sr-022211-8eCity Council and Redevelopment Agency Meeting: February 22, 2011
Agenda Item: 8 _ E-
To: Mayor and City Council
Chairperson and Redevelopment Agency
From: Andy Agle, Director of Housing and Economic Development
Subject: Second Implementing Agreement for City/Agency Cooperation Agreement
No. 9267 and Cooperation Agreement for Parking Structures 1 through 8
Recommended Action
Staff recommends that the City Council (Council):
1) Authorize the City Manager to execute a Second Implementing Agreement to
provide the City the option to purchase Agency real properties in order to secure
performance of Agency obligations required under Cooperation Agreement No.
9267 (CCS/RAS) and Implementing Agreement No. 9267 (CCS/RAS);
2) Authorize the City Manager to execute a Cooperation Agreement to reimburse the
City for costs associated with operating and maintaining Agency owned parking
structures 1 through 8.
Staff recommends that the Redevelopment Agency (Agency):
1) Authorize the Agency Chair to execute a Second Implementing Agreement to
provide the City the option to purchase Agency real properties in order to secure
performance of Agency obligations required under Cooperation Agreement No.
9267 (CCS/RAS) and Implementing Agreement No. 9267 (CCS/RAS);
2) Authorize the Executive Director to execute a Cooperation Agreement to
reimburse the City for costs associated with operating and maintaining Agency
owned parking structures 1 through 8.
Executive Summary
This report recommends that the Council and Agency authorize the City Manager and
Agency Chair to enter into a Second Implementing Agreement to provide the City the
option to purchase Agency real properties in order to secure performance of Agency
obligations required under Cooperation Agreement No. 9267 (CCS/RAS) and
Implementing Agreement No. 9267 (CCS/RAS). Additionally, it is recommended that
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the Council and the Agency authorize execution of a Cooperation Agreement between
the City and Agency to reimburse the City for costs related to operating and maintaining
the Agency's parking structures in the downtown.
Background
On November 17, 2009, the Agency adopted its Five-Year Implementation Plan (the
"Plan") for the period of FY 2009-10 through FY 2013-14, with established goals to
support affordable housing, disaster prevention and mitigation, community revitalization,
commercial revitalization, and institutional revitalization. To implement the programs
and activities (the "Projects") associated with each goal, the Agency made
redevelopment fund allocations totaling approximately $283 million, based on a variety
of assumptions regarding growth in tax increment, borrowing costs, timing of borrowing,
State grabs of local funds, leveraging opportunities and State law.
On August 10, 2010, the Agency and City authorized the execution of Cooperation
Agreement No. 9267 (CCS/RAS) and adopted Resolutions 10519 (CCS) and 527 (RAS)
to ensure timely implementation and completion of the Agency's Five-Year
Implementation Plan Projects. Following this meeting, to ascertain the payment
program for the projects, staff moved forward with an analysis to update the inventory of
the Agency's obligations, including review of existing notes and agreements.
On January 17, 2011, the Agency and City authorized execution of Implementing
Agreement No. 9267 (CCS/RAS) (the "First Implementing Agreement") to set forth the
schedule of payments from the Agency to the City for the City's implementation of
projects contained in the Agency/City Cooperation Agreement No. 9267.
Discussion
Second Implementing Agreement to Cooperation Agreement No. 9267
Under the terms of the First Implementing Agreement, the Agency must remit payment
to the City, on an annual basis, to reimburse the City for implementing the projects in
Cooperation Agreement No. 9267. In the event tax increment is not available or
sufficient to make the payments stipulated in the First Implementing Agreement, the
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Second Implementing Agreement provides the City the ability to exercise an option to
purchase identified Agency properties to secure payment of project costs. If the City
exercises its option to purchase, the fair market value of the property would be
evaluated to offset the Agency's tax increment obligation under the First Implementing
Agreement.
Cooperation Agreement for the Parking Structures 1 through 8
While parking structures 1 through 8 in the City's downtown are owned by the Agency,
the City oversees the operation and maintenance of each facility on behalf of the
Agency, using revenues generated from each garage. A cooperation agreement is
recommended to formalize the scope of responsibilities and the terms of reimbursement
to ensure the City recoups costs associated with operating and maintaining the
Agency's parking structures.
Financial and Budget Actions
There are no immediate budgetary impacts associated with the actions recommended in
this report. The Agreements do not intend to, and do not, create any commitment of the
City's General Fund in any manner that would violate the debt limitations under article XVI;
section 18 of the State Constitution or the fiscal provisions of the City's Charter.
Prepared by: Nia Tang, Senior Development Analyst
Andy Agle, Director
Housing and Ecoryel
Forwarded to Council:
Rod Gould
City Manager
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Reference Contract Nos.
9340 (CCS) and 9341
(ccs)