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HomeMy WebLinkAbout2011-11 URA Funding AgrmntRESOLUTION NO. 2011-11 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING A FUNDING AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF UKIAH AND MAKING CERTAIN FINDINGS THAT THE PUBLIC IMPROVEMENTS BENEFIT THE UKIAH REDEVELOPMENT PROJECT AREA WHEREAS, pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City of Ukiah ("Agency") is carrying out the Redevelopment Plan for the Ukiah Redevelopment Project Area ("Redevelopment Project Area"); and WHEREAS, in furtherance of the Redevelopment Plan, the Agency adopted a Five-Year Implementation Plan, as required by Health and Safety Code Section 33490, covering the period 2007-2012 ("Implementation Plan); and WHEREAS, the Agency has been involved in the preparation of and approved an Exclusive Negotiating Agreement ("BNA") with Costco Wholesale Corporation at the Redwood Business Park in an effort to assist in the elimination of economic and physical blight through focused and intense efforts by encouraging new business investment, commercial tenancy and job creation in this high vacancy commercial facility to enhance the community; and WHEREAS, in furtherance of its effort to eliminate economic and physical blight in the project area, the Agency expended over $3.3 Million to assemble acreage previously owned by multiple owners ("the assembled acreage") and entered into other agreements with property owners in the Redwood Business Park in order to facilitate the development of the Redwood Business Park and the elimination of economic and physical blight; and WHEREAS, under the ENA, the Agency is obligated to enter a disposition and development agreement with Costco under specified terms, if Costco obtains the necessary entitlements to construct and open its store on the assembled acreage; and WHEREAS, the Agency has expended in excess of $700,000 to obtain a 3-year option, expiring on August 3, 2012, to purchase additional acreage in the Redwood Business Park for commercial development; and WHEREAS, the redevelopment of the Redwood Business Park requires certain critical infrastructure projects to improve traffic circulation, drainage and utility service (the "Public Improvements"); and WHEREAS, Section 33678 of the Community Redevelopment Law provides that the portion of taxes allocated to the Agency pursuant to Section 33670(b) of the Community Redevelopment Law (Tax Increments) will not be deemed the receipt or appropriation of proceeds for the purposes of Article XIII.B. of the California Constitution so long as such Tax Increments are used for redevelopment activity which primarily benefits the redevelopment project area; and WHEREAS, the City desires to cooperate with the Agency in its efforts to stimulate private investment by improving traffic circulation, drainage and utility improvements in the Redwood Business Park and provide funding in an amount not to exceed SIX MIILIION DOLLARS ($6,000,000) ("Agency Contribution") to enable the City to design and build the Public Improvements to benefit the Redevelopment Project Area; and WHEREAS, the City shall be responsible for conducting environmental review prior to its approval of the Public Improvements, final design and construction and as a prerequisite for use of any of the Agency Contribution for final design and construction; and WHEREAS, the Agency and City have cooperated in the preparation of a Funding Agreement ("Funding Agreement") to provide for payment of the Agency Contribution to the City to pay for the costs for the City to design, obtain all approvals for and build the Public Improvements to benefit the Redevelopment Project Area (Project). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah as follows: Section 1. The City Council hereby finds and determines that the Project, and payment of the Agency Contribution to assist with financing the Public Improvements as provided for under the Funding Agreement, are of primary benefit to the Redevelopment Project Area by helping to eliminate blight within the Redevelopment Project Area; that no other reasonable means of financing the costs of the Public Improvements are available to the City; and that the payment of the Agency Contribution to construct the Public Improvements is consistent with the Implementation Plan adopted by the Agency pursuant to Section 33490 of the Community Redevelopment Law. These findings and determinations are based on the following facts: a) The major goals and objectives of the Redevelopment Plan include, among others, the elimination of blighting influences and the correction of environmental deficiencies in the Redevelopment Project Area, including, among others, inadequate or deteriorated public improvements, facilities and utilities; the strengthening of retail and other commercial functions in the Redevelopment Project Area; the strengthening of the economic base of the Redevelopment Project Area and the community by the installation of needed site improvements to stimulate new residential commercial and light industrial expansion, employment and social and economic growth; and the replanning, redesign and development of portions of the Redevelopment Project Area which are stagnant or improperly utilized. The Redevelopment Plan provides the Agency with powers, duties and obligations for the redevelopment, rehabilitation and revitalization of the area within the Redevelopment Project Area. (b) Given the ongoing downturn in the economy, the decreases in funding available to cities and other local jurisdictions for general funding purposes, including the current budget crisis of the City, State and federal governments, and the lack and reduction of other governmental grants and assistance programs to help with the costs of these projects and services, the City does not have the necessary funds in the General Fund or any other sources available to it to fund the costs necessary to construct the Public Improvements that are required within the Redevelopment Project Area to provide this key component to the Redwood Business Park. (c) In order to ensure that the Agency Contribution does not exceed the costs of the Project provided to benefit the Redevelopment Project Area, the Funding Agreement requires the City to provide evidence to the Agency of the costs incurred by the City for the construction of the Public Improvements to benefit the Redevelopment Project Area. (d) As set forth in Section 33031 of the Community Redevelopment Law, conditions that cause blight include, among others, substandard, defective or obsolete design or construction; faulty or inadequate utilities, or other similar factors; depreciated or stagnant property values; abnormally high business vacancies, low lease rates and abandoned buildings; and a high crime rate that constitutes a serious threat to the public safety and welfare. The Project is consistent with the types of projects and programs identified in the Redevelopment Plan and the Implementation Plan that will stimulate and encourage further 82661.00001\5861861.1 redevelopment and private investment in the Redevelopment Project Area. Section 2. Pursuant to Section 33678 of the Community Redevelopment Law, the City Council further determines that the Project to be provided will benefit the Redevelopment Project Area and the Agency Contribution toward the costs of the Public Improvements are redevelopment activities as prescribed in Sections 33020 and 33021 of the Community Redevelopment Law, that the provision of the Project provided for under the Funding Agreement will primarily benefit the Redevelopment Project Area, and that none of the funds used to pay for the Project will be used for employee or contractual services of any local government agency except those directly relating to the provision of the Project to benefit the Redevelopment Project Area. Section 3. The City Council hereby approves the Funding Agreement, including without limitation the Agency Contribution provided for under the Funding Agreement, in substantially the form currently on file with the Agency Secretary. The City Manager is authorized and directed to execute the Funding Agreement on behalf of the City, subject to any minor, clarifying or technical modifications approved by City Attorney. The City Manager is further authorized and directed to take all actions and execute such documents as may be necessary to carry out the obligations of the City under the Funding Agreement. DULY AND REGULARLY ADOPTED by the City Council of the City of Ukiah this 2nd day of March, 2011. AYES: Councilmembers Landis, Thomas, Crane, Baldwin, and Mayor Rodin NOES: None ABSENT: None ABSTAIN: None n APPROVED: Mari Rodin, Mayor ATTEST: Gl n l~k JoAnne Currie, City Clerk 82661.00001\5861861.1