HomeMy WebLinkAboutReso 99-046 - Auth a loan from its Risk Mgmt Fund to the Shastec Redevelopment Project Area for the Dev of the Clover Creek Storm Drainage Det Facilty & Approve a Repayment Agreement � . i ,. ' � � � �
� RESOLUTION NO.�I��O ,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING A LOAN FROM ITS RISK MANAGEMENT FUND TO THE
SHASTEC REDEVELOPMENT PROJECT AREA FOR THE
DEVELOPMENT OF THE CLOVER CREEK STORM DRAINAGE
DET'ENTION FACILITY AND APPROVING A REPAYMENT AGREEMENT
WITH RESPECT THERETO.
WHEREAS, the Cities of Redding and Anderson and the County of Shasta jointly adopted
the SHASTEC Redevelopment Project Area Redevelopment Plan on July 2, 1996, the
redevelopment of same to be undertaken jointly by the Redevelopment Agencies of Anderson,
Redding, and Shasta County (collectively referred to herein as SHASTEC); and
WHEREAS, the SHASTEC Redevelopment Plan provides for the planning, development,
replanning, redesign, clearance, reconstruction or rehabilitation, or any combination of these, of
property both inside and outside of the Project Area, necessary to carry out the Plan; and
WHEREAS,the SHASTEC Redevelopment Plan identifies flooding problems in the Clover
Creek drainage basin as a Project Area blighting condition; and
WHEREAS, SHASTEC is proposing to develop a long-term storm drainage detention
facility at Clover Creek to aid in the elimination of the blighting condition; and
WHEREAS, current SHASTEC tax revenues are insufficient to fund the development of
the facility; and
WHEREAS, SHASTEC desires the City of Redding(City)to loan an amount not to exceed
$2,000,000 to SHASTEC for the development of the proposed facility; and
WHEREAS, City has identified funds in its Risk Management Fund that are not needed for
the immediate necessities of the City; and
WHEREAS, SHASTEC will have funds available from tax increment proceeds beginning
in the 2009-2010 fiscal year to repay City; and
WHEREAS, SHASTEC and the City now desire to enter into a Repayment Agreement
containing the terms and conditions of the City's loan.
NOW,THEREFORE,the City Council of the City of Redding FINDS,RESOLVES, and
ORDERS as follows:
1. The above recitals are true and correct.
2. The City Council of the City of Redding hereby approves the Repayment Agreement �
between the City and SHASTEC, providing a loan of up to $2,000,000 from the �
City's Risk Management Fund. ��
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3. The Mayor of the City of Redding is hereby authorized and directed to sign all
necessary documents on behalf of the City and the City Clerk to attest the signature
of the Mayor.
4. A true copy of the Repayment Agreement referred to herein is attached and made a
part hereof.
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 6th day of April 1999, by the
following vote:
AYES: COLTNCIL MEMBERS: Cibula, Kight, McGeorge, Pohlmeyer and Anderson
NOES: COUNCIL MEMBERS: None
ABSENT: COIJNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
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Robert C. Anderson, Mayor
ATTEST: APPROVED AS TO FORM:
c�.� , �t���h/ F .
cSa %``� �2i�
��. Connie Strohmayer, ity Clerk W. Leonard Wingate C' Attorney
K:\SHASTECIPROJ ECTS\CLCKRESO.CC
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REPAYMENT AGREEMENT
THIS REPAYMENT AGREEMENT is made and entered into by and between the CITY OF
REDDING, a municipal corporation and general law city ("City"), and the REDDING
REDEVELOPMENT AGENCY, an agency of the State of California, the SHASTA COUNTY
REDEVELOPMENT AGENCY, an agency of the State of California, and the ANDERSON
REDEVELOPMENT AGENCY, an agency of the State of California, (the latter three entities
collectively referred to herein as "SHASTEC"):
RECITALS
A. On July 2, 1996, the Cities of Redding and Anderson and the County of Shasta jointly adopted a
Redevelopment Plan for the SHASTEC Redevelopment Project Area, the redevelopment of same to be
undertaken jointly by SHASTEC.
B. The California Constitution Article XVI, Section 16,provides that property tax revenues generated
by increases in assessed value within a redevelopment project area shall be allocated to the redevelopment
agency or agencies financing or refinancing, in whole or in part, the redevelopment project.
C. The Redevelopment Plan for the SHASTEC Redevelopment Project Area provides for the use of
tax increment funds generated within the Project Area for the payment of the principal of and interest on
any specific advances, loans, and indebtedness appropriate in carrying out the Project.
D. The SHASTEC Redevelopment Project is in need of$2,000,000 for the redevelopment of the
Project Area, specifically, for the construction of a long-term storm drainage detention facility in the
Clover Creek floodplain.
E. The City has identified funds available in the Risk Management Fund that it is willing to loan to
the SHASTEC Redevelopment Project Area for the described Clover Creek facility on the terms and
conditions set forth below.
F. The City has determined that the Risk Management Fund does not need the identified funds for
the immediate necessities of the Fund nor for the proposed term of the loan.
G. The SHASTEC Redevelopment Project will have funds available to repay the loan from its tax
increment proceeds starting in the 2009-2010 fiscal year.
H. SHASTEC has determined that there are no other resources available to fully fund the development
of the Clover Creek facility without SHASTEC assistance.
AGREEMENT
1. The City agrees to provide funds in an amount not to exceed$2,000,000 from its Risk Management
Fund to the SHASTEC Redevelopment Project in the form of a loan (City Loan) on the terms and
conditions set forth below.
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Repayment Agreement
City of Redding/SHASTEC Page 2
2. The City Loan shall accrue interest at the same rate and frequency as the City's actual pooled cash
account. Interest shall accrue on the unpaid principal balance beginning on the effective date of the City
Loan and continuing until such time as the indebtedness is paid in full.
3. On an annual basis, the City shall apply all fees collected within its Clover Creek Benefit District
to the unpaid principal balance of the City Loan beginning on the effective date of the City Loan and
continuing until such time as the indebtedness is paid in full. Such principal reductions shall directly
offset the SHASTEC repayment obligation.
4. Notwithstanding any principal reductions made pursuant to Paragraph 3 above,the City Loan shall
be considered an indebtedness obligation of the SHASTEC Redevelopment Project only and no other
redevelopment proj ect area.
5. SHASTEC agrees to make annual payments to City of both principal and interest on the City Loan
starting in the 2009-2010 fiscal year. The funding source for such payments shall be tax increment
revenues generated by the SHASTEC Redevelopment Project,or bond proceeds secured by the SHASTEC
Redevelopment Project and no other source. Annual payments shall be made no later than June 30 of any
fiscal year.
6. No later than thirty (30)days prior to the annual payment due date,City shall provide a statement
of the specific pooled cash interest rate to be applied to the City Loan. Exhibit A - Clover Creek Loan
Amortization Schedule, attached hereto and made a part hereof, is for illustration purposes only and is not
necessarily representative of the actual annual payment to be made in any year.
7. The principal and interest on the City Loan shall be due and payable in full by June 30,2019. Each
payment shall be credited first on interest then due and the remainder on principal. Immediately thereafter,
interest shall cease on the principal so credited. Principal and interest are payable in lawful money of the
United States.
Should default be made in payment of any installment when due, the whole sum of principal and
interest shall become immediately due and payable at City's option. Failure by City to exercise this option
does not constitute a waiver of the right to exercise it in the event of any subsequent default.
Whether or not suit is filed, SHASTEC agrees to pay all reasonable attorney's fees, costs of
collection, costs, and expenses incurred by City in connection with the enforcement or collection of this
Agreement. SHASTEC further agrees to pay all costs of suit and the sum adjudged as attorney's fees in
any action to enforce payment of this Agreement or any part of it.
8. The effective date of the City Loan shall be the date that the City executes this Agreement.
• Repayment Agreement
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City of Redding/SHASTEC Page 3
IN WITNESS WHEREOF, the parties hereto have executed this Repayment Agreement in the
presence of their respective officers duly authorized in that behalf on the days and year set forth below.
REDDING REDEVELOPMENT AGENCY
Dated: , 1999 By:
David L. McGeorge, Chairman
ATTEST: APPROVED AS TO FORM:
Kurt Starman, Secretary David E.Tranberg, Assistant City Attomey
ANDERSON REDEVELOPMENT AGENCY
Dated: , 1999 By:
Rodney Jones, Chairman
ATTEST: APPROVED AS TO FORM:
Scott Morgan, Secretary Michael Fitzpatrick, Legal Counsel
SHASTA COUNTY REDEVELOPMENT AGENCY
Dated: , 1999 By:
Glenn Hawes, Chairman
ATTEST: APPROVED AS TO FORM:
Carolyn Taylor, Clerk of the Shasta County Mike Ralston, Counsel to the Shasta County
Redevelopment Agency Redevelopment Agency
CITY OF REDDING
Dated: , 1999 By:
Robert C. Anderson, Mayor
ATTEST: APPROVED AS TO FORM:
Connie Strohmayer, City Clerk W. Leonard Wingate, City Attorney
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