HomeMy WebLinkAboutReso 2013-096 - Redding Redevelopment Agency
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RESOLUTION NO. 2013-096
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE AGREEMENT TO REENTER THE REPAYMENT
AGREEMENT DATED MAY 18, 1999 BETWEEN THE CITY OF REDDING
AND VARIOUS OTHER ENTITIES, INCLUDING THE REDDING
REDEVELOPMENT AGENCY PURSUANT TO HEALTH AND SAFETY CODE
SECTION 34178(a)
WHEREAS, on May 18, 1999, the City of Redding ("City") entered into a Repayment
Agreement ("Agreement"), in which the City agreed to lend $2 million to the SHASTEC
Redevelopment Project for the construction of the Clover Creek Storm Drainage Detention Facility,
pursuant to the terms and conditions stated in the Agreement; and
WHEREAS, pursuant to the SHASTEC Project Formation and Administration Agreement,
dated January 25, 1995, and amended on June 3, 2005, the Redding Redevelopment Agency
("RRA")was designated the lead administrative agency for the SHASTEC Project; and
WHEREAS, pursuant to the Agreement, the RRA made all required loan payments to the City
staring in Fiscal Year 2009-10 through Fiscal Year 2011-12; and
WHEREAS, on February 1, 2012, the RRA was 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 34178(a) states that upon dissolution, all agreements between the
redevelopment agency and the legislative body that created it are invalid, provided, however, that a
successor entity wishing to reenter into agreements with the legislative body may do so upon
obtaining the approval of its oversight board; and
WHEREAS, the Successor Agency wishes to reenter into the Agreement with the City to
ensure repayment of the City loan; and
WHEREAS, the City is also interested in reentering into the Agreement so that the loan can
be repaid in a timely fashion.
1. Approves the Agreement to Reenter the Repayment Agreement, 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 15th day of October, 2013, by the
following vote:
AYES:
NOES:
ABSENT:
ABST AIN:
ATTEST.!
"
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
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PAMELA MIZE"G, '.Clerk
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Cadd, Jones, Sullivan, & Bosetti
None
McArthur
None
--Z;;~m
RICK BOSETTI, Mayor
APPROVED AS TO FORM:
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RICHARD A. DUVERNA ,Ytity Attorney
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AGREEMENT
TO REENTER REPAYMENT AGREEMENT DATED May 18, 1999
This Agreement to Reenter Repayment Agreement Dated May 18, 1999 ("Agreement") is
entered into effective as of , 2013 ("Effective Date") the date that the action is
approved by the Oversight Board, by and between the City of Redding acting as Successor
Agency to the former Redding Redevelopment Agency ("Successor Agency") and the City of
Redding, a municipal corporation ("City"). The Successor Agency and the City are hereinafter
collectively referred to as the "Parties." This Agreement is entered into, on the basis of the
following facts, understandings and intentions of the Parties:
RECITALS
A. Pursuant to the SHASTEC Project Formation and Administration Agreement, dated
January 25, 1995, and amended on June 3, 2005, the Redding Redevelopment Agency ("RRA")
was designated the lead administrative agency for the SHASTEC Project.
B. OnMay 18, 1999, the City of Redding ("City") and the RRA entered into a Repayment
Agreement ("Repayment Agreement"), in which the City agreed to lend $2 million to the
SHASTEC Redevelopment Project for the construction of the Clover Creek Storm Drainage
Detention Facility, pursuant to the terms and conditions stated in the Repayment Agreement.
C. Pursuant to the Repayment Agreement, the RRA made all required loan payments to the
City starting in Fiscal Year 2009-10 through Fiscal Year 2011-12.
D. On February 1,2012, the RRAwas dissolved pursuant to Health and Safety Code (HSC)
Sections 34161 - 34166.
E. 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.
F. HSC Section 34178( a) states that upon dissolution, all agreements between the
redevelopment agency and the legislative body that created it are invalid, provided, however, that
a successor entity wishing to reenter into agreements with the legislative body may do so upon
obtaining the approval of its oversight board.
G. The Parties desire to reenter into the Repayment Agreement.
NOW, THERFORE, for good and valuable consideration, the receipt and sufficiency of
which are acknowledged, the Parties agree as follows:
The Repayment Agreement, dated May 18, 1999, attached hereto and made a part hereof,
. is hereby reentered into by the Parties. All terms and conditions of the Repayment Agreement are
considered in full force and effect.
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IN WITNESS WHEREOF, this Agreement has been executed as of the date set forth in
the opening paragraph of this Agreement.
CITY OF REDDING
Rick Bosetti, Mayor
ATTEST:
APPROVED AS TO FORM:
Richard A. Duvernay, City Attorney
Pamela Mize, City Clerk
By:
CITY OF REDDING ACTING AS
SUCCESSOR AGENCY TO THE
FORMER REDDING REDEVELOPMENT
AGENCY
Rick Bosetti, Chair
ATTEST:
APPROVED AS TO FORM:
Richard A. Duvernay, City Attorney
Pamela Mize, City Clerk
By:
N:\Agreements\City and SA Agreement to reenter SHASTEC Repayment Agreement.docx
Agreement to Re-Enter Repayment Agreement dated May 18, 1999
Page 2
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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-tenn stonn 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 project 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.
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Repayment Agreement
City of Redding/SHASTEC
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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.
Dated: /i1?- / f
,1999
ATTEST:
d;:/~
Kurt Starman, Secretary
Dated: ArR' L ..<. 0 , 1999
ATTEST:
~~~
Scott Morgan, Secretary
Dated:~ 1999
A TIEST:
Dated: 5".....1 l'
,1999
ATTEST:
K:ISHASTEClPROJECTSIREP A Y.AGR
REDDING REDEVELOPMENT AGENCY
BY~~
David 1. orge a'
APPROVED AS TO FORM:.
ANDERSON REDEVELOPMENT AGENCY
By:
-~~y
Rodney Jones, h'
APPROVED A FORM:
~~~L.
Michael Fitzpatrick,
By:
SHASTA COUNTY REDEVELOPMENT AGENCY
Gl~~~
APPROVED AS TO FORM:
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LC'" '.
ike Ralston, Counsel to the Shasta County .
Redevelopment Agency
CITY OF REDDING
By: 2:4;~
APPROVED AS TO FORM:
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