HomeMy WebLinkAbout2004 CON CDC - $5 Million CDC Bond Issue MOUMEMORANDUM OF UNDERSTANDING BETWEEN THE
COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY AND
THE CITY OF NATIONAL CITY
This Memorandum of Understanding between the Community Development
Commission of National City (CDC) and the City of National City (City) dated
February 17, 2004 will set the terms on how a $5 million CDC bond issue will be
used to finance the construction of various public facility developments pursuant
to a Special Meeting of the CDC held on December 16, 2003.
Whereas, the City needs an additional $5 million in funding for construction of the
Fire Station, Library and Arts Center projects and has no other reasonable
means to raise these additional funds.
Whereas, the CDC, through its tax increment bonding capacity, may issue bonds
to provide funding for the above -listed projects and was directed by the CDC
Board on December 16, 2003 in an amount that would net $5 million the
aforementioned purpose.
Now therefore be it understood that the $5 million derived from the CDC's
issuance of tax allocation bonds will be used in the following manner:
• To reimburse the CDC for the $2,225,000 it will contribute from CDC cash
reserves to bridge the financing gap for the construction of the City's Fire
Station.
• To pay up to $1,575,000 for the construction of the Arts Center project
with any residual funding from the $5 million bond issue being allocated to
the Library project for the purchase of collections and equipment.
It is further understood that the CDC and the City will cooperatively pursue a
longer -term financing plan for the current and future redevelopment and public
infrastructure projects and identify City -owned real property suitable for
redevelopment. Any and all City -owned property identified for redevelopment will
be sold to the CDC for one ($1) dollar.
This Memorandum of Understanding will terminate upon completion of the City's
Fire Station, new Library and Art Center (rehabilitation of the old library) projects.
Signatories to approve the MOU appear on page 2 of this document.
Approved:
Community Development Commission City of National City
of the City of National City
By: I �/ By:
Benjamin Martinez Nick nzu — a
Executive Director Mayor
APPROVED AS TO FORM:
By:
George H. Eiser, 11I
City Attorney
MOU between City and CDC
AEETING DATE May 4, 2004
City of National City, California
COUNCIL AGENDA STATEMENT
AGENDA ITEM NO.
21
(-ITEM TITLE RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE MAYOR TO EXECUTE A
MEMORANDUM OF UNDERSTANDING WITH THE COMMUNITY DEVELOPMENT COMMISSION
SETTING FORTH THE TERMS FOR THE UTILIZATION OF A $5 MILLION CDC BOND ISSUE
PREPARED BY
EXPLANATION
George H. Eiser, III
(Ext. 4221)
DEPARTMENT
City Attorney
On December 16, 2003, the Community Development Commission Board directed its
staff to pursue a bond issue to net $5 Million to bridge a funding gap for the fire station, arts
center and library. The proposed Memorandum of Understanding between the City and the
CDC memorializes the manner in which the bond proceeds will be used. The MOU was
approved by the CDC Board at its meeting of March 16, 2004.
The proposed resolution would authorize the Mayor to execute the MOU on behalf of the City.
( Environmental Review X N/A
Financial Statement
N/A
Approved By:
Finance Director
Account No.
STAFF RECOMMENDATION
Adopt resolution.
BOARD / COMMISSION RECOMMENDATION
N/A
ATTACHMENTS ( Listed Below )
Resolution
Memorandum of Understanding
Resolution No. 2,004- ,3
A -toe (9:99)
RESOLUTION NO. 2004 — 73
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO ENTER INTO
A MEMORANDUM OF UNDERSTANDING BY AND
BETWEEN THE CITY OF NATIONAL CITY AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
WHEREAS, the City needs an additional $5 Million in funding for the
construction of the fire station, public library and arts center projects and has no other
reasonable means to raise these additional funds; and
WHEREAS, the Community Development Commission ("CDC"), through
its tax increment bonding capacity, may issue bonds to provide funding for the above -
listed projects, and the CDC Board determined on December 16, 2003, to issue bonds
in the amount that would net $5 Million for the aforementioned purpose; and
WHEREAS, the $5 Million derived from the CDC's issuance of tax
allocation bonds will be used in the following manner:
® To reimburse the CDC for the $2,225,000 it will contribute from CDC cash
reserves to bridge the financing gap for the construction of the City new
fire station;
• To pay up to $1,575,000 for the construction of the new arts center
project, with any residual funding from the $5 Million bond issue being
allocated to the new public library project for the purchase of collections
and equipment.
NOW, THEREFORE, BE IT RESOLVED that the City Council determines
and finds as follows:
1. That the buildings, facilities, structures, or other improvements mentioned
herein, are of benefit to the redevelopment project area or the immediate
neighborhood in which the project is located.
2. That no other reasonable means of financing the buildings, facilities,
structures, or other improvements mentioned herein are available to the
community.
3. That the payment of funds for the acquisition of land or the cost of
buildings, facilities, structures, or other improvements mentioned herein
will assist in the elimination of one or more blighting conditions inside the
project area and is consistent with the implementation plan adopted
pursuant to Section 33490 of the California Health and Safety Code.
Resolution 2004 — 73
May 4, 2004
Page Two
BE IT FURTHER RESOLVED that the Mayor is hereby authorized to
execute a Memorandum of Understanding with the CDC to provide for the allocation of
$5 Million in proceeds from a CDC bond issue to provide funding for the new fire station,
arts center and public library.
PASSED and ADOPTED this 4th day of May, 2004.
ATTEST:
Midi el R. Clalla, ity Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
Passed and adopted by the Council of the City of National City, California, on May 4, 2004, by
the following vote, to -wit:
Ayes: Councilmembers Inzunza, Morrison, Parra, Ungab.
Nays: Councilmember Natividad.
Absent: None.
Abstain: None.
AUTHENTICATED BY:
NICK INZUNZA
Mayor of the City of National City, California
National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2004-73 of the City of National City, California, passed and adopted by the
Council of said City on May 4, 2004.
City Clerk of the City of National City, California
By:
Deputy