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HomeMy WebLinkAboutCC RESO 2011-51RESOLUTION 2011 — 51 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SEWER LOAN REPAYMENT AGREEMENT WITH THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY FOR A PORTION OF THE REPAYMENT OF THE SEWER FUND LOAN USED FOR STREET RESURFACING, AND MAKING CERTAIN DETERMINATIONS AND FINDINGS RELATED THERETO WHEREAS, the City Council adopted the Redevelopment Plan for the National City Redevelopment Project on July 17, 2007, by Ordinance No. 2007-2295 (the "Redevelopment Plan"), which results in the allocation of a portion of the property taxes generated from the National City Redevelopment Project (the "Project Area") to the Community Development Commission of the City of National City (the "CDC") for purposes of redevelopment; and WHEREAS, the intent of the Redevelopment Plan is, in part, to provide for the construction and installation of necessary public infrastructure and facilities, to facilitate the repair, restoration and/or replacement of existing public facilities, and to perform specific actions necessary to promote the redevelopment and the economic revitalization of the Project Area; to increase, improve and preserve the community's supply of low and moderate income housing; and to take all other necessary actions to implement the Redevelopment Plan and to expend the CDC's share of property taxes (referred to as "tax increment") to accomplish the goals and objectives of the Redevelopment Plan; and WHEREAS, the CDC has adopted its Five -Year Implementation Plan for the Project Area, as amended from time to time (collectively, the "Implementation Plan") with established goals to support affordable housing, economic development, community revitalization, commercial revitalization, and institutional revitalization. To implement the programs and activities associated with each goal, the CDC has made redevelopment fund commitments and budget allocations based on estimated available tax increment revenue and debt financing structures; and WHEREAS, the City and CDC wish to cooperate with one another to bring about the redevelopment of the Project Area, and accomplish various tasks set forth in the Redevelopment Plan and the Implementation Plan; and WHEREAS, pursuant to Resolution No. 2010-148 (the "Resolution"), the CDC agreed to provide partial funding for the National City Street Resurfacing Improvement Program for fiscal year 2010-2011 to repair curbs, gutters, sidewalks, driveways, and pedestrian crossings, and provide traffic striping and signage in the Project Area (the "Program"). The Resolution authorized the expenditure of Seven Hundred Seventy One Thousand Two Hundred Fifty Dollars and 00/100 ($771,250.00.00) of tax increment funds to reimburse the City's interim loan from its Sewer Funds to complete the Program as the CDC's contribution to the cost of the work associated with the Program (said amount referred to as the CDC's Funding Obligation"); and WHEREAS, pursuant to Section 33220 of the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) (the "CRL") certain public bodies, including the City, may aid and cooperate in the planning, undertaking, construction or operation of redevelopment projects; and Resolution No. 2011 — 51 Page Two WHEREAS, the CDC and City desire to enter into a Loan Agreement (the "Agreement") to provide for implementation of the Program, under which payments will be made by the CDC to the City as otherwise necessary to reimburse the City for the cost to the City of installing and constructing the Program; and WHEREAS, the obligations of the CDC under the Agreement shall constitute an indebtedness of the CDC for the purpose of carrying out the Redevelopment Plan for the Project Area; and WHEREAS, it is in the best interests of the City and for the common benefit of residents, employees, business tenants and property owners within the Project Area, and the City as a whole, for the Program to be developed and constructed in accordance with the Agreement; and WHEREAS, the Agreement shall require the City to comply with Public Resources Code Sections 21000, et seq. ("CEQA") before undertaking the Program and, pursuant to CEQA Guideline Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act ("CEQA"), because the Agreement consists of the creation of a governmental funding mechanism for various public improvements, but does not commit funds to any specific public improvement, in that environmental review required by CEQA shall be completed prior to the commencement of any public improvement listed in the Agreement; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Section 1. The City Council has received and heard all oral and written objections to the Agreement, and to other matters pertaining to this transaction, and all such oral and written objections are hereby overruled. Section 2. The City Council hereby finds and determines that the foregoing recitals are true and correct. Section 3. Based on the evidence in the record, the City Council hereby finds and determines, with respect to the Program that: (a) Said programs and activities associated therewith are of benefit to the Project Area by helping to eliminate blight within the Project Area or providing housing for low - or moderate income persons; and (b) No other reasonable means of financing said Program and the programs and activities associated therewith are available to the community; and Resolution No. 2011 — 51 Page Three (c) The payment of funds by the CDC for the costs related to said Program and the programs and activities associated therewith is consistent with the respective Implementation Plan adopted pursuant to Section 33490 of the CRL. Section 4. The Mayor, or designee, is hereby authorized to execute the Agreement on behalf of the City, together with such non -substantive changes and amendments as may be approved by the City Manager and City Attorney. Section 5. The City Manager, or designee, is hereby authorized, on behalf of the City, to sign all documents necessary and appropriate to carry out and implement the Agreement, including, without limitation, any security instruments to be recorded against CDC assets to secure the CDC's obligations under the Agreement, and to administer the City's obligations, responsibilities and duties to be performed under the Agreement. Section 6. Said Agreement is on file in the office of the City Clerk. Section 7. This Resolution shall take effect immediately upon its adoption. ATTEST: PASSED and ADOPTED this 1st day of March, 20 1. on Morrison, ayor Ca Michel R. Dalla ityCl erk AIPPROVED AS TO FORM: C City Attorney Passed and adopted by the Council of the City of National City, California, on March 1, 2011 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California Al I City CIik of the City of ational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2011-51 of the City of National City, California, passed and adopted by the Council of said City on March 1, 2011. City Clerk of the City of National City, California By: Deputy