HomeMy WebLinkAbout1991-380
1
2
3
4
5
6
7
8
RESOLUTION NO.
91-380
RESOLUTION OF THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
FINDING BENEFIT TO THE STATE COLLEGE
REDEVELOPMENT PROJECT AREA IN THE USE OF TAX
INCREMENT REVENUES AND BOND PROCEEDS FOR THE
PAYMENT OF INFRASTRUCTURE COSTS IN THE
VERDEMONT AREA
WHEREAS, the city of San Bernardino, California (the
"City"), is a municipal corporation and a charter city duly
created and existing pursuant to the Constitution and the laws of
9
10
11
12
City of
the State of California (the "city"); and
WHEREAS, the Community Development Commission of the
(the "Commission")
San Bernardino
on behalf of the
13
Redevelopment
14
15
16
city
San Bernardino
of
(the
of
the
Agency
"Agency"), is a redevelopment agency, a public body, corporate
and politic of the State of California, organized and existing
Community
(Part
1
of
Redevelopment
pursuant
to
the
Law
17
Division 24) commencing with Section 33000 of the Health and
18
Safety Code of the State of California (the "Act"); and
19
20
21
22
WHEREAS, pursuant to section 33445 of the Act, the
Agency may, with the consent of the Mayor and Common Council of
the city (the "Council"), pay all
or a
part of the cost of
23
building,
facility,
construction
installation
of
and
any
24
structure or other improvement which is publicly owned either
25
within or without the boundaries of a redevelopment project area
26
27
28
if the Agency determines:
(1) that such buildings, facilities,
benefit
improvements
to
the
are
of
other
structures
or
1//
- 1 -
3
1 redevelopment project area or the immediate neighborhood in which
2 the project is located, regardless of whether such improvements
3 are within another project area, or in the case of a project area
4 in which substantially all the land is publicly owned that the
5 improvements are of benefit to an adjacent project area of the
6 Agency, and (2) that no other reasonable means of financing such
7 buildings, facilities, structures or other improvements is
8 available to the community, and such determination by the Agency
9 and the Council shall be final and conclusive; and
10
11 WHEREAS, the City and the Agency have previously
12 adopted the redevelopment plan for a project area encompassed by
13 the State College Redevelopment Project (the "Project Area"); and
14
15 WHEREAS, it is in the interests of the present
16 landowners within the Project Area and the residents, both within
17 the Project Area and within the City generally, that the Agency
18 cause the undertaking of certain public improvements in the
19 Verdemont area of the City (the "Verdemont Area") which
20 improvements consist of, but are not limited to, the construction
21 of the Chestnut Drain facilities, the installation of box culvert
22 improvements in the vicinity of the intersection of Kendall Drive
23 and Palm Avenue, the installation of certain traffic signal
24 improvements at the intersection of Kendall Drive and Palm
25 Avenue, the construction of right-of-way improvements along Palm
26 Avenue and various other related infrastructure improvements
27 (collectively such improvements shall be referred to as the
28 "Verdemont Improvements"); and
- 2 -
3
WHEREAS, the city has previously caused the
establishment of its Assessment District No. 987 within the
Verdemont Area to pay for a portion of the costs of certain
infrastructure items required for the Verdemont Area including a
portion of the costs of the Verdemont Improvements; and
1
2
3
4
5
6
7 WHEREAS, the revenues generated through the
8 establishment of Assessment District No. 987 are insufficient to
9 pay all of the costs of the infrastructure items required for the
10 Verdemont Area, including the total costs of the Verdemont
11 Improvements as described hereinabove; and
12
13
14
15
16
17
18 WHEREAS, the City has previously experienced difficulty
19 in providing affordable housing to persons employed within the
20 City as well as the Project Area and has suffered a job/housing
21 imbalance which has negatively impacted upon the development
22 potential of the Project Area and the City generally; and
23
24 WHEREAS, the Verdemont Area is located wi thin the
25 northern portion of the city and provides a residential base to
26 households, including several low-income households, who are
27 employed and who may find employment within the Project Area and
28 who rely on services provided within the Project Area; and
- 3 -
WHEREAS, many low income households reside in the
Verdemont Area and the levy of assessments pursuant to Assessment
District No. 987 is causing a hardship on many such households;
and
3
1 WHEREAS, since the Verdemont Area is located within the
2 northern portion of the city, it is at a higher elevation than
3 most other areas of the city and accordingly, any drainage runoff
4 that occurs in the Verdemont Area has the potential, and does in
5 fact, drain into other portions of the City, thereby burdening
6 the capacity of the City's drainage system and negatively
7 impacting such other portions of the City which are served by the
8 drainage system, including the Project Area; and
9
10 WHEREAS, additional development in the Verdemont Area
11 which is occurring in order to provide a greater residential base
12 for other areas of the city, including the Project Area, will
13 have the impact of causing a greater amount of drainage runoff
14 which in turn will adversely impact the other portions of the
15 drainage system of the City, including the Project Area; and
16
17 WHEREAS, the installation of the Verdemont Improvements
18 is necessary in order to ease the impact on the runoff capacity
19 of other portions of the City's drainage system and allow the
20 drainage system to function effectively and thereby ensure the
21 health, safety and welfare of Project Area residents as well as
22 other residents of the city; and
23
24 WHEREAS, the drainage system of the City is one large
25 integrated system and as such, the undertaking of improvements in
26 one area of the drainage system through the installation of the
27 drainage facilities which are included within the Verdemont
28 III
- 4 -
5
1 Improvements will benefit other portions of the system which
2 includes that portion located within the Project Area; and
3
4 WHEREAS, because of the proximity between the Verdemont
5 Area and the project Area, Kendall Drive serves as a major
6 arterial connecting the Verdemont Area with the Project Area and
7 as such it provides traffic access to residents and occupants of
8 the Project Area; and
9
10 WHEREAS, the signal improvements and other related
11 right-of-way improvements to Kendall Drive and Palm Avenue would
12 improve traffic safety conditions on major arterials providing
13 access to and from the Project Area thereby benefitting the
14 residents of the Project Area; and
15
16 WHEREAS, in order to assist in financing the
17 undertaking of the Verdemont Improvements, the Agency deems it
18 desirable to loan certain moneys to the city from revenues
19 attributable to the Project Area, which loan of monies shall be
20 evidenced by a Loan Agreement (the "Loan Agreement")
21 substantially in the form as attached hereto as Exhibit "A" and
22 incorporated herein by this reference; and
23
24 WHEREAS, the Loan Agreement provides that the Agency
25 shall make disbursements of the Loan proceeds only as such moneys
26 are required by the city to either pay the costs of the Verdemont
27 Improvements or to make payments of assessments levied under
28 Assessment District No. 987 on behalf of any low and moderate
- 5 -
3
income households who have demonstrated to the City and Agency a
hardship in the ability to fund any such assessments; and
1
2
3
4
5
6
7
8
9
10
11 WHEREAS, it is appropriate at this time for the city to
12 make certain findings and determinations and take certain action
13 with respect to the installation of the Verdemont Improvements.
14
15
16
17
18
19
20
21
22 section 2. The Council hereby approves the funding
23 by the Agency of the costs of the Verdemont Improvements to be
24 undertaken in the Verdemont Area which are of benefit to the
25 Project Area and other neighborhoods within the City for the
26 reasons set forth in the Recitals hereinabove. In addition, the
27 Council approves the funding of all or a portion of any
28 assessments levied pursuant to Assessment District No. 987 on
WHEREAS, in order to promote the City's health, safety
and welfare, it is important that the Verdemont Improvements
required for the Verdemont Area be financed in order to ensure
the orderly development of the Project Area and neighboring areas
and that the City and the Agency approve the Loan Agreement so as
to facilitate the construction of such improvements; and
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE,
DETERMINE AND ORDER AS FOLLOWS:
section 1. The Recitals hereinabove are true and
correct and are incorporated herein by this reference.
- 6 -
3
1 behalf of any eligible low-income households who are negatively
2 impacted by the imposition of such assessments. The Council
3 further finds and determines that no other reasonable means of
4 financing the installation of the Verdemont Improvements, or of
5 funding assessments on behalf of low-income households is
6 presently available to the City and that the City and the Agency
7 require the use of revenues generated from the Project Area to
8 fund the Verdemont Improvements and to fund any assessment
9 payments on behalf of low-income households.
10
11 section 3. The provision of the Verdemont
12 Improvements in the Verdemont Area will improve drainage runoff
13 conditions throughout the city and particularly the Project Area
14 thereby easing the burden on the City's drainage system which
15 will make the Project Area, which is also served by the drainage
16 system, more desirable for residential and other development
17 which will in turn help eliminate blight within such Project
18 Area.
19 section 4. The provision of the signal improvements
20 and related right of way improvements will improve traffic safety
21 conditions on major arterials which provides access to and from
22 the Project Area which in turn will make such Project Area more
23 desirable for development and thereby further assist in
24 eliminating blighting conditions within such Project Area.
25
26
27
28
section 5. The Council hereby approves the
establishment of a loan with the city pursuant to the terms of a
Loan Agreement which will be substantially in the form of
- 7 -
3
1 Exhibit "A" attached hereto and incorporated herein by this
2 reference and hereby authorizes the Mayor and the City Clerk to
3 execute the Loan Agreement as may be modified by any changes
4 approved by the Mayor and City Attorney and such other documents
5 as may be necessary in order to implement the loan transaction as
6 described hereinabove.
7
8 Section 6. The City Clerk is hereby authorized and
9 directed to cause this Resolution to be transmitted to the Agency
10 for consideration in connection with appropriate action by that
11 body.
12 I I I
13 I I I
14 III
15 III
16 1/1
17 III
18 /II
19 /II
20 III
21 III
22 III
23 III
24 III
25 /II
26 III
27 III
28 III
- 8 -
3
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, FINDING BENEFIT TO THE STATE COLLEGE
2 REDEVELOPMENT PROJECT AREA IN THE USE OF TAX INCREMENT REVENUES
AND BOND PROCEEDS FOR THE PAYMENT OF INFRASTRUCTURE COSTS IN THE
3 VERDEMONT AREA
4 Section 7. The findings and determinations herein
5 shall be final and conclusive. This Resolution shall take effect
6 upon the date of 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
11
12
13
regular
meeting
19th
August
day of
thereof, held on the
1991, by the following vote, to wit:
AYES:
Council Members
Estrada, Reilly, Hernandez,
Maudsley. Pope-Ludlam. Miller
14
15
16
17
18
19
20
21
22
23
24
Approved as to form
25 JAMES F. PENMAN
city Attorney
26
None
NAYS:
Council Member Minor
ABSENT:
G( p.-Cj~ IJfcJcA/>1-Lf-
'~City Clerk
21st
day of
August
this
resolution
is
The
foregoing
hereby
May
San
of /
j/
and legal content:
27B~
28 SBEOlOOOllOOC\5OO
- 9 -
3
LOAN AGREEMENT
(VERDEMONT IMPROVEMENTS)
THIS LOAN AGREEMENT is entered into as of the day
of August, 1991, by and between the Redevelopment Agency of the
ci ty of
San Bernardino
(the
"Agency")
and the City of
San Bernardino (the "city") with reference to the following facts:
R E C I TAL S
A. The Agency is a redevelopment agency, a public body,
corporate and politic within the State of california, organized and
existing pursuant to the Community Redevelopment Law (Part 1 of
Division 24) commencing with Section 33000 of the Health and Safety
Code of the State of California (the "Act").
B. The City of San Bernardino, California, is a
municipal corporation and a charter city duly created and existing
pursuant to the Constitution of the State of California.
C. The City has previously caused the establishment of
its Assessment District No. 987 within the Verdemont Area of the
city (the "Verdemont Area") in order to pay for a portion of the
costs of certain infrastructure items required within the Verdemont
Area.
SBEO\OOOl\D0C\498
- 1 -
August 13, 1991
3;
D. The costs of the infrastructure items necessary for
the Verdemont Area exceed the amounts to be levied under Assessment
District No. 987 and accordingly the City is seeking alternative
financing sources in order to adequately fund all of the costs of
the infrastructure items required for the Verdemont Area.
E. The Agency and the City previously caused the
adoption of a Redevelopment Plan (the "Redevelopment Plan") for the
project area encompassed by the state College Redevelopment Project
(the "state College project Area").
F. The state College Project Area is in close vicinity
to the Verdemont Area and, as such, many residents and occupants of
the state College Project Area and the Verdemont Area interact in
connection with both employment and housing opportunities.
G. The Agency and the city deem it desirable for the
Agency to loan certain monies, derived from tax increment revenues
attributable to the state College Project Area, to the City in
order to fund a portion of the costs of undertaking those certain
infrastructure items required for the Verdemont Area.
NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants and conditions set forth herein, the parties
hereto agree as follows:
5800\0001 \DOC\498
- 2 -
August 13.1991
:3
1. AqencV Loan. The Agency hereby agrees to loan to
the city (the "Loan") certain monies, derived from tax increment
revenues attributable to the state College Project Area to (i) fund
the costs of certain infrastructure items necessary for the
Verdemont Area and (ii) to subsidize the payment of assessments
attributable to Assessment District No. 987 which are or have been
levied on low- and moderate-income households who are suffering a
hardship through the inability to pay such assessments. The Loan
shall be established on the following terms:
a. The Loan proceeds will be used exclusively by the
city for the purposes of causing the undertaking of the
infrastructure improvements required for the Verdemont Area, to
subsidize the payment of assessments levied through Assessment
District No. 987 on behalf of low- and moderate-income households
who have demonstrated a hardship to the city and the Agency and to
pay any incidental costs attributable thereto.
b. The term of the Loan shall be for years. The
principal amount of the Loan shall be due, together with accrued
interest thereon, on The city shall have the right to
prepay all or a part of the Loan plus accrued interest without
penalty.
SBEO\<XXll\D0C\498
- 3 -
A_13,1991
3
c. Interest shall accrue at the rate of __% per annum
from the date that funds representing Loan proceeds are advanced to
the city and will continue until the debt is paid in full.
2. Repavment. The City agrees to repay the Agency
for the Loan created pursuant to this Agreement from and to the
extent funds are available to the City through the levy of
assessments or through other sources as may be legally available to
the city for the repayment of such funds.
3. Miscellaneous.
a. This Loan Agreement shall bind and inure to the
benefit of the successors and assigns of each of the parties
hereto.
b. Each party agrees to perform any further acts and
execute and deliver any documents which may be necessary to carry
out the provisions or intent of this Loan Agreement.
c. This Loan Agreement may be amended at any time by
the written agreement of the parties hereto. No amendment or
waiver of the terms hereof shall be valid unless contained in
writing and executed by the parties to this Loan Agreement.
SBEOlOOOllDOCl498
- 4 -
A_13. 1991
3
d. The parties hereby agree that this Loan Agreement
has been executed and delivered in the state of California and
shall be construed, enforced and governed by the laws thereof.
e. In the event that any provision in this Loan
Agreement shall be held invalid or unenforceable, such provision
shall be severable from, and such invalidity or unenforceability
shall not be construed to have any effect on, the remaining
provisions of this Loan Agreement.
f. This Loan Agreement contains the entire agreement
between the parties hereto pertaining to the subject matter hereof,
with the exception of the other agreements referenced explicitly or
implicitly herein. This Loan Agreement supersedes all prior and
contemporaneous agreements and understandings of the parties with
respect to the matters resolved herein, and there are no
warranties, representations or other agreements between the parties
in connection with the subject matter hereof, except as set forth
or referred to herein.
8800\0001 \DOC\498
- 5 -
A...... 13. 1991
3
IN WITNESS WHEREOF, the parties have signed this Loan
Agreement as of the date first above written.
REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO
By:
APPROVED AS TO
FORM AND CONTENT:
CITY OF SAN BERNARDINO
By:
APPROVED AS TO
FORM AND CONTENT:
5800\0001 \DOC\498\ea
08/05/91 3:35
SBEO\OOOl\D0C\498
- 6 -
Augutl 13, 1991
3