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HomeMy WebLinkAboutReso. 1985 - 273 - Amending agreements between City and Redding Redevelopment Agency pertaining to Midtown Mall Project no. 19 RESOLUTION NO. FY -2,7.11 • A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING AGREEMENTS BETWEEN THE CITY OF REDDING AND THE REDDING REDEVELOPMENT AGENCY PERTAINING TO MIDTOWN MALL PROJECT NO. 1. WHEREAS, the City of Redding and the Redding Redevelopment Agency entered into a repayment contract on May 1, 1977 for the construction and leasing of a parking structure in the 1600 block of California Street; and WHEREAS, the City and the Agency entered into an agreement for the loan and repayment of funds for the acquisition of public underground parking facilities in the 1500 block of Market Street on August 25, 1972; and WHEREAS, in order to avoid the 20 percent set aside for low and moderate income housing for Midtown Mall Project No. 1 as now required by Section 63333.6(c) of the Health and Safety Code, the Agency must amend these agreements so payments are due or required to be committed during each fiscal year until repaid with tax increment; NOW, THEREFORE, BE IT RESOLVED that the Agency hereby amends these agreements and adopts new agreements labeled Exhibits "A" and "B". I HEREBY CERTIFY that the foregoing resolution was intro- duced and read at a regular meeting of the City Council of the City of Redding on the 16th day of December 1985, and 0 • was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Demsher, Fulton, Gard, Pugh & Kirkpatrick NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None '& w" HOWARD D. KIRKP TRICK, Mayor City of Reddin ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: RA131ALL A. HAYS,/City Attorney -2- AMENDMENT TO REPAYMENT CONTRACT This Amendment, dated for convenience as of the day of December, 1985, by and between the REDDING REDEVELOPMENT AGENCY (herein called the "Agency") and the CITY OF REDDING (herein called the "City"); W I T N E S S E T H: WHEREAS, the City and Agency entered into a Repayment Contract for redevelopment of the Midtown Project No. I, dated May 1, 1977, hereinafter referred to as the "Contract," copy attached and incorporated herein by reference; and WHEREAS, the City cin Ci Agency dcsi e to reaffirm t-hc eo j-ait_- ments contained in said Contract insofar as they are not incon- sistent herewith, and amend said Contract to make the obligations for repayment or reimbursement to the City more specific as to amount of periodic payments; NOW, THEREFORE, the parties agree to the following amend- ments and modifications of said Contract: 1. Article II, Section 2.01, which reads as follows, is hereby stricken and cancelled: "Section 2.01. Reimbursement. The Agency and the City agree that all Tax Revenues shall be deposited into the Redding Midtown Project No. I :special Fund to he established by the Agency for redevelopment purposes, and that ahl moneys paid into said Redding Midtown Project No. I Special Fund when and as received shall. be used and applied to reppay the Citv for all rental payments, including Base Rental and Additional Rental made by the Cite to the Agency, under the Project Lease and for all Contributions. Such repayments shall include interest- on such rental. payments and such Contributions from their respective payment dates at the rate of three per cent (3U) per annum on the unpaid princi- pal balance." 2. The following is inserted as Article II, Section 2.01, in the place of the language above stricken: "Section 2.01. Reimbursement. The Agency and the City agree that all Tax Revenues shall be deposited into the Redding Midtown Project No. I Special Fund to be established by the Agency for redevelopment purposes, and that all moneys paid into said Redding Midtown Project No. .I Special Fund when and as received shall be used and applied to repay the City for all rental payments, including Base Rental and Additional Rental, made by the City to the Agency under the Project Lease and for all Contributions. Such repayments shall include interest at the rate of three percent (30) per annum on the unpaid principal balance. The Agency agrees to pay the City $81,500.00 annually on the 30th day of each June, commencing June 30, 1986, and continuing until the Agency's indebtedness is liquidated." IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Repayment Contract as of the day and year first ahp�P written. ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney ATTEST: Secretary CITY OF REDDING By: _ HOWARD D. KIRKPATRICK, Mayor REDDING REDEVELOPMENT AGENCY Chairman Ri;rnYt�J:�i'r CO'T'FRnCT _ This Repayment Contract, dated for convenience as of t!•^ first day of May, 1977, by and between the Redding Redevelopmcnt Agency (herein called the "Agency") and the City of Redding (herein called the "City"); W I T 11 E S S E T H: - WHEREAS, the Agency is a duly.constituted Redevelopment Agency under the. laws of the State of California and pursuant to such laws has duly proceeded with the redevelopment of a Project Area within the City; and 1,NiERI;AS, the Redevelopment Plan for said Project Area provides for tax increment financing in • accordance with the provisions of Chapter 6, Part-I, of Division 24 of the Health and Safety Code of the State of 'California and Section 16 of Article xvj of the Constitution of the State of California; and WHEREAS, the Agency is author!•:ed, with the. consent of the City Council of the City, to pay all or part of: t' cost bf the land for, and of the installation and construction of, any building, facility, structure, or other improvements which are publicly o:aned either within or without the Project •.Urea upon a determination by resolution of the Agency and said City Council that such buildings, facilities, structure , or other improvements are of benefit to said Project Area or the immediate neighborhood in a,llich the project is IOC,-Itccl, such buildin�ts find that no other reasonable Mc. - of finan.ciiicJ . •.;, . • • e J st* tures or other improvc,10Ls Arc available to the Citti: and when the value of such land or the cost of the installation and construction of such building, facility, structure, or other improvement, 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 it agrees to reimburse the City for all'br part of the value of such land or all or part of t:ie_cost of such building, facility, structure, or other improve ment, or both, by periodic payments over a period of years; and . WHEREAS, the obligation of the Agency under such contract shall constitute an indebtedness of the Agency for the purpose of carryiriy uU.t �••� �. Project for such project Area, which indebtedness may be made payable out of taxes levied in such Project Area and allocated to the Agency under subdivision (b) of Section 33670 of the Health and Safety Code of the State of California, or out of any other available funds; and ' WHEREAS, in a case where such land has been or will be acquired by, or the cost of the installation and construction of such building, facility, structure or • other improvement, has been paid by the Agency to provida a building, facility, structure, or other improvement which has been or will be leased to the City, such contract may be made with, and such reimbursement may be made payable • to, the City; and • 1111rm.p. e the City ha called for public bids e-..- +�... ...,_..e ..ra;..n .,F r.Ilr_ilit..ie, and the City and the A enc*int: nd to enter into. Zi 'Project Lease -. pro- viding for. Base Rental payments• at letiist sufficient to amortize certain Ponds of the Agency, the proceeds of whit;Ii are to be used by the Agency to snake payments under the Conntruction Contract and other payments incidental to the acquisition and construction of the Project; and WHEREAS, the City has heretofore made contributions toward the cost of the Project in the form of architectural .and other fees and expenses and intends to make further con- tributions in addition to the making of rental payments under the Project Lease; =and WHEREAS, the parties hereto in consideration of their mutual undertakings., past and present, herein and other -wise, desire to provide for repayment to the City of all contributions from the City.and moneys paid as rental. under the Project Lease; • NOW, TIiEREFORE, in consideration of the mutual covenants herein contained it is agreed by and between the parties hereto as follows: Definitions Section 1.01. Definitions. Unless the context otherwise requires, the terms defined in this Section 1.01 shall, for all purposes of this RePayment Contract and of any amendment hereto, and of any certificate, opinion, estimate ctr other .document herein mentioned, have the meanings h -train Epecified, A(3diti.onril Wt *,�,- The term "Additional Rental" means all amounts received by the Agency from the City as additional rental pursuant to Section 3(b) of.the Project Lease. A enc The term "Agency" means the Redding Redevelopment Agency, a redevelopment agency and public body, corporate and politic, duly organized and existing under and by virtue of the laws of the State of California. Base Rental . The term "Base Rental" means all.•amounts received. by•the Agency from the City as base rental pursuant to Section 3(a) of the Project Lease. Bonds The term "Bonds" means the approximately $1,0U0,000 -principal amount of Redding Redevelopment Agency, Redding Mall Parking Structure Lease Revenue Bonds, Series 1977, authorized by, and at any time outstanding (as said term is defined in the Resolution) pursuant to the Resolution, and so long as any of such Bonds are outstanding, any Additional Bonds authorized by, and at any time outstanding pursuant to, the Resolution and any Supplemental Resolution. •, Cit , The term "City" means the existing general law city of the State of California known as the City of Redding, organized and existing under and by virtue of the laws of the State of California. cor't.ri.huti.ons ;he term "Contri.butionn" means all payment., past and future, mad,-:• cr to L made l)y the -City to meet the costs of acquisition and cons t.'CuctioII of the Project, including, without limitation, payment of architectural, engineering and legal fees and costs of Site preparation. The terra "Con- tributions" also includes all City expenditures, including all City loans or cash advances, within the Project Area both in the past or to be made within the future such as, without limitation, payments for' parking facilities, street widening, curbs, landscaping and all other works or property appropriate to the Project Area. Facilities The term "Facilities" means a parking facility, including equipment, furniture and fixtures, together with all other works, property or structures necessary or con- • venierit for a parking facility, all to be constructed .by • the City on the Site. Lacy The term "Law" means the Community Redevelopment • Law of the State of California, constituting Part l of Division 24 of the Health and Safety Code of the State of California and the acts amendatory thereof and in supple- ment thereto. tqhenever reference is made in this Repay- ment Contract to the Law, reference is made to the Law as in force on the date of the execution of this•Repay- trent Contract, unless ttie context otherwise requires. rr.oiect The term. "Project" means the• Site and the racilities. Project Arc, The term "Project Area" means the Project Area Cescribed in the Redevelopment Plan. Project Lca-�e The term ''nroject Lease" means the lease, dated for convenience as of May 1, 1977, and entitled "Project Lease," to be entered into between the Agency, as lessor, and the City, as lessee. Redevelopment Plan The term "Redevelopment Plan" means the Redevelop- ment Plan for the Redding Midtown Project No. I approved and adopted as the official redevelopment plan for the Proj- -ect Area by Ordinance No. 974, adopted by the City Council -of the City on July 3, 1968, together with any amendments thereof or supplements thereto,- '.Redevelopment hereto,'.Redevelopment Project; Redding Midtown Project No. I The term "Redevelopment Project" or "Redding Midtown Project No. I" means the undertaking of the Agency pursuant to the Redevelopment Plan and the Law for the redevelopment of the Project Area. • Resolution The term "Resolution" means -the resolution authorizing the issuance of the Bonds, adopted by the Agency under the Law, as originally adopted or as it may :from time to time be supplemented or amended by any Supple- mental Resolution adopted pursuant to the provisions thereof. Site The term "Site" means that certain real property situated in the City more particularly described in Exhibit The.:,, i "Supplomcntal Rcsol.0 means any resolution then in full force and effect which has been duly adopted by the Agency under the Law, or any act supplementary thereto or amendatory thereof, at a meeting of the Agency duly convened and held, at which a quorum was present and acted thereon, amendatory of or supple- mental to the Resolution, but only if and to the extent that such supplemental resolution is specifically authorized thereunder. Tax Revenues . The term "Tax Revenues" means all taxes allocated to, and paid into the Special Fund of the Agency pursuant to Article 6 of Chapter 6 of the Law and Section 16 of Article XVI of the Constitution of the State of California, and as provided in the Redevelopment Plan, including. all • payments and reimbursements, if'*any, to the Agency specifi- cally attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations. Reddinq Midto,,n Project No. I Special Fund The term "Redding Midtown Project No. T Special Fund" means the special fund of the Agency into which the Tax Revenues are allocated and paid. ARTICLE II Reimbursement ' Section 2.01. Rcim!.)ur.sement. The Agency and City agree that all Tax Revenues shall be deposited o the Redding Midtown Project No.- I Special Fund to be establi-shed by the Agency for redevelopment purposes, and that all moncys paid into said Redding Midtown Prcjcct No. I Special . ..lied to repay \ ' i'und %41.),,n and W; �ccived shrill be used an 'PP �•. Cit -10 f,,,- all rental paym including Base Renta t1-10 y Additional Ren')) made }:y the City to t e Aycncy, un der the Suchrepayments sial Pro7cct Lease and for tll Contributions . . include interest on such payments and such Contributions from their respective payment a -es at the rate or .three per cent (32) per annum on the unpaid principal balance. - Section 2.02. It is contemplated by the parties hereto that annual Tax Revenues* during the early years of this Repayment Contract may be insufficient to offset Con- tributions heretofore made and to be made together with annual rental payments under the Project Lease by the City together with interest thereon. If annual Tax Revenues Ultimately rise to a figure in excess of such Contributions and such annual rental payments plus interest under the Project Lease, the Agency shall pay over to the City from the Redding Tlidtown Project No. I Special Fund all Tax Revenues deposited therein until the aggregate total of all Contributions theretofore made together with all Wase Rental_ payments, present and future, and the estimated aggregate total of all Additional Rental payments, all including interest, have been made. Such estimates, both on an annual and an aggregate:tota: 'basisr shall be made by the Director of Finance of the City. Upon such aggregate total payment, the Agency need make no further payments to the City, provided; however, that in the event that an additional Contribution is made or that an actual annual Additional Rental payment under the Project Lease exceeds the appropriate estimate of the Director of Finance on an annual basis, then such payments shall be re- lnstituteci u»ti 1 -Lich payments S, all equal said additional •.. „- including interest, the amount esucii revised estimatc, �• on an aggregate total basis as shall be made by the Director Of Finance . section 2.03. Reduction of. Indebtedness From Other Sources of J ncomc. The agreements of the City and the Agency, respectively, heretofore set forth are hereby. expressly conditioned as follows: Tlne oAllEJUT-L ll vj. ►•� Agency to the City for the repayment .of said rentals under the Project Lease may be reduced by, and in the amount of, 'the payment by the Agency to the City of such sums as the Agency may deem necessary and advisable from such other sources of income as the Agency may have available to it. ARTICLE III Miscellaneous provisions SPc-ti nn 3.01. Silbsta_tution for Prior Repayment Contracts. The City and the Agency hereby expressly agree that this Repayment Contract shall be substituted for all • prior repayment agreements in which Tax Revenues may have been pledged. All such prior repayment contracts shall have no independent effect following execution of this Repayment Contract and the promises contained in those repayment contracts to repay the City out of Tax Revenues shall be deemed to be superceded by the terms of this Repayment Contract. Section 3.02.. Severability.. If any provision of th Repayment Contract, or the application thereof t6 any person, party, transaction or circumstance, is held invalid, the remz1 der of this Repayment Contract, or- the. application of such prc a vision to other persons, parties, transactions or circum- ntan.cen, shall not be affected thereby. XN t• ITIIESS t ITMEOP, the nartics }ierc to have executed this Rcpaymcnt Contract: as of the clay and year first above writtcn. CITY OF.REDDING [SEAL] �3y Mayor ATTEST: CityIer�� - J APPROVED AS TO. FORM: • City Attorney REDDII,4G REDEVELOMENT AGENCY • (SEAL) ' c . • l airman ATTEST: /V0 Secretary AMENDMENT TO AGREEMENT FOR THE LOAN AND REPAYMENT OF FUNDS FOR THE ACQUISITION OF PUBLIC UNDERGROUND PARKING FACILITIES This Amendment, made and entered into this day of December, 1985, by and between the CITY OF REDDING, a municipal corporation incorporated under the general laws of the State of California, located in the County of Shasta, hereinafter referred to as "City," and the REDDING REDEVELOPMENT AGENCY, hereinafter referred to as "Agency." W I T N E S S E T H: WHEREAS, the City and Agency entered into an Agreement for the Loan and Repayment of Funds for the Acquisition of Public Underground Parking Facilities dated August 25, 1972, hereinafter referred to as the "Agreement," copy attached and incorporated by reference; and WHEREAS, the City and Agency desire to reaffirm the commit- ments contained in said Agreement insofar as they are not incon- sistent herewith, and amend said Agreement to make the obli- gations for repayment or reimbursement to the City more specific as to amounts periodically due and payable; NOW, THEREFORE, the parties agree to the following amend- ments and modifications of said Agreement, to wit: 1. The first sentence of paragraph 3, which reads as follows, is hereby stricken and cancelled: "The Agency covenants and agrees to repay City said loan by periodic payments over a period of years commencing with the tax year 1973-1974, and that such loan shall bear interest at the rate of three per cent (3%) per year on. the unpaid principal balance, commencing from the date of payment of the loan sum to the Agency by the City." 2. The following is inserted as the first sentence of paragraph 3 in the place of the language above stricken: "The Agency covenants and agrees to repay City said loan by annual payments of $12,350 on June 30, commencing on June 30, 1986, with interest at the rate of three percent (3%) per year on the unpaid principal balance and continuing until the Agency's indebtedness is liquidated." IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Agreement for the Loan and Repayment of Funds for the Acquisition of Public Underground Parking Facilities as of the day and year first above written. ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney ATTEST: Secretary CITY OF REDDI14G By: HOWARD D. KIRKPATRICK, Mayor REDDING REDEVELOPMENT AGENCY By: Chairman -2- �i �tid:,J.C•.�S�.�i.�.s:..'��...-.v'.:S:CC!•: atit�•'>= �` ci: r.. ..4+.>.r•..;.4Ghy:r...... .... ... .: �,'1�+.$•n''•ltH7..i.l7ttt�'?i14Cir�..v^ .. •t•f;}!. _ . 'J'All, Y,0)1.11 A141) 111:11AYMij: Y. OV J-'tJJ!Il!; yt)lt ()I- Pulslac U1II)I-:Iu;J'.0U1:1) PARMIX; YACILITILS 7'i,7:7 AGREEI-XI"T, made and entered into this 2501 day of August, 1972, by and between the -CITY OF REDDING, a municipal corporation incorporated under the general laws of the State of California, located in the County of Shasta, hereinafter rcferre, to as "City", and the REDDING REDEVELOPI-X-NT AGENCY, hereinafter referred to as "Agency", W I T N E S S E T H: The parties agree to the following recitals, to wit: (a) Agency proposes to -acquire, for --the total cost or construction or the sum of *550,000.00, whichever is the less, ar undergrou'nd public parking facility, providing not less than 147 automobile pbrking -,paces, located within the area of Midtown P . roject No. .1 and constructed in conformance with plans and speci fications heretofore approved by the Public Works Department of City of Redding, the Building official of the City of Redding, ar, the Redding Redevelopment Agency. (b) Both Agency and the City Council Of City have here tofore determined by resolution that the construction and acquisi tion of the aforesaid underground public parking facility is of benefit to the project area of Midtown Project No. 1, and the Cit Council of City has heretofore consented by resolution to the pay 3nent by the Agency of the cost of the 'installation and constructs of the said' facility, or the sum of. $550, 000.00, whichever is less, for the acquisition of such facility. (c) Agency is without the funds with which to acquire said undergrouL3 parking facility, and has requested Of City that City provide to the Agency the necessary funds to pay all of the costs of ncquinition of the proposed underground parking facility pursuant to an agreement with the ;tgency as authorized by the pro. ViGi011r Of Section 33445 of the Health and Safety Code of the State of California, wherein the Agency agrees to reimlitir.-;c tlie ExIi«1IT 1 -2- ``, .VWsv`�.+�+.:aK:r.•.;-,y,pct`t�•J�.,A�?J7GW'f�.fi};i%;•1,� -. _.._-.,•.._ .:,, ... ._ _..:. ... ,. __._..__.._ ..___r_.—_-;•:- City fur s:;,i,l ern):: 117 1"�•�y )�•,yn,• n1� ,•r �, J,c�riu,l ot.y,:,,n:, :�.... and tiu Afl Ac" ..stein):; tl,:,t the o)Jl.i..t:,tiu., of the Agency nn,ler thin cuntr.•,ct. ::h;,l.l cgn::titnt.c, an indc:btriLuc, of tic Agency for the purpose of c:,rryiny out the redevclupnient project for such project arra, and that such indebtedness shall be made payable out of taxes levied in such project area, or -any amendment there which are allocated to the Agency under Subdivision (b) •of Secti • 33670 of. the llealth and Safety Code of the State of. California, • or out of any other available funds. • ' ' NOW, THEREFORE, IT IS MUTUALLY UIMERSTOOD AIM AGREED • DMIEEN 7HE PARTIES HERETO, AS FOLLOWS: 1. That for and in consideration of each and every or, _ of the covenants and agreements herein set forth to be performed by Agency, City agrees to loan to Agency, upon demand, the sun o $550,000.00. 2. Agency covenants and agrees to use said loan funds 'for the sole purpose of accruiring, for the total cost of con- struction or the sum of $550,000.00, whichever is the less, an underground public parking facility, providing not less than 147 automobile parking spaces, located within the area of Midto:: prn;p�t No, 1: and constructed in conformance with plans and specifications heretofore approved by the Public Works Departmer. -of the City of Redding, the Building Official of the City of Redding, and the Agency, together with all modifications and addenda thereto included subsequently as hereafter approved by City, copies of said plans and specifications being on file in t' office of the City Clerk of City. Agency further covenants and agrees that the deed of acquisition shall be as described in ENJI A of that certain agreement entered into on the 25th day of Auqu 1972, between, -the Agency and C. M. DicY.cr, Inc., a California co - poration, for the con-struction and purchase of public parking facilities, and does include the necessary air rights to contain the aforedescribed underground parl;iny facilities, together with the required c.u:c•n,ents in the respective parcel of real propc rC. -2- •i!+1c,-��.,,.v.a�hR.'�:'sAr.�s��.f'{�,c1:i:GK`:ti•.;�,a�;�._. --- ..... . . �.. lyitnr ;rh�wo :nu v)lrn t.l«� I] u�ul,:� wont) par} fivq iiiriliti<.: '.. ' ' tr:�,c:.uar.y Jur encroaL.bm nt"or uupport, or bo U,, of ccrtuSn chmcut. of rc:ns;:r►ict.ic�n extendinU neroar, the boundary lines of the 1 parcel:: or nc are neccrsary to obtain support from avid adjoining :. parcels of real prGperty and improvements thereon, or both; t, eth; with the necessary easements of access And use required in the par• cels lying above or'below the aforesaid parking facility necessary to the proper operation and maintenance of the aforesaid parking facility. In this connection,. City agrees that Agency may acquire said facility and the necessary air rights to contain same as set forth in said Exhibit A, subject to such similar easements as are reserved therein for the necessary encroachment of said air rights or the support of structures built by C. M. Dicker, Inc. in the parcels of real property lying above or below the said parking facility as such easements are reserved in said Exhibit A. 3.• The Agency covenants and agrees to repay City said -loan by periodic payments over a period of years camniencing with the tax.year 1973-1974, and that such loan shall bear interest at the rate of three per cent (3%) per year on the unpaid principal balance, commencing from the date of payment of the loan'sum to the Agency by the City_ The Agency further covenants that this obligation under this contract shall constitute an indebtedness of the Agency for,the purpose of carrying out the redevelopment pro- ject for such project area (Midtown Project Ro. 1), or any sub- sequent amendment of the boundaries -of saidproject area, which indebtedness shall be made payable out of taxes levied in the project area and allocated to the. Agency under Subdivision (b) of Section 33670 of the Health and Safety Code of the State of Calif- ornia, or out of any other available funds. Agency herein agrees to pay to City•the total of the taxes so levied and so allocated in the tax year 1973-1974 and each year thereafter towards the ' payment of the interest and principal due and payable on that indebtedness until the total of same shall have been repaid. -3- -4- �L?ii�c.�.4�i:X<:��:'.,�.,..,:..r:.;,,l,t�?:i:CW+Kt+.•c:Jf!'t =.s:•i ,:''i.r�`:•.i'j'f•`��'t%R-"=�.�'•:rrJ..o-`:1�.ra!'�s';�L•'J11C1'r7�;fri`.11•i'J?kb`•91?�/CIv1Y+!-ia><?:_:.!.:rN+.57.f'.�1}; ray covc-11.1 L�:uiJ ogrru�` lit i�C Uhr, tut Il r ujit of Uro. conctr.uction and acquivitiun of the nforeraid underground purhinq faciliticn, as such cost i•a dcfincd in Uro aforeania - agreement bctv.cen the Agency and C. H. Dicker, Inc. ,'is lenn than 050,Cp0.00, upon the completion of the said acquisition it shall .._ pay over to ':'it,, the unexpended balance and the indebtedness shall be reduced accordingly thereby. •5. Agency covenants and agrees that upon the pending ' dissolution or termination of the Agency by operation of law or otherwise, or upon completion of the payment of the said loan by the Agency to the City, or upon the demand of the City Council of the City of Redding, whichever first occurs, the Agency shall convey all of its right, -and .interest in •and to the afore- said public underground parking facility and all easements thereto appertaining, 'to City; it being the intent of the parties hereto -that City succeed the Agency is the owner of the said underground parking facility at any time that the Agency shall cease to exist. - Agency further covenants and agrees that following its acquisition of the said underground parking facility it will convey no portion " ` of its right, title and interest in said parking facil-ty, or any of the easements pertaining thereto,. -nor will it do or perform any act to encumber, infringe upon or reduce the state or condition of its right, title and interest in the facility, without first obtain- ing the written consent of the City Council of City so to do. 6. It is recognized by the parties hereto that Agency is without the funds to employ the inspectors required to make certain during the course of construction that the aforesaid andergiound parking facility is constructed in conformance with .. the approved plans and specifications,.therefore, City covenants and agrees to.provide and Agency hereby designates for the pur- poses of paragraph 13 of the afores:!id agreement between the Agency and C. A. Dicker, Inc., the Public Yorks Director of City, his agents, deputies, or subordinatess, as assigned by him, to perform . the inspection rights vested in the Agency pursuant to the aforesaid -4- J+C1iiQnjA,A2a:t+G::)Zr.Hcli•f,!a�tio7 J'CYf: -,.,� r f:•�+.r,� �t;A >Fq: rf SSA%.�'a! Yci '+-Jre,07Z. M:vci )'.1:Mi .dti•.t<.11+�i'•t�': ��+�•► " ,+ry )►:� �.►;,, �,+ ►t.• nl., :,►r•► ,+ r�,� „►►+ ); �,i r►, ,' t,u•t ,��,ui i�+�,:o t . f. Su:►)++•c•t?.++t+n �:urc rcynirvd to :r.:,.u>,•a T`_ ►►+:y and City that the a:►ic. un+)cr,,irunnc) publIe r+:,t:).in; f:,ci.lity in constructed in ncc:nrd:►ncc i with the reproved pl-ann and upecifications. City r;hull provide ouch pnruonuel and euclh inspections Lit no cost to Agency. 7, The parties hereto mutually covenant and agree to :- enter into a lease agreement prior to or at the time of acquisition of the underground parking facility by Agency, wherein Agency agrees to lease the aforesaid facility to City for a nominal annual' rental and for a term. of years'to be mutually agreed upon and sub- i ject to the right of the City to extend said term at the City's sole option, and wherein City agrees to operate and maintain same as a public parking facility, to.-apply all revenues collected' from such operation to the cost of such operation-•and maintenance, and in the event there are any surplus revenues remaining after the payment.of all such costs of•operation and maintenance, to apply: same to the reduction of the principal of the loan indebtedness. S. The parties hereto mutually and individually declare that the principal and primary purpose for entering into this nareement in to make nossihle t'he nrnvisinn of additional and necessary automobile parking facilities for the convenience of the citizens of Redding and other members of the public, shopping, transacting business or otherwise using the project area-known as Midtown Project No.- 1; however; the parties hereto mutually agree -that the aforesaid underground parking facilities are suitable and desirable for many other temporary public uses in tine of natural catastrophe, war, or civil defense, or other such similar circum- stances, and the parties hereto also recognize that there could be some future time wherein the automobile was no Ion er the major : met►ns of transportation of persons within our City, and therefore, the parties hereto each covenant and agree with tl,e other that ' neither shall do any act, nor enter into any restraining agreement, t without first obtaining the written con-e nL- of the other, so long AA6 .d,�:u>.1Z.f_J R't'Ct?•'L'�S T�•�ia'ly:01:..i••!:l_•::ntiltklf9DNbri�d�:�'Yf:J �:1;yf.a)A,.DJ�h,R :'.7L!.Siel:�l u,IA6+:f:C�:t��fr1;SX,'4fYii�i�S:'.Y;���t✓':bf•l"''�.tK-h151V!�fdl... . • . .. . _ .. .• .. • .. - - •• ..ti--+v,::n C' �wf.: {'. r•. "�'i t:•-. •.rte.•. . .. v.r, i...7. iY 4�' )nl IIT tl!'1.••� i ah5c wixild /'):gin). %.;,Y l' Utr•rC 1,1r►.itx•a . flu is itu),lfc ):iifU friciliLy cf> rxtnlll iuLrrlc rc or 1orevrnL tlrrir t#-•1nlsorary or emergency une for other public purpoacr. Buri»g Litres i t of n:ltural cataotrop:te, civil DL-l'cnae, war or siinilar circuinstancec so long as the uutomobile remain:; the major means of the true,porta tion of people. ' 9, "le Agency shall acquire the aforesaid underground public parking facility within tuclve months of the date of execution of this agreement, or this agreement shall terminate and be of no further force and effect, provided only that if within that period Agency has demanded and City has paid over all or any portion of said loan funds, Agency -shall return all such funds to City together with the interest -due thereon. .10. Time is of the -essence of this Agreement, and each and every part -thereof. 11. The conditions, covenants and agreements herein contained shall inure to the benefit- of and be binding upon the successors and assigns of the respective par iee J.Lt tJ . 12.- The lease referred to in paragraph 7•hereinabove, which the parties hereto intend to execute subsequent to the execution of this agreement, is not mandatory condition precedent. to the consummation of the loan from the city to the Agency referre to in•paragraph 1 hereinabove. IN WITNrSS I'MER1;0F, the parties hereto have caused this Agreement to be executed the day and year first hereinabove written - CITY OF REDDING ATTEST: / Mildred L. Brayton MIlald:D L. D)LAYTON, City Clex); FOPJ4 APPROVED: / Earl D. Murphy EARL 1). 1';UJt1'11Y, City Attorney By • ./George K. Moty _ REWIM 1ULDEVL••LOl'1•iL•1'TT AGENCY Dy / James L. Williams