HomeMy Public PortalAboutAgreement_2011-03-15_Temple City Community Redevelopment Agency_Public Improvements Reimbursement AgreementPUBLIC IMPROVEMENTS REIMBURSEMENT
AGREEMENT
THIS PUBLIC IMPROVEMENTS REIMBURSEMENT AGREEMENT ("Agreement")
is entered into this 15 th day of March, 2011, by and between the CITY OF TEMPLE CITY
("City") and the REDEVELOPMENT AGENCY OF THE CITY OF TEMPLE CITY
("Agency"), with reference to the following facts:
A. The City Council of the City ("City Council") has adopted a Redevelopment PIan
(the "Redevelopment Plan") for the Rosemead Boulevard Redevelopment Project #1 (the
"Project Area"), which results in the allocation of property taxes from the Project Areas to the
Agency ("Tax Increment") pursuant to Section 33670(b) of the California Community
Redevelopment Law (Health & Safety Code Section 33000 et seq.) ("CRL") for purposes of
redevelopment.
B. The intent of the Redevelopment Plan is, in part, to provide for the construction
and installation of necessary public infrastructure and facilities and to facilitate the restoration
and/or replacement of existing public facilities; to increase, improve and preserve the
community's supply of low and moderate income housing; and to take all other necessary actions
to implement the Redevelopment Plan for the Project Area and to expend Tax Increment to
accomplish the goals and objectives of the Redevelopment Plan.
C. The Agency has adopted a Five -Year Implementation Plan for the Project Area
("Implementation Plan") establishing goals for elimination of blight, production of affordable
housing, construction of infrastructure and public improvements and community and commercial
revitalization. To implement the programs and activities associated with each goal, the Agency
has committed redevelopment funds from the Project Area based on estimated available Tax
Increment revenue and debt financing structures. The Redevelopment Plan and the
Implementation Plan and all official records of the Agency, as amended from time to time, are
incorporated herein by reference.
D. Pursuant to Section 33220 of the CRL, certain public bodies including the City
may aid and cooperate in the planning, undertaking, construction, or operation of redevelopment
projects. Agency desires assistance and cooperation of the City to carry out the public
infrastructure improvements and facilities listed in Exhibit 1 attached hereto and incorporated
herein by this reference (collectively, "Projects"). The programs and activities associated with
the Projects include but are not limited to acquisition of property, development of design criteria,
design, planning, preparation of construction bid documents, financial analysis, financing,
project administration and new construction or rehabilitation, as applicable.
E. The City is willing to aid and cooperate with the Agency to expeditiously
implement the Projects in accordance with the Redevelopment PIans and Implementation Plan on
the condition that Agency pledge Net Available Tax Increment, as defined in Recital F below, to
finance the Projects in this current fiscal year and forthcoming fiscal years.
F. For purposes of this Agreement, "Net Available Tax Increment" means any all
Tax Increment revenues, including (1) any and all Tax Increment funds currently held by the
Agency, which are not budgeted or appropriated for payment of other indebtedness or
obligations of the Agency; (2) any and all net proceeds of bonded indebtedness currently or
hereafter held by the Agency or any lawful successor of Agency (except to the extent otherwise
determined by the City Manager on behalf of the City and the Agency Executive Director on
behalf of the Agency); and (3) all future Tax Increment revenues allocated to the Agency, or any
lawful successor of Agency, pursuant to the Redevelopment Plans and the CRL or other
applicable law, to pay indebtedness of the Agency after the Agency or its successor has made all
necessary annual payments with respect to other outstanding debt obligations of the Agency,
including without limitation bonded indebtedness, pass-through payments owed to affected
taxing entities under written agreement or Sections 33607.5 or 33607.7 of the CRL, written
agreements with other persons or entities, and any other statutorily required payment obligations
of the Agency; provided, however, the Agency's pledge of Net Available Tax Increment shall
only include those Tax Increment revenues which Agency is not required pursuant to Section
33334.3 of the CRL to deposit into the Agency's Low and Moderate Income Housing Fund.
G. The City Council and the Agency Board by resolution have each found that the
use of Agency's Net Available Tax Increment for the publicly -owned improvements described in
Exhibit 1 is in accordance with Section 33445 of the CRL and other applicable law. Said
Council and Agency resolutions are each based on the authority of the Agency, with the consent
of the Council, to pay all or part of the cost of the land for and the installation and construction
of any facility, structure, or other improvements which are publicly owned either inside or
contiguous to a project area, if the Council makes certain determinations.
H. By approving and entering into this Agreement, the Agency has approved the
pledge of Net Available Tax Increment from the Project Areas to pay for the Projects. The
obligations of the Agency under this Agreement shall constitute an indebtedness of the Agency
for the purpose of carrying out the Redevelopment Plans for the Project Areas and a pledge of
Net Available Tax Increment received by the Agency from the Project Areas to pay such
indebtedness under the provisions of Article XVI, Section 16 of the Constitution of the State of
California, the CRL and the Redevelopment Plans.
J. This Agreement is in addition to, and does not supersede any other cooperative,
repayment or reimbursement agreements entered into between the Agency and the City.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
INTRODUCTORY PROVISIONS
1.1 The recitals above are an integral part of this Agreement and set forth the
intentions of the parties and the premises on which the parties have decided to enter into this
Agreement and are incorporated into the terms and conditions of this Agreement.
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2. AGENCY'S OBLIGATIONS
2.1 The Agency agrees to pay to the City the amounts set forth in Exhibit 1, or such
lesser amounts to the extent the costs incurred by City to carry out the Projects are less than the
budgeted amounts set forth in Exhibit 1, to reimburse City for all costs incurred by the City in
connection with the Projects, including without limitation all costs of planning, land acquisition,
financing, development, permitting, design, site testing, bidding, project administration,
construction and construction management. The Agency's obligations under this Agreement,
including without limitation the Agency's obligation to make the payments to the City required
hereunder, shall constitute an indebtedness of the Agency for the purpose of carrying out the
redevelopment of the Project Areas and are obligations to make payments authorized and
incurred pursuant to Section 33445 and other applicable statutes. The obligations of the Agency
set forth in this Agreement are contractual obligations that, if breached, will subject the Agency
to damages and other liabilities or remedies.
2.2 The obligations of Agency under this Agreement shall be payable out of Net
Available Tax Increment, as defined in Recital P above allocated to the Agency or any lawful
successor of the Agency to carry out the Redevelopment Plans and/or pay indebtedness of the
Agency pursuant to Section 33670 et seq. of the CRL, Article XVI, Section 16 of the
Constitution of the State of California, and any other applicable constitutional provision, statute
or other provision of law now existing or adopted in the future.
2.3 The indebtedness of Agency under this Agreement shall be subordinate to the
rights of the holder or holders of any outstanding bonds, notes or other instruments of
indebtedness (all referred to herein as "indebtedness") of the Agency incurred or issued to
finance redevelopment of the Project Areas, including without limitation any pledge of Net
Available Tax Increment revenues from the Project Areas to pay any portion of the principal and
interest (and otherwise comply with the obligations and covenants) of any bond or bonds
heretofore issued or sold or issued or sold in the future by the Agency with respect to the Project
Areas.
2.4 All payments due to be made by the Agency to the City under this Agreement
shall be made by the Agency within the times set forth in Exhibit 1 and as otherwise necessary to
reimburse the City for the costs incurred by City in performing its obligations hereunder. City
shall provide Agency with a report from time to time as requested by Agency accompanied by
evidence reasonably satisfactory to the Agency's Executive Director that the City's progress in
the development and construction of the Project for which payment is requested is commensurate
with the amount of the requested payment and that City has incurred costs or obligations equal to
or greater than the amount requested.
CITY'S OBLIGATIONS
3.1 The City shall accept and devote any and all funds offered by the Agency
pursuant to this Agreement solely to completion of the Projects by (i) reimbursing the City's
accounts or using such funds to make City expenditures to perform the work required to carry
out and complete the Projects; (ii) utilizing such funds to pay debt service on bonds or other
indebtedness or obligations that the City has or will incur for such purposes; and/or (iii) paying
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such funds into a special fund of the City to be held and expended only for the purpose of
satisfying the obligations of the City hereunder.
3.2 It is the responsibility of City to pay all development and construction costs in
connection with the Projects from funds paid to the City by the Agency under this Agreement.
3.3 Prior to commencement of work on any of the listed Projects, all necessary
environmental review required by CEQA shall be completed. This Agreement in no way limits
the discretion of the Planning Commission, the Agency Board or the City Council in completing
environmental review of the Projects.
3.4 The City shall perform its obligations hereunder in accordance with the applicable
provisions of federal, state and local laws, and shall timely complete the work required for each
Project within the times set forth in Exhibit 1.
4. LIABILITY AND INDEMNIFICATION
4.1 In contemplation of the provisions of California Government Code Section 895.2
imposing certain tort liability jointly upon public entities solely by reason of such entities being
parties to an agreement as defined by Government Code Section 895, the parties hereto, as
between themselves, pursuant to the authorization contained in Government Code Sections 895.4
and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or
employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the
performance of this Agreement to the same extent that such liability would be imposed in the
absence of Government Code Section 895.2. To achieve the above -stated purpose, each party
indemnifies, defends and holds harmless the other party for any liability, losses, costs or
expenses that may be incurred by such other party solely by reason of Government Code Section
895.2.
5. DEFAULT
5.1 If either party fails to perform an obligation required by this Agreement within
thirty (30) calendar days of receiving written notice from the non -defaulting party, the party
failing to perform shall be in default hereunder. In the event of default, the non -defaulting party
will have all the rights and remedies available to it at law or in equity to enforce the provisions of
this Agreement, including without limitation the right to sue for damages for breach of contract.
The rights and remedies of the non -defaulting party enumerated in this section are cumulative
and shall not limit the non -defaulting party's rights under any other provision of this Agreement,
or otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the
Agreement or hereinafter enacted or established, that may be available to the non -defaulting
party against the defaulting party. All notices of defaults shall clearly indicate a notice of default
under this Agreement.
6. MODIFICATION OF PROJECTS
6.1 The City and Agency may modify the list of Projects and time schedules set forth
in Exhibit 1 from time to time to provide for the use of additional federal, state and local funds;
to account for unexpected changes in available revenues; to modify or delete a particular project;
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to modify the cost estimate for individual projects; to maintain consistency with the City's
General Plan or the Redevelopment Plans; or to take into consideration unforeseen circumstances
including circumstances that may come to light as a result of subsequent CEQA review. Any
such modifications shall be in writing and subject to approval by the City Council and Agency
Board.
7. TERMINATION OF AGREEMENT
7.1 This Agreement and the obligations of the City and Agency hereunder shall
terminate upon the earlier of completion of the Projects by the City and Agency's reimbursement
of City's costs incurred in connection therewith or July 1, 2013.
8. MISCELLANEOUS
8.1 This Agreement may be executed in multiple originals, each of which is deemed
to be an original.
8.2 This Agreement integrates all of the terms and conditions mentioned herein or
incidental hereto, and supersedes all negotiations or previous agreements between the parties
with respect to the subject matter of this Agreement.
8.3 This Agreement is intended solely for the benefit of the City and the Agency.
Notwithstanding any reference in this Agreement to persons or entities other than the City and
the Agency, there shall be no third party beneficiaries under this Agreement.
8.4 All waivers of the provisions of this Agreement and all amendments to this
Agreement must be in writing and signed by the authorized representatives of the parties.
8.5 If any term, provisions, covenant or condition of this Agreement is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions
shall continue in full force and effect.
8.6 This Agreement shall be binding on and shall inure to the benefit of all successors
and assigns of the parties, whether by agreement or operation of law.
[Signatures on following page]
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
set forth above.
CITY OF TEMPLE CITY
By: _ � Z\y
Tom Chavez, or Pro Tem
REDEVELOPMENT AGENCY OF THE
CITY OF TEMPLE CITY
By:
Jose Vulido, Agency Executive Director
Attest: (,c �! 't Attest:
Mary Flan ick, City Clerk Mary Fl drick, Secretary
Approved As To Form:
By: i""
Eric S. Vail, Cto Attorney
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Approved As To Form:
By: 7�
Eric S. Vail, Ag nc General Counsel
Exhibit 1
List of Projects and Schedule for Performance and Payment
1. Resurfacing and repaving the 24,000 square foot parking lot on APN 5387-032-926.
Cost Estimate: $168,000.00
Overlay resurfacing with 2" AC: $2 per sf = $48,000
AC removal, grinding and reuse with 4" AC: $4.5045.00 per sf = $120,000
Estimated Date of Completion,: By July 1, 2013
2. Outdoor lighting for APN 5387-032-926
Cost Estimate: $6,250.00
Replace 5 poles with double light fixtures - $1,250 each = $6,250
Estimated Date of Completion: By July 1, 2013
3. Landscaping for APN 5387-032-926
Cost Estimate: $8,350.00
Remove 9 Carrotwood trees from planters - $159 each = $1,350
Re -landscape planters & replace irrigation in planters - $700 each = $7,000
Estimated Date of Completion: By July 1, 2013
The costs of each Project in this list includes all activities needed to carry out implementation of
the Project (e.g., acquisition of property, planning and design costs, administrative costs, etc.
LA 04838-8426-3432 v1
Exhibit I