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HomeMy WebLinkAbout00361C - COYOTE RUN APARTMENTS DDA REIMBURSEMENT PROPERTY SALE Sec 35-Land Sale & Reimburse Reimbursement Agreement (Coyote Run Apts) AGREEMENT #361C (A3618) R991, 11-15-95 REIMBURSEMENT AGREEMENT THIS REIMBURSEMENT AGREEMENT ( "Agreement") is entered into this /? day of ' , 1995 ( "Effective Date" ) , by and between the CITY OF PALM SPRINGS, a municipal corporation ( "City" ) , and COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic ( "Agency") . R E C I T A L S A. City, Agency, and Coachella Valley Housing Coalition ( "Developer") entered into a Disposition and Development Agreement, with a reference date of January 2, 1991 (the "DDA" ) . B. Pursuant to the DDA the parties effected a transaction whereby City funds were advanced to Agency to permit the Agency to acquire 15 . 18 acres of real property, which the Agency then conveyed to Developer for the development of an affordable housing project . C. City and Agency intended that Agency reimburse City the fair market value for the 15 . 18 acre site, but discovered that Agency inadvertently failed to reimburse the City. D. Agency is authorized under Health and Safety Code Sections 33334 .2 et sec . to expend funds in its Low and Moderate Income Housing Fund ("Housing Funds" ) for purchase of real property for affordable housing, and thus the Agency is authorized to use Housing Funds to reimburse City. E. The fair market value of the 15 . 18 acre site as undeveloped property has been determined to be Five Hundred Seventy-Seven Thousand Dollars ($577, 000) . F. The City and Agency desire to enter into this Reimbursement Agreement to provide the Agency' s reimbursement, from Housing Funds, to City in the amount of Five Hundred Seventy-Seven Thousand Dollars ($577, 000) . A G R E E M E N T NOW, THEREFORE, in consideration of the foregoing Recitals and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows : 1. Recitals Incorporated. The above Recitals are incorporated herein and made a part hereof . FS2\394\014084-0012\2169678.1 .11/16/95 2 . Reimbursement. Agency, within thirty (30) days of the Effective Date, shall reimburse City, from Housing Funds, in the principal amount of Five Hundred Seventy-Seven Thousand Dollars ($577, 000) . No interest shall be paid on the reimbursement amount. 3 . Indebtedness of Agency. The reimbursement set forth herein shall constitute an indebtedness of Agency within the meaning of the Community Redevelopment Law (Health & Safety Code §33000 et sea. ) . 4 . Subordination. Agency' s reimbursement set forth in this Agreement shall be junior to and subordinate to, (i) all Agency tax allocation bonds or other direct short-term or long-term indebtedness of Agency, (ii) all pledges by Agency of tax increments for tax allocation bonds or other direct short-term or long-term indebtedness of Agency, (iii) Agency financial agreements or other contractual obligations of Agency, and (iv) any contingent obligations of Agency. This subordination provision shall be applicable to all of such Agency obligations whether such obligations were or are incurred prior to or after the Effective Date of this Agreement . 5 . Nonrecourse Obligation. No officer, official, member, employee, agent, or representative or Agency or City shall be liable for any amounts due hereunder, and no judgment or execution thereon entered in any action herein shall be personally enforced against any such officer, official, member, employee, agent, or representative. 6. Severability. Each provision of this Agreement shall be severable from the whole. If any provision of this Agreement shall be found contrary to law, the remainder of this Agreement shall remain in full force and effect. 7 . Entire Agreement. This Agreement shall constitute the entire agreement of the parties hereto. This Agreement may be amended or modified by an agreement in writing signed by the authorized representatives of the parties, after any and all required actions by the parties' respective governing boards . S . Authorization. By official action of the City Council and Agency, each party hereto has authorized the entering into this Agreement by such respective party and the signing of this Agreement by the City Manager on behalf of City, and by the Agency Executive Director on behalf of Agency. [end - signature page follows] P52\394\014084-0012\2169678.1 all/16/95 -2- IN WITNESS WHEREOF the parties hereto have entered into this Agreement as of the Effective Date. "CITY" CIT OF PALM SPRIN By: C, Manager ATTEST: l , C1 ty Clerk l APPROVED AS TO FORM: Cit3tA toi`pey "AGENCY" CO OPMENT AGENCY OF E CITY OF P L PRINGS By: Exe e Di ector ATTEST: Ageh� l Secretary Vr APPROVED AS TO FORM: i%GMVIIIy 'By PIES. E�170. Agency,z�unsel FS2\394\014084-0012\2169678.1 all/16/95 -3-