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HomeMy WebLinkAboutCounty of Mendocino 1989-12-29BOS 89-265 AGREEMENT BETWEEN THE UKIAH REDEVELOPMENT AGENCY, THE CITY OF UKIAH AND THE COUNTY OF MENDOCINO PURSUANT TO HEALTH 0 SAFETY CODE SECTION 33401 ply THIS AGREEMENT (the "Agreement") is made and entered into this 29th day of December , 1989, by and among the UKIAH REDEVELOPMENT AGENCY (the "Agency"), the CITY OF UKIAH (the "City") and the COUNTY OF MENDOCINO (the "County"). Recitals A. The City Council of the City adopted and approved a Redevelopment Plan (the "Redevelopment Plan") for the Ukiah Redevelopment Project (the "Project") by Ordinance No. 895 on November 15, 1989. B. Pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the Agency is charged with the responsibility of carrying out the Redevelopment Plan for the Project. C. The County is a taxing agency with territory located within the boundaries of the Project (the "Project Areal. D. Pursuant to Article XVI, Section 16, of the California Constitution, Section 33670 et seg. of the Health and Safety Code and the Redevelopment Plan, increases in the assessed values of the property within the Project Area above the sum of the assessed values as shown on the 1989-90 assessment roll (the "Base Year Roll") will result in that portion of property taxes levied each year on such increases in assessed values being paid to the Agency as tax increments (the "Total Tax Increments") to pay the principal of and interest on loans, monies advanced to or indebtedness incurred by the Agency to finance or refinance, in whole or in part, redevelopment in accordance with the Redevelopment Plan. E. Section 33401 of the Health and Safety Code allows a redevelopment agency to make any payments necessary to alleviate any financial burden or detriment caused -to any affected taxing agency by a redevelopment project. F. The Agency has determined that because of the loss in property taxes the County could incur due to the Project, certain actions as set forth below are UKI/CoTIAgmt/CDC 12/19/89 necessary to alleviate the burden and detriment or potential burden and detriment to the Countv. G. The Agency and County desire to enter into this Agreement to authorize the payment by the Agency to the County of a portion of the Agency's Tax Increments as set forth below which the Agency has determined would be necessary to alleviate the financial burden or detriment or potential burden or detriment to the County. H. The County proposes to develop and construct a County Administration Complex within the Downtown Portion of the Project Area. It is the policy of the Agency and the City to encourage and assist the County in the development of the County Administration Complex in the Downtown Portion of the Project Area because the revitalization of the Project Area depends upon the retention of and expansion of office. facilities and employment opportunities within the Project Area. Therefore, the Agency and the City wish to assist the County in the development of the County Administration Complex by providing land, parking, landscaping and the interim use of existing City facilities in accordance with the provisions of this Agreement. Agreements THE AGENCY, THE CITY AND THE COUNTY HEREBY AGREE AS FOLLOWS: Section 1. Definitions. As used herein: a. "Agency Tax Increments" means taxes allocated to and received by the Agency from the Project Area pursuant to Health and Safety Code Section 33670(b) of the Community Redevelopment Law and Article XVI, Section 16 of the California Constitution, less amounts to be paid by the Agency to the County pursuant to Section 2.e. of this Agreement. b. "Community Redevelopment Law" means the California Community. Redevelopment Law as set forth in California Health and Safety Code Section 33000 et sec UKI/CoTIAgmt/CDC 2 12/19/89 C. "County's Share" means, the proportionate percentage share of Tax Increments in a Fiscal Year that the County General Fund would have received as property taxes from the Project Area if there were no provision in the Redevelopment Plan for the allocation of Tax Increments to the Agency. d. "County Administration Complex" means the principal administrative offices of the County of Mendocino which shall include office space of at least 55,000 square feet. e. "Downtown Portion of the Project Area" means the land area within the Project Area bounded by Oak Street, Mill Street and Mill Street Extension, the railroad tracks and Norton Street and Norton Street Extension. f. "Final EIR" means the Draft Environmental Impact Report on the Redevelopment Plan for the Ukiah Redevelopment Project and the comments and responses thereto. g. "Fiscal Year" means the fiscal year first commencing July 1,1990, and each Fiscal Year commencing July 1 thereafter in which Tax Increments are allocated to the Agency pursuant to the Community Redevelopment Law and the Redevelopment Plan. For purposes of this Agreement, the Fiscal Year beginning July 1, 1990, constitutes "Fiscal Year 1" and each succeeding Fiscal Year is consecutively numbered thereafter, with the final Fiscal Year ("Fiscal Year 40") constituting the Fiscal Year commencing July 1, 2029. h. "Mervyn's Parcel" means Assessor's Parcel Nos 1-)9-~L V -cIq r_,,,::V' within the Project Area upon which Dayton Hudson Company, Inc., or Its af~ilate, proposes to construct a Mervyn's Department store or similar general retail facility. i. "Ordinance" means Ordinance No. 895 adopted by the City Council on November 15,1989, approving and adopting the Redevelopment Plan. j. "Project" means the Ukiah Redevelopment Project. k. "Project Area" means the land area within the boundaries of the Ukiah Redevelopment Project as shown and described in the Redevelopment Plan. 1. "Redevelopment Plan" means the Redevelopment Plan for the Ukiah Redevelopment Project. UKI/CoTlAgmt/CDC 3 12/19/89 Section 2. Subject to the conditions and limitations set forth in .Sections 3 and 4 of this Agreement, the Agency agrees to pass through to the County the following amounts: a. From Fiscal Year 11 through 20 of the Project, forty percent (40%) of the amount of the County's Share of the.Agency Tax Increments which are payable to the Agency during each year of the Project, provided that if the Mervyn's Parcel is developed as described in subsection d. below, the Agency shall pass through to the County the amount described in subsection d. for the Mervyn's Parcel. b. From Fiscal Year 21 through 30 of the Project, sixty percent (60%) of the amount of the County's Share of the Agency Tax Increments which are payable to the Agency during each year of the Project. C. From Fiscal Year 31 through 40 of the Project, one hundred percent (100%) of the amount of the County's Share of the Agency Tax Increments which are payable to the Agency during each year of the Project. d. From Fiscal Year 1 through 20 of the Project, sixty percent (60%) of the amount of the County's Share of the Agency Tax Increments which are generated by development of the Mervyn's Parcel by Dayton Hudson Company, Inc., of a Mervyn's department store or similar general retail facility for which construction commences by Dayton Hudson Company, Inc., or its affiliate, within three (3) years of the date of execution of this Agreement, unless the Agency, pursuant to a development agreement with Dayton Hudson Company, Inc., agrees to give financial assistance which exceeds one-half of the tax increment generated from the Mervyn's Parcel, in which case the provisions of this subsection d. shall have no effect. e. The Agency also agrees to pass through to the County the following amounts: (1) From Fiscal Year 1 through 40, one hundred percent (100%0) of the monies received by the Agency. that are attributable to increases in the rate of tax imposed for the benefit of the County, which levy occurs after the tax year in which-the Ordinance becomes effective; and UKI/CoTlAgmt/CDC 4 12/19/89 (2) From Fiscal Year 7 through 40; one hundred percent 000`0 of the monies received by the Agency that are attributable to increases in the assessed value of the taxable property in the Project Area above the sum of the Base Year Roll which are, or otherwise would be calculated and paid annually to the County pursuant to subdivision (t) of Section 110.1 of the Revenue and Taxation Code. By the provisions of this subsection e., it is the intention of the parties that the County be paid by the Agency amounts that the County would have received during Fiscal Year 1 through 40 for the payments under subparagraph (1) of this subsection e. and during Fiscal Year 7 through 40 for the payments under subparagraph (2) of this subsection e., had the County made the election permitted by Health and Safety Code Section 33676. Section 3. Notwithstanding the provisions of Section 2 of this Agreement, the Agency agrees to pass through to the County one hundred percent (1000) of the amount of the County's Share of the Total Tax Increments which are payable to the Agency following receipt by the Agency of Total Tax Increments derived from the County's Share (exclusive of amounts passed through to the County pursuant to the provisions of Section 2 above) in the cumulative amount of TWENTY MILLION SIX HUNDRED THOUSAND DOLLARS ($20,600,000), unless this amount is reduced according to the provisions in the third paragraph of Section 7. Section 4. In no event.shall payments be made to the County by the Agency: a. Which would exceed the amount, annually, that the County would have otherwise received from property taxes from the Project Area had the Project not been adopted; or b. For purposes other than those specified in Section 33401 of the Community Redevelopment Law or in violation of any other provision of the Community Redevelopment Law or the laws of the State of California. Section 5. For administrative convenience, the Agency and the County hereby request and direct the County Auditor-Controller to pay directly to the County the pass-through payments to which it is entitled under Sections 2 and 3 of UKI/CoTlAgmt/CDC 5 12/19/89 this Agreement. Such arrangement is for administrative convenience only and shall in no way be construed to affect the character of the payments made to the County under this Agreement as payments ,made pursuant to Health and Safety Code Section 33401. The County Auditor-Controller is hereby directed to send to the Agency each year a report which includes the supporting information and calculations used to determine the amounts paid to the County pursuant to this Agreement. Section 6. Pursuant to Section 33334.2 of the Community Redevelopment Law, the Agency must set aside twenty percent (20%) of its Total Tax Increments for low- and moderate-income housing (the "Housing Funds"). Each year the Agency receives its Total Tax Increments and until such time as the Total Tax Increments the Agency receives from the County's Share equals $20,600,000 as set forth in Section 3, the Agency agrees to set aside and make available to the County, at the County's election to be made annually, twenty-five percent (25%) of its Housing Funds for low- and moderate-income housing programs within the City of Ukiah which in the Agency's reasonable determination comply with the requirements of Section 33334.2 and all other provisions of the Community Redevelopment Law. Section 7. County Administration Complex. In order to assist the County with the development of the County Administration Complex, the Agency agrees to perform the.obligations contained in this Section 7. However, the County and the Agency agree that in accordance with the provisions of this Section 7, certain of these Agency obligations are conditioned upon the County adopting a basic concept plan and additional obligations are conditioned upon the financing and construction of the County Administration Complex. . Within one (1) month after approval of this Agreement by the Agency, the Agency and the County shall jointly retain an M.A.I. appraiser to determine the fair market value of property which is within the Downtown Portion of the Project Area, the identity of which has been agreed to by the Agency and the County and which does not exceed 90,000 square feet. The appraiser shall be agreed upon by the Agency and the County and the costs of the appraisal(s) shall be shared equally. Upon the receipt of the appraisal(s), the total value of the UKt/CoTlAgmt/CDC 6 12119/89 property appraised shall be determined and shall hereinafter be referred to as the "Reimbursement Amount." Within eighteen (18) months after approval of this Agreement by the Agency, the County Board of Supervisors shall adopt a basic concept plan for the Countv Administration Complex, which shall include the location of the County Administration Complex, architectural concept plans of the structure(s), the location of parking and circulation, and a feasible financing plan. If the County does not adopt a basic concept plan within this time period or if in the adopted basic concept plan the County Administration Complex is not located within the Dow. ntown Portion of the Project Area, the Agency shall have no further responsibilities pursuant to the provisions of this Section 7; however, the amount in Section 3 shall be reduced to $17,800,000. If the adopted basic concept plan is adopted within eighteen (18) months and the County Administration Complex is located within the Downtown Portion of the Project Area, the Agency and the County shall enter into one or more separate agreements based upon the following terms: a. If the site for the County Administration Complex shown in the basic concept plan includes Parcels 002-192-14, 002-192-02, 002-192-03 and 002-19211 (the "Old Police Station"), in accordance with the terms of this Agreement, the Agency agrees to sell the Old Police Station to the County for a purchase price of One Dollar ($1.00). The Old Police Station shall not be acquired by the Agency to implement this Agreement until the Agency, pursuant to this Section 7, either acquires the Acquisition Property or reimburses the County, whichever occurs first. b. If the site for the County Administration Complex shown in the basic concept plan includes portions of Smith and Standley Streets between Main and Mason Streets, in accordance with the terms of this Agreement, the Agency agrees to cause the City to vacate those portions of the two streets and transfer those portions to the County. C. In addition to the Agency's obligations under subsections a. and b. above, the Agency shall assist in the acquisition of up to 90,000 square feet of land designated by the County in the approved basic concept plan (the UKI/CoTIAgmt/CDC 7 12/19/89 "Acquisition Property") in the manner set forth in subsection d. below. Hereinafter, the Old Police Station, the portions of Smith and Standlev Streets described in subsection b. above and the Acquisition Property to be transferred pursuant to this subsection c. and subsection d., shall be collectively referred to as the "Sales Property". d. (1) If the basic concept plan is adopted and the financing plan approved by the County within twelve (12) months from the approval of this Agreement by the Agency, the Agency shall use its best efforts to acquire the Acquisition Property and cause relocation of all occupants and upon such acquisition and relocation, the Agency shall sell the Acquisition Property to the County for a purchase price of One Dollar ($1.00). In the event the Agency is unable to acquire the Acquisition Property, both parties agree to meet and use best faith efforts to determine alternative ways of providing the County with the Acquisition Property, or its equivalent . (2) If the basic concept plan is adopted and the financing plan approved by the County after twelve (12) months but within eighteen (18) months from the approval of this Agreement by the Agency, the Agency shall determine, within forty-five (45) days after approval of the basic concept plan by the County, whether to use its best efforts to acquire the Acquisition Property or whether to reimburse the County. (a) If the Agency determines to use its best efforts to acquire the Acquisition Property, the Agency shall sell the Acquisition Property to the County for a purchase price which is equal to the difference between the amount for which the Agency acquired the property and the Reimbursement Amount; (b) If the Agency determines to reimburse the County, the Agency shall reimburse the County the Reimbursement Amount. e. If the Agency is required to use its best efforts to acquire the Acquisition Property, pursuant to Section d.(1), or determines to use its best efforts to acquire the Acquisition Property, pursuant to Section d.(2)(a), the Agency shall commence acquisition of the land within thirty (30) days after the Agency has approved evidence submitted by the County that the County has obtained UKI/CoTlAgmt/CDC 8 12/19/89 financing for the construction of the County Administration Complex -or has a feasible financing plan and shall use its best efforts to transfer the property free of occupants within eighteen (18) months from commencement of acquisition. f. The Agency shall transfer the Sales Property to the County only after: (1) final construction drawings for the County Administration Complex have been approved; (2) the County has obtained final construction and long term financing for the construction of the County Administration Complex; and (3) the County has entered into a construction contract. g. The Sales Property transferred will be cleared of all structures above the surface and will be rough graded; however, the Agency will not be responsible for the clearing, removal of utilities or any subsurface objects and the County shall be liable for the costs of any toxic waste removals. h. All Sales Property transferred to the County shall only be used for the construction of a. County Administration Complex and the documents transferring the Sales Property shall contain provisions requiring that the Sales Property shall revert to the Agency, if not used for these purposes within certain specified periods of time. L The County shall provide the number of parking spaces required by City Code for the construction and operation of the County Administration Complex. The Agency agrees to cause the City to lease for one dollar ($1.00) per year or otherwise make available to the County a number of parking spaces, but not to exceed 50, for the public use of the County Administration Complex and the Courthouse. The Agency shall determine the location of the parking spaces after consultation with the County;. however, the location shall be reasonably convenient to the County Administration Complex or the Court House. The County shall maintain the parking spaces, provide adequate insurance, and agree to hold the Agency and the City harmless from any and all claims brought against the Agency or the City with regard to the County's use of the parking spaces. The City shall be required to make the parking spaces available upon the completion of construction of the County Administration Complex. UK]/CoTIAgmt/CDC 9 12/19/89 j. The Agency will provide or cause to be provided landscaping adjacent to the County Administration Complex and in the public rights of way adjoining the County Administration Complex. The landscaping to be provided by the Agency shall implement a landscaping plan approved by both the Agency and the County. The landscaping shall be of high quality, but shall not be more expensive than landscaping normally found around new public buildings in the City. The County shall be responsible for maintaining the landscaping. The Agency shall.be required to provide the landscaping according to a construction schedule agreed upon by the Agency and the County and which is based upon the construction of the County Administration Complex. Section 8. The City shall designate nine (9) parking spaces on the east side of School Street adjacent to the existing County Courthouse for the exclusive use by the County. The City shall make these spaces available to the County upon the completion of any required administrative or legal actions. The County shall provide adequate insurance and agree to hold the Agency and the City harmless from any and all claims brought against the Agency or the City with regard to the County's use of these nine (9) parking spaces. Section 9. Upon the request of the County, the City shall lease to the County, on an annual basis for a payment of One Dollar ($1.00) a year, the Old Police Station for use by the County as office space for county employees. At the option of the County, the City shall lease the Old Police Station to the County within thirty (30) days after the request by the County, and until the Old Police Station is transferred to the County pursuant to Section 7.a., or if the Old Police Station is not to be transferred to the County, until the completion of the construction of the County Administration Complex, but in no event shall the City's obligation to lease exceed five years from the effective date of this Agreement. The lease shall require the County to maintain the Old Police Station, provide adequate insurance and hold the City and the Agency harmless from any and all claims arising from the County's use and occupancy of the Old Police Station. Section 10. - The Agency, the City and the County agree to discuss and consider modifications of this Agreement in order to accomplish the mutual UKI/CoTIAgmt/CDC 10 12/19/89 objective of development and construction of the County Administration Complex within the Downtown Portion of the Project Area. Section 11. The County agrees to authorize the Agency to subordinate its interest herein and to allow the Agency to pledge all or any portion of the Tax Inccrements otherwise payable to the County under this Agreement in order to secure the repayment of Agency indebtedness incurred for the Project (other than Agency indebtedness to the City or other entities controlled by the City); provided the Agency demonstrates, to the reasonable satisfaction of the County; its ability to make payments due to the County under the terms of this Agreement and to meet its obligations under Section 7 of this Agreement. Nothing in this Agreement shall give the County the right to approve Agency indebtedness, except as the Agency may request the County to subordinate its rights to payments under this Agreement. Section 12. This Agreement shall constitute an indebtedness of the Agency incurred in carrying out the Project and a pledging of Tax Increments from the Project to repay such indebtedness under the provisions of Article XVI, Section 16, of the California Constitution and Sections 33670-33677 of the Health and Safety Code. Section 13. It is the intent of the Agency to take all reasonable actions, including the adoption of its budget, to assure that the Total Tax Increments received by the Agency will be available to implement the obligations of the Agency pursuant to Section 7, after first deducting amounts required to be set aside for low- and moderate-income housing and amounts to be paid to other taxing entities. Section 14. This Agreement is conditioned upon the County rescinding its resolution to elect to receive the increases pursuant to Health and Safety Code Section 33676(a). This Agreement shall be effective as of the date that the Agency executes this Agreement or the County rescinds its resolution to receive the increases pursuant to Health and Safety Code Section 33676(a), whichever occurs later; however, if the County has not rescinded its resolution to receive the increases pursuant to Health and Safety Code Section 33676(a) prior to January 31, 1990, this Agreement shall be void and shall not take effect. UKI/CoTIAgmt/CDC 11 12/19/89 Section 15. The Agency and the County agree not to file and the County agrees not to engage in any litigation to directly or indirectly test or challenge the validity of the Project, the Redevelopment Plan, the Final EIR, the Ordinance or this Agreement; however, this Section shall not preclude the Agency from initiating a bond validation suit if it is deemed necessary by the Agency to assure adequate financing for the Project. Section 16. In the event litigation is initiated by any party attacking the validity of the Redevelopment Plan, the Project, the Final EIR or the Ordinance, the effect of this Agreement shall be suspended and the Agency shall not have any obligations under this Agreement until a judgment becomes final upholding the validity of the Redevelopment Plan, the Project, the Final EIR or the Ordinance. Section 17. The obligations of the Agency to make payments to the County pursuant to the provisions of Sections 2 and 3 of this Agreement shall terminate upon the earlier of the expiration or termination of the Redevelopment Plan or of the provisions of the Redevelopment Plan authorizing the allocation to the Agency of tax increments for the Project, and upon such termination, all obligations of the Agency to make payments to the County shall cease. Section 18. The City shall have no obligations under this Agreement, except for those obligations set forth in Sections 7, 8, 9 and 10 of this Agreement. The obligations of the City pursuant to the provisions of Sections 7, 8, 9 and 10 shall terminate upon cessation of occupancy by the County of the County Administration Complex. U Kl/CoTIAgmt/CDC 12 12/19189 F r IN WITNESS WHEREOF, the Agency, the City and the County have executed this Agreement as of the date first above written. UKIAH REDEVELOPMENT /XGENCY Chairma /651 4. By./ Secretar o ""'AGENCY" CITY OF Reviewed & Approve COUNTY OF MENDOCINO By 1 County Administrative Officer By, MARI YN J. UT ER, 1 "COUNTY" APPRvVL: U rt:: C F0i-' M: ATTEST: JOYCE A. BEARD ;OFFICE OF "t HE COUNTY Cleric of the Board -C . 49 UKI/CoTIAgmt/CDC 13 12/19/89 Y~ V W O ADDENDUM #1 TO THAT CERTAIN AGREEMENT BETWEEN THE COUNTY OF MENDOCINO, THE CITY OF UKIAH, AND.THE UKIAH REDEVELOPMENT AGENCY ENTERED INTO ON THE 20TH DAY OF DECEMBER 1989 Upon its execution this contract addendum shall become part of that certain Agreement between the County of Mendocino, City of Ukiah, and the Ukiah Redevelopment Agency entered into on the 29th day of'D.ecember 1989. The undersigned parties hereby agree to the following changes in the text of said Agreement. This section is deleted in its entirety and the following text is substituted. Section 7. County Administration Complex In order to assist the County with the development of a County Administration Complex,-the Agency agrees to perform the obligations. contained in this Section 7. . However, the County and the Agency agree that in accordance with the provisions of this Section 7, certain of these Agency obligations are conditioned upon the County adopting a basic concept plan and additional obligati-ons are conditioned upon the financing and construction of the County Administration Complex. -1- The parties agree that together they sought.the services of Bruce Harding, MAI, for the purpose of determining the fair market value of parcel numbers 02-191-08, 02-192-24, 02-191-20, 02-192- 01, and 02-191-09, all of which are located in the downtown portion of the project area and which are.more specifically parcels.which the agency may be asked to acquire on behalf of the County in order to facilitate the construction of a.County Administration Complex. Hereinafter said parcels shall be referred to as the acquisition property. The parties further agree that the appraisal prepared by_Bruce Harding, MAI, set forth the value of the abovedescribed parcels collectively as One Million Four Hundred Forty Two Thousand Dollars ($1,442,000). For purposes of this agreement that value will hereinafter be referred to as the reimbursement amount, subject to the adjustment of same as set forth in paragraph d. below. On or before'June 30, 1993 the County Board of Supervisors shall use its best efforts to adopt a basic concept plan for the County Administration Complex, which shall include the location of the County Administration Complex, architectural concept plans of the structure(s), the location of.parking and circulation, and a feasible financing plan. If the County does not adopt the basic concept plan within the time period described above or if in the basic concept plan the County Administration Complex is not located within the Downtown portion of the project area; the -2- Agency shall have no further responsibilities pursuant to the provisions of this Section 7; however, the amount in section 3 shall be reduced to-Seventeen Million Eight Hundred Thousand Dollars (.$17,800,000). If the concept plan adopted by the County is adopted on or before June 30, 1993 and the County Administration Complex is located within the Downtown portion of the project area, the Agency and the County shall enter into one or more separate Agreements based upon the following terms: a. If the site for the County Administration Complex shown in the basic concept plan includes Parcels 002-192-14, 002-192- 02, 002-192-03 and 002-192-11 (the "Old Police Station"), in accordance with the terms of this Agreement, the Agency agrees to sell the Old Police Station to the County for a purchase price of One Dollar ($1.00). The Old Police Station shall not be acquired by the Agency to implement this Agreement until the Agency, pursuant to this Section 7, either acquires the Acquisition Property or agrees to reimburse the County; whichever occurs first. b. If the site for the.County Administration Complex shown in the basic concept plan includes portions of Smith and Standley Streets between Main and Mason Streets, in' accordance with the terms of this Agreement, the Agency agrees to cause the City to vacate those portions of the two streets and transfer those portions to the County.. -3- C. In addition to the Agency's obligations under subsections a. and b. above, the Agency shall assist in the acquisition of up to 90,000 square feet of privately held land designated by the County in the approved basic concept plan (the "Acquisition Property") in the.manner set forth in subsection d. below.. Hereinafter, the Old Police Station, the portions of Smith and Standley.Streets described in subsection b. above and the Acquisition Property to be transferred to the County pursuant to this subsection c. and the subsections which follow shall be collectively referred to as "sales property". d. If the basic concept plan is adopted and the financing plan approved by the County on or before June 30,1993, the Agency shall use its best efforts'to acquire the Acquisition Property and cause relocation of all occupants and upon.such acquisition and relocation the Agency shall sell the Acquisition Property to the County for a purchase price which is equal to the difference between the total cost to acquire the property and the adjusted Reimbursement Amount which the parties agree is One Million Five Hundred Ninety- Two Thousand Dollars ($1,592,000). * In the event the Agency.is unable to fund the total cost to'acquire the Acquisition Property due to a lack of bonding capacity,.the Agency may ask the County to.fund these costs. The agency shall have no obligation to acquire the property should the County be unable.to fund these costs. In the event the -4- agency does not acquire the property, the amount in Section 3 shall still be reduced to.Seventeen Million Eight Hundred Thousand Dollars ($17,800,000). Should the County be asked to fund the total cost to acquire the Acquisition Property, the Agency agrees to reimburse the County from the proceeds of the first issuance of Tax Allocation Bonds or other financing instrument which is marketed subsequent.to the June 30, 1993 deadline for submission of the County's concept plan, and no later than December 31, 1997, in an amount equal to the costs incurred in funding the purchase of the Acquisition Property plus interest from the date the funds are expended, less the difference between the acquisition cost and the amended reimbursement amount as described above. The interest charge described above shall be equal to the interest yield the County would have earned had the funds used to acquire the property in question been invested by the County Treasurer. * "Total cost to acquire the property" as used in this paragraph d is interpreted as the cost of the property and improvements, payments to businesses for lost goodwill, additional compensation paid by the agency to businesses or property owners required to relocate as a result of the acquisition,_and direct acquisition costs such as reasonable legal and expert.fees and court costs arising out of eminent domain proceedings. e. If the Agency uses its best efforts to acquire the Acquisition Property pursuant to paragraph d. above, the. Agency shall commence acquisition of the property in -5- question within thirty (30) days after the Agency has approved evidence submitted by the County that the County has a feasible financing plan in place and shall use its best efforts to complete the.transfer of the property in question within eighteen (18) months from the commencement of acquisition. f. The Agency shall transfer the Sales Property to the County only after: (1) final construction drawings for the County Administration Complex have been approved; (2) the County has,obtained final construction and long term financing for the construction of the County Administration Complex; and (3) the County has entered into a construction contract. g. The Acquisition Property transferred will be cleared of all structures above the surface and will be rough graded; however,. the Agency will riot be responsible for the clearing, removal of utilities or any subsurface objects and the County shall be liable for the costs of any toxic waste removals. h. All Sales Property transferred to the County shall only be used for the construction of a County Administration Complex -6- and the documents transferring the Sales Property shall contain provisions requiring that the Sales Property shall revert to the Agency, if not used for these purposes within i. j- certain specified periods of time. The County shall provide the.number of parking spaces required by City Code.for the construction-and operation of the County Administration Complex. The Agency agrees to cause the City to lease for one dollar ($1.00) per year or otherwise make available to the County a number of parking spaces, but not to exceed 50, for the public use of the County Administration Complex and the Courthouse. The Agency shall determine the location of the parking spaces after consultation with the County; however, the location. shall be reasonably convenient to the County Administration Complex or the Courthouse. The County shall maintain the parking spaces, provide adequate insurance, and agree to hold the Agency and the City harmless from any and all claims-brought against the Agency or the City with regard to the County's use of parking spaces.. The City shall be required to make the parking spaces available upon the completion of construction of the County Administration Complex. The Agency will provide or cause to be provided landscaping adjacent to the County Administration Complex and in the public rights of way adjoining the County Administration Complex. The landscaping to be provided by the*Agency shall -7- implement a landscaping plan approved by both the Agency and the County. The landscaping.shall.be of high quality, but shall not be more expensive than landscaping normally found around new public buildings in the City. The County shall be responsible for maintaining the landscaping. The Agency shall be required to provide the landscaping according to a construction schedule agree upon by the Agency and the County and which is based upon the construction of the County Administration Complex. Section 9 The words "five years" as used in line 9 are deleted and replaced with the words "fifteen years No other changes to the original Agreement are"-contemplated by either party at this time. UKIAH REDEVELOPMENT AGENCY Date: By ho- C m AGE Date: v`7~/~ By Secret y, G CITY OF UKIAH Date: By -8- COUNTY OF MENDOCI'NO Date: By C "man; O O SU VISORS ATTEST: APPROVED AS TO FORM: Joyce Beard, CLERK OF THE BOARD H. Peter Klein,- COUNTY COUNSEL r By:_ By: REVIEWED & APPROVED Date: By 'Nt ~n ~Cb, Co my Administrative Officer -9-