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Home My WebLink AboutCC RESO 92-96RESOLUTION NO. 92-96 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF NATIONAL CITY, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, AND THE NATIONAL CITY JOINT POWERS FINANCING AUTHORITY RELATING TO THE FINANCING AND CONSTRUCTION OF A NEW COMMUNITY CENTER WHEREAS, the National City Joint Powers Financing Authority is undertaking a project for the construction of a new Community Center through a Turnkey Building Agreement with Starboard Development Corporation to replace, at a cost of not to exceed $1.8 Million, the existing National City Community Center (Kimball Hall) which is located at 140 East 12th Street, National City, California; and WHEREAS, the City proposes to contribute $300,000.00 toward the cost to construct the new Community Center, and to operate and maintain said Community Center upon completion of construction; and WHEREAS, the CDC wishes to assist financially in the construction of the new Community Center and to secure an ownership interest in 4,000 square feet of the new Community Center for CDC Offices; and WHEREAS, the CDC is presently issuing and selling approximately $24 Million National City Downtown Redevelopment Project Tax Allocation Bonds, Series 1992 (the Bonds) and $1.5 Million is included in the Bonds for the National City Community Center, which is located within the project area of the Center City Project Redevelopment Plan that was merged into the National City Downtown Redevelopment Project, and is of direct benefit to the Redevelopment Project; and WHEREAS, the City of National City, the Community Development Commission of the City of National City, and the National City Joint Powers Financing Authority desire to enter into an Agreement defining their respective rights and obligations with respect to the financing and construction of the new Community Center. Continued on Page Two Resolution No. 92-96 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to Execute an Agreement between the City of National City, the Community Development Commission of the City of National City, and the National City Joint Powers Financing Authority Relating to the Financing and Construction of a New Community Center. PASSED and ADOPTED this 2nd clay of June, 1992. (, George H. aters, Mayor ATTEST: Lori Anne Peoples, City Clerk APPROVED AS TO FORM: A1-1L George H. Eiser, III City Attorney AGREEMENT BETWEEN THE CITY OF NATIONAL CITY, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, AND - THE NATIONAL CITY JOINT POWERS FINANCING AUTHORITY RELATING TO THE FINANCING AND CONSTRUCTION OF A NEW COMMUNITY CENTER This Agreement is made and entered into this 2nd day of June, 1992, by and between the City of National City, hereinafter referred to as "the City," the Community Development Commission of the City of National City, hereinafter referred to as "the CDC," and the National City Joint Powers Financing Authority, hereinafter referred to as "the Authority." RECITALS WHEREAS, the Authority is undertaking a project for the construction of a new Community Center through a Turnkey Building Agreement with Starboard Development Corporation to replace, at a cost of not to exceed $1.8 Million, the existing National City Community Center (Kimball Hall) which is located at 140 East 12th Street, National City, California; and WHEREAS, the City proposes to contribute $300,000.00 toward the cost to construct the new Community Center, and to operate and maintain said Community Center upon completion of construction; and WHEREAS, the CDC wishes to assist financially in the construction of the new Community Center and to secure an ownership interest in 4,000 square feet of the new Community Center for CDC Offices; and WHEREAS, the CDC is presently issuing and selling approximately $24 Million National City Downtown Redevelopment Project Tax Allocation Bonds, Series 1992 (the Bonds) and $1.5 Million is included in the Bonds for the National City Community Center, which is located within the project area of the Center City Project Redevelopment Plan that was merged into the National City Downtown Redevelopment Project, and is of direct benefit to the Redevelopment Project. NOW, THEREFORE, the parties hereto, in consideration for the mutual benefits to be derived agree as follows: 1 1. Authority shall enter into a Turnkey Building Agreement with Starboard Development Corporation, at a cost not to exceed $1.8 Million, to demolish or otherwise remove the existing National City Community Center (Kimball Hall) located at 140 East 12th Street, National City, and to construct a new 19,000 square foot Community Center on the site, including administrative office space and sufficient parking -for City, space for recreational use by the public, and 4,000 square feet of office space for the CDC and a sufficient number of conveniently located parking spaces for City and CDC staff and for the public. Authority's construction budget for the new Community Center shall include furniture, fixtures and equipment for City and CDC administrative office space. Authority shall proceed in an expeditious manner so as to ensure completion of the new Community Center and related parking facilities within one year from the date of execution of this Agreement. 2. Prior to July 1, 1992, the CDC shall deposit with the Authority funds in the amount of $1.5 Million. On the date such funds are deposited with the Authority (the "Community Center Funding Date"), the Authority shall create a separate account (the "Community Center Account"), designated solely for use in connection with the Community Center Project, and deposit therein the $1.5 Million received from the CDC. Increases in cost in excess of the Community Center Budget or decreases in cost below the Community Center Budget, less any "Community Center Underbudget Bonus" as set forth in Section 6.6.2 of the Turnkey Building Agreement, plus interest earned on the Community Center Account shall be shared in the ratio of $.3 Million to $1.5 Million CDC or 16.66% City and 83.34% CDC. 3. Prior to October 31, 1992, the City shall deposit with the Authority funds in the amount of $300,000.00. The Authority shall deposit said $300,000.00 in the Community Center Account. 4. Prior to completion of construction of the new Community Center, the parties hereto shall execute all agreements, deeds and other documents necessary to confer to the CDC an ownership interest in its 4,000 square feet of office space and related parking area, and to confer to the City an ownership interest in the remaining portion of the Community Center and related parking area. Title to the Community Center shall be held by the City and the CDC as tenants in common, with the City owning a 79 percent interest, and the CDC having a 21 percent interest. Should the CDC cease to exist, it shall, prior to its dissolution, convey to the City all of its right, title and interest in the Community Center. 5. Throughout the term of this Agreement, repair and maintenance of the Community Center shall be the responsibility of the City, and the City shall pay for or otherwise arrange for the payment of janitor service, security, gas, light, heating, and 2 water for the Community Center, and shall pay for or otherwise arrange for the payment of the cost of the repair and replacement of the Community Center resulting from ordinary wear and tear, and shall pay for all property and fire insurance for the Community Center, which may be maintained in the form of self-insurance. In exchange for the City's undertakings of the City and the CDC hereunder, the Authority agrees to provide only the Project, as hereinbefore more specifically set forth. 6. The City shall obtain all necessary discretionary land use approvals and entitlements for use, and shall take all necessary steps to ensure that the project complies with the provision of the California Environmental Quality Act. 7. This Agreement shall remain in effect during the life of the Community Center. Community Development Commission of the City of National City, California City of National City, California By: George H. aters Ma yor g National City Joint Powers Financing Authority By: George H. aters, Chairman Approved as to form: George H. Eiser, III City and CDC Attorney, and Legal Advisor to National City Joint Powers Financing Authority By: George H. aters, Chairman Attest: Ihf C1735:10,4%___ nold A. Peterson, Secretary of the Community Development Commission 3