HomeMy WebLinkAboutReso 2015-005 - Stillwater Business Park•
RESOLUTION NO. 2015-005
A RESOLUTION OF THE CITY OF REDDING APPROVING AN
AGREEMENT WITH THE CITY OF REDDING ACTING AS THE
SUCCESSOR AGENCY TO THE FORMER REDDING REDEVELOPMENT
AGENCY FOR USE OF SHASTEC BOND FUNDS TO ASSIST WITH
FUNDING IMPROVEMENTS TO AIRPORT ROAD AT VARIOUS
LOCATIONS BETWEEN STATE ROUTE 44 AND THE SACRAMENTO
RIVER BRIDGE IN SUPPORT OF REQUIRED ENVIRONMENTAL
MITIGATIONS ASSOCIATED WITH THE STILLWATER BUSINESS
PARK
WHEREAS, on February 1, 2012, the Redding Redevelopment Agency ("RRA") and the
other SHASTEC partner agencies, were dissolved pursuant to Health and Safety Code (HSC)
Sections 34161 - 34166; and
WHEREAS, pursuant to HSC Section 34173, by Resolution No. 2012-001, the City
Council of the City of Redding elected to become the Successor Agency to the RRA ("Successor
Agency"); and
WHEREAS, HSC Section 34179.7, provides for the State Department of Finance ("DOF")
to issue a Finding of Completion to successor agencies under certain conditions; and
WHEREAS, on June 20, 2013, the DOF did issue a Finding of Completion to the Successor
Agency; and
WHEREAS, HSC Section 34191.4(c), provides, upon issuance of a Finding of Completion,
that any remaining bond proceeds derived from bonds issued on or before December 31, 2010, shall
be used for the purposes for which the bonds were sold; and
WHEREAS, the Successor Agency has approximately $3.7 million in bond proceeds
remaining from the 2006 SHASTEC Bond issued on August 2, 2006; and
WHEREAS, the Successor Agency desires to utilize an amount not to exceed $2,060,000 of
the SHASTEC Bond proceeds for the Project; and
WHEREAS, the proposed Agreement for Use of SHASTEC Bond Proceeds between the
Successor Agency and the City of Redding provides for the use of the bond proceeds on the Project.
NOW, THEREFORE, IT IS RESOLVED that the City Council of the City of Redding
hereby:
1. Approves the Agreement for Use of SHASTEC Bond Proceeds, attached hereto and made a
part hereof.
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I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a
regular meeting of the City Council of the City of Redding on the 3rd day of February, 2015, by the
following vote:
AYES:
COUNCIL MEMBERS:
Cadd, McArthur, Schreder, Weaver, & Sullivan
NOES:
COUNCIL MEMBERS:
None
ABSENT:
COUNCIL MEMBERS:
None
ABSTAIN:
COUNCIL MEMBERS:
None
ATTEST:
PAMEfA-,Tv1I7.E , Ci Clerk
F E SULLIVAN, Mayor
APPROVED AS TO FORM:
RICHARD A. DUVERNAY, Cit Attorney
AGREEMENT
FOR USE OF 2006 SHASTEC BOND PROCEEDS
This Agreement for use of 2006 SHASTEC Bond Proceeds ("Agreement") is entered into
by and between the City of Redding acting as Successor Agency to the former Redding
Redevelopment Agency ("Successor Agency") and the City of Redding ("City"). The Successor
Agency and the City are hereinafter collectively referred to as the "Parties." This Agreement is
for the purposes of providing an amount up to $2,060,000 of Successor Agency bond proceeds
remaining from the 2006 SHASTEC Bond to the City to assist with funding improvements to
Airport Road at various locations between State Route 44 and the Sacramento River Bridge
(Project) in support of required environmental mitigation for the Stillwater Business Park and is
entered into, on the basis of the following facts, understandings and intentions of the Parties:
RECITALS
A. On February 1, 2012, the Redding Redevelopment Agency ("RRA") was dissolved
pursuant to Health and Safety Code (HSC) Sections 34161— 34166.
B. Pursuant to HSC Section 34173, by Resolution No. 2012-001, the City Council of the
City of Redding elected to become the Successor Agency to the RRA.
C. HSC Section 34179.7, provides for the State Department of Finance ("DOF") to issue a
Finding of Completion to successor agencies under certain conditions.
D. On June 20, 2013, the DOF did issue a Finding of Completion to the Successor Agency.
E. HSC Section 34191.4(c), provides, upon issuance of a Finding of Completion, that any
remaining bond proceeds derived from bonds issued on or before December 31, 2010, shall be
used for the purposes for which the bonds were sold.
F. The Successor Agency has approximately $3.7 million in bond proceeds remaining from
the 2006 SHASTEC Bond issued on August 2, 2006.
G. The City, a SHASTEC partner, desires to develop and construct the Project.
H. The Successor Agency desires to utilize an amount not to exceed $2,060,000 of the
SHASTEC Bond proceeds for the Project.
I. The use of the SHASTEC Bond Proceeds for the Project is consistent with the purposes
for which the bonds were sold, that is, it will benefit the SHASTEC Project Area and will assist
in the elimination of blight.
J. The Parties desire to enter into this Agreement to set forth the mutual responsibilities and
obligations of the Parties relative to use of the bond proceeds on the Project.
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NOW, THERFORE, for good and valuable consideration, the receipt and sufficiency of
which are acknowledged, the Parties agree as follows:
1. SUCCESSOR AGENCY RESPONSIBILITIES AND OBLIGATIONS
1.1 Subject to the terms and conditions of this Agreement, the Successor Agency
hereby agrees to pay to the City an amount not to exceed Two Million Sixty Thousand and
No/100 Dollars ($2,060,000) for use by the City on the Project.
1.2 The source of the Successor Agency funding to be provided to City shall be bond
proceeds from the 2006 SHASTEC Bond issuance.
1.3 Upon receipt of the adopted resolution and a fully executed Agreement by the
City, the Successor Agency agrees to include the Project expenditure on its Recognized
Obligation Payment Schedule 15-16A ("ROPS15-16A") and to submit ROPS15-16A to both its
Oversight Board ("OB") and the California State Department of Finance ("DOF") for their
respective consideration and approval, no later than March 3, 2015.
1.4 The timing of the Successor Agency payment to the City shall be following
approval of ROPS15-16A and the associated approval by both the OB and DOF, but in no
instance sooner than July 1, 2015.
2. CITY RESPONSIBILITIES AND OBLIGATIONS
2.1 City will design, bid, award and construct the Project.
2.2 City will determined that the use of Successor Agency bond resources on the
Project is allowable and that the Project will be completed within a reasonable timeframes.
2.3 The City shall be solely responsible for obtaining legal advice confirming that the
proposed use of bond proceeds from the 2006 SHASTEC Bonds is lawful and complies with all
covenants and federal tax requirements applicable to the Project. The City agrees to defend and
fully indemnify the Successor Agency from any and all claims, causes of action or liability
arising from the expenditure of the proceeds of the 2006 SHASTEC Bonds by the City for the
Project as provided for in this Agreement to the extent permitted by law.
2.4 City agrees to utilize the Successor Agency bond funding exclusively for the
completion of the Project in accordance with the terms and conditions of this Agreement.
Agreement for Use of 2006 SHASTEC Bond Funds Page 2
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3. TERM
3.1 The Effective Date of this Agreement shall be the date the associated ROPS is
approved by the DOF.
3.2 The term of this Agreement shall begin on the Effective Date and end forty-eight
(48) months from that date, or upon acceptance by the City of the Project as
complete, whichever occurs first.
IN WITNESS WHEREOF, this Agreement has been executed as of the date set forth in
the opening paragraph of this Agreement.
ATTEST:
Pamela Mize, City Clerk
ATTEST:
Pamela Mize, City Clerk
City of Redding
Francie Sullivan, Mayor
APPROVED AS TO FORM:
Richard A. Duvernay, City Attor
CITY OF REDDING ACTING AS
SUCCESSOR AGENCY TO THE
FORMER REDDING REDEVELOPMENT
AGENCY
Francie Sullivan, Chair
APPROVED AS TO FORM:
Richard A. Duvernay, City Attorney
M.
Agreement for Use of 2006 SHASTEC Bond Funds Page 3