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HomeMy WebLinkAbout2011 CON Community Development Commission - Remittance FY 11-12REMITTANCE AGREEMENT PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34194.2 BY AND BETWEEN THE CITY OF NATIONAL CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY THIS REMITTANCE AGREEMENT (this "Agreement") is entered into this 2nd day of August, 2011, by and between the City of National City, a municipal corporation (the "City") and the Community Development Commission of the City of National City (the "CDC"), a public body, corporate and politic, with reference to the following facts: A. Assembly Bill No. xl 27 ("ABx1 27") was passed by the state legislature on June 15, 2011, and signed by the Governor on June 28, 2011. B. ABx1 27 is to be codified as Part 1.9 of the California Health and Safety Code, commencing with Section 34192 ("Part 1.9"). C. ABx1 27 establishes a voluntary alternative redevelopment program whereby the City may choose to continue redevelopment pursuant to Part 1.9, upon the enactment of an ordinance by the City to comply with the provisions of Part 1.9, and make certain remittances described in Heath and Safety Code section 34194 to the county auditor -controller. D. The City Council of the City of National City (the "City Council") has adopted or, concurrently with this Agreement, is adopting, an ordinance to comply with Part 1.9 (the "Ordinance"). E. Pursuant to the Ordinance, the City Council has committed to comply with and make the remittance required by Part 1.9, and has authorized the continuation of the CDC in accordance with the provisions of ABx1 27. F. Pursuant to section 34194.1, in making remittances to the county auditor - controller pursuant to section 34194 or 34194.5, the City may use any available funds not otherwise obligated for other uses. G. Pursuant to section 34194.2, the City may enter into an agreement with the CDC, whereby the CDC will transfer a portion of its tax increment to the City, in an amount not to exceed the annual remittance required that year pursuant to Chapter 3 of Part 1.9, for the purpose of financing activities within the redevelopment area that are related to accomplishing the CDC project goals. H. The purpose of this Agreement is to provide for the transfer of funds by the CDC to the City in an amount sufficient for the City to make the remittances required by Part 1.9, with net available tax increment in this current fiscal year and forthcoming fiscal years. I. The term "Net Available Tax Increment" is defined as any tax increment funds allocated to the CDC, net of existing debt service payments and existing third -party contractual obligations, not including any funds on deposit in the CDC's Low and Moderate Income Housing Fund. J. The obligations of the CDC under this Agreement shall constitute an indebtedness of the CDC for the purpose of carrying out the redevelopment plan for each of the CDC's redevelopment project areas. NOW, THEREFORE, the parties hereto do mutually agree as follows: I. INTRODUCTORY PROVISIONS The recitals above are an integral part of this Agreement and set forth the intentions of the parties and the premises on which the parties have decided to enter into this Agreement. II. OBLIGATIONS OF THE PARTIES 1. The CDC shall transfer to the City in a timely manner Net Tax Increment or other funds in an amount sufficient for the City to make the remittance payments required by Part 1.9. the amounts to be transferred to the City shall be sufficient for the City to pay the remittance amount determined by the State Director of Finance pursuant to Part 1.9, subject to the City's right to appeal the amount of remittance to the director pursuant to Part 1.9. 2. Subject to receipt of sufficient Net Tax Increment or other funds from the CDC, the City shall timely remit to the county auditor -controller the payments required by Part 1.9, as provided in the Ordinance. The City's obligation to make such remittances shall be a special limited obligation of the City payable solely from Net Available Tax Increment or any other funds made available to the City by the CDC, including but not limited to amounts previously or subsequently pledged to the City for payment of redevelopment expenses that remain unencumbered. Nothing contained in this Agreement shall be deemed to be a pledge of the City's general fund revenues or other assets to make the remittance payments contemplated by Part 1.9, it being understood that any remittance payments shall be funded solely from CDC funds and/or assets. 3. The obligations of the CDC under this Agreement shall be payable out of Net Available Tax Increment, as defined in the above recitals and/or as defined or provided August 2, 201 1 2 Remittance Agreement between City of National City and CDC for in any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, levied by or for the benefit of taxing agencies in the CDC's redevelopment project area(s), and allocated to the CDC and/or any lawful successor entity of the CDC and/or any entity established by law to carry out the redevelopment plan for the redevelopment project area(s) and/or expend tax increment or pay indebtedness of the CDC to be repaid with tax increment, pursuant to Health and Safety Code section 33670 or any applicable constitutional provision, statute, or other provision of law now existing or adopted in the future. In the event that additional funds are required in order to make the CDC payments to the City required by this Agreement, the CDC shall make such payments from income received by the CDC from its projects and programs or any other additional funds available to it. III. LIABILITY AND INDEMNIFICATION In contemplation of the provisions of California Government Code section 895.2 imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Government Code section 895, the parties hereto, as between themselves, pursuant to the authorization contained in Government Code sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents and employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Government Code section 895.2. To achieve the above -stated purpose, each party indemnifies, defends and holds harmless the other party for any liability, losses, costs or expenses that may be incurred by such other party solely by reason of Government Code section 895.2. IV. ENTIRE AGREEMENT, WAIVERS, AND AMENDMENTS 1. This Agreement shall be executed in duplicate originals, each of which is deemed an original. This Agreement consists of four (4) pages which constitute the entire understanding and agreement of the parties. 2. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to the subject matter of this Agreement. 3. This Agreement is intended solely for the benefit of the City and the CDC. Notwithstanding any reference in this Agreement to persons or entities other than the City and the CDC, there shall be no third party beneficiaries under this Agreement. 4. Any waiver or amendment of the provisions of this Agreement must be in writing and signed by the authorized representative of the parties. August 2, 2011 3 Remittance Agreement between City of National City and CDC V. SEVERABILTTY If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. VI. BINDING ON SUCCESSORS This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law. This Agreement shall survive any full or partial merger of the City and the CDC, and shall remain in effect and be fully enforceable according to its terms. IN WITNESS WHEREOF, the parties have executed this Remittance Agreement as of the date first set forth above. CITY OF NATIONAL CITY By: Ron Morrison, Mayor ATTEST: By: !t /L Michael R. Dal , City Clerk • By: 7 dia City Atto August 2, 2011 VED AS TO FORM: . Silva e COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY By: Ron Morrison, Chairman ATTEST. By: Brad R retary APPRO D AS TO FORM: By: Susan Y. .la, Esq. CDC Sp ial Counsel Kane Ballmer & Berkman 4 Remittance Agreement between City of National City and CDC RESOLUTION NO. 2011 — 177 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A REMITTANCE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 3414.2, WHICH REMITTANCE IS CURRENTLY ESTIMATED AT $4.8 MILLION FOR FISCAL YEAR 2011-2012 WHEREAS, Assembly Bill No. X1 27 ("ABx1 27") was passed by the State legislature on June 15, 2011, and signed by Governor Brown on June 28, 2011; and WHEREAS, upon enactment, ABx1 27 is to be codified as Part 1.9 of the California Health and Safety Code, commencing with Section 34192 ("Part 1.9"); and WHEREAS, ABx1 27 establishes a voluntary alternative redevelopment program whereby the City may choose to continue redevelopment pursuant to Part 1.9, upon the enactment of an ordinance by the City to comply with the provisions of Part 1.9, and make certain remittance described in Health and Safety Code Section 34194 to the County Auditor - Controller; and WHEREAS, the City Council is adopting an ordinance to comply with Part 1.9 (the "Ordinance") committing to comply with and make the remittances required by Part 1.9, and authorizing the continuation of the Community Development Commission of the City of National City ("CDC") after the enactment of ABx1 27; and WHEREAS, pursuant to Section 34194.1, in making remittances to the County Auditor -Controller pursuant to Section 34194 or 34194.5, the City may use any available funds not otherwise obligated for other uses; and WHEREAS, pursuant to Section 34194.2, the City may enter into a remittance agreement with the CDC, whereby the CDC will transfer a portion of its tax increment to the City, in an amount not to exceed the annual remittance required that year pursuant to Chapter 3 of Part 1.9, for the purpose of financing activities within the redevelopment area that are related to accomplishing the redevelopment agency project goals; and WHEREAS, the purpose of the Remittance Agreement is to provide for the transfer of funds by the CDC to the City in an amount sufficient for the City to make the remittances required by Part 1.9., with net available tax increment in this current fiscal year and forthcoming fiscal years; and WHEREAS, the term "Net Available Tax Increment" is defined as any tax increment funds allocated to the CDC, net of existing debt service payments and existing third - party contractual obligations, not including any funds on deposit in the CDC's Low and Moderate Income Housing Fund; and WHEREAS, the obligations of the CDC under this Remittance Agreement shall constitute an indebtedness of the CDC for the purpose of carrying out the redevelopment plan for each of the CDC's redevelopment project areas. Resolution No. 2011 — 177 Page Two NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute a Remittance Agreement between the City of National City and the Community Development Commission of the City of National City pursuant to California Health and Safety Code section 34194.2. PASSED and ADOPTED this 2nd day of August, 2011. n Morrison, Mayor ATTEST: •,�or�C if N QJ4 Mich el R. Dalla, y Clerk A":ROVED ATO FORM: CIa G. City Attorne Passed and adopted by the Council of the City of National City, California, on August 2, 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 City CI rk of the City of tional City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2011-177 of the City of National City, California, passed and adopted by the Council of said City on August 2, 2011. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT DATE: August 2, 2011 AGENDA ITEM NO. 16 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute a Remittance Agreement between the City of National City and the Community Development Commission of the City of National City, pursuant to California Health and Safety Code section 34194.2, which remittance is currently estimated at $4.8 Million for Fiscal Year 2011-2012 PREPARED BY: Claudia G. Silva PHONE: Ext. 4222 EXPLANATION: DEPARTMENT: C y,Attorney APPROVED BY: ABx1 27 provides that an agency may continue to operate as a redevelopment agency if the hosting city agrees to make annual remittances to the state. ABx1 27 allows the city and agency to enter into a remittance agreement whereby the agency agrees to transfer a portion of its tax increment to the city, in an amount not to exceed the annual remittance required that year. Attached is the remittance agreement between the City and the CDC, consistent with what ABx1 27 allows. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt resolution. BOARD / COMMISSION RECOMMENDATION: N/A rTACHMENTS: rcemittance Agreement Resolution RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A REMITTANCE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 3414.2, WHICH REMITTANCE IS CURRENTLY ESTIMATED AT $4.8 MILLION FOR FISCAL YEAR 2011-2012 WHEREAS, Assembly Bill No. X1 27 ("ABx1 27") was passed by the State legislature on June 15, 2011, and signed by Governor Brown on June 28, 2011; and WHEREAS, upon enactment, ABx1 27 is to be codified as Part 1.9 of the California Health and Safety Code, commencing with Section 34192 ("Part 1.9"); and WHEREAS, ABx1 27 establishes a voluntary alternative redevelopment program whereby the City may choose to continue redevelopment pursuant to Part 1.9, upon the enactment of an ordinance by the City to comply with the provisions of Part 1.9, and make certain remittance described in Health and Safety Code Section 34194 to the County Auditor - Controller; and WHEREAS, the City Council is adopting an ordinance to comply with Part 1.9 (the "Ordinance") committing to comply with and make the remittances required by Part 1.9, and authorizing the continuation of the Community Development Commission of the City of National City ("CDC") after the enactment of ABx1 27; and WHEREAS, pursuant to Section 34194.1, in making remittances to the County Auditor -Controller pursuant to Section 34194 or 34194.5, the City may use any available funds not otherwise obligated for other uses; and WHEREAS, pursuant to Section 34194.2, the City may enter into a remittance agreement with the CDC, whereby the CDC will transfer a portion of its tax increment to the City, in an amount not to exceed the annual remittance required that year pursuant to Chapter 3 of Part 1.9, for the purpose of financing activities within the redevelopment area that are related to accomplishing the redevelopment agency project goals; and WHEREAS, the purpose of the Remittance Agreement is to provide for the transfer of funds by the CDC to the City in an amount sufficient for the City to make the remittances required by Part 1.9., with net available tax increment in this current fiscal year and forthcoming fiscal years; and WHEREAS, the term "Net Available Tax Increment" is defined as any tax increment funds allocated to the CDC, net of existing debt service payments and existing third - party contractual obligations, not including any funds on deposit in the CDC's Low and Moderate Income Housing Fund; and WHEREAS, the obligations of the CDC under this Remittance Agreement shall constitute an indebtedness of the CDC for the purpose of carrying out the redevelopment plan for each of the CDC's redevelopment project areas. Resolution No. 2011 — Page Two NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute a Remittance Agreement between the City of National City and the Community Development Commission of the City of National City pursuant to California Health and Safety Code section 34194.2. PASSED and ADOPTED this 2nd day of August, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney REMITTANCE AGREEMENT PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34194.2 BY AND BETWEEN THE CITY OF NATIONAL CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY THIS REMITTANCE AGREEMENT (this "Agreement") is entered into this 2nd day of August, 2011, by and between the City of National City, a municipal corporation (the "City") and the Community Development Commission of the City of National City (the "CDC"), a public body, corporate and politic, with reference to the following facts: A. Assembly Bill No. xl 27 ("ABx1 27") was passed by the state legislature on June 15, 2011, and signed by the Governor on June 28, 2011. B. ABx1 27 is to be codified as Part 1.9 of the California Health and Safety Code, commencing with Section 34192 ("Part 1.9"). C. ABx 1 27 establishes a voluntary alternative redevelopment program whereby the City may choose to continue redevelopment pursuant to Part 1.9, upon the enactment of an ordinance by the City to comply with the provisions of Part 1.9, and make certain remittances described in Heath and Safety Code section 34194 to the county auditor -controller. D. The City Council of the City of National City (the "City Council") has adopted or, concurrently with this Agreement, is adopting, an ordinance to comply with Part 1.9 (the "Ordinance"). E. Pursuant to the Ordinance, the City Council has committed to comply with and make the remittance required by Part 1.9, and has authorized the continuation of the CDC in accordance with the provisions of ABx1 27. F. Pursuant to section 34194.1, in making remittances to the county auditor - controller pursuant to section 34194 or 34194.5, the City may use any available funds not otherwise obligated for other uses. G. Pursuant to section 34194.2, the City may enter into an agreement with the CDC, whereby the CDC will transfer a portion of its tax increment to the City, in an amount not to exceed the annual remittance required that year pursuant to Chapter 3 of Part 1.9, for the purpose of financing activities within the redevelopment area that are related to accomplishing the CDC project goals. H. The purpose of this Agreement is to provide for the transfer of funds by the CDC to the City in an amount sufficient for the City to make the remittances required by Part 1.9, with net available tax increment in this current fiscal year and forthcoming fiscal years. I. The term "Net Available Tax Increment" is defined as any tax increment funds allocated to the CDC, net of existing debt service payments and existing third -party contractual obligations, not including any funds on deposit in the CDC's Low and Moderate Income Housing Fund. J. The obligations of the CDC under this Agreement shall constitute an indebtedness of the CDC for the purpose of carrying out the redevelopment plan for each of the CDC's redevelopment project areas. NQW, THEREFORE, the parties hereto do mutually agree as follows: I. INTRODUCTORY PROVISIONS The recitals above are an integral part of this Agreement and set forth the intentions of the parties and the premises on which the parties have decided to enter into this Agreement. II. OBLIGATIONS OF THE PARTIES 1. The CDC shall transfer to the City in a timely manner Net Tax Increment or other funds in an amount sufficient for the City to make the remittance payments required by Part 1.9. the amounts to be transferred to the City shall be sufficient for the City to pay the remittance amount determined by the State Director of Finance pursuant to Part 1.9, subject to the City's right to appeal the amount of remittance to the director pursuant to Part 1.9. 2. Subject to receipt of sufficient Net Tax Increment or other funds from the CDC, the City shall timely remit to the county auditor -controller the payments required by Part 1.9, as provided in the Ordinance. The City's obligation to make such remittances shall be a special limited obligation of the City payable solely from Net Available Tax Increment or any other funds made available to the City by the CDC, including but not limited to amounts previously or subsequently pledged to the City for payment of redevelopment expenses that remain unencumbered. Nothing contained in this Agreement shall be deemed to be a pledge of the City's general fund revenues or other assets to make the remittance payments contemplated by Part 1.9, it being understood that any remittance payments shall be funded solely from CDC funds and/or assets. 3. The obligations of the CDC under this Agreement shall be payable out of Net Available Tax Increment, as defined in the above recitals and/or as defined or provided August 2, 2011 2 Remittance Agreement between City of National City and CDC for in any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, levied by or for the benefit of taxing agencies in the CDC's redevelopment project area(s), and allocated to the CDC and/or any lawful successor entity of the CDC and/or any entity established by law to carry out the redevelopment plan for the redevelopment project area(s) and/or expend tax increment or pay indebtedness of the CDC to be repaid with tax increment, pursuant to Health and Safety Code section 33670 or any applicable constitutional provision, statute, or other provision of law now existing or adopted in the future. In the event that additional funds are required in order to make the CDC payments to the City required by this Agreement, the CDC shall make such payments from income received by the CDC from its projects and programs or any other additional funds available to it. III. LIABILITY AND INDEMNIFICATION In contemplation of the provisions of California Government Code section 895.2 imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Government Code section 895, the parties hereto, as between themselves, pursuant to the authorization contained in Government Code sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents and employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Government Code section 895.2. To achieve the above -stated purpose, each party indemnifies, defends and holds harmless the other party for any liability, losses, costs or expenses that may be incurred by such other party solely by reason of Government Code section 895.2. IV. ENTIRE AGREEMENT, WAIVERS, AND AMENDMENTS 1. This Agreement shall be executed in duplicate originals, each of which is deemed an original. This Agreement consists of four (4) pages which constitute the entire understanding and agreement of the parties. 2. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to the subject matter of this Agreement. 3. This Agreement is intended solely for the benefit of the City and the CDC. Notwithstanding any reference in this Agreement to persons or entities other than the City and the CDC, there shall be no third party beneficiaries under this Agreement. 4. Any waiver or amendment of the provisions of this Agreement must be in writing and signed by the authorized representative of the parties. August 2, 2011 3 Remittance Agreement between City of National City and CDC V. SEVERABILITY If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. VI. BINDING ON SUCCESSORS This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law. This Agreement shall survive any full or partial merger of the City and the CDC, and shall remain in effect and be fully enforceable according to its terms. IN WITNESS WHEREOF, the parties have executed this Remittance Agreement as of the date first set forth above. CITY OF NATIONAL CITY COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY By: By: Ron Morrison, Mayor Ron Morrison, Chairman ATTEST: ATTEST: By: By: Michael R. Dalla, City Clerk Brad Raulston, Secretary APPROVED AS TO FORM: APPROVED AS TO FORM: By: By: Claudia G. Silva Susan Y. Cola, Esq. City Attorney CDC Special Counsel Kane Ballmer & Berkman August 2, 2011 4 Remittance Agreement between City of National City and CDC