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Home My WebLink AboutSuccessor Agency to the Redevelopment Agency 2012-06-20 �� ,� n;'�', � �0��1 - /�-1 RESTATED FIRST AMENDED FUNDING AGREEMENT THE UKIAH REDEVELOPMENT PROJECT AREA (Public Improvements- Redwood Business Park projects) THIS REENTERED FIRST AMENDED FiJNDING AGREEMENT is re-entered into as of June 20, 2012, by and between the SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF UHIAH, 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 Former Redevelopment Agency of the City of Ukiah ("Redevelopment Agency") was a duly constituted redevelopment agency under the laws of the State of California and pursuant to said laws carried out the Redevelopment Plan (Redevelopment Plan) for the Ukiah Redevelopment Project (Redevelopment Project). The Agency has succeeded to the former Redevelopment Agency under the provisions of Division 24, Part 1.85 of the Health and Safety Code ("Dissolution Law"). 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 Redevelopment 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 Redevelopment Agency and Costco Wholesale Corporation, approved by the Redevelopment 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 Redevelopment Agency was 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 Redevelopment Agency that such buildings, 1 Ukiah FA 82661.00001\58613�7.l 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 Redevelopment 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 XIILB. 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. A�reement 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 sha1L• (1) by no later than March 9, 20ll, 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 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 SIX MILLION_DOLLARS ($6,000,000) (Agency Contribution). The Agency shall make such Agency Contribution to (or on behalf o� the City from any funds available to the Agency for such purpose, including the proceeds of any bonds issued by the 2 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 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 el seg. 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 u�:��,Fn 82661.00001\5861357.1 IN WITNESS WHEREOF, the A�ency and the City have executed this Agreement as of the date first above written. SUCCESSOR AGENCY OF THE CITY OF UKIAH '' � - f � ��l � g'.�,;.....--- .,. C__- �.,r � Executive Director :;'"� �'ttest: � � By: �'�'l Z5 �l i �:. ��-�� ---� t Secretary Approved as to Form ' � �- ' �� , �i By: r `> ' Agency C nsel " CITY OF UKIAH f � � By: ;��;..:� <_ -G�-.,�- '�_ City Manager Atfe�'t: � By: � �, i ' `,.�i 1��i L � 1�--� City Clerk Approved as to Form: By: Ci Attorne 4 Ukiah FA 82661.00001\�8613 57.1