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HomeMy WebLinkAbout2011-03-08 Packet - SpecialCITY OF UKIAH CITY COUNCIL AGENDA Civic Center Annex 411 West Clay Street Conference #5 Ukiah, CA 95482 March 8, 2011 5:30 p.m. -SPECIAL MEETING 1. ROLL CALL 2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. 3. RIGHT TO APPEAL DECISION Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged. 4. APPROVAL OF MINUTES 5. CONSENT CALENDAR 6. PUBLIC HEARING 7. UNFINISHED BUSINESS a. Discussion And Possible Adoption Of An Amendment To The Contractual Agreement Between The City Of Ukiah And The Ukiah Redevelopment Agency Dated March 2, 2011 Affecting The Schedule Of Payments; And Approval of Corresponding Budget Amendments 8. NEW BUSINESS a. Discussion And Possible Adoption Of Resolution Approving Contractual Agreement(s) Between The City Of Ukiah And The Ukiah Redevelopment Agency, Obligating The Agency To Fund Specified Projects/Programs To Be Undertaken By The City; Adopting Any Legally Required Findings; Authorizing The City Manager To Execute The Agreement(s) And Other Related Documents; And Approving Corresponding Budget Amendment(s). 9. COMMISSIONERS REPORTS 10. EXECUTIVE DIRECTOR REPORTS 11. CLOSED SESSION - Closed Session may be held at any time during the meeting 12. ADJOURNMENT Please be advised that the City needs to be notified 24 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:000 am to 5:00 pm. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 24 hours prior to the meeting set forth on this agenda. Dated this 7th day of March, 2011 JoAnne Currie, City Clerk City a 2lk~s h ITEM NO.: MEETING DATE: CC UB 7a URA UB 7b March 8, 2011 UKIAH CITY COUNCIL AND UKIAH REDEVELOPMENT AGENCY AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ADOPTION OF AN AMENDMENT TO THE CONTRACTUAL AGREEMENT BETWEEN THE CITY OF UKIAH AND THE UKIAH REDEVELOPMENT AGENCY DATED MARCH 2, 2011 AFFECTING THE SCHEDULE OF PAYMENTS AND APPROVAL OF CORRESPONDING BUDGET AMENDMENTS. Discussion: On March 2, 2011, the City and Agency approved a Project Funding Agreement under which the City agrees to be responsible for the design and construction of Public Improvements within the Redwood Business Park identified by the City and assumes the responsibility to conduct environmental review required prior to the approval of final design and construction of these projects. The Agency agreed to pay the City not to exceed $6 Million for the cost of performing the City's obligations under the agreement. The Agreement obligates the Agency to pay this money to the City for these purposes from any funds available to the Agency, including the proceeds.of any bonds issued by the Agency and Tax Increment revenue to the Agency from the project area. Staff is requesting that the agreement be modified to include an initial payment from the Agency to the City in amount of approximately $3.39 million. See Attachment #1 for a draft of the amendment to the Agreement. Fiscal Impact: a Budgeted FY 10/11 F-1 New Appropriation ❑ Not Applicable Fx] Budget Transfer Required Amount Source of Funds (title and From Account Number To Account Number $3,390,000 URA Funds URA 965 & 960 TBD Continued on Page 2 Recommended Action(s): Approve an amendment to the contractual agreement between the. City of Ukiah and the Ukiah Redevelopment Agency dated March 2, 2011 affecting the schedule of payments and approve corresponding budget amendments. Alternative Council Option(s): Do not approve the recommended actions and provide direction to staff. Citizens advised: N/A Requested by: N/A Prepared by: Sage Sangiacomo, Assistant City Manager and Guy Mills, Project and Grant Administrator Coordinated with: Jane Chambers, Executive Director and David J. Rapport, Redevelopment Agency General Counsel Attachments: 1. Draft First Amended Funding Agreement Between the City & Agency r Approved: Jan ?C `ambers, Executive Director Attachment #1 FIRST AMENDED FUNDING AGREEMENT UKIAH REDEVELOPMENT PROJECT AREA (Public Improvements- Redwood Business Park projects) THIS FUNDING AGREEMENT is entered into as of March 8, 2011, by and between the REDEVELOPMENT AGENCY OF THE CITY OF UKIAH, a public body, corporate and politic (Agency), and the CITY OF UKIAH, a municipal corporation (City). Recitals A. Pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the Agency is a duly constituted redevelopment agency under the laws of the State of California and pursuant to said laws is carrying out the Redevelopment Plan (Redevelopment Plan) for the Ukiah Redevelopment Project (Redevelopment Project). B. 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, improving pedestrian and vehicular circulation in the Redevelopment Project Area, and the installation of new or replacement of existing public improvements which are currently inadequate to serve the area. The Redevelopment Plan authorizes the Agency to pay for, develop, or construct any publicly-owned improvements, either within or without the Project Area, for itself or for any public body or entity, which improvements are or would be of benefit to the Project Area. The Five Year Implementation Plan for the Ukiah Redevelopment Plan also specifically identifies the traffic, drainage and utility improvements as the public improvements projects to be undertaken by the Agency. C. The Redwood Business Park is a potential major commercial-retail center within the Redevelopment Project Area which requires the installation certain traffic, drainage and utility improvements (the "Public Improvements") in order to induce private investment. D. In furtherance of an Agreement between the Agency and Costco Wholesale Corporation, approved by the Agency in January 2011 (the "Agreement"), the Agency desires to cooperate with the City and provide funding to assist with the costs necessary for the Public Improvements at the Redwood Business Park, which Public Improvements will serve and be of primary benefit to the Ukiah Redevelopment Project Area. E. Pursuant to Health and Safety Code Section 33445, the Agency is authorized, with the consent of the City Council, to pay all or part of the value of the land for and the cost of the design, installation and construction of any building, facility, structure, or other improvements which are publicly owned either within or without the Redevelopment Project Area, upon a determination by the City Council and Agency that such buildings, facilities, structures or other improvements are of benefit to the Redevelopment Project by helping to eliminate blight within the Redevelopment Project Area, that no other reasonable means of financing such buildings, Ukiah FA 82661.00001\5861357.1 facilities, structures, or other improvements are available to the community, and that the payment of funds for the cost of such buildings, facilities, structures or other improvements is consistent with the Agency's five-year Implementation Plan for the Redevelopment Project. F. 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 of taxes 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. G. In order to enable the City to continue its efforts to construct the Improvements for the benefit of the Redevelopment Project Area, and as an inducement to the City to do so, the parties desire to enter into this Agreement providing for the Agency to contribute to the City a portion of the costs relating to the development and construction of the Improvements. Agreement THE AGENCY AND THE CITY HEREBY AGREE AS FOLLOWS: 1. The City shall be responsible for all of the design and construction of the Public Improvements identified by the City in the Redwood Business Park and that will serve the Redevelopment Project Area. 2. The City shall be responsible for conducting environmental review prior to its approval of the Improvements, final design and construction and as a prerequisite for use of any of the Agency Contribution (as defined below) for final design and construction. It is understood and agreed that the Agency Contribution provided in this Agreement may be used to conduct such environmental review. The City shall cause the environmental review to be undertaken as soon as feasible. 3. The City shall cause such development and construction work to be undertaken as soon as feasible and continue in order to ensure that the Improvements are completed in a timely manner. 4. In consideration of the undertakings of the City under Sections 1 through 3 of this Agreement, the Agency shall: (1) by no later than March 9, 2011, pay to the City for the design, environmental review and construction of the Improvements $3,390,000 and (2) pay to the City (or pay to a third parry on behalf of the City) a portion of the actual costs incurred by the City as necessary for the design, environmental review and construction of the Improvements, in a total amount not to exceed SIX MILLION DOLLARS ($6,000,000) (Agency Contribution). The Agency shall make such Agency Contribution to (or on behalf of) the City from any funds available to the Agency for such purpose, including the proceeds of any bonds issued by the Agency, loans and Tax Increments from the Redevelopment Project Area, at the Agency's sole discretion. 2 Ukiah FA 82661.00001\5861357.1 5. Failure by either party to perform its obligations hereunder shall constitute a default under this Agreement, and the other party may institute legal action to cure, correct or remedy such default, to recover damages for such default or to obtain any other remedy, including injunctive or declaratory relief, consistent with the purpose of this Agreement. 6. This Agreement constitutes an indebtedness of the Agency incurred in carrying out the Redevelopment Project, and a pledge of Tax Increments from the Redevelopment Project to repay such indebtedness, under the provisions of Section 16 of Article XVI of the California Constitution and Section 33670 et seq. of the Health and Safety Code; provided, however, that such pledge of Tax Increments shall always be subordinate and subject to the right of the Agency to pledge or commit Tax Increments from the Redevelopment Project Area to repay bonds or other indebtedness incurred by the Agency in carrying out the Redevelopment Project. 7. Pursuant to Section 895.4 of the Government Code, the Agency and City agree that each will assume the full liability imposed upon it or any of its officers, agents or employees for injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement and each party agrees to indemnify and hold harmless the other party for any loss, costs or expense that may be imposed upon such other party by virtue of Sections 895.2 and 895.6 of the Government Code. 8. This Agreement and the obligations of the City and the Agency hereunder shall terminate upon the completion of the construction of the Improvements by the City and the payment of the Agency Contribution as set forth in Section 4. 9. Within 30 calendar days of the end of each fiscal year, the City shall prepare and deliver to the Agency a report of activities and accomplishments with regard to the Improvements, together with 1) any environmental documentation or notice required as a result of any activity undertaken in compliance with this Agreement that is a project under CEQA and/or NEPA, 2) evidence of the costs incurred by the City to provide the Public Improvements provided for under this Agreement, and 3) any other information reasonably requested by the Agency relating to this Agreement or the Public Improvements (City's Report). Such information, provided in a timely manner, shall assist the Agency to fulfill its reporting requirements regarding construction of capital improvements under California Health and Safety Code Section 33080 et seq. 3 Ukiah FA 82661.00001\5861357.1 IN WITNESS WHEREOF, the Agency and the City have executed this Agreement as of the date first above written. REDEVELOPMENT AGENCY OF THE CITY OF UKIAH By: Executive Director Attest: By: Secretary Approved as to Form By: Agency Counsel CITY OF UKIAH By: City Manager Attest: By: City Clerk Approved as to Form: By: City Attorney 4 Ukiah FA 82661.00001\5861357.1 i City of -U[r Fi ITEM NO.: MEETING DATE: CC NB 8a URA NB 8a March 8, 2011 UKIAH CITY COUNCIL AND UKIAH REDEVELOPMENT AGENCY AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ADOPTION OF RESOLUTION(S) APPROVING CONTRACTUAL AGREEMENTS BETWEEN THE CITY OF UKIAH AND THE UKIAH REDEVELOPMENT AGENCY, OBLIGATING THE AGENCY TO FUND SPECIFIED PROJECTS/PROGRAMS TO -BE UNDERTAKEN BY THE CITY; ADOPTING ANY LEGALLY REQUIRED FINDINGS; AUTHORIZING THE CITY MANAGER/EXECUTIVE DIRECTOR TO EXECUTE THE AGREEMENT(S) AND OTHER RELATED DOCUMENTS; AND APPROVE CORRESPONDING BUDGET AMENDMENT(S) Background: : On January 10, 2011, the Governor released his 2011/12 budget proposal. A major provision of the Governor's budget that significantly affects local government is the proposed elimination of redevelopment agencies throughout the State by July 1, 2011, and use of the local tax increment from Redevelopment to fund existing State obligations. The proposal jeopardizes the projects and programs which the City and its Redevelopment Agency ("Agency") have undertaken to promote jobs, services, and economic development. Legislative language detailing the proposed elimination of redevelopment agencies was released last week and is under review by a Budget Conference Committee in the Legislature. In order to accomplish such rapid termination of redevelopment as part of the overall budget package, the proposal contemplates urgency legislation that could be adopted by mid-March 2011. If the Legislation is enacted as currently drafted, immediately upon its enactment, subject to an exemption for existing debts and obligations, it would block the Agency from taking any actions in pursuit of its existing projects and programs and would place all Continued on Page 2 Recommended Action(s): City Council 1. Adopt Resolution of the City Council of the City of Ukiah approving a funding agreement with the Redevelopment Agency attached as Attachment 1; and approval of corresponding budget amendment(s) as necessary. Ukiah Redevelopment Agency: 1. Adopt Redevelopment Agency Resolution approving Project Funding Agreement with the City of Ukiah attached as Attachment 2; and approval of corresponding budget amendment(s) as necessary. Alternative Council Option(s): Do not approve the recommended actions and provide direction to staff. Citizens advised: N/A Requested by: N/A Prepared by: Sage Sangiacomo, Assistant City Manager and Guy Mills, Project and Grant Administrator Coordinated with: Jane Chambers, Executive Director and David J. Rapport, Redevelopment Agency General Counsel Attachments: 1. Resolution of the City approving a Funding Agreement and Findings 2. Resolution of the URA approving a Funding Agreement and Findings 3. Ukiah Redevelopment Project Area Funding Agreement between City and URA Approved: Jane ambers, City Manager/Executive ' er--- assets of the Agency under the jurisdiction of an Oversight Board charged with overseeing the winding up the Agency's affairs. The proposed actions discussed below are intended to take advantage of the exception for existing debts and obligations and to transfer some Agency assets to the City before the legislation is enacted. In a summary released by the California Redevelopment Association, Best Best & Krieger reports the draft legislation released by the Department of Finance on February 23 is generally consistent with the Governor's proposal and the general descriptions contained in testimony from the Department of Finance in legislative hearings that took place over the last few weeks. The general outline of the legislation is as follows: 1. Commencing with the effectiveness of the bill (the day the Governor signs the bill), virtually all redevelopment activity would be suspended except paying existing obligations. 2. Redevelopment agencies would continue to operate under restrictions until July 1, 2011, when all agencies would be abolished. 3. Effective July 1, successor agencies would take over the assets and obligation of the former redevelopment agencies. The City would be the successor agency for its Redevelopment Agency, unless it declined to assume that role. The successor agency, including the City, would be subject to direction from an Oversight Board. 4. Successor agency would be charged with wrapping up the operations of the former redevelopment agency under the direction of an oversight board dominated by appointees from education and county interests. 5. County auditor-controllers would essentially become the treasurers for all the redevelopment agencies in the county. 6. In 2011-12, $1.7 billion would be paid to the State for trial court and Medi-Cal costs from the tax increment, revenues.of the redevelopment agencies. A small amount would allegedly be available for distribution to cities and counties. 7. In subsequent fiscal years, what was formerly tax increment will be distributed to taxing agencies after first paying amounts due on existing obligations under current payment schedules. 8. Some, but not all, prior obligations will have priority over payment to the State and taxing agencies. Some obligations which had a first priority on tax increment will be subordinated to payments to the State and taxing agencies. Over the past year, the Agency has been working toward the development of a redevelopment bond issuance to fund necessary and planned public infrastructure and housing projects that will support economic development and low income housing activities for the community. Funding Agreement and Resolutions Attached as Attachments 1 and 2 are two resolutions, one to be adopted by the City Council and one to be adopted by the Agency, approving a Project Funding Agreement between the City and the Agency attached as Attachment 3. Resolutions: The two resolutions contain recitals identifying the past actions and agreements the City and the Agency have undertaken to promote the development of the Downtown Core and Perkins Street Depot Property. The resolutions make findings and determinations required by the Community Redevelopment Law. They approve the Project Funding Agreement and authorize the City Manager and the Agency's Executive Director to sign the agreement and take any other actions necessary to carry out the obligations of the City and the Agency under the Agreement. Project Funding Agreement: Under the Project Funding Agreement the City agrees to be responsible for the identified improvements and assumes the responsibility to conduct environmental review required prior to the approval of final design and construction of these projects. The Agency agrees to pay the City not to exceed $9,164,320 to pay the City for the cost of performing the City's obligations under the agreement. The Agreement obligates the Agency to pay this money to the City for these purposes from any funds available to the Agency, including the proceeds of any bonds issued by the Agency and Tax Increment revenue to the Agency from the project area. The Agreement declares that it constitutes an indebtedness of the Agency and a pledge of the Agency's Tax Increment revenues. Attachment # RESOLUTION NO. 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 completed a series of traffic analyses and conceptual plans, on file with the City Clerk, for its downtown business district area and Gobbi Street, Perkins Street and the north/south corridors of State and Main Streets. These studies and concept plans have proposed and partially designed public improvements, including street realignment and related improvements to streets, sidewalks, on-street parking, traffic signals, streetscapes, and storm drains ("the Downtown Infrastruc e- ro'ect"), the cost of which is estimated at $5,664,320. The project will improve pedestri workability; traffic circulation, storm drainage and aesthetics. The State Street portion of the project as een identified as a priority for funding by the Mendocino Council of Governments (MCOG) and is vital to removing blight and preserving the City's historic downtown as a viable commercial area; and WHEREAS, the Agency has negotiated an option agreement with North Coast Railroad Authority for the 11-acre Perkins Depot property in the center of the City and a development agreement with a private Brownfield developer for the potential clean up and development of the site. The engineer's estimate for remediation of this Perkins Depot property ("the Brownfield Remediation Project") is $1.5 million. The Agency has been successful in leveraging grant funds to complete the historical renovation of the Depot Building and continues to work toward the development of a Remedial Action Plan for environmental closeout of the Perkins Depot property. In addition, the Agency has identified additional public improvements, including extension of Hospital Drive into the site, curbing, sidewalks, drainage and park space will be needed ("Depot Infrastructure Project"), the cost of which is estimated at $2,000,000. The property is one of the primary sites under consideration for the State's new $129 million courthouse project; and WHEREAS, the Downtown Infrastructure Project and the Brownfield Remediation Project are referred to herein as the "Public Improvements"; and WHEREAS, to stimulate investment, reduce blight and enhance the pedestrian experience in the downtown business district and related areas, the Agency has entered contracts with over 75 property owners to revitalize commercial structures in the downtown business district through a Fagade Improvement Program; and WHEREAS, in order benefit from the past investments by the Agency and its contractual commitments directed at the downtown business district and related areas, the Agency must complete the Infrastructure Projects; 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 de 'res to cooperate 'th the A ency in its efforts to stimulate p 'v, investment by ' roving traffi ci ulation, dra` a e and ut' i improvement the Redw od Business Par an rovide ding i an amo t no toe eed EMI IO FIVE HUNDRE THO AND I~ LLAR $3,5 0,000) gency Nm*butito en le e City build the bl' Improvements to benefit the Redevelopreject Area; d 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 planning, redesign and development of portions of the Redevelopment Project Area which are stagnant or improperly utilized. The Redevelopment Plan provides the Agency with 2 82661.00001\5861861.1 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 downtown business district and related areas (Perkins Street, Main Street, State Street and adjacent areas). (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 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 8"' day of March, 2011. AYES: 82661.00001\5861861.1 NOES: ABSENT: ABSTAIN: ATTEST: bind9Si5;RU;-City Clerk APPROVED: Mari Rodin, Mayor 8266 1.00001 \5861861.1 Attachment # RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF UKIAH APPROVING A FUNDING AGREEMENT WITH 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 completed a series of traffic analyses and conceptual plans, on file with the City Clerk, for its downtown business district and related areas, including Gobbi Street, Perkins Street, and the north/south corridors of State and Main Streets. These studies and concept plans have proposed and partially designed public improvements, including street realignment and related improvements to streets, sidewalks, on-street parking, traffic signals, streetscapes, and storm drains ("the Downtown Infrastructy'roje t"), the cost of which is estimated at $5,664,320. The project will improve pedestrian orkability, ffic circulation, storm drainage and aesthetics. The State Street portion of the project -b n identified as a priority for funding by the Mendocino Council of Governments (MCOG) and is vital to removing blight and preserving the City's historic downtown as a viable commercial area; and WHEREAS, the Agency has negotiated an option agreement with North Coast Railroad Authority for the 11-acre Perkins Depot property in the center of the City and a development agreement with a private Brownfield developer for the potential clean up and development of the site. The engineer's estimate for remediation of the Perkins Depot property ("the Brownfield Remediation Project") is $1.5 million. The Agency has been successful in leveraging grant funds to complete the historical renovation of the Depot Building and continues to work toward the development of a Remedial Action Plan for environmental closeout of the Perkins Depot property. In addition, the Agency has identified additional public improvements, including extension of Hospital Drive into the site, curbing, sidewalks, drainage and park space will be needed ("Depot Infrastructure Project"), the cost of which is estimated at $2,000,000. The property is one of the primary sites under consideration for the State's new $129 million courthouse project; and WHEREAS, the Downtown Infrastructure Project and the Brownfield Remediation Project are referred to herein as the "Public Improvements"; and WHEREAS, to stimulate investment, reduce blight and enhance the pedestrian experience in the downtown business district and related areas, the Agency has entered contracts with over 75 property owners to revitalize commercial structures in the downtown business district through a Fagade Improvement Program; and 82661.00001 \5861399.1 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 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 Redevelopment Agency of the City of Ukiah as follows: Section 1. The Agency 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 downtown business district and related areas (Perkins Street, Main Street, State Street and adjacent areas). 82661.00001\5861399.1 2 (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 redevelopment and private investment in the Redevelopment Project Area. Section 2. Pursuant to Section 33678 of the Community Redevelopment Law, the Agency 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 Agency 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 Executive Director is authorized and directed to execute the Funding Agreement on behalf of the Agency, subject to any minor, clarifying or technical modifications approved by Agency Counsel. The Executive Director is further authorized and directed to take all actions and execute such documents as may be necessary to carry out the obligations of the Agency under the Funding Agreement, including payment of the Agency Contribution pursuant to the terms of the Funding Agreement. DULY AND REGULARLY ADOPTED by the Redevelopment Agency of the City of Ukiah this 8 h day of March, 2011. AYES: NOES: ABSENT: ABSTAIN: 82661.00001\5861399.1 APPROVED: Mari Rodin, Chairperson ATTEST: Linda Brown, Secretary 82661.00001\5861399.1 4 Attachment #3 FUNDING AGREEMENT UKIAH REDEVELOPMENT PROJECT AREA (Public Improvements-Downtown Business District and related areas) THIS FUNDING AGREEMENT is entered into as of March 8, 2011, by and between the REDEVELOPMENT AGENCY OF THE CITY OF UKIAH, a public body, corporate and politic (Agency), and the CITY OF UKIAH, a municipal corporation (City). Recitals A. Pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the Agency is a duly constituted redevelopment agency under the laws of the State of California and pursuant to said laws is carrying out the Redevelopment Plan (Redevelopment Plan) for the Ukiah Redevelopment Project (Redevelopment Project). B. 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, improving pedestrian and vehicular circulation in the Redevelopment Project Area, and the installation of new or replacement of existing public improvements which are currently inadequate to serve the area. The Redevelopment Plan authorizes the Agency to pay for, develop, or construct any publicly-owned improvements, either within or without the Project Area, for itself or for any public body or entity, which improvements are or would be of benefit to the Project Area. The Five Year Implementation Plan for the Ukiah Redevelopment Plan also specifically identifies the traffic, drainage and utility improvements as the public improvements projects to be undertaken by the Agency. C. The elimination of blight in the downtown business district through various programs funded by the Agency, retention of the Superior Court courthouse in downtown and infrastructure improvements in the downtown business district, is vital to the community. E. Pursuant to Health and Safety Code Section 33445, the Agency is authorized, with the consent of the City Council, to pay all or part of the value of the land for and the cost of the design, installation and construction of any building, facility, structure, or other improvements which are publicly owned either within or without the Redevelopment Project Area, upon a determination by the City Council and Agency that such buildings, facilities, structures or other improvements are of benefit to the Redevelopment Project by helping to eliminate blight within the Redevelopment Project Area, that no other reasonable means of financing such buildings, facilities, structures, or other improvements are available to the community, and that the payment of funds for the cost of such buildings, facilities, structures or other improvements is consistent with the Agency's five-year Implementation Plan for the Redevelopment Project. Ukiah FA 82661.00001\5861357.1 F. 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 of taxes for the purposes of Article XIH.B. of the California Constitution so long as such Tax Increments are used for redevelopment activity which primarily benefits the Redevelopment Project Area. G. In order to enable the City to continue its efforts to construct the Improvements for the benefit of the Redevelopment Project Area, and as an inducement to the City to do so, the parties desire to enter into this Agreement providing for the Agency to contribute to the City a portion of the costs relating to the development and construction of the Improvements. Agreement THE AGENCY AND THE CITY HEREBY AGREE AS FOLLOWS: 1. The City shall be responsible for all of the design and construction of the Public Improvements identified by the City in the downtown business district, the areas under consideration by the Administrative Office of the Courts for a new courthouse site and the areas along and in the vicinity of Perkins Street and streets intersecting with Perkins Street, including Main and State Streets and that will serve the Redevelopment Project Area. 2. The City shall be responsible for conducting environmental review prior to its approval of the Improvements, final design and construction and as a prerequisite for use of any of the Agency Contribution (as defined below) for final design and construction. It is understood and agreed that the Agency Contribution provided in this Agreement may be used to conduct such environmental review. The City shall cause the environmental review to be undertaken as soon as feasible. 3. The City shall cause such development and construction work to be undertaken as soon as feasible and continue in order to ensure that the Improvements are completed in a timely manner. 4. In consideration of the undertakings of the City under Sections 1 through 3 of this Agreement, the Agency shall pay to the City (or pay to a third party on behalf of the City) a portion of the actual costs incurred by the City as necessary for the design, environmental review and construction of the Improvements, in a total amount not to exceed NINE MILLION, ONE HUNDRED AND SIXTY-FOUR THOUSAND, THREE HUNDRED AND TWENTY DOLLARS ($9,164,320) (Agency Contribution). The Agency shall make such Agency Contribution to (or on behalf of) the City from any funds available to the Agency for such purpose, including the proceeds of any bonds issued by the Agency, loans and Tax Increments from the Redevelopment Project Area, at the Agency's sole discretion. 5. Failure by either party to perform its obligations hereunder shall constitute a default under this Agreement, and the other party may institute legal action to cure, correct or remedy such 2 Ukiah FA 82661.00001\5861357.1 default, to recover damages for such default or to obtain any other remedy, including injunctive or declaratory relief, consistent with the purpose of this Agreement. 6. This Agreement constitutes an indebtedness of the Agency incurred in carrying out the Redevelopment Project, and a pledge of Tax Increments from the Redevelopment Project to repay such indebtedness, under the provisions of Section 16 of Article XVI of the California Constitution and Section 33670 et seq. of the Health and Safety Code; provided, however, that such pledge of Tax Increments shall always be subordinate and subject to the right of the Agency to pledge or commit Tax Increments from the Redevelopment Project Area to repay bonds or other indebtedness incurred by the Agency in carrying out the Redevelopment Project. 7. Pursuant to Section 895.4 of the Government Code, the Agency and City agree that each will assume the full liability imposed upon it or any of its officers, agents or employees for injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement and each party agrees to indemnify and hold harmless the other parry for any loss, costs or expense that may be imposed upon such other party by virtue of Sections 895.2 and 895.6 of the Government Code. 8. This Agreement and the obligations of the City and the Agency hereunder shall terminate upon the completion of the construction of the Improvements by the City and the payment of the Agency Contribution as set forth in Section 4. 9. Within 30 calendar days of the end of each fiscal year, the City shall prepare and deliver to the Agency a report of activities and accomplishments with regard to the Improvements, together with 1) any environmental documentation or notice required as a result of any activity undertaken in compliance with this Agreement that is a project under CEQA and/or NEPA, 2) evidence of the costs incurred by the City to provide the Public Improvements provided for under this Agreement, and 3) any other information reasonably requested by the Agency relating to this Agreement or the Public Improvements (City's Report). Such information, provided in a timely manner, shall assist the Agency to fulfill its reporting requirements regarding construction of capital improvements under California Health and Safety Code Section 33080 et seq. IN WITNESS WHEREOF, the Agency and the City have executed this Agreement as of the date first above written. REDEVELOPMENT AGENCY OF THE CITY OF UKIAH By: Executive Director By: Attest: Secretary Ukiah FA 82661.00001\5861357.1 (7 Approved as to Form By, Agency Counsel CITY OF UKIAH By: City Manager Ukiah FA 82661.00001\5861357.1 Attest: By: City Clerk Approved as to Form: By: 4 City Attorney CC Item 8a RESOLUTION NO. 2011- 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 completed a series of traffic analyses and conceptual plans, on file with the City Clerk, for its downtown business district area and Gobbi Street, Perkins Street and the north/south corridors of State and Main Streets. These studies and concept plans have proposed and partially designed public improvements, including street realignment and related improvements to streets, sidewalks, on-street parking, traffic signals, streetscapes, and storm drains ("the Downtown Infrastructure Project"), the cost of which is estimated at $2,000,000. The project will improve pedestrian workability, traffic circulation, storm drainage and aesthetics. The State Street portion of the project has been identified as a priority for funding by the Mendocino Council of Governments (MCOG) and is vital to removing blight and preserving the City's historic downtown as a viable commercial area; and WHEREAS, the Agency has negotiated an option agreement with North Coast Railroad Authority for the 11-acre Perkins Depot property in the center of the City and a development agreement with a private Brownfield developer for the potential clean up and development of the site. The engineer's estimate for remediation of this Perkins Depot property ("the Brownfield Remediation Project") is $1.5 million. The Agency has been successful in leveraging grant funds to complete the historical renovation of the Depot Building and continues to work toward the development of a Remedial Action Plan for environmental closeout of the Perkins Depot property. The property is one of the primary sites under consideration for the State's new $129 million courthouse project; and WHEREAS, the Downtown Infrastructure Project and the Brownfield Remediation Project are referred to herein as the "Public Improvements"; and WHEREAS, to stimulate investment, reduce blight and enhance the pedestrian experience in the downtown business district and related areas, the Agency has entered contracts with over 75 property owners to revitalize commercial structures in the downtown business district through a Fagade Improvement Program; and WHEREAS, in order benefit from the past investments by the Agency and its contractual commitments directed at the downtown business district and related areas, the Agency must complete the Infrastructure Projects; 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 THREE MILLION FIVE HUNDRED THOUSAND DOLLARS ($3,500,000) ("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 planning, 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. 82661.00001 \5 861861.1 (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 downtown business district and related areas (Perkins Street, Main Street, State Street and adjacent areas). (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 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 Stn day of March, 2011. AYES: NOES: 82661.00001 \5 861861.1 ABSENT: ABSTAIN: ATTEST: JoAnne Currie, City Clerk APPROVED: Mari Rodin, Mayor 82661.00001\5861861.1