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HomeMy WebLinkAboutA6052 - CRA REIMB AGR FOR PMT OF COSTS ASSOCIATED WITH CERTAIN CRA FUNDED CAPITAL IMP p b6?— REIMBURSEMENT AGREEMENT FOR PAYMENT OF COSTS ASSOCIATED WITH CERTAIN COMMUNITY REDEVELOPMENT AGENCY FUNDED CAPITAL IMPROVEMENTS THIS REIMBURSEMENT AGREEMENT (the "Agreement") is entered into this 18th day of January, 2011, by and between the CITY OF PALM SPRINGS (the "City") and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS (the "Agency"), with reference to the following facts: A. The Agency has prepared Redevelopment Plans for the Merged Project No. 1 and Merged Project No. 2 Redevelopment Projects (the "Project Areas"), which results in the allocation of taxes from the Project Areas to the Agency for purposes of redevelopment. B. The intent of the Redevelopment Plans is, in part, to provide for the construction and installation of necessary public infrastructure and facilities and to facilitate the repair, restoration and/or replacement of existing public facilities and to perform specific actions necessary to promote the redevelopment and the economic revitalization of the Project Areas; and to increase, improve and preserve the community's supply of low and moderate income housing, some of which may be located or implemented outside the Redevelopment Project Areas; and to take all other necessary actions to implement the redevelopment plans for the respective redevelopment projects and to expend tax increment to accomplish the goals and objectives of the respective redevelopment projects. C. Pursuant to California Redevelopment law, section 33220, certain public bodies, including the City may aid and cooperate in the planning, undertaking, construction, or operation of redevelopment projects. The Agency has previously borrowed funds or otherwise by resolution agreed to reimburse the City for programs and activities associated with the Project Areas listed in the attached Exhibit 1, which are incorporated herein by this reference (the "Projects"). D. The Agency wishes to enter into this Agreement with the City for the pledge of net available tax increment to repay amounts borrowed or otherwise to be reimbursed for the Projects. The purpose of this Agreement is to record the Projects to be funded with net available tax increment in this current fiscal year and forthcoming fiscal years. E. Net available tax increment is defined as any tax increment, net of existing debt service payments, and existing contractual obligations received by the Agency or any lawful successor of the Agency and/or to any of the powers and rights of the Agency pursuant to any applicable constitutional provision, statute or other provision of law now existing or adopted in the future. The pledge of net available tax increment will constitute obligations to make payments authorized and incurred pursuant to Section 33445 and other applicable statutes. The obligations set forth in this Agreement will be contractual obligations that, if breached, will subject the Agency to damages and other liabilities or remedies. Page 1 F. The City Council (the "Council") and the Agency by resolution have each found that the use of Agency redevelopment funding for the Projects was, if applicable, in accordance with Section 33445 of the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) ("CRL") and Section 33445(a) of the CRL and other applicable law at time the financial obligation for Projects was originally incurred. The said Council and Agency resolutions are each based on the authority of the Agency, with the consent of the Council, to pay all or part of the cost of the installation and construction of any building, facility, structure, or other improvements which is publicly owned either within or outside a project area, if the Council made certain determinations. G. By approving and entering into this Agreement, the Agency has approved the pledge of net available tax increment from the Project Areas to pay for the Projects. H. The obligations of the Agency under this Agreement shall constitute an indebtedness of the Agency for the purpose of carrying out the Redevelopment Plans for the Project Areas, NOW, THEREFORE, the parties hereto do mutually agree as follows: I. INTRODUCTORY PROVISIONS The recitals above are an integral part of this Agreement and set forth the intentions of the parties and the premises on which the parties have decided to enter into this Agreement. II. AGENCY'S OBLIGATIONS 1. The Projects are those projects which are listed on the attached Exhibit 1, which is incorporated herein by this reference. The Agency's obligations under this Agreement, including without limitation the Agency's obligation to make the payments to the City required by this Agreement, shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment of the Project Areas and are obligations to make payments authorized and incurred pursuant to Section 33445 and other applicable statutes. The obligations of the Agency set forth in this Agreement are contractual obligations that, if breached, will subject the Agency to damages and other liabilities or remedies. 2. The obligations of Agency under this Agreement shall be payable out of net available tax increments, as defined in the above recitals and/or as defined or provided for in any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, levied by or for the benefit of taxing agencies in the Redevelopment Project Areas, and allocated to the Agency and/or any lawful successor entity of the Agency and/or any entity established by law to carry out any of the redevelopment plans for the Project Areas and/or expend tax increment or pay indebtedness of the Agency to be repaid with tax increment, pursuant to Section 33670, et seq., of the California Community Redevelopment Law or any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, in the minimum amounts set forth in the Payment Schedule attached hereto as Exhibit 2 and incorporated herein by this reference. 3. The indebtedness of Agency under this Agreement shall be subordinate to the rights of the holder or holders of any existing bonds, notes or other instruments of indebtedness (all referred to herein as "indebtedness") of the Agency incurred or issued to finance the Project Areas, including without limitation any pledge of tax increment revenues from the Project Areas Page 2 to pay any portion of the principal (and otherwise comply with the obligations and covenants) of any bond or bonds issued or sold by Agency with respect to the Redevelopment Project Areas. 4. All payments due to be made by the Agency to the City under this Agreement shall be made by the Agency in accordance with the schedule set forth in Exhibit 2 and as otherwise necessary to reimburse the City for the cost to the City of performing its obligations hereunder. IV. LIABILITY AND INDEMNIFICATION In contemplation of the provisions of California Government Code Section 895.2 imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Government Code Section 895, the parties hereto, as between themselves, pursuant to the authorization contained in Government Code Sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Government Code Section 895.2. To achieve the above-stated purpose, each party indemnifies, defends and holds harmless the other party for any liability, losses, cost or expenses that may be incurred by such other party solely by reason of Government Code Section 895.2. V. ENTIRE AGREEMENT; WAIVERS; AND AMENDMENTS 1. This Agreement consists of six (6) pages, which constitute the entire understanding and agreement of the parties. 2. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to the subject matter of this Agreement. 3. This Agreement is intended solely for the benefit of the City and the Agency. Notwithstanding any reference in this Agreement to persons or entities other than the City and the Agency, there shall be no third party beneficiaries under this Agreement. 4. All waivers of the provisions of this Agreement and all amendments to this Agreement must be in writing and signed by the authorized representatives of the parties. VI. SEVERABILITY If any term, provisions, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. VII. DEFAULT If either party fails to perform or adequately perform an obligation required by this Agreement within thirty (30) calendar days of receiving written notice from the non-defaulting party, the party failing to perform shall be in default hereunder. In the event of default, the non- defaulting party will have all the rights and remedies available to it at law or in equity to enforce Page 3 the provisions of this contract, including without limitation the right to sue for damages for breach of contract. The rights and remedies of.the non-defaulting party enumerated in this paragraph are cumulative and shall not limit the non-defaulting party's rights under any other provision of this Agreement, or otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the Agreement or hereinafter enacted or established, that may be available to the non-defaulting party against the defaulting party. All notices of defaults shall clearly indicate a notice of default under this Agreement. Vill. . BINDING ON SUCCESSORS This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law. IX. EFFECTIVE DATE It is the intent of the City Council and the Board of the Community Redevelopment Agency for this agreement to be effective July 1, 2010, but in no event, not later than January 18, 2011. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above. Attest: CITY OF PALM SPRINGS BBy: /� 474 ity Clerk © �/ 1 7-6 1 1 gtephe6 P. Pougnet, Kfayor APPROVED BY CITY COUNCIL k 2Z85# ©a f r S f Zor ) e4ba5 Z Attest: REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By. By: Zze " sistant Secretary �� r ��l Stephen . Pougnet, Chair APPROVED AS TO FORM: f2- By: City Attorney Page 4 EXHIBIT 1 PROJECTS Merged Project No. ] Obligation Date Incurred Outstanding Amount Contribution to City's 2004 Convention Center Lease Revenue Bonds 6/6/2007 $31,200,000 Loan from Wastewater Treatment Fund 10/16/1991 $413,500 Merged Proiect No. 2 Obligation Date Incurred Outstanding Amount PSL 236 Lease 12/6/2006 $2,970,000 Loan from Wastewater Treatment Fund 10/16/1991 $413,500 Loan from Wastewater Treatment Fund 6/22/1993 $400,000 Loan from Sustainability Fund for PSL 236 Partial Prepayment 12/6/2006 $1,139,871 Contribution to City's 2004 Convention Center Lease Revenue Bonds 6/6/2007 $7,200,000 Page 5 EXHIBIT 2 PAYMENT SCHEDULE Merged No.1 Merged Project No.2 Payment Contribution Loan from Loan from Loan from Contribution Date to Convention Wastewater PSL 236 Sustainability Wastewater to Convention June 30 Center Fund Lease Fund PSL 236 Fund Center Total 2011 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2012 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2013 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2014 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2015 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2016 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2017 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2018 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2019 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2020 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2021 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2022 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2023 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2024 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2025 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2026 1,300,000 24,810 110,000 101,106 48,810 300,000 1,884,726 2027 1,300,000 24,810 110,000 - 48,810 300,000 1,783,620 2028 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2029 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2030 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2031 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2032 1,300,000 24,810 110,000 48,810 300,000 1,793,620 2033 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2034 1,300,000 24,810 110,000 48,810 300,000 1,783,620 2035 - 438,310 110,000 448,810 - 997,120 2036 - 110,000 - 110,000 2037 - - 110,000 - - 110,000 1,033,750 Total 31,200,000 (1) 2,970,000 1,617,696(1) 1,620,250 (1) 7,200,000 45,641,696 (1) Includes interest Page 6