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HomeMy WebLinkAbout2003-265 (See Companion Resolution'CDC/2003-29) RESOLUTION NO. 2003-265 2 3 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE A REDEVELOPMENT COOPERATION AGREEMENT BY AND AMONG THE INLAND VALLEY DEVELOPMENT AGENCY, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND THE CITY OF SAN BERNARDINO RELATING TO THE INITIATION OF STUDIES FOR THE REDEVELOPMENT OF LANDS PREVIOUSLY ACQUIRED BY THE AGENCY AND RELATING TO TRANSFER OR DELEGATION OF REDEVELOPMENT AUTHORITY TO THE AGENCY RELATIVE TO PROPERTIES IN THE NORTH ARDEN- GUTHRIE AREA ("ARDEN-GUTHRIE IMPLEMENTATION AREA") 4 5 6 7 8 9 10 WHEREAS, for the past many years the City of San Bernardino (the "City") and th Redevelopment Agency of the City of San Bernardino (the "Agency") have been engaged i efforts to address blighting conditions in a portion of the City known as the Arden-Guthri neighborhood; and WHEREAS, the Arden-Guthrie neighborhood has been afflicted with a number 0 physical and economic conditions of blight over the years, as these terms are defined in Healt and Safety Code Section 33032, including without limitation, conditions of substandar structures and dwellings, residential overcrowding, substandard property maintenanc conditions, inadequate design of improvements, abandonment of property, depreciating an 11 12 13 14 15 16 17 18 stagnant property values, and criminal activity which has occurred at rates substantially highe than crime rates in other neighborhoods of the City; and WHEREAS, the Agency, in cooperation with the City, has previously embarked on program to acquire properties in the Arden-Guthrie neighborhood and to relocate the persons an households occupying such property into safe, sanitary and decent housing in other suitabl locations; and 19 20 21 22 23 WHEREAS, as of June 30, 2003, the Agency has incurred a redevelopment indebtednes in excess of $1 0,000,000 in connection with its previous efforts to address conditions of blight i 24 25 -1- P:\Agendas\Resolutions\Resolutlons\2003\OJ-09-IS IVDA MCC ReMI.doc 2003-265 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the Arden-Guthrie neighborhood and to prevent the spread of blight from the Arden-Guthri neighborhood into nearby neighborhoods and communities; and WHEREAS, the City believes it is necessary and appropriate for the Agency to acquir additional lands in the Arden-Guthrie neighborhood in order the fDster a commercially viabl and economically sustainable plan of redevelopment and reuse of the Arden-Guthri neighborhood and to prevent the spread of blight in the Arden-Guthrie neighborhood into othe surrounding neighborhoods and communities; and WHEREAS, the Arden-Guthrie neighborhood IS situated within the redevelopmen project area of the Inland Valley Development Project which is a special redevelopment projec area administered by the Inland Valley Development Agency (the "IVDA"); and WHEREAS, the IVDA has been established pursuant to a joint exercise of power agreement in January 1990, for the purpose of assisting in the conversion, redevelopment an civilian reuse of the former Norton Air Force Base located within the City of San Bernardino' and WHEREAS, the member governmental entities of the IVDA include the County of S Bernardino, a political subdivision of the State of California, and the City of Colton, a municipa corporation, and the City of Loma Linda, a municipal corporation, and the City; and WHEREAS, the IVDA has been granted specific powers by the State Legislature in 198 (Slats, 1989 c,545 and See Now Stats 1997, c,580 and Health and Safety Code Section 33492.40 et seq,) to assist in the redevelopment of the former Norton Air Force Base and the lands i proximity thereto pursuant to the Community Redevelopment Law (Health and Safety Cod Section 33000, et seq" hereinafter referred to as the "CRL"); and WHEREAS, the IVDA has adopted the Redevelopment Plan for the Inland Valle Redevelopment Project Area (the "Redevelopment Plan") in accordance with the provisions D the CRL, and the Redevelopment Plan provides for certain redevelopment activities to b undertaken within the redevelopment project area as more fully described in the Redevelopmen Plan (the "Project Area"); and -2- P:\AgendllS\RelIolutlons\ResoludoRs\2003\03-09-15IVDA MCC Reso.doc 2003-265 . I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 WHEREAS, the Arden-Guthrie neighborhood is located within the Project Area; and WHEREAS, at the present time, substantially all the financial and administrative staf resources available to the IVDA are devoted to the implementation of certain agreement affecting the former Norton Air Force Base including an agreement entitled "Agreemen Between the Department of the Air Force and the Inland Valley Development Agency," date March 7, 1995, as amended, and an agreement entitled "Master Disposition and Developmen Agreement", dated November 6, 2002, both of which specifically relate to the civilian reuse an redevelopment of the lands comprising the former Norton Air Force Base; and WHEREAS, the Agency seeks to initiate certain plans, studies and redevelopmen activities affecting the Arden-Guthrie Implementation Area as defined in Exhibit "B" of the 2003 Redevelopment Cooperation Agreement ("Agreement") which are situated within the Projec Area but which are not part of the former Norton Air Force Base; and Whereas, the IVDA, the City and the Agency deem that the approval and implementation of this Agreement are consistent with the Redevelopment Plan and the purposes and intent of the CRL and in particular Health and Safety Code Section 33492.40, et seq" to expeditiously accomplish the redevelopment of certain lands located in the City of San Bernardino which are also within the Project Area. NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERE BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, A FOLLOWS; Section 1, The Recitals of this Resolution are true and correct. Section 2, The Mayor and Common Council hereby request that the governmg board of the IVDA provide assistance and cooperation to the City and the Agency in connection with the study of a specific plan for redevelopment of the Arden-Guthrie Implementation Area. The Mayor and Common Council hereby respectfully request the governing board of the IVDA to consider the approval of a 2003 Redevelopment Cooperation Agreement (Arden-Guthrie) by -3- P:\Agendas\RelIolutlons\Resolutlons\2003\OJ.09-15 JVDA MCC Reso,doc 2003-265 2 3 4 5 6 7 8 and among the IVDA, the Agency and the City in the form as attached to this Resolution as Exhibit "A", Subject to the approval by the governing board of the IVDA of the Redevelopment Cooperation Agreement, the Mayor is further authorized and directed to execute the final form of the Agreement on behalf of the City together with such technical and conforming changes as may be approved by the City Attorney, Section 3, This Resolution shall take effect upon its adoption and execution in the manner as required by the City Charter. III III 9 III 10 III 11 III 12 III 13 III 14 III 15 III 16 III 17 III 18 III 19 III 20 III 21 III 22 III 23 III 24 III 25 III -4- P:\Agenda!\RelOlutlonl\Resolutlons\2003\03-09-1S IVDA MCC Reso.doe 2003-265 2 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE A REDEVELOPMENT COOPERATION AGREEMENT BY AND AMONG THE INLAND V ALLEY DEVELOPMENT AGENCY, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND THE CITY OF SAN BERNARDINO RELATING TO THE INITIATION OF STUDIES FOR THE REDEVELOPMENT OF LANDS PREVIOUSLY ACQUIRED BY THE AGENCY AND RELATING TO TRANSFER OR DELEGATION OF REDEVELOPMENT AUTHORITY TO THE AGENCY RELATIVE TO PROPERTIES IN THE NORTH ARDEN- GUTHRIE AREA ("ARDEN-GUTHRIE IMPLEMENTATION AREA") 3 4 5 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 8 Common Council of the City of San Bernardino at a j t. reg. meeting thereof, held on the 9 10 15th day of September, 2003, by the following vote to wit: II Council Members: Ayes Navs Abstain Absent ESTRADA X - LONGVILLE X MCGINNIS X DERRY X SUAREZ X ANDERSON X - MC CAMMACK --.lL 12 13 14 15 16 17 18 ~ehp,Q ,Jj, G2 (V{).. 19 b ~aChel ~ Clark Ci~ Clej:k , 20 The foregoing resolution is hereby appro~hls n~ '(llJ-~~,)::;ifJ-li~003, 21 22 23 Approved as to form and Legal Content: 24 By: L 7'~ (Jty Attorney 25 -5- P:\Agenda.s\RelOlutloDs\ResolutiODs\2003\OJ-09-151VDA MCC Reso.doc 2003 REDEVELOPMENT COOP ERA TION AGREEMENT BY AND AMONG THE INLAND V ALLEY DEVELOPMENT AGENCY, THE CITY OF SAN BERNARDINO, AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (Arden-Guthrie) Dated as of September _' 2003 Exhibit "A" 2003 REDEVELOPMENT COOPERATION AGREEMENT (Arden-Guthrie) This 2003 Redevelopment Cooperation Agreement (the "Agreement") is dated as of September _, 2003 by and among the Inland Valley Development Agency, a joint powers authority established under the laws of the State of California (the "IVDA"), the City of San Bernardino, a charter city (the "City"), and the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") and is entered into with respect to the following facts set forth in the Recitals; -- RECITALS -- WHEREAS, for the past many years the City of San Bernardino (the "City") and the Redevelopment Agency of the City of San Bernardino (the "Agency") have been engaged in efforts to address blighting conditions in a portion of the City known as the Arden-Guthrie neighborhood; and WHEREAS, the Arden-Guthrie neighborhood has been afflicted with a number of physical and economic conditions of blight over the years, as these terms are defined in Health and Safety Code Section 33032, including without limitation, conditions of substandard structures and dwellings, residential overcrowding, substandard property maintenance conditions, inadequate design of improvements, abandonment of property, depreciating and stagnant property values, and criminal activity which has occurred at rates substantially higher than crime rates in other neighborhoods of the City; and WHEREAS, the Agency, in cooperation with the City, has previously embarked on a program to acquire properties in the Arden-Guthrie neighborhood and to relocate the persons and households occupying such property into safe, sanitary and decent housing in other suitable locations; and WHEREAS, as of June 30, 2003, the Agency has incurred a redevelopment indebtedness in excess of $ 10,000,000 in connection with its previous efforts to address condjtions of blight in the Arden-Guthrie neighborhood and to prevent the spread of blight from the Arden-Guthrie neighborhood into nearby neighborhoods and communities; and WHEREAS, the City believes it is necessary and appropriate for the Agency to acquire additional lands in the Arden-Guthrie neighborhood in order the foster a commercially viable and economically sustainable plan of redevelopment and reuse of the Arden-Guthrie neighborhood and to prevent the spread of blight in the Arden-Guthrie neighborhood into other surrounding neighborhoods and communities; and WHEREAS, the Arden-Guthrie neighborhood is situated within the redevelopment project area of the Inland Valley Development Project which is a special redevelopment project area administered by the Inland Valley Development Agency (the "IVDA"); and I Exhibit "A" P:\Clcncal Services Dept\MargarelIAgrccmenls-AmendmenlslAgrmls-Amend 2003\03-09-15 [VDA Agrecmcnl.DOC WHEREAS, the NDA has been established pursuant to a Jomt exercise of powers agreement in January 1990, for the purpose of assisting in the conversion, redevelopment and civilian reuse of the former Norton Air Force Base located within the City of San Bernardino; and WHEREAS, the member governmental entities of the NDA include the County of San Bernardino, a political subdivision of the State of California, and the City of Colton, a municipal corporation, and the City of Lorna Linda, a municipal corporation, and the City; and WHEREAS, the NDA has been granted specific powers by the State Legislature in 1989 (Stats. 1989 c,545 and See Now Stats 1997, c.580 and Health and Safety Code Section 33492.40, et seq.) to assist in the redevelopment of the former Norton Air Force Base and the lands in proximity thereto pursuant to the Community Redevelopment Law (Health and Safety Code Section 33000, et seq" hereinafter referred to as the "CRL"); and WHEREAS, the NDA has adopted the Redevelopment Plan for the Inland Valley Redevelopment Project Area (the "Redevelopment Plan") in accordance with the provisions of the CRL, and the Redevelopment Plan provides for certain redevelopment activities to be undertaken within the redevelopment project area as more fully described in the Redevelopment Plan (the "Project Area"); and WHEREAS, the Arden-Guthrie neighborhood is located within the Project Area; and WHEREAS, at the present time, substantially all the financial and administrative staff resources available to the NDA are devoted to the implementation of certain agreements affecting the former Norton Air Force Base including an agreement entitled "Agreement Between the Department of the Air Force and the Inland Valley Development Agency," dated March 7, 1995, as amended, and an agreement entitled "Master Disposition and Development Agreement", dated November 6, 2002, both of which specifically relate to the civilian reuse and redevelopment of the lands comprising the former Norton Air Force Base; and WHEREAS, the Agency seeks to initiate certain plans, studies and redevelopment activities affecting the Arden-Guthrie ImplementatiDn Area, as defined herein, which are situated wilhin the Project Area but which are not part of the former Norton Air Force Base; and WHEREAS, the NDA, the City and the Agency deem that the approval and implementation of this Agreement are consistent with the Redevelopment Plan and the purposes and intent of the CRL and in particular Health and Safety Code Section 33492.40, et seq., to expeditiously accomplish the redevelopment of certain lands located in the City of San Bernardino which are also within the Project Area, NOW, THEREFORE, THE INLAND DEVELOPMENT AGENCY, THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DO HEREBY MUTUALLY AGREE AS FOLLOWS: Section I. Recitals. The parties acknowledge and agree that the recitals as set forth above are accurate and correct in all respects. 2 Exhibit "A" P:\Clerical Services Depl\MargarcllAgreements-Amendments\Agrmls-Arncnd 2003\03-09-15 IVDA Agreemcnt.DOC Section 2. Accomplishment of Public Purposes, The parties acknowledge and agree that this Agreement provides the IVDA, the City and the Agency with a means to foster the redevelopment of a portion of the Project Area located within the municipal boundaries of the City of San Bernardino which could not otherwise be accomplished within the foreseeable future unless the parties to the Agreement agree to exercise certain responsibilities as set forth herein, This Agreement is intended to be consistent with the intent and legal requirements of the CRL and in particular Health and Safety Code Section 33492.40, et seq" and shall be considered as an agreement entered into by the IVDA, the City and the Agency to accomplish the removal of blighting conditions within the Project Area and to compliment the civilian reuse and redevelopment of certain lands nearby the former Norton Air Force Base in the Project Area. This Agreement shall provide the IVDA with additional assistance from the City and the Agency to undertake studies and redevelopment activities in the portion of the Project Area commonly known as the Arden-Guthrie neighborhood, as more fully depicted in Exhibit "A" attached hereto. The lands depicted in Exhibit "A" are referred to herein as the "Arden-Guthrie Study Area", The parties presently anticipate that a specific program ofredevelopment shall hereafter be formulated by the City and the Agency potentially involving third-party landowners and/or developers within a portion of the Arden-Guthrie Study Area depicted in Exhibit "B" attached hereto. The area designated in Exhibit "B" is referred to herein as the "Arden-Guthrie Implementation Area." Section 3, Grant of Redevelopment Powers to the Citv and the Agencv/Arden- Guthrie Implementation Area. (a) Except as set forth in Section 3(b) and Section 3(c) of this Agreement, the IVDA hereby grants to the Agency, acting by and through the Community Development Commission of the City of San Bernardino (the "Commission") and to the legislative body of the Agency acting by and through the Mayor and Common Council of the City of San Bernardino (the "City"), as applicable, the right, power and authority to act fDr and on behalf of the IVDA for the purpose of exercising all redevelopment powers legally available to the IVDA as set forth in the Redevelopment Plan, the CRL and in particular the provisions of Health and Safety Code Section 33492.40, et seq., affecting any lands and property situated within the Arden-Guthrie Implementation Area, In addition to any other powers which the City and/or the Agency may have, the Agency may, either in its name or on behalf of the IVDA, exercise all of the powers, rights and authorities of the IVDA as set forth in the Redevelopment Plan with respect to the lands and property situated within the Arden-Guthrie Implementation Area, including, but not limited to, the right to acquire and dispose of real and personal property, to either exercise the power of eminent domain directly on behalf of the IVDA or request the IVDA to consider the exercise of such powers in support of the Agency and at the sole discretion of the IVDA, sue and be sued, enter into agreements and undertake such other actions as appropriate to the intent of this Agreement. No such action of the City or the Agency, as applicable with respect to the exercise of such redevelopment powers affecting the Arden-Guthrie Implementation Area, need be consented to, ratified or confirmed by the IVDA unless such ratification, consent or confirmation by the IVDA is otherwise requested at the discretion of the City or the Agency. In the event the 3 Exhibit "A" P:\Clerical Services DcpIWargaret\Agrcemenls-Amendmenls\Agrmts-Amcnd 200)\03-09-15 IVDA Agreement,DOC NDA is so requested in writing by either the City or the Agency to ratify, consent or confirm any action or intended action of the City or the Agency with the respect to the Arden-Guthrie Implementation Area pursuant to this Agreement, the NDA shall consider such matter as soon as practicable after receipt of such written request. The City and the Agency shall be solely responsible for the payment of all costs and expenses as may be associated with the implementation of any redevelopment activity as may hereafter be undertaken by the City and the Agency in the Arden-Guthrie Implementation Area as authorized by this agreement. (b) Notwithstanding the provisions of Section 3(a), the City and the Agency shall not initiate any amendment of the Redevelopment Plan or any amendment or supplement to the Implementation Plan for the Inland Valley Redevelopment Project Area without first obtaining the written approval of the NDA in its sole and absolute discretion. (c) Notwithstanding the provisions of Section 3(a) or any other part of this Agreement, the City and the Agency shall take no action under this Agreement which causes the NDA to incur an indebtedness which is payable from any funds, revenues or assets of the NDA, except from "Transfer Revenues", if any as this term is defined in Section 4, Section 4. Transfer of a Certain Portion of the NDA Tax Increment Funds for the Redevelopment of the Arden-Guthrie Implementation Area. (a) In addition to the meaning of certain words and phrases as set forth in the preceding Recital paragraphs and sections of this Agreement, the following definitions shall apply to usage of the terms set forth in this Agreement: . "Arden-Guthrie Properties Base Year" means and refers to the secured property tax roll assessed valuation of the Arden-Guthrie Properties for ad valorem property tax purposes, for the 2002-03 fiscal year of the IVDA as shown on the secured property tax assessment rolls of the County Assessor. . "Arden-Guthrie Properties Indebtedness" means and refers 10 Ihe indebtedness which the Agency may incur on or after the date of this Agreement with respect to the Arden- Guthrie Reuse Project. . "Arden-Guthrie Properties" means and refers to the approximately thirteen (13) acres of land in the Arden-Guthrie Implementation Area which is also depicted in Exhibit "B". . "Arden-Guthrie Reuse Project" means and refers to a community redevelopment project of the Agency, and the related activities which may hereafter be undertaken by the Agency in the Arden-Guthrie Implementation Area, The Arden-Guthrie Reuse Project shall be more particularly identified in the written notice provided to the NDA by the Agency under Section 4( e), 4 Exhibit "A" P:IClerical Services Dcpt\Margarel\Agreements-Amendrnenls\Agrmts-Amend 2003\03-09-15 IVDA Agrcemcnl.DOC ~--- . . "Tax Increment Revenue" mean and refer to those revenues, if any, received by the IVDA under Article VII, Section B(702) of the Redevelopment Plan as relate to the Arden-Guthrie Properties; . "Transfer Revenue" means and refers to a portion of the tax increment revenue of the IVDA attributable to the Arden-Guthrie Properties described in Section 4(b) which the IVDA shall pay to the Agency each year during the term of this Agreement with respect to indebtedness incurred by the Agency in connection with the redevelopment of the Arden-Guthrie Properties subject to the conditions set forth in Section 4, (b) Transfer Revenue is a portion of the tax increment revenue of the IVDA generated by the Arden-Guthrie Properties by virtue of the Arden-Guthrie Reuse Project, if any, each fiscal year, in excess of such tax increment revenue of the IVDA attributed to the Arden- Guthrie Properties Base Year, net of the low- and moderate-income housing set-aside obligation of the IVDA with respect to such tax increment revenue in each such fiscal year, and further net of the portion of such tax increment revenue of the IVDA with respect to the Arden-Gutherie Properties which is payable by the IVDA in such fiscal year under the School District Agreements as set forth in Section 4(f), (c) Provided the Agency has given the IVDA the notice described in Section 4( e), commencing no sooner than the 2005-06 fiscal year of the IVDA, and for each fiscal year of the IVDA thereafter during the term of this Agreement, the IVDA hereby agrees to pay to the Agency the Transfer Revenue attributable to the Arden-Guthrie Properties (if any) for each such fiscal year following the Arden-Guthrie Properties Base Year. The obligation of the IVDA to pay the Transfer Revenue to the Agency is a special fund obligation of the IVDA payable solely from the portion of the tax increment revenue of the IVDA generated by the Arden-Guthrie Properties by virtue of the Arden-Guthrie Reuse Project, if any, in the amount as calculated each fiscal year under the formula set forth in Section 4(b), No Transfer Revenues shall be payable by the IVDA to the Agency for any fiscal year of the IVDA after June 30, 2040, Any unpaid balance of the Arden-Guthrie Properties Indebtedness as may exist as of July I, 2040, shall be discharged, released and forgiven by the Agency. (d) The IVDA shall only remit the Transfer Revenues calculated pursuanl to Seclion (b) to the extent that the Agency has incurred on or after July I, 2003, funds, or incurred indebtedness in connection with the redevelopment of all or any portion of the Arden-Guthrie Properties Indebtedness, including without limitation indebtedness incurred under one or more separate agreements by and between the Agency and the City of San Bernardino or indebtedness to a noteholder, bondholder, trustee or other creditor of the Agency related to costs incurred or paid by the Agency for the redevelopment of the Arden-Guthrie Reuse Project. The Agency shall, as a condition precedent to the receipt of Transfer Revenue on each May I, commencing on May I, 2005, submit to the IVDA a suitably detailed written statement of the outstanding unpaid balance of Arden-Guthrie Properties Indebtedness incurred by the Agency, including the relevant terms ofrepayment of such Arden-Guthrie Properties Indebtedness. (e) By a date not later than June 30, 2007, the Agency shall give notice to the IVDA that the Agency entered into one or more written agreements with third-parties for the acquisition 5 Exhibit "A" P:\Clerical Services Dept\MargarellAgreemcnls-Amcndmcnls\Agrmts-Amend 2003\03-09-15 IVDA Agreement,DOC or redevelopment of at least seven (7) acres of land included in the Arden-Guthrie Implementation Area, Such notice shall contain a suitably detailed description of the Arden- Guthrie Reuse Project and the current balance, as of the date of such notice of the Arden-Guthrie Properties Indebtedness, Concurrently with such notice, the Agency shall alsD deliver to the IVDA a copy of such written agreements, In the event that such notice is not given by the Agency, then in such event, no Transfer Revenues shall be payable to the Agency by the IVDA under this Agreement. (f) This Agreement and the amounts of Transfer Revenue to be remitted by the IVDA to the Agency shall at all times be subject to the provisions of the various school district pass-through agreements between the IVDA and the San Bernardino City Unified School District, Colton Joint Unified School District, Redlands Unified School District, County Superintendent Df Schools and the San Bernardino Valley College District (collectively, the "School District Pass-Through Agreements") as the same are applicable to the increases in the tax increment revenues generated by the Arden-Guthrie Properties. The calculation of the amount of the Transfer Revenue to be remitted by the IVDA to the Agency shall be net of all amounts required to be paid by the IVDA to the various school districts pursuant to the School District Pass-Through Agreements. The IVDA shall be solely responsible for the administration ofthe School District Pass-Through Agreements, (g) The IVDA has established the Low and Moderate Income Housing Fund for the Inland Valley Redevelopment Project, and twenty percent (20%) of tax increment revenues received by the IVDA are deposited into such fund each year, subject to certain decreases authorized under applicable law, Said twenty percent (20%) figure may be decreased pursuant to Health and Safety Code Section 33334.2(a)(l) and (2) from time-tD-time by the IVDA. If the IVDA determines for the entire Project Area, inclusive of the Arden-Guthrie Properties, to deposit less than said twenty percent (20%) figure for a particular fiscal year, as permitted by Health and Safety Code Section 33492.40(e) and 33334.2(a)(2)(A), or if the IVDA determines to make no deposit into the Low- and Moderate-Income Housing Fund for the entire Project Area, inclusive of the Arden-Guthrie Properties, as permitted by Health and Safety Code Section 33334,2(a)(l)(A), then in any such event, the Transfer Revenue calculation as set forth in Section 4(b) of this Agreement for the particular fiscal year(s) in which such a finding is made by the IVDA, shall not be subject to any off-set or adjustment corresponding to any amounts of such tax increment revenue that the IVDA has not deposited into the IVDA Low and Moderate Income Housing Fund. (h) The obligation of the IVDA to remit any portion of the Transfer Revenue to the Agency pursuant to this Agreement is, at all times, subordinate to the obligations of the IVDA incurred pursuant to any and all tax allocation bonds, notes or other forms of indebtedness, and all refinancings of any of these, issued or incurred by the IVDA to the holders of publicly issued bonds, notes or other forms of indebtedness considered municipal securities sold in the municipal bond market. (i) The IVDA and the Agency will cooperate in each year during the term of this Agreement in the preparation of the Statement of Indebtedness for the IVDA as relates to the Arden-Guthrie Properties Indebtedness and the Transfer Revenue payable by the IVDA to the Agency for the Arden-Guthrie Properties Indebtedness, The IVDA and the Agency further agree, upon thirty (30) days written request, to exchange suitably detailed and written accounting 6 Exhibit "A" P:IClerical Services Depl\Margarel\Agreemenls-Amcndmenls\Agnnls-Amend 2003\03-09.15 IVDA Agreement,DOC and audit records related to the Arden-Guthrie Properties Indebtedness and the Transfer Revenue, including the estimates and final remittance amounts of Transfer Revenue each fiscal year as calculated by the IVDA, and the Arden-Guthrie Properties Indebtedness amounts incurred by the Agency with respect to the redevelopment of the Arden-Guthrie Properties. (j) Except as set forth in this Agreement as relates to Transfer Revenues, no other tax increment revenue or other funds or assets of the IVDA are subject to this Agreement. The IVDA may, but shall not be required, unless subsequently approved by the IVDA on a case-by- case basis, advance, loan or otherwise transfer to the Agency other tax increment revenue as may then be available to the IVDA from the Project Area, subject to applicable law, Section 5. Pre-June 30. 2003 Indebtedness of the Agencv Relating to the Arden- Guthrie Implementation Area, As of June 30, 2003, the Agency has incurred the sum of $10,000,000 in redevelopment indebtedness with respect to its efforts to address conditions of blight in the Arden-Guthrie ImplementatiDn Area, including indebtedness incurred for the acquisition of the property, No cost, expense or indebtedness incurred by the Agency with respect to the Arden-Guthrie Implementation Area prior to June 30, 2003 shall be deemed to be an eligible cost or indebtedness of the Agency for purposes of calculating the Arden-Guthrie Properties Indebtedness. Section 6, Notices, Formal notices, demands and communications among the IVDA, the Agency and the City shall be deemed sufficiently given if (i) dispatched registered or certified mail via United State Postal Service, postage prepaid, return receipt requested, as designated in this Section II, (ii) by personal deliver, (iii) express delivery service with written verification of deliver, or (iv) by electronic transmittal including fax transmissions with telephonic verification of receipt. Such written nDtices, demands and communications may be sent in the same manner to such other addresses as any party may from time to time designate by written notice to the other parties. Copies of all notices, demands and communications shall be sent as follows: IVDA; Inland Valley DevelDpment Agency 294 South Leland Norton Way San Bernardino, California 92408 Attention; Executive Director Agency; Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Third Floor San Bernardino, California 92401 Attention; Executive Director City; City of San Bernardino San Bernardino City Hall 300 North "D" Street, Sixth Floor San Bernardino, California 92418 Attention; City Administrator 7 Exhibit "A" P:IClerical Services Depl\Margaret\Agreements-Amendmcnls\Agrmls-Amend 2003\03.09-1 5 IVDA Agreemenl.DOC Notices which are dispatched by registered or certified mail through the United Slate Postal Service shall be deemed to be given three (3) business days after deposit with the United States Postal Service, and notices which are given by personal delivery shall be deemed given upon such personal deliver. Notices dispatched by express delivery service shall be deemed to have been given upon receipt by the party receiving such notice and execution of the deliver receipt, and notices dispatched through electronic transmittals shall be deemed to have given upon telephonic verification of receipt. Section 7, Indemnification and Hold Harmless. The City and the Agency hereby agree to indemnify, defend and hold harmless the IVDA and each of its officers, officials and employees from any and all loss, liability, claim, cost, expense or judgment, including attorney's fees, that may result from the implementation of this Agreement by the City and the Agency. The City and the Agency will also defend, indemnify and provide the cost of defense on behalf of the IVDA with respect to any third party challenge to the legality or enforceability of this Agreement pursuant to the CRL. Such indemnification and hold harmless shall apply whether or not the City and/or the Agency, or either of them was at fault or in any manner contributed to any such loss, liability, claim, cost, expense or judgment. Section 8, Entire Agreement of the Parties. This Agreement represents the entire agreement by and among the IVDA, the City and the Agency with respect to the transfer of the redevelopment powers of the IVDA affecting the Arden-Guthrie Implementation Area, Section 9. Invalidity of Anv Provision. In the event it is determined that any provision of this Agreement is invalid or unenforceable as between the parties, the remaining provislOns which are determined to be valid and enforceable shall remain in full force and effect. Section 10, Approval and Effective Date of Agreement. This Agreement has been duly approved and authorized for execution and delivery by the governing board of the IVDA, by the Council on behalf of the City and by the Commission on behalf of the Agency, and this Agreement has been duly executed and delivered by the parties hereto. This Agreement may be executed in counterparts and when fully executed by the parties it shall be effective for all purposes as of Ihe date sel forth in the introductory paragraph. 8 Exhibit "A" P:\Clerical Service, Dcpt\Margaret\Agreemenls-Amcndmenls\Agrmts-Amend 2003\03.09- J 5 IVDA AgreernenLDOC THIS AGREEMENT HAS BEEN DULY EXECUTED BY THE AUTHORIZED REPRESENTATIVES OF THE PARTIES HERETO AS SET FORTH BELOW, IVDA Inland Valley Development Agency Date; By: Co-Chair By: Co-Chair (SEAL) ATTEST; By: Clerk of the Board Approved as to Form; By: General Counsel [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 9 Exhibit "A" P:\Clerical Services DeptlMargarel\Agreemcnls..'-mendment,\Agrml,.Amend 2003\03.09-15IVOA AgrccmentDOC AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Chair of the Community Development Commission (SEAL) ATTEST: By; Secretary Approved as to Form; By: Agency Counsel [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 10 Exhibit "A" P:IClerical SCl'Iiccs DcptIMargaretlAgreemenls.AmendmentsIAgrmls-Amend 2003\03-09.15 lVDA AgreemcnLDOC CITY City of San Bernardino Date: By: Mayor (SEAL) ATTEST: By; City Clerk Approved as to Form: By: City Attorney [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] II Exhibit "A" P:\Clerical Services Depl\MargaretlAgreemenls-Amendmenls\Agrmls-Amend 2003\03-09-15 lVDA AgreemcnLDOC EXHIBIT "A" Map of Arden-Guthrie Study Area ]2 Exhibit "A" P:\Clerical Services Dept\MargarellAgreements-Amendments\Agrmts-Amend 2003\03.09.15 IVDA Agreement.DOC ctI Q) ~ <( ~ "'C ~ .... en Q) 'I:: .c .... ~ C!) 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