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HomeMy WebLinkAboutCC RESO 92-59RESOLUTION NO. 92-59 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CONSENTING TO THE USE OF TAX INCREMENT FUNDS OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY (CDC) FOR PUBLIC IMPROVEMENTS WITHIN THE REDEVELOPMENT PROJECT AREA This Resolution was held over at the City Council Meeting of April 21, 1992. DATE: April 27, 1992 Lori Anne Peoples City Clerk W04 dopl-cd RESOLUTION NO. 92-59 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CONSENTING TO THE USE OF TAX INCREMENT FUNDS OF THE COMMUNITY DEVELOPMENT COMIVIISSION OF THE CITY OF NATIONAL CITY (CDC) FOR PUBLIC IMPROVEMENTS WITHIN THE REDEVELOPMENT PROJECT AREA WHEREAS, pursuant to Ordinance No. 1762, adopted on December 1, 1981, the City Council approved the National City Downtown Redevelopment Project Redevelopment Plan, and created a 2,086-acre Project Area; and WHEREAS, said Redevelopment Plan includes, among its listed objectives, providing needed public facilities and improvements including adequate pedestrian and vehicular traffic circulation within, through and outside the Project Area, and including streets, storm drainage facilities, water distribution and sewage transmission lines, public utilities, and transit facilities; and WHEREAS, the Redevelopment Plan further provides, under its Land Use section, that the CDC may effect neighborhood improvements within the public rights of way to include, but not be limited to, the construction and, or reconstruction of the following: curbs, gutters, curb and gutter, sidewalks, driveways, street trees, street lights, undergrounding of overhead electrical, telephone and television lines, including the work on private property in relation to such undergrounding subject to the written consent of each such private property owner, and including the installation of any necessary police and fire call systems; and WHEREAS, the Redevelopment Plan further provides, under its Land Use section, that the CDC may, within the Project Area, correct public improvement deficiencies as identified in the document entitled "Public Works Improvement Deficiency Study for Community Development Commission of the City of National City by Charles W. Christensen and Associates, Civil Engineers" dated October 13, 1981; and WHEREAS, the California Community Redevelopment Law, Health and Safety Code, Division 24, Part I, (the Law) provides at Section 33445 that a CDC may finance all or part of the cost of the construction of any building, facility, structure, or other improvement which is publicly owned, either within or without the project area, with the consent of the legislative body, if the legislative body makes certain findings; and Continued on Page Two Resolution No. 92-59 Page 2 of 3 WHEREAS, the City Council has historically allocated a significant portion of Community Development Block Grant (CDBG) funds to capital improvement projects (CIP) within the City; and WHEREAS, the City Council, as part of the final public hearing on the CDBG 1992-1993 held February 25, 1992, determined to assist with the construction of the Paradise Valley Hospital Outpatient Facility to the extent of $600,000 to be obtained through a HUD Section 108 Loan with the principal and interest due each year over a six year repayment period to be offset against the Block Grant by HUD; and WHEREAS, to replace the CDBG funds which will be offset to repay the loan, and which funds would historically be allocated for City CIP programs, the CDC, pursuant to a written agreement with the City, will pay to the City an amount equal to payment of principal and interest each year to the City's National City Downtown Redevelopment Project Public Improvements Construction Trust Fund, with payments to be made each year in September in the amount of principal and interest for that coming year, in the total amount of approximately $768,000.00 (based on an 8% annual interest rate) over a six -year period. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City finds as follows: 1. Pursuant to Section 33445 of the California Health and Safety Code, it is hereby found and determined that the payment by the CDC to the City of approximately $768,000.00 over a six -year period, to be deposited into the City's National City Downtown Redevelopment Project Public Improvements Construction Trust Fund is hereby determined to be of benefit to the National City Downtown Redevelopment Project Area which consists of 2,086 acres or approximately 44% of the City's land area. 2. That the proposed use of tax increment funds for public improve- ments is and will be of benefit to the National City Downtown Redevelopment Project and to the immediate neighborhood in which the project is located. 3. No other reasonable means of financing said improvements are available to the City of National City. Continued on Page Three Resolution No. 92-59 Page 3 of 3 BE IT FURTHER RESOLVED that payment of the funds as described above shall be subject to the CDC entering into an agreement with the City of National City for payment of said funds. BE IT FURTHER RESOLVED that the City Council hereby consents to the use of tax increment funds for the payment by the CDC to the City of approximately $768,000.00 over a six -year period, to be deposited into the City's National City Downtown Redevelopment Project Public Improvements Construction Trust Fund. PASSED and ADOPTED this 21st day of April, 1992. George H. Waters, Mayor ATTEST: Lori Anne Peoples City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney