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Home My WebLink About2011 CON Community Development Commission - Administrative Costs, FY 2012-2052REIMBURSEMENT AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY This REIMBURSEMENT AGREEMENT ("Agreement") is effective as of February 15, 2011, by and between the CITY OF NATIONAL CITY ("City") and the COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY, a public body corporate and politic, duly organized and existing under the laws of the State of California ("CDC") pertaining to the City's advancement of the CDC's annual Administrative Costs incurred by the CDC in the fulfillment, generally, of the CDC's duties under the California Community Redevelopment Law (Health and Safety Code section 33000 et seq.) ("CRL"). RECITALS A. WHEREAS, Chapter 6, Article 1 of the CRL authorizes the CDC to accept financial assistance from any public agency, including but not limited to the City, to assist the CDC in the fulfillment, generally, of the CDC's duties under the CRL; and B. WHEREAS, since the inception of the CDC, the City has been advancing, the City is currently advancing, and the City desires to advance in the future the CDC's annual Administrative Costs to CDC at the beginning of each Fiscal Year in accordance with this Agreement; and C. WHEREAS, in consideration for the City's advancement of the CDC's annual Administrative Costs, the CDC desires to reimburse the City in accordance with this Agreement, beginning from Fiscal Year 2011 and ending July 17, 2052; NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, and for other valuable consideration, the receipt of which is hereby acknowledged, the CDC and City hereby agree, as follows: DEFINITIONS "Administrative Costs" means all reasonable amounts needed to pay for the CDC's overhead, payroll and benefits, insurance, supplies, telephone, copying, fixtures, furniture, equipment, legal accounting, and other professional fees and costs, and other reasonable customary, and lawful administrative expense of the CDC during any Fiscal Year in which the CDC services were provided. "Available Junior Tax Revenues" means all Tax Revenues received in any Fiscal Year less the following amounts: (1) amounts due and payable with respect to tax -sharing agreements with other jurisdictions entered into by the CDC; (2) amounts due and payable, as required by applicable laws or statutes; (3) amounts owing under owner participation agreements, disposition and development agreements or similar agreements entered into in accordance with the CDC's duties under the CRL; (4) amounts needed to pay debt service, create or replenish reserves, or otherwise required to be paid with respect to bonds issued or other obligations refunding such 1 bonds, in accordance with the CRL, (5) Tax Revenues required to be set aside for low and moderate income housing pursuant to Sections 33334.2, 33334.3 and 33334.6, et seq., of the CRL, including but not limited to proceeds of bonds; and (6) any other obligations secured by a pledge of Tax Revenues in furtherance of the CDC's obligations under the CRL. "Fiscal Year" means any twelve (12) month period beginning on July 1st and ending on the following June 30th. "Tax Revenues" means all taxes annually allocated to the CDC pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the CRL and Section 16 of Article XVI of the Constitution of the State. TERMS AND CONDITIONS 1. Recitals and Definitions. The Recitals and Definitions, above, are adopted as true and incorporated herein by this reference. 2. Administrative Costs. The CDC's annual Administrative Costs shall be separately identified in the CDC's Annual Budget for each Fiscal Year until termination of this Agreement. 3. City Advancement. On or before July 1st of each Fiscal Year, the City shall advance the CDC's annual Administrative Costs up to an amount not to exceed FIVE MILLION FOUR HUNDRED FORTY TWO THOUSAND EIGHT HUNDRED TWENTY SEVEN DOLLARS AND FOURTEEN CENTS ($5,442,827,14) to the CDC in the exact amounts identified in the CDC's Annual Budget, as adopted by the CDC and City Council for each respective Fiscal Year ("City's Advancement"), beginning from Fiscal Year 2012 and ending on July 17, 2052. 4. CDC Reimbursement. On or before June 30th of each Fiscal Year ("Reimbursement Payment Date") in which the City's Advancement has been made, the CDC shall reimburse the entire amount of the City's Advancement for that Fiscal Year ("Reimbursement Payment"); provided, however, that the CDC shall have the sole and exclusive right to pledge any Available Junior Tax Revenues to the repayment of other indebtedness incurred by the CDC in carrying out the CDC's duties under the CRL. 5. Interest. Any Reimbursement Payment made to the City after the Reimbursement Payment Date applicable to that Reimbursement Payment shall accrue interest compounded annually at the average portfolio earnings rate of the City of National City from the Local CDC Invest Fund (LAIF), on June 30th of each Fiscal Year until paid in full ("Interest"). Reimbursement Payments made to the City pursuant to the terms of this Agreement shall be applied first to the payment of any Interest accrued hereunder, then to reduce the principal balance due. 6. Reimbursement as Indebtedness. The obligations of the CDC under this Agreement to reimburse the City's Advancement shall constitute an indebtedness of the CDC within the meaning of Section 33670 et seq. of the CRL. 2 7. Termination of Services and Reimbursement Obligation. City's obligation to advance the CDC's annual Administrative Costs and the CDC's obligation to make any Reimbursement Payment shall terminate on July 17, 2052. The total Reimbursement Payment for such Fiscal Year through July 17, 2052 shall be immediately due and owing prior to termination. 8. No Pledge of Tax Revenues. Nothing herein shall be interpreted or construed as a pledge of Tax Revenues to secure payment of any Reimbursement Payment or accrued Interest. The CDC may, in its sole and absolute discretion, use any lawful source of revenue to make any Reimbursement Payment and/or accrued Interest in accordance with this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. ATTEST: CITY OF NATIONAL CITY Ron Morrison Mayon Mik- Dal1a, C 'y Clerk APPROVED AS TO FORM AND LEGALITY City Attorney B tua Silva SIGNATURES CONTINUED ON NEXT PAGE SPACE INTENTIONALLY LEFT BLANK 3 Dated: /MOW � 201) ATTEST: Brad Rauuston, Secretary APPROVED AS TO FORM AND LEGALITY CD 1 General Counsel By: audia Gal a Silva KANE, BALLMER & BERKMAN CDC Spe 'al Counsel Susan Y. Col COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY By: 4 Ron Morrison Chairman RESOLUTION NO. 2011 — 37 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A REIMBURSEMENT AGREEMENT BY AND BETWEEN CITY OF NATIONAL CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY WHEREAS, Chapter 6, Article 1 of Section 33220 of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) (the "CRL") authorizes the Community Development Commission of the City of National City ("CDC") to accept financial assistance from any public agency, including but not limited to the City, to assist the CDC in the fulfillment, generally, of the CDC's duties under the CRL; and WHEREAS, since the inception of the CDC, the City has been advancing, is currently advancing, and desires to continue advancing in the future, the CDC's annual Administrative Costs to the CDC at the beginning of each Fiscal Year in accordance with this Agreement; and WHEREAS, in consideration for the City's advancement of the CDC's annual Administrative Costs, the CDC desires to reimburse the City in accordance with this Agreement, beginning in Fiscal Year 2012 and ending July 17, 2052; and WHEREAS, the CDC reimbursement to the City, for the City advances, shall not exceed $5,442,827.14 annually, as set forth in the Agreement. NOW, THEREFORE, BE IT RESOLVED that the City of National City hereby authorizes the Mayor to execute a Reimbursement Agreement by and between the City of National City and the Community Development Commission of the City of National City for reimbursement by the CDC to the City for administrative costs beginning in Fiscal Year 2012 and ending July 17, 2052. Said Reimbursement Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 15th day of February, 2011. on Morrison, Mayor ATTEST: Mi hael R. DaII4City Clerk APPROVED AS TO FORM: CI City Attorney Passed and adopted by the Council of the City of National City, California, on February 15, 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 �. �dG�f�w City Clerk 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. 2011-37 of the City of National City, Califomia, passed and adopted by the Council of said City on February 15, 2011. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA CITY COUNCIL AGENDA STATEMENT oea o‘‘-'l METING DATE: February 15, 2011 AGENDA ITEM NO.* ITEM TITLE: resolution of the City Council of the City of National City authorizing the Mayorto execute a Reimbursement Agreement by and between the City of National City and the Community Development Commission of the City of National City . (Tax Increment Fund and Low -Mod Housing Fund). PREPARED BY: Patricia Beard PHONE: 4255 DEPARTMENT: APPROVED BY: EXPLANATION: In order to provide the City reimbursement for its administrative expenses incurred in administering the Redevelopment Plan for the National City Redevelopment Project areas, staff proposes the attached Reimbursement Agreement. The Agreement would cover all expenses incurred at Fiscal Year 2011 levels throughout the longest expected time of the Redevelopment Project's ability to collect Tax Increment (2052). Attachment 1 to this staff report details the expenses to be reimbursed., FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: Finance This Agreement would reimburse the City not to exceed $5,442,827.14 annually for staff charges incurred in implementing the Redevelopment Plan. These payments would be made after all other CDC obligations, such as pass through payments to other taxing entities, have been made by June 30 of each fiscal year until 2052. ENVIRONMENTAL REVIEW: Not applicable, ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: rTACHMENTS: Attachment 1 — Staff charges to implement the Redevelopment Plan for the National 1 City Redevelopment Project areas (taken from actual expenses for Fiscal Year 2010). Reso�v��O moo. a.o\\ 7)