignment: Left + Aligned at: 0.5" + Indent at:
0.75"
.f Right of Way Analysis and Conceptual Streetscape Plan -A comprehensive right-of-way
analysis will be conducted by the City to determine how to maximize on-street parking
in the Project (Village) Area. The analysis will identify existing right-of-way and potential
right-of-way to be obtained from future development in order to maximize on-street
parking, or to be retained for the purposes of providing on-street public parking. The
analysis will also include drawings depicting design standards for maximizing utilization
of right-of-ways for purposes of providing additional public parking (either diagonal
and/or parallel) and enhanced landscaping.
Q. Miscellaneous Street Improvements -Proposed improvements may include street
widening and curb, gutter, and sidewalk improvements at all locations within the Project
(Village) Area where standard road improvements do not currently exist, including, but
not limited to the following locations: Madison Street between Arbuckle and Laguna
Drive and portions of Grand Avenue east of Jefferson Street. The street improvements
will also include the acquisition of additional right-of-ways where needed.
h. Enhanced Entrvwav Treatment -An engineering analysis will be conducted by the City
and a design solution will be developed by the City to modify the intersection of
Carlsbad Boulevard and State Street, which serves as the northernmost entrance to the
Village. The modifications may include a realignment of southbound Carlsbad
Boulevard, the installation of a traffic signal or a roundabout, and the installation of a
pedestrian pathway on State Street and Carlsbad Boulevard to the intersection at
REIMBURSEMENT AGREEMENT
Page 3 of 6
Oceanside, providing that the City determines that the pathway is feasible from both a
physical and financial standpoint.
i. Business Revjtalizatjon Grant.Program - The program will provide financial assistance
to support services and/or programs, as determined to be appropriate by the
Commission, for business support, revitalization, development and redevelopment.
These programs/services may include, but are not limited to. business storefront
improvements, enhanced exterior building lighting to encourage businesses to remain
open in the evening and/or attract customers, promotional activities including special
events, "shop the Village'' campaigns, and other related activities..
»4, Oak Yard - ytkrts, Culture and Entertainment Center - Development Stratepy and
construction of an Arts, Culture and Entertainment Center on the Oak Yard property
owned by the Agency to eliminate blight and/or blighting influences and to create a
community amenity that will assist in the effort to further revitalize the Village Area. This
project mav include, but is not limited to. a private-public partnership to develop "artist
in action" space, retail sales of artist products, performing arts center, culture/art center,
artist lofts, a permanent location for the Farmer's Market, additional public parking, etc.
Formatted: List Paragraph, Left, No bullets or
numbering
Formatted: Underline
j Formatted: No underline
Formatted: List Paragraph, Left, No bullets or
numbering
'[ Formatted: Underline
2. Development Costs. In addition to the Development/Activity Costs of the Project, the
Commission hereby agrees that the following, for purposes of this Agreement, shall
constitute Development/Activity Costs for which the Commission will reimburse the City, to
the extent such Development/Activity 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 without
the Project Area, and (b) the cost of the activity and/or 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
REIMBURSEMENT AGREEMENT
Page 4 of 6
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 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.
7. 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 5 of 6
CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION, a public
body, corporate and politic
Approved as to form:
By:_
Chairman
By:
Attorney to the Commission By:_
Executive Director/Secretary
(Signatures continue on following page.)
REIMBURSEMENT AGREEMENT
Page 6 of 6
4
CITY OF CARLSBAD, a municipal corporation
Approved as to form:
By:
Mayor
By:
City Attorney By:_
City Clerk
REIMBURSEMENT AGREEMENT
Page 7 of 6
REPAYMENT SCHEDULE AGREEMENT
This AMENDED 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 , 2009.
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
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 expiration date on July
21. 2009 with completion of said projects and/or activities no later than July 21.
2019.
Formatted: List Paragraph, Left, No bullets or
numbering
[X_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
development 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.
•4-
E. The City agreed to loan the Commission up to an additional $14.4 million for
non-housing redevelopment projects/programs on December 2, 2003. and the
Commission agreed to repay said loan funds with tax increment revenue as
made available to Commission for said repayment.
_ The City and Commission entered into a Reimbursement Agreement on
December 2, 2003 which set forth the list of projects/programs to be financed
initially by the City and subsequently reimbursed by the Commission, and
updated and amended said Agreement on July 7, 2009.
CS, _ 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 and Reimbursement Agreements and subsequent Resolutions
shall be referred to collectively as the "Commission Indebtedness".
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irH. The Commission and the City mutually desire to implement the
Cooperation and Reimbursement Agreements and the subsequent Resolutions
(collectively T 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:
| ^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 $15,215,5712,821,574 as of June
30, 20093 (the "Commission Indebtedness Amount") for Redevelopment
activities within the Village Redevelopment Project Area as of June 30, 2009.
4rZ 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 the additional Commission
Indebtedness, which the parties estimate will be the total sum of $19.068.441 as
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of June 30, 2019. 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 2009 and 2019.
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
Village Redevelopment Project Area. The parties hereto acknowledge that the
Commission Indebtedness Amount consists of the sum of the following: (a)
$15,215,5712,821.574. which the parties estimate to be the principal and
accrued interest as of June 30, 20093 on costs incurred by the City pursuant to
the Cooperation Agreement and subsequent Reimbursement Agreement and/or
Resolutions; plus (b) $19.068,4411.179,325. 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 for all projects initially funded by the City on behalf of the after
December 3-1.2003 and extending to June 30, 2019r
2A 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, 2019.
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, Except as expressly amended hereby, the Cooperation, Reimbursement
and Repayment Schedule-Agreements and the subsequent Resolutions shall
remain in full force and effect.T
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.
CITY OF CARLSBAD, a municipal
corporation
By:.
Claude A, Lewis, Mayor
Attest:
By:_
Lorraine M. Wood, City Clerk
Approved as to form:
By:
Ronald R. Ball, City Attorney
CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION, a
body corporate and politic
By:
Claude A. Lewis, Chairman
Attest:
By:.
Raymond R. Patchett,
Executive Director/Secretary
Approved as to form:
By:.
Ronald R. Ball,
Commission General Counsel