HomeMy WebLinkAboutCDC Background ReportATTACHMENT 1
BACKGROUND REPORT
In order to ensure adequate funding to accomplish the Capital Improvement Program
listed in this Agreement, allow the Option to transfer properties from the CDC to the City
and pledge the security interests of the CDC to the City, the CDC and City can agree to
cooperatively work together. In order to do so, both the CDC and City must make the
following findings, as listed in the resolution for this agenda item and its companion item:
• The CDC 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 CDC hereby finds and determines that the recitals in the Agreement are
true and correct; and
• Based on the evidence in the record, the CDC 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 CDC 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 Agreement provides that the Executive Director, or designee, would be authorized
to execute the Agreement on behalf of the Commission, together with such non -
substantive changes and amendments as may be approved by the Executive Director
and CDC Counsel. The Executive Director, or designee, would also be authorized, on
behalf of the CDC, 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 CDC's obligations, responsibilities and duties to be performed under
the Agreement.
In the event the CDC desires to issue bonds, notes, or other instruments of
indebtedness of the CDC to carry out redevelopment projects, then any indebtedness of
the CDC to the City, including any interest accrued thereon, shall be deemed not to be a
first pledge of tax increment allocations received by the CDC pursuant to Section 33670
of the CRL; and any indebtedness of the CDC 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.