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HomeMy Public PortalAbout9D Public Improvements Reimbursement Agreement Between City & TC CRAAGENDA ITEM 9.D. MANAGEMENT SERVICES DEPARTMENT DATE: March 15, 2011 TO: MEMORANDUM The Honorable City Council The Board of Directors of the Community Redevelopment Agency FROM: Jose E. Pulido, City Manager and Executive Director By: Erica L. Vega, Assistant City Attorney SUBJECT: PUBLIC IMPROVEMENTS REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF TEMPLE CITY AND THE TEMPLE CITY COMMUNITY REDEVELOPMENT AGENCY RECOMMENDATION: The City Council is requested to adopt Resolution No. 11-4739 approving and authorizing execution of a Public Improvements Reimbursement Agreement between the City and the Redevelopment Agency; and 2. The Board of the Redevelopment Agency is requested to adopt Resolution No. CRA 11-1019 approving and authorizing execution of a Public Improvements Reimbursement Agreement between the City and the Redevelopment Agency. BACKGROUND: On January 10 of this year, Governor Brown released a budget proposal that called for, among other things, the dissolution of all redevelopment agencies within the State of California and the use of their funds for the repayment of debt, and if there was any excess beyond the debt to be repaid, the use of those funds for State purposes. Since that time, redevelopment agencies across California have been undertaking various steps to protect or otherwise commit their funds so as to ensure that, if the Governor's proposal is adopted, the funds will at least be utilized within the community in which they were generated instead of being taken by the State. The Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.) (the "Redevelopment Law") contains various provisions respecting cooperation between redevelopment agencies and cities. Pursuant to Section 33445(a) of the Redevelopment Law, the Temple City Community Redevelopment Agency ("Agency") may, with the consent of the City Council of the City of Temple City ("City"), pay for all or a part of the value of the land for and the cost of the installation and construction of any buildings, facilities, structures or other improvements that are City Council and Community Redevelopment Agency March 15, 2011 Page 2 publicly owned and located inside or contiguous to a project area upon a determination by the City Council that the acquisition of land or the installation and construction of the building, facilities, structures or other improvements are of benefit to the project area by helping to eliminate blight within the project area, that no other reasonable means of financing the acquisition of the land or installation or construction of such buildings, facilities, structures or other improvements that are publicly owned are available to the City, and that the payment of funds for the acquisition of the land or installation or construction of the building, facilities, structure or other improvements that are publicly owned is consistent with the applicable Implementation Plan. ANALYSIS: The attached Resolutions approve a Public Improvements Reimbursement Agreement ("Agreement") between the Agency and the City. The Agreement will provide that the City will develop, install, and construct certain public facilities, structures, and improvements described in the Agreement, located inside or contiguous to a Project Area and will commit the Agency to reimburse the City for the costs of the public improvements. CONCLUSION: City and Agency staff recommends that the City Council and the Agency Board approve the commitment of funds and execution of the Agreement. The Agreement will commit Agency funds to the City for the construction of the public improvements enumerated in the Agreement and ensure that the Agency's funds are used within the community instead of being taken by the State in the event the Governor's budget proposal is passed. FISCAL IMPACT There is no fiscal impact on the City. The Agency will be fiscally impacted in the amounts shown in the Agreement, though there will be no transfer of funds at this time. ATTACHMENT(S) A. City Resolution No. 11-4739 B. Agency Resolution No. CRA 11-1019 RESOLUTION NO. 11-4739 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY APPROVING AND AUTHORIZING EXECUTION OF A PUBLIC IMPROVEMENTS REIMBURSEMENT AGREEMENT BETWEEN THE CITY AND THE REDEVELOPMENT AGENCY OF THE CITY OF TEMPLE CITY WHEREAS, the Redevelopment Agency of the City of Temple City ("Agency") is carrying out the Redevelopment Plan ("Redevelopment Plan") for the Rosemead Boulevard Redevelopment Project #1 ("Project"); and WHEREAS, under the Redevelopment Plan, the City of Temple City ("City") shall aid and cooperate with the Agency in carrying out the Project and shall take actions necessary to ensure the fulfillment of the purposes of the Redevelopment Plan and to eliminate and prevent the recurrence or spread of conditions causing blight within the area of the Project ("Project Area"); and WHEREAS, pursuant to Section 33320 of the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) (the "CRL"), for the purposes of aiding and cooperating in the planning, undertaking, construction or operation of redevelopment projects within the Project Area, the City may, among other things, exercise the following powers: sell or lease any of its property to the Agency; cause public improvements to be furnished in connection with redevelopment projects; plan or replan and zone or rezone any part of a redevelopment project; and enter into agreements with the Agency respecting actions to be taken pursuant to any such powers; and WHEREAS, pursuant to Section 33445(a) of the CRL, the Agency may, with the consent of the City Council of the City of Temple City ("City Council"), pay all or part of the value of the land for and the cost of the installation and construction of any buildings, facilities, structures or other improvements which are publicly owned and located inside or contiguous to a project area upon a determination by the City Council that such building, facilities, structures or other improvements are of benefit to the project area by helping to eliminate blight within the project area, that no other reasonable means of financing the acquisition of the land or installation or construction of such buildings, facilities, structures or other improvements that are publicly owned are available to the community, that the payment of funds for the acquisition of the land or installation or construction of the building, facilities, structure or other improvements that are publicly owned is consistent with the implementation plan adopted by the Agency pursuant to Section 33490 of the CRL; and WHEREAS; pursuant to Section 33445(c) of the CRL, when the value of the land or the cost of installation and construction of a building, facility, structure, or other improvement that is publicly owned, or both, has been, or will be, paid or provided for initially by the City, the Agency may enter into a contract with the City under which the Agency 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 that is publicly owned, or both, by periodic payments over a period of years; and WHEREAS, the Agency and City Council have prepared and wish to enter into a Public Improvements Reimbursement Agreement ("Agreement") to provide for City's development and construction of certain public improvements, including the Public Buildings, ("Public Improvements") and Agency's reimbursement of City for the costs of the Public Improvements; and WHEREAS, a program Final Environmental Impact Report was prepared and certified on the Redevelopment Plan(s) ("Final EIR") in accordance with the California Environmental Quality Act ("CEQA"), which included analysis of the Public Improvements on a programmatic level; and WHEREAS, at this time there are no preliminary drawings, plans or other sufficient information to enable a meaningful environmental assessment of the specific Public Improvements, therefore, the Agreement provides that commitment of funds to and commencement of the specific projects set forth therein shall be subject to completion of additional environmental review and analysis, as required by CEQA; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council hereby finds and determines that the Public Improvements, are of benefit to the Project Area as they will assist in eliminating blight within the Project Area, that no other reasonable means of paying for the Public Improvements are available to the community, and that payment of the Public Improvements is consistent with the Implementation Plan adopted by the Agency pursuant to Section 33490 of the CRL. These findings are based upon the facts found in the staff report prepared for the City Council's review prior to taking action upon this matter and upon the following: a. All the Public Improvements are either located within or contiguous to the Project Area and will assist in eliminating the following blight conditions: inadequate and deteriorated public improvements, facilities and utilities, b. Although the City is able to aid and assist the Agency by undertaking the Public Improvements and initially providing the funds necessary for the acquisition of land or the construction or installation of the Public Improvements, the City lacks the resources necessary to permanently fund the Public Improvements from the General Fund, and other potential sources of funds are no longer available or are inadequate. The City's General Fund continues to be eroded by increased insurance and liability costs and State mandated programs which are not fully funded by the State. Further there has been a marked decline in tax revenues and the availability of State and federal grants over the past several years. c. The Implementation Plan for the Rosemead Boulevard Redevelopment Project #1 contains the specific goals and objectives of the Agency for the Project Area, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the Project Area. The Public Improvements are consistent with the Implementation Plan, as the goals and programs provide for the elimination of inadequate public improvements and the provision of public infrastructure of benefit to the Project Area consistent with the Public Improvements set forth in the Agreement. Section 2. The City Council hereby approves the Public Improvements Reimbursement Agreement and hereby authorizes and directs the Mayor to execute the Agreement on behalf of the City, subject to any minor, technical or clarifying changes that may be approved by the City Attorney. The City Council hereby further authorizes and directs the City Manager to take all actions and execute all documents as necessary to carry out the Agreement and accomplish the acquisition of land, installation and construction of the Public Improvements, and the Agency's reimbursement of City for the costs of the Public Improvements as provided for in the Agreement. APPROVED AND ADOPTED this 15th day of March, 2011, by the following vote: AYES: Councilmember-Blum, Sternquist, Yu, Chavez NOES; Councilmember-None ABSENT: Councilmember-Vizcarra ABSTAIN: Councilmember-None Mayor Pro Tem 7 ATTEST: City Clerk APPROVED AS TO FORM: City Attorney RESOLUTION NO. CRA 11-1©19 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMPLE CITY APPROVING AND AUTHORIZING EXECUTION OF A PUBLIC IMPROVEMENTS REIMBURSEMENT AGREEMENT BETWEEN THE AGENCY AND CITY OF TEMPLE CITY WHEREAS, the Redevelopment Agency of the City of Temple City ('Agency") is carrying out the Redevelopment Plan ("Redevelopment Plan") for the Rosemead Boulevard Redevelopment Project #1 ("Project"); and WHEREAS, under the Redevelopment Plan, the City of Temple City ("City") shall aid and cooperate with the Agency in carrying out the Project and shall take actions necessary to ensure the fulfillment of the purposes of the Redevelopment Plan and to eliminate and prevent the recurrence or spread of conditions causing blight within the area of the Project ("Project Area"); and WHEREAS, pursuant to Section 33220 of the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) (the "CRL"), for the purposes of aiding and cooperating in the planning, undertaking, construction or operation of redevelopment projects within the Project Area, the City may, among other things, exercise the following powers: sell or lease any of its property to the Agency; cause public improvements to be furnished in connection with redevelopment projects; plan or replan and zone or rezone any part of a redevelopment project; and enter into agreements with the Agency respecting actions to be taken pursuant to any such powers; and WHEREAS, pursuant to Section 33445(a) of the CRL, the Agency may, with the consent of the City Council of the City of Temple City ("City Council"), pay all or part of the value of the land for and the cost of the installation and construction of any buildings, facilities, structures or other improvements which are publicly owned and located inside or contiguous to a project area upon a determination by the City Council that such building, facilities, structures or other improvements are of benefit to the project area by helping to eliminate blight within the project area, that no other reasonable means of financing the acquisition of the land or installation or construction of such buildings, facilities, structures or other improvements that are publicly owned are available to the community, that the payment of funds for the acquisition of the land or installation or construction of the building, facilities, structure or other improvements that are publicly owned is consistent with the implementation plan adopted by the Agency pursuant to Section 33490 of the CRL; and WHEREAS, pursuant to Section 33445(c) of the CRL, when the value of the land or the cost of installation and construction of a building, facility, structure, or other improvement that is publicly owned, or both, has been, or will be, paid or provided for initially by the City, the Agency may enter into a contract with the City under which the Agency 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 that is publicly owned. or both, by periodic payments over a period of years; and WHEREAS, the Agency and City Council have prepared and wish to enter into a Public Improvements Reimbursement Agreement ("Agreement") to provide for City's development and construction of certain public improvements ("Public Improvements") within the Project Area and Agency's reimbursement of City for the costs of the Public Improvements; and WHEREAS, a program Final Environmental Impact Report was prepared and certified on the Redevelopment Plan(s) ("Final EIR") in accordance with the California Environmental Quality Act ("CEQA"), which included analysis of the Public Improvements on a programmatic level; and WHEREAS, at this time there are no preliminary drawings, plans or other sufficient information to enable a meaningful environmental assessment of the specific Public Improvements, therefore, the Agreement provides that the commitment of funds to and commencement of the specific projects set forth therein shall be subject to completion of additional environmental review and analysis, as required by CEQA; NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF TEMPLE CITY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Agency hereby finds and determines that the Public Improvements are of benefit to the Project Area as they will assist in eliminating blight within the Project Area, that no other reasonable means of paying for the Public Improvements are available to the community, and that payment of the Public Improvements is consistent with the Implementation Plan adopted by the Agency pursuant to Section 33490 of the CRL. These findings are based upon the facts found in the staff report prepared for the Agency's review prior to taking action upon this matter and upon the following: a. All the Public Improvements are either located within or contiguous to the Project Area and will assist in eliminating the following blight conditions: inadequate and deteriorated public improvements, facilities and utilities. b. Although the City is able to aid and assist the Agency by undertaking the Public Improvements and initially providing the funds necessary for the acquisition of land or the construction or installation of the Public Improvements, the City lacks the resources necessary to permanently fund the Public Improvements from the General Fund, and other potential sources of funds are no longer available or are inadequate. The City's General Fund continues to be eroded by increased insurance and liability costs and State mandated programs which are not fully funded by the State. Further there has been a marked decline in tax revenues and the availability of State and federal grants over the past several years. c. The Implementation Plan for the Rosemead Boulevard Redevelopment Project #1 contains the specific goals and objectives of the Agency for the Project Area, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the Project Area. The Public Improvements are consistent with the Implementation Plan, as the goals and programs provide for the elimination of inadequate public improvements and the provision of public infrastructure of benefit to the Project Area consistent with the Public Improvements set forth in the Agreement. Section 2. The Agency hereby approves the Public Improvements Agreement and hereby authorizes and directs the Executive Director of the Agency to execute the Agreement on behalf of the Agency, subject to any minor, technical or clarifying changes that may be approved by the Agency's counsel. The Agency hereby further authorizes and directs the Executive Director to take all actions and execute all documents as necessary to carry out the Agreement and accomplish the acquisition of land, installation and construction of the Public Improvements, and the Agency's reimbursement of City for the costs of the Public Improvements as provided for in the Agreement. APPROVED AND ADOPTED this 15th day of March, 2011, by the following vote: AYES: Member -Blum, Sternquist, Yu, Chavez NOES: Member -None ABSENT: Member-Vizcarra ABSTAIN: Member -None Vice -Chair 2 ATTEST: Agency Secretary APPROVED AS TO FORM: Agency Counsel 3