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BACKGROUND REPORT
Public infrastructure improvements are needed to improve the economic viability of
parcels commonly referred to as the National City Swap Meet and RCP site (APN# 562-
321-08) planned for redevelopment in the Redevelopment Plan for the National City
Redevelopment Project. The improvements are designed to improve traffic flow and
access to these gateway sites in the Project Area and are anticipated to cost up to $2.5
million.
In order to complete the projects the CDC and City can decide to cooperate, as is
proposed in this Agreement. The Agreement would provide that the CDC would pledge
future property tax increment funds as follows: $830,000 to be paid in a lump sum at
completion of construction and $120,000 annually thereafter in net increased tax
increment (excluding low mod set aside funds and pass through funds to other taxing
entities) up to the actual final construction costs for the project. Title to the RCP site
would transfer to the City if an included Option is exercised. Prior to the City transferring
said site to any private developer in the future, a Public Hearing under Section 33433 of
the California Redevelopment Law would be required.
In order to cooperate, the CDC and City must make the following findings:
• The Commission 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;
• The Commission hereby finds and determines that the foregoing recitals
are true and correct;
• Based on the evidence in the record, the Commission hereby finds and
determines, with respect to the Projects that are publicly owned and are
located in or contiguous to the Project Area as identified in the
Agreement, that:
(a) Said Projects and the 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 Projects and the
programs and activities associated therewith are available to the community; and
(c) The payment of funds by the Commission for the costs related to
said Projects and the programs and activities associated therewith is consistent with the
respective Implementation Plan adopted pursuant to Section 33490 of the CRL.
The resolution authorizing approval of the Agreement would give the Executive
Director the authority to sign all documents necessary 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
CDC's obligations, responsibilities and duties to be performed under the Agreement. In
the event the Commission desires to issue bonds, notes, or other instruments of
indebtedness of the Commission to carry out redevelopment projects, then any
indebtedness of the Commission to the City, including any interest accrued thereon,
shall be deemed not to be a first pledge of tax increment allocations received by the
Commission pursuant to Section 33670 of the CRL; and any indebtedness of the
Commission to the City, including any interest accrued thereon, shall be subordinate to
any pledge of tax increments to bondholders -or -the -holders of other such instruments of
indebtedness.