HomeMy WebLinkAbout2000-116
(See Companion Resolution CDC 2000-13)
1
2
RESOLUTION NO. 2000-116
3
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO MAKING CERTAIN FINDINGS RELATING TO A
REIMBURSEMENT OBLIGATION PAYABLE BY THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO TO THE LOW- AND
MODERATE-INCOME HOUSING FUND AND APPROVING THE
REDEVELOPMENT COOPERATION AND REIMBURSEMENT AGREEMENT
(PATTON FARMS AND N W CORNER OF 5TH STREET AND "E"
STREET)
, .
4
5
6
7 WHEREAS, the Redevelopment Agency of the City of San
8 Bernardino ("Agency") is a public body, corporate and politic,
9 organized and existing pursuant to the constitution of the State of
10 California; and
11
12
WHEREAS, the Community Development Commission of the City
13 of San Bernardino (the "Commission") is the governing board of the
14 Agency; and
15
16
WHEREAS, the Agency acquired an approximately seventy
17 three (73) acre site situated near the southern corner of the
18 intersection of 9th Street and Del Rosa (the "Patton Farms Site")
19 in the City of San Bernardino (the "City") from the State of
20 California pursuant to the terms of an agreement, dated September
21 14, 1988 by and among the State of California acting through the
22 Director of General Services and the City and the Agency; and
23
24
WHEREAS, funds of the Agency Low- and Moderate-Income
25 Housing fund from the Tri City Redevelopment Project have been used
26 and applied to acquire the Patton Farms Site; and
27
28
SBEO/0001/OOC/4040
5/9/00 225 ct
1
2000-116
1
WHEREAS, the Agency has acquired an approximately five
2 (5)
acre site situated near the northwest corner of the
3 intersection of 5th Street and "E" Street (the "5th and "E" Site")
4 in the City in November, 1990; and
5
6
WHEREAS, funds of the Agency Low- and Moderate-Income
7 Housing Fund from the Central City North Redevelopment Project have
8 been used and applied to acquire the 5th and "E" Site; and
9
10
Health and Safety Code Section 33334.16
WHEREAS,
11 provides:
12
13
"For each interest in real property acquired using moneys
14
from the Low and Moderate Income Housing fund, the agency
15
shall, within five years from the date it first acquires
16
the property interest for the development of housing
17
affordable to persons and families of low and moderate
18
activities
with
the
initiate
consistent
income,
19
development of the property for that purpose. These
20
activities may include, but are not limited to, zoning
21
changes or agreements entered into for the development
22
If these activities
and disposition of the property.
23
have not been initiated within this period,
the
24
legislative body may, be resolution, extend the period
25
during which the agency may retain the property for one
26
additional period not to exceed five years.
The
27
resolution of extension shall affirm the intention of the
28
legislative body that the property be used for the
SBEO/0001/DOC/4040
5/9/00 225 ct
2
2000-116
1 development of housing affordable to persons and families
2 of low and moderate income. In the event that physical
3 development of the property for this purpose has not
4 begun by the end of the extended period, or if the agency
5 does not comply with this requirement, the property shall
6 be sold and the moneys from the sale, less reimbursement
7
to the
Agency for the cost of the sale, shall be
8 deposited in the agency's Low and Moderate Income Housing
9 Funds;" and
10
11
WHEREAS, the Agency has reviewed the financial audit
12 report for Agency Fiscal Year 1998-1999 which indicates that under
13 the present circumstances:
14
15
(i) the failure of the Agency to either initiate the
16 redevelopment of the Patton Farms Site for affordable housing
17 purposes or to sell the Patton Farms Site and deposit the net
18 proceeds realized from such sale into the Low- and Moderate-
19 Income Housing Fund appears to constitute a violation of the
20 provisions of Health and Safety Code Section 33334.16; and
21
22 (ii) the failure of the Agency to either initiate the
23 redevelopment of the 5th and ftE" Site for affordable housing
24 purposes or to sell the 5th and ftE" Site and deposit the net
25 proceeds realized from such sale into the Low-and Moderate-
26 Income Housing Fund appears to constitute a violation of the
27 provisions of Health and Safety Code Section 33334.16; and
28
SBEO/0001/Doc/4040
5/9/00 225 ct
3
2000-116
1
WHEREAS, Health and Safety Code Section 33080.8, as added
2 by California Statutes 1999, Chapter 362, Section 2 (S.B. 497),
3 sets forth a procedure whereby community redevelopment agencies may
4 take specific actions to correct technical violations relating to
5 the completion of affordable housing development activities using
6 funds obtained from the Low- and Moderate-Income Housing Fund.
7
8 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
9 MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS:
10
11
Section 1. The purpose of this Resolution is to evidence
12 the action taken by the Common Council to correct the following
13 findings set forth in the final audit report of the Agency for
14 Agency Fiscal Year 1998-1999, dated June 30, 1999:
15
16
(i) to correct the failure of the Agency to either
17 initiate the redevelopment of the Patton Farms Site for
18 affordable housing purposes or to sell the Patton Farms Site
19 and deposit the net proceeds realized from such sale into the
20 Low- and Moderate-Income Housing Fund; and
21
22
(ii) to correct the failure of the Agency to either
23 ini tiate the redevelopment of the 5th and "E" Site for
24 affordable housing purposes or to sell the 5th and "E" Site
25 and deposit the net proceeds realized from such sale into the
26 Low- and Moderate-Income Housing Fund.
27
28
SBEO/0001/OOC/4040
5/9/00 225 ct
4
2000-116
1
Section 2. The contract purchase price for the Patton
2 Farms Site was $3,038,000 under the terms of the September 14, 1988
3 agreement with the State of California. As of the date of adoption
4 of this Resolution the Agency has paid the State of California the
5 sum of $2,082,387.56 in principal and interest pursuant to the
6 terms of the September 14, 1988 agreement, as modified by
7 Commission Resolution No. 5362, dated April 21, 1993, from the
8 Agency Low- and Moderate-Income Housing Fund for the Tri City
9 Redevelopment Project.
10
11 The Agency ceased making further payments to the State
12 for the Patton Farms Site after June 1, 1997, pursuant to the terms
13 of a separate Exchange Agreement by and among the State of
14 California, the City and the Agency dated, May 21, 1999.
15 Accordingly, the full amount of the Reimbursement Obligation to the
16 Agency Low- and Moderate-Income Housing Fund for the Tri-City
17 Redevelopment proj ect for the Patton Farms Site is computed as
18 follows:
19
20
Patton Farms Site purchase Price
$2,082,387.56
21
(including interest) paid to State
22
Accrued Interest Payable as
23
Reimbursement Obligation to Agency
24
Low-Mod Fund From
25
Julv 1. 1997 to Mav 31. 2000
$ 334.049.80
26
Patton Farms Site Reimbursement
27
Obligation Total
$2,416,437.36
28
SBEO/0001/DOC/4040
5/9/00 225 ct
5
2000-116
1
Section 3. The contract purchase price for the 5th and
2 RE" Site was $500,000.00, and the purchase price for the 5th and
3 RE" Site was paid by the Agency in November 1990 using fnds from
4 the Agency's Low- and Moderate-Income Housing Fund for the Central
5 City North Redevelopment Project.
The full amount of the
6 Reimbursement Obligation to the Agency Low- and Moderate-Income
7 Housing Fund for the Central City North Redevelopment Project is
8 computed as follows:
9
5th & RE" Site
$500,000.00
10
Accrued Interest Payable
11
12
13
14
Since July I, 1994 to
May 31. 2000
$162.708.57
5th & RE" Site Reimbursement
Obligation Total
$662,708.57
15
16
Section 4.
The Common Council hereby finds and
17 determines that the agreement entitled RLow- and Moderate-Income
18 Housing Fund Redevelopment Cooperation and Reimbursement Agreement
19 (Patton Farms and N W Corner of 5th Street and RE" Street)" (the
20 RRedevelopment Cooperation and Reimbursement Agreement") contains
21 provisions which assure the correction of the violation noticed in
22 the Agency annual report for Fiscal Year 1998-99 with respect to
23 the Patton Farms Site and the 5th and RE" Site. The Common Council
24 hereby approves the Redevelopment Cooperation and Reimbursement
25 Agreement in the form attached hereto as Exhibit RA". The Mayor
26 and the City Clerk are hereby authorized and directed to execute
27 the Redevelopment Cooperation and Redevelopment Agreement on behalf
28 of the City.
SBEO/0001/DOC/4040
5/9/00 225 ct
6
20
2000-116
1
Section 5.
The Common Council hereby finds and
2 determines:
3
(i)
the use of the unrestricted tax increment funds of
4
the Tri City Redevelopment Project (net of the tax increment
5
funds deposited to the Agency Low- and Moderate-Income Housing
Fund for the Tri City Redevelopment Project) is of benefit to
6
7
the Tri City Redevelopment Project and that the use of such
8
unrestricted tax increment funds as set forth in the
9
Redevelopment Cooperation and Reimbursement Agreement shall
10
increase, expand and preserve the community's supply of
11
affordable housing; and
12
13
(ii) the use of unrestricted tax increment funds of the
14
Central City North redevelopment Project (net of the tax
15
increment funds deposited to the Agency Low- and Moderate-
16
Income Housing Fund for the Central City North redevelopment
17
Project) is of benefit to the Central City North redevelopment
18
Project and that the use of such unrestricted tax increment
19
funds as set forth in the Redevelopment Cooperation and
Reimbursement Agreement shal increase, expand and preserve the
21
community's supply of affordable housing.
22
23
The City Clerk is hereby authorized and
Section 6.
24 directed to transmit a certified copy of this Resolution, together
25 with a certified copy of the Redevelopment Cooperation and
26 Reimbursement Agreement, to the State Controller, as evidence of
27 the action taken by the Common Council to correct the violations as
28
SBEO/0001/DOC/4040
5/9/00 225 ct
7
2000-116
1 noted in the annual report
2 with respect to the Patton
3 III
4 III
5 III
6 III
7 III
8 III
9 III
10 III
11 III
12 III
13 III
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
SBEO/0001/DOC/4040
5/9/00 225 ct
of the Agency for Fiscal Year 1998-99,
Farms Site and the 5th and "E" Site.
8
2000-116
1 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO MAKING CERTAIN FINDINGS RELATING TO A REIMBURSEMENT
2 OBLIGATION PAYABLE BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO TO THE LOW- AND MODERATE-INCOME HOUSING FUND AND
3 APPROVING THE REDEVELOPMENT COOPERATION AND REIMBURSEMENT AGREEMENT
(PATTON FARMS AND N W CORNER OF 5TH STREET AND "E" STREET)
4
5
Section 7.
This
Resolution
shall
become
effective
6 immediately upon its adoption.
7
8 I HEREBY CERTIFY that the foregoing Resolution was duly
9 adopted by the Mayor and Common Council of the City of
10 San Bernardino at a T,,;nt" 'R.ag1l1 ~.,..
meeting thereof, held on
11 the
15th
day of May, 2000, by the following vote, to wit:
12
13 Council:
AYES
l:ffiYS.
ABSTAIN
ABSENT
14 ESTRADA
LIEN
15 MCGINNIS
SCHNETZ
16 SUAREZ
ANDERSON
17 McCAMMACK
x
X
1<'
X
1<'
X
X
18
~~h. CLuJc
19
21
r
hereby approved this
--
-- "/
// A 7\:/.,)
r------
20
The foregoing resolution is
day of May, 2000.
22
Esther Estrada
Mayor Pro Tem
23
24
Approved as to form
::~~legal ;o:r~
ity Attorney
26
25
27
28
SBEO/0001/OOC/4040
5/9/00 225 ct
9
~000-1.J6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Exhibit "Au
Redevelopment Cooperation and Reimbursement Agreement
2000-116
LOW-AND MODERATE-INCOME HOUSING
FUND REDEVELOPMENT COOPERATION AND REIMBURSEMENT AGREEMENT
(Patton Farms and N W Corner of 5th Street and "E" Street)
THIS LOW-AND MODERATE-INCOME HOUSING FUND REDEVELOPMENT
COOPERATION AND REIMBURSEMENT AGREEMENT (the "Reimbursement
Agreement") is dated as of May 15, 2000 by and between the City of
San Bernardino (the "City") and the Redevelopment Agency of the
City of San Bernardino (the "Agency") with respect to the facts set
forth in the following Recitals:
--RECITALS--
1. Beginning in July 1990 the Agency used and applied funds
on deposit in the Low-and Moderate-Income Housing Fund (Tri-City
Redevelopment Project) in the amount of $2,082,387.56 to acquire
from the State of California approximately 73 acres of land known
as Patton Farms situated near the southwest corner of the
intersection of 9th Street and Del Rosa Avenue in the City (the
"Patton Farms Site"). The Agency owns the fee title interest in
the Patton Farms site as of the date of this Reimbursement
Agreement.
2. The Patton Farms Site was acquired by the Agency for the
purpose of assisting the redevelopment thereon of affordable
housing. A description of the efforts of the Agency to redevelop
the Patton Farms Site as an affordable housing development project
is set forth in the Resolution of the Community Development
Commission of the City of San Bernardino which approves this
Reimbursement Agreement. However, since July 1990 no construction
or improvement of affordable housing has occurred on the Patton
Farms Site and the redevelopment of the Patton Farms Site by the
Agency as an affordable housing project does not appear to have a
firm schedule or timetable at this time.
3. In November 1990, the Agency used and applied funds on
deposit in the Low-and Moderate-Income Housing Fund (Central City
North Redevelopment Project) in the amount of $500,000 to acquire
approximately 5 acres of land situated near the northwest corner of
the intersection of 5th Street and "E" Street in the City (the "5th
and "E" Site"). The Agency owns the fee title interest in the 5th
and "E" Site as of the date of this Reimbursement Agreement.
4. The 5th and "E" Site was acquired by the Agency for the
purpose of assisting the redevelopment thereon of affordable
housing. A description of the efforts of the Agency to redevelop
the 5th and "E" Site as an affordable housing development project
is set forth in the Resolution of the Community Development
SBE0/0001/00C/4024-2
5/9/00 930 jrnw
1
2000-116
Commission of the City of San Bernardino which approves this
Reimbursement Agreement. However, since November 1990, no
construction or improvement of affordable housing has occurred on
the 5th and "E" Site. Despite earlier efforts to improve the 5th
and "E" Site for affordable senior citizen rental housing purposes,
the Agency has since installed on the 5th and "E" Site certain off-
street motor vehicle parking improvements intended primarily to
benefit the regional claims office of the County of San Bernardino
Department of Public Social Services, and until such time as the
Agency can provide sui table substitute off-street motor vehicle
parking facilities for the County DPSS regional claims office, the
improvement of the 5th and "E" Site as an affordable housing
proj ect does not appear to be practicable in the foreseeable
future.
5. Health and Safety Code Section 33334.16 provides:
"For each interest in real property acquired using moneys
from the Low and Moderate Income Housing fund, the agency
shall, within five years from the date it first acquires the
property interest for the development of housing affordable to
persons and families of low and moderate income, initiate
activities consistent with the development of the property for
that purpose. These acti vi ties may include, but are not
limited to, zoning changes or agreements entered into for the
development and disposition of the property. If these
activities have not been initiated within this period, the
legislative body may, be resolution, extend the period during
which the agency may retain the property for one additional
period not to exceed five years. The resolution of extension
shall affirm the intention of the legislative body that the
property be used for the development of housing affordable to
persons and families of low and moderate income. In the event
that physical development of the property for this purpose has
not begun by the end of the extended period, or if the agency
does not comply with this requirement, the property shall be
sold and the moneys from the sale, less reimbursement to the
Agency for the cost of the sale, shall be deposited in the
agency's Low and Moderate Income Housing Funds."
6. The Agency has reviewed the financial audit report for
Agency Fiscal Year 1998-1999 which indicates that under the present
circumstances:
(i) the failure of the Agency to either initiate the
redevelopment of the Patton Farms Site for affordable housing
purposes or to sell the Patton Farms Site and deposit the net
proceeds realized from such sale into the Low- and Moderate-
SBEO/0001/DOC/4024-2
5/9/00 930 jmw
2
2000-116
Income Housing Fund appears to constitute a violation of the
provisions of Health and Safety Code Section 33334.16; and
(ii) the failure of the Agency to either initiate the
redevelopment of the 5th and "E" Site for affordable housing
purposes or to sell the 5th and "E" Site and deposit the net
proceeds realized from such sale into the Low-and Moderate-
Income Housing Fund constitutes a violation of the provisions
of Health and Safety Code Section 33334.16.
7. Health and Safety Code Section 33080.8, as added by
California Statutes 1999, Chapter 362, Section 2 (S.B. 497), sets
forth a procedure whereby community redevelopment agencies may take
specific actions to correct technical violations relating to the
completion of affordable housing development activities using funds
obtained from the Low- and Moderate-Income Housing Fund.
NOW THEREFORE, THE CITY AND THE AGENCY HEREBY AGREE AS
FOLLOWS:
Section 1. Statement of Puroose and Findinas of the Common
Council and the Community Deve100ment Commission.
(a) The purpose of this Reimbursement Agreement is to
evidence the action taken by the City and the Agency to correct the
following findings set forth in the final audit report of the
Agency for Agency Fiscal Year 1998-1999, dated June 30, 1999:
(i) to correct the failure of the Agency to either
ini tiate the redevelopment of the Patton Farms Site for
affordable housing purposes or to sell the Patton Farms Site
and deposit the net proceeds realized from such sale into the
Low- and Moderate-Income Housing Fund; and
(ii) to correct the failure of the Agency to either
ini tiate the redevelopment of the 5th and "E" Site for
affordable housing purposes or to sell the 5th and "E" Site
and deposit the net proceeds realized from such sale into the
Low- and Moderate-Income Housing Fund.
(b) The findings set forth in the Resolution of the Common
Council and the Resolution of the Community Development Commission
approving this Reimbursement Agreement are hereby incorporated into
this Reimbursement Agreement by this reference.
SSEO/0001/DOC/4024-2
5/9/00 930 jrnw
3
2000-116
Section 2.
Apportionment of Reimbursement Obligation.
(a) The aggregate amount of the reimbursement obligation
described in Section 2(b) and Section 2(c) is referred to in this
Reimbursement Agreement as the "Reimbursement Obligation."
(b) The Patton Farms Site was acquired by the Agency with
funds on deposit in the Low- and Moderate-Income Housing Fund. As
of the date of approval of this Reimbursement Agreement the Agency
owns the Patton Farms Site. The City and the Agency hereby find
and declare that as of June 1, 2000, a Reimbursement Obligation in
the amount of $2,416,437_36 in favor of the Low- and Moderate-
Income Housing Fund is an indebtedness of the Agency for the Tri
City Redevelopment Project and is payable with respect to the
acquisition of the Patton Farms Site by the Agency. The Patton
Farms Site indebtedness and Reimbursement Obligation consists of
the following elements:
Land purchase price:
Accrued interest from
July 1, 1997 to
May 31, 2000:
TOTAL
$2,082,387.56
S 334.049.80
$2,416,437.36
In the event that the Agency may hereafter cause a portion of
the Patton Farms Site to be transferred to a third party for
affordable housing use and development the Reimbursement Obligation
for such portion of the Patton Farms Site as transferred shall be
calculated as follows:
($2,416,437.36 +
Interest Accrued
Under Section 51 X
(Land Area of
Patton Farms
Site)
(Land Area
of Portion
of Patton
Farms
Site
Transferred)
=
Portion of
Reimbursement
Obligation Which May
Be Credited From
Disposition of Patton
Farms Site--in Whole
or in Part--to
Affordable Housing Use
(c) The 5th and "E" Site was acquired by the Agency with
funds on deposit in the Low- and Moderate-Income Housing Fund. As
of the date of this Reimbursement Agreement the Agency owns the 5th
and "EN Site. The City and the Agency hereby find and declare that
as of June 1, 2000 a Reimbursement Obligation in the amount of
$662,708.57 in favor of the Low- and Moderate-Income Housing Fund
is an indebtedness of the Agency for the Central City North
Redevelopment Project and is payable with respect to the
acquisition of the 5th and "EN Site by the Agency. The 5th and "E"
SBEO/0001/DOC/4D24-2
5/9/00 93D jmw
4
2000-116
Site indebtedness and Reimbursement Obligation consists of the
following elements:
Land purchase price:
Accrued interest from
July 1, 1994 to
May 31, 2000:
TOTAL
$500,000.00
$162.708.57
$662,708.57
Section 3. Reimbursement Obliaation Pavable to Low- And
Moderate Income Housing Fund. Subject to the terms and conditions
of this Reimbursement Agreement, the Agency hereby agrees to pay
the Low- and Moderate-Income Housing Fund the sum of Three Million
Seventy Nine Thousand One Hundred Forty Five Dollars and Ninety
Three Cents ($3,079,145.93), plus interest at the rate per annum as
set forth herein, commencing on June 1, 2000. The obligation of
the Agency to cause the Reimbursement Obligation to be paid to the
Low- and Moderate-Income Housing Fund shall be payable from the
special source of Agency funds described in Section 7 and from the
tax increment revenues of the Agency described in Section 8.
Neither the full faith and credit nor the taxing power of the City
is pledged or otherwise available to pay the Reimbursement
Obligation.
Section 4. Creation of FY 2000-01 Reimbursement Obliaation
Account and Schedule of PaYment of Reimbursement Obligation.
(a) The Agency hereby establishes within the Low- and
Moderate-Income Housing Fund a special account entitled "FY 2000-01
Reimbursement Obligation Account". All sums deposited to such
account shall be used and applied with other funds in the Low- and
Moderate-Income Housing Fund to increase and preserve the
community's supply of affordable housing.
(b) Commencing on July 1, 2000, and on each July 1 thereafter
until the Reimbursement Obligation has been paid in full, the
Agency shall deposit into the FY 2000-01 Reimbursement Obligation
Account an amount equal to the interest which has accrued on the
outstanding principal balance of the Reimbursement Obligation
during the preceding fiscal year at the rate of interest per annum
as provided in Section 5.
(c) In addition to the sums of
Section 4(b), commencing July 1,
thereafter until the Reimbursement
full, the Agency deposit into the FY
Account the following sums:
accrued interest payable under
2001, and on each July 1
Obligation has been paid in
2000 Reimbursement Obligation
SBEO/0001/DOC/4024-2
5/9/00 930 jrnw
5
2000-116
July 1, 2001 $100,000.00 July 1, 2011 $169,009.12
July 1, 2002 $125,000.00 July 1, 2012 $169,009_12
July 1, 2003 $150,000.00 July 1, 2013 $169,009.12
July 1, 2004 $169,009.12 July 1, 2014 $169,009_12
July 1, 2005 $169,009.12 July 1, 2015 $169,009.12
July 1, 2006 $169,009.12 July 1, 2016 $169,009.12
July 1, 2007 $169,009.12 July 1, 2017 $169,009.12
July 1, 2008 $169,009.12 July 1, 2018 $169,009.12
July 1, 2009 $169,009.12 July 1, 2019 $169,009.12
July 1, 2010 $169,009.12
(d) Amounts deposited into the FY 2000-01 Reimbursement
Obligation Account under Section 7 from the sale, lease or other
disposition of .the Patton Farms Site either in whole or in part,
and/or the 5th and "E" Site, shall be applied as a credit against
sums otherwise due on the principal payment date or dates next
following the time that such amounts of principal are deposited
into the FY 2000-01 Reimbursement Obligation Account.
(e) In any year during which the Agency may fail to deposit
into the FY 2000-01 Reimbursement Obligation Account the full sum
of principal or interest as required under Section 4(b) or Section
4(c), penalty interest shall accrue on such unpaid amount at the
rate of eight percent (8%) per annum until such unpaid amounts,
plus penalty interest is paid in full.
Section 5. Rate of Interest Payable on Outstanding
PrinciDal Balance of Reimbursement Obliaation. Interest shall
accrue on the outstanding principal balance of the Reimbursement
Obligation at a variable rate. Payments of interest shall be due
on each July 1, commencing on July 1, 2000, until the outstanding
principal balance of the Redevelopment Obligation is paid in full.
Interest on the outstanding principal balance of the Reimbursement
Obligation shall accrue at the rate of Five and Eight Tenths
percent (5.8%) per annum from June 1, 2000 to June 30, 2000. The
rate of interest for the next following fiscal year beginning on
July 1, 2000 and on each July 1, thereafter until paid in full,
shall be established by reference to the Local Agency Investment
Fund annual rate of interest as announced by the State Treasurer on
the fifteenth (15th) business day immediately preceding each such
July 1_ Interest payable on the outstanding principal balance of
the Reimbursement Obligation shall be calculated on the basis of a
360 day year with twelve (12) months of thirty (30) days each with
interest prorated on such basis for any portion of a month that the
principal balance is then outstanding_
SBEO/OOQ1/DOC/4024-2
5/9/00 930 jmw
6
'2000-116
Section 6. Maturitv Date for Reimbursement Obliaation.
The remaining principal balance and all accrued and unpaid interest
on the Reimbursement Obligation shall be due and payable on July 1,
2020. The Agency may prepay the remaining principal balance of the
Reimbursement Obligation and all accrued and unpaid interest, in
whole or in part, at any time without penalty.
Section 7. Patton Farms Site and 5th and "E" Site Are
Assets of the Low- And Moderate-Income Housing Fund.
(a) The Patton Farms Site and the 5th and "E" Site are hereby
declared by the Agency to be held in trust as assets of the Low-
and Moderate-Income Housing Fund. Until the Reimbursement
Obligation has been paid in full to the Low- and Moderated-Income
Housing Fund, all sums realized by the Agency from the sale, lease
of other disposition of the Patton Farms Site and the 5th and "E"
Site shall be deposited into the FY 2000-01 Reimbursement
Obligation Account (net of amounts of the actual and reasonable
land transfer and conveyance costs, real estate broker commission
fees, title insurance premiums and other related expenses of sale) _
(b) As used herein, the words "increase, improve and preserve
the community's supply of low- and moderate-income housing" shall
have the same meaning as set forth at Health and Safety Code
Section 33334.3(g). In the event that the Patton Farms Site may be
sold, leased or otherwise used to increase, improve and preserve
the community's supply of low- and moderate-income housing, either
in whole or in part, then in addition to any sums deposited into
the FY 2000-01 Reimbursement Obligation Account under Section 7(a)
from such transaction, the amount of the Reimbursement Obligation
as allocated to such portion of the Patton Farms Site in Section
2(b), shall be deemed to have been paid in full to the FY 2000-01
Reimbursement Obligation Account. In the event that the 5th and
"E" Site may be sold, leased or otherwise used to increase, improve
and preserve the community's supply of low- and moderate-income
housing, then in addition to any sums deposited to the FY 2000-01
Reimbursement Obligation Account under Section 7 (a) from such
transaction, the amount of the Reimbursement Obligation as
allocated to the 5th and "E" Site in Section 2(c) shall be deemed
to have been paid in full to the FY 2000-01 Reimbursement
Obligation Account.
Section 8. The Agency shall pay principal and interest
amounts of the Reimbursement Obligation when due from the following
sources of funds of the Agency:
(1) for that portion of the Reimbursement Obligation
allocated in Section 2(a) to the Patton Farms Site the Agency
SBEO/0001/DOC/4024-2
5/9/00 930 jmw
7
2000-116
shall pay the tax increment revenues, if any, generated by the
Tri City Redevelopment Project and allocated and paid to the
Agency by San Bernardino County each fiscal year, after
deducting an amount from such tax increment revenues: (i) the
amount as required to be deposited in that year into the Low-
and Moderate-Income Housing Fund under Health and Safety Code
Section 33334.2 plus (ii) an amount sufficient to pay the
principal and interest due on all other indebtedness of the
Agency for the Tri City Redevelopment Project incurred prior
to June 1, 2000; and
(2) for that portion of the Reimbursement Obligation
allocated in Section 2(b) to the 5th and "E" Site the Agency
shall pay the tax increment revenues, if any, generated by the
Central City North Redevelopment proj ect and allocated and
paid to the Agency by San Bernardino County each fiscal year,
after deducting an amount from such tax revenues: (i) the
amount required to be deposited in that year into the Low- and
Moderate-Income Housing Fund under Health and Safety Code
Section 33334.2; plus (ii) an amount sufficient to pay the
principal and interest due on all other indebtedness of the
Agency for the Central City Redevelopment Project incurred
prior to June 1, 2000; and
(3) from funds, if any, realized by the Agency from the
sale, lease or other disposition of the Patton Farms Site,
either in whole or in part and/or the 5th and "E" site, as
provided in Section 7.
Section 9. Reimbursement Obliaation Is a Subordinate
Indebtedness of the Aaency. The City and the Agency hereby agree
that the obligation of the Agency to pay the Reimbursement
Obligation shall at all times be subordinated to any and all other
outstanding, or as hereafter may be outstanding, bonds, notes or
other forms of indebtedness of the Agency payable in whole or in
part from the available tax increment revenues of the Agency or
from other legally available funds of the Agency and shall not
constitute a prior lien as to the available tax increment revenues
or other legally available funds of the Agency_ Notwithstanding
anything in the preceding sentence to the contrary, the Agency
shall not pledge, assign, encumber or hypothecate any interest in
the Patton Farms Site or the 5th and "E" Site except to pay the
Reimbursement Obligation.
Section 10.
Aaencv Report to the City.
For any fiscal year in which the Agency reasonably estimates
that its available funds under Section 8(1), Section 8(2) and/or
SBEO/0001/OOC/4024-2
5/9/00 930 jmw
8
I
2000-116
Section 8(3) may not be sufficient in whole or in part to pay the
installment of the Reimbursement Obligation then due, the Agency
shall give written notice to the City by not later than April 1
preceding the payment date, that the Agency does not estimate that
its available tax increment revenues will be sufficient to pay the
next installment of the Reimbursement Obligation when due. Within
sixty (60) days following the receipt of such notice, the City may
at its sole option and discretion, confirm that the City may loan
to the Agency, subject to the annual appropriation process of the
City, a sum in an amount sufficient to pay the next installment of
the Reimbursement Obligation. In the event that the City may
hereafter loan to the Agency any funds under this Section 10, such
loan shall be repayable by the Agency to the City from the source
of funds of the Agency identified in Section 8(1) and Section 8(2).
Any such loan shall be evidenced by a separate written loan
agreement by and between the City and the Agency.
Section 11. Executive Director of the Aaency Authorized to
Initiate Real Estate Marketina and Sale Proaram for the Patton
Farms Site. The Executive Director of the Agency is hereby
authorized and directed to promptly initiate a real estate
marketing and sale program for the sale and disposition of the
Patton Farms Site in whole or in part at the earliest feasible
time. The Executive Director shall submit a suitably detailed
written report to the Community Development Commission by October
1, 2000, which contains a recommendation for the disposition of the
Patton Farms Site.
Section 12. Statement of Indebtedness.
Agency hereby acknowledge and agree that
Obligation as evidenced by this Reimbursement
considered as an indebtedness of the Agency as
The City and the
the Reimbursement
Agreement shall be
follows:
(i) for the portion of the Reimbursement Obligation
allocated to the Patton Farms Site under Section 2(a), such
amount is an indebtedness of the Tri City Redevelopment
Project; and
(ii) for the portion of
allocated to the 5th and RE"
amount is an indebtedness
Redevelopment Project.
the Reimbursement Obligation
Site under Section 2(b), such
of the Central City North
The Executive Director of the Agency is hereby authorized and
directed to identify this Reimbursement Agreement as an
indebtedness of the Agency on each Statement of Indebtedness of the
Agency as filed with the County Auditor pursuant to Health and
Safety Code Section 33676 commencing on October 1, 2000.
SBE0/0001/DOC/4024-2
5/9/00 930 jmw
9
2000-116
Section 13. Effective Date. This Reimbursement Agreement
shall take effect from and after the date of approval by the City
and the Agency pursuant to official action of the governing bodies
thereof and shall be effective for the period of time provided in
Section 6.
SBE010001/DOC/4024-2
5/9/00 930 jmw
10
2000-116
IN WITNESS WHEREOF, the parties hereto have entered into this
Reimbursement Agreement as of the date first above written_
Date:
05 If" ~?7P' C!
, ,
(SEAL)
ATTEST:
~):J.~
Date:
t75 J~ ~MO
, .
(SEAL)
" D.;;AS TO FORM:
,;/' ~.';/,
/~ . /0z{A? /
gency Special Counsel
SBEO/OOOI/DOC/4024-2
5/9/00 930 jrnw
CITY
City of San Bernardino, California
BY:~~ ~--
Esther Estrada
Kayor Pro Tem
AGENCY
Redevelopment Agency of the City of
San Bernardino
BY~~~
. Bett Dean Anderson
Vice Chairman
11