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HomeMy WebLinkAboutCDC/2002-18 ..1 (See Companion Resolutions CDC/2002-17, 2002-121) RESOLUTION NO. CDC/2002-18 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO, CALIFORNIA (LaMesa RV Center, Inc., - Redevelopment Cooperation and Financing Agreement) 4 5 6 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") 8 has entered into that certain Redevelopment Participation Agreement with LaMesa RV Center, 9 Inc., ("LaMesa") as approved and authorized for execution by this Commission pursuant to 10 separate action of this Commission on behalf of the Agency; and 11 WHEREAS, the implementation of said Redevelopment Participation Agreement 12 contemplates that certain funds will be made available to the Agency from the City of San 13 Bernardino, California (the "City"), based upon the index of financial benefits accruing to the 14 City calculated upon the financial performance of the project identified in the Redevelopment 15 Participation Agreement; and 16 WHEREAS, the Agency is required pursuant to the Redevelopment Participation 17 Agreement to remit certain payments to LaMesa related to the number of employment 18 opportunities generated by the new sales location within the South Valle Redevelopment Project 19 Area based upon an index of financial performance of LaMesa which has a direct positive 20 financial benefit upon the City General Fund; and 21 WHEREAS, the Commission deems it desirable to approve and authorize for execution 22 the form of the Redevelopment Cooperation and Financing Agreement by and between the 23 Agency and City substantially in the form as attached hereto for the purpose of providing the 24 source of funds required of the Agency to fulfill its obligations to LaMesa pursuant to the 25 Redevelopment Participation Agreement. -1- '.1. CDC/2002-18 1 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION, AS 2 THE GOVERNING BODY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN 3 BERNARDINO, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 4 Section 1. The Commission hereby finds and determines that the recitals as contained 5 herein are accurate and correct in all respects. 6 Section 2. The Commission hereby approves the form of the Redevelopment 7 Cooperation and Financing Agreement substantially in the form as attached hereto with such 8 additional changes and modifications as deemed necessary by the City Attorney to implement 9 the intent of this Resolution and said Redevelopment Cooperation and Financing Agreement. 10 Section 3. The Commission hereby authorizes the execution of the final form of the 11 Redevelopment Cooperation and Financing Agreement by the Agency Chairperson or 12 Executive Director and the Agency Secretary when such final form thereof has been presented 13 for execution by the City Attorney. 14 Section 4. The approval, execution and implementation of the Redevelopment 15 Cooperation and Financing Agreement does not constitute a "Project" within the provisions or 16 meaning of the California Environmental Quality Act of 1970, as amended ("CEQA"), and no 17 environmental review is required in connection with the approval, execution and 18 implementation of the Redevelopment Cooperation and Financing Agreement. 19 Section 5. This Resolution shall take effect from and after the date of adoption and shall 20 not be repealed or amended to adversely affect the rights of the parties thereto so long as the 21 Redevelopment Cooperation and Financing Agreement remains in effect and requires 22 performance obligations of the parties. 23 IIII 24 IIII 25 IIII -2- CDC/2002-18 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO, CALIFORNIA (LaMesa RV Center, Inc., - Redevelopment Cooperation and Financing Agreement) 3 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a j oint regular 7 meeting thereof, held on the 15th day of April, 2002, by the following vote to wit: 8 Commission Members: Ayes Nays Abstain Absent ESTRADA X LIEN X - MCGINNIS X DERRY X SUAREZ ----X- ANDERSON ----X-- MC CAMMACK -L 9 10 11 12 13 14 15 16 t' /Si The foregoing resolution is hereby approved this //:T7i day of April ,2002. 17 18 19 20 a es, Chairperson o unity Development Commission Cit of San Bernardino Approved a to form and Legal Content: 21 22 By: 23 24 25 p:\development dept\lisa\resolutions\la mesa-com.doc -3- CDC/2002-18 CITY OF SAN BERNARDINO AND REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT (LaMesa RV, Inc. (Central California)) THIS REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT (this "Agreement") is dated as of April 15, 2002, by and between the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Agency"), and the City of San Bernardino, California, a municipal corporation (the "City"), and is entered into with reference to the facts set forth in the following Recital paragraphs: - RECITALS - WHEREAS, the Agency is entering into that certain Redevelopment Cooperation Agreement, dated as of April 15, 2002, by and between the Agency and LaMesa RV, Center Inc. (Central California) , a California corporation (the "LaMesa RV Agreement"), for the redevelopment and reuse of certain lands within the City as a regional new recreational vehicle sales and service facility (the "RV Store"); and WHEREAS, the implementation of confer substantial benefits on redevelopment and reuse of the site of new jobs within the City; and the LaMesa RV Agreement will the City in terms of of the RV Store and creation WHEREAS, the LaMesa RV Agreement will also provide the City with a significant source of new tax revenues from the establishment of the RV Store; and WHEREAS, the described below as connection with the Agency shall incur certain obligations, the "LaMesa RV Agreement Indebtedness," in LaMesa RV Agreement; and WHEREAS, the Agency does not presently have a source of tax increment revenues from the RV Store or from other funds to repay LaMesa RV Agreement Indebtedness and it is necessary for the City and the Agency to enter into this Agreement for the Agency to repay the LaMesa RV Agreement Indebtedness, as may 1 SB2002 : 11016 . 2 ;- CDCj2002-18 hereafter be incurred by the Agency under the LaMesa RV Agreement. NOW, THEREFORE t THE CITY AND THE AGENCY HEREBY AGREE AS FOLLOWS: Section 1. The City hereby authorizes the Agency to incur indebtedness under the LaMesa RV Agreement ("LaMesa RV Agreement Indebtednessll) that is payable by the Agency in whole or in part from the proceeds of the assistance to be provided by the City to the AgencYt as set forth in Section 2 of this Agreement. For the purposes of this Agreementt the words "LaMesa RV Agreement Indebtednesstt mean and include any obligation that the Agency may undertake to payor discharge under that certain Redevelopment Cooperation Agreement, dated as of April 15, 2002, by and between the Agency and LaMesa RV, Inc. (Central California), a California corporation. Section 2. Subject to the terms and conditions of this Agreementt the City agrees to provide redevelopment financing assistance to the Agency (the "City Assistancell) each year during the term of this Agreement in the total amount payable by the Agency under the LaMesa RV Agreement. The City shall disburse the proceeds of the City Assistance in annual installments (each a "City Assistance paymenttll as further defined in Section 4) on each of the first through the tenth anni versaries of the Opening Date (as defined herein). The Agency shall use and apply each City Assistance Payment to pay LaMesa RV Agreement Indebtedness. Section 3. The City and the Agency each acknowledge, understand and intend that the obligation of the City to pay each City Assistance Payment to the Agency each year during term of this Agreement shall constitute a current expense of the City to support the LaMesa RV Agreement. The obligation of the City to provide City Assistance Payments to the Agency in each fiscal year during the term of this Agreement is a general obligation of the City, subject to annual appropriation by the City. Furthermoret the obligation of the City to the Agency arising under this Agreement shall not in any way be construed to be a debt of the City in contravention of any applicable constitutional restriction of the State of California concerning the creation of indebtedness by the City. 2 SB2002, 11016.2 .' CDC/2002-18 Section 4. (a) The date on which the RV Store first opens for new retail sales business to the general public is referred to herein as the "Opening Date." The initial City Assistance Payment shall be made on the first anniversary of the Opening Date in an amount determined in accordance with Section 4 (b) . Thereafter, on each anniversary of the Opening Date occurring during the remainder of the term of this Agreement, the City shall make the City Assistance Payments to the Agency, in accordance with the formula set forth in Section 4(b). (b) The City Assistance Payments to the Agency shall be calculated by multiplying the applicable Accounting Year Index (as defined herein) by a number equal to the total amount of local sales and use taxes paid to the City, under Revenue and Taxation Code Section 7200, et seq. (as may hereafter be amended, substituted or modified by any successor local sales and use tax law), on the gross receipts of the RV Store from the sale or lease of all tangible personal property during the applicable Accounting Year, in excess of Two Hundred Thousand Dollars ($200,000). The "Accounting Year Index" for each respective Accounting Year, shall be as follows: Accounting Year 1 - 40% Accounting Year 2 - 50% Accounting Year 3 - 55% Accounting Year 4 - 60% Accounting Year 5 - 65% Accounting Year 6 - 65% Accounting Year 7 - 70% Accounting Year 8 - 70% Accounting Year 9 - 75% Accounting Year 10 -75% [i.e. , "A" is in Accounting Year 1, City Assistance Payment = .40 x A (where a number equal to the total sales and use tax revenues received City from the gross receipts of the RV Store - $200,000).J by the (c) The precise amount of the City Assistance Payments shall be determined by the Agency for each Accounting Year by reference to Revenue and Taxation Code Sections 7200, et seq., related remittance advice or information provided to the City by the State Board of Equalization and the applicable Accounting Year Index. If Revenue and Taxation Code Sections 7200, et seq., are amended, substituted or modified, following the 3 582002:11016.2 CDC/2002-18 effective date of this Agreement, in a manner that affects the calculation of the City Assistance Payments, as set forth above, then the City Assistance Payments shall be computed in each Accounting Year in which such amendment, substitution or modification is effective, by reference to the Revenue and Taxation Code Sections 7200, et seq., then in effect. (d) Provided the RV Store opens for business to the general public, the City reasonably believes that funds shall be available each fiscal year for the payment of each City Assistance Payment. The City hereby covenants that it shall do all things lawfully within its power to obtain funds from which to pay City Assistance Payments to the Agency. The City further covenants and agrees to include provisions in its budget for each fiscal year during the term of this Agreement for the payment of the City Assistance Payments to the Agency and the City shall exercise best efforts to approve such portion of the budget, subject to the funds then being available. Section 5. The Agency shall use and apply each City Assistance Payment to pay indebtedness of the Agency arising from the LaMesa RV Agreement. The Agency and the City hereby agree that the Agency shall have no obligation to repay the City for any City Assistance Payments. Section 6. The City shall pay City Assistance Payments to the Agency upon receipt of a written invoice from the Agency stating that the Agency shall use and apply the City Assistance Payment to repay LaMesa RV Agreement Indebtedness. Each such written invoice of the Agency shall set forth the current balance of the LaMesa RV Agreement Indebtedness and provide the an accounting of all payments made by the Agency towards the LaMesa RV Agreement Indebtedness during the term of this Agreement. Section 7. This Agreement shall terminate on the earlier to occur of: (i) the tenth (10th) anniversary of the Opening Date and the payment of the City Assistance Payment due on the tenth (10th) anniversary of the Opening Date, if any; or (ii) the LaMesa RV Project Indebtedness is repaid in full by the Agency; or (iii) the Agency is no longer obligated to repay the LaMesa RV Project Indebtedness. 4 SB2002:11016.2 cnC/2002-I8 Section 8. This Agreement shall take effect from and after the date of adoption and approval by the Common Council of the City and the Community Development Commission, as the governing board of the Agency, pursuant to official action of the governing bodies thereof and shall be effective for the period of time provided in Section 7. 5 SB2002:11016.2 . ene/2002-IS IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date first above written. CITY City Bernardino / By: City of San (SEAL) ATTEST: ~~ fJ.~ Cit Clerk ~jC.. A1~110\ AGENCY Redevelopment Agency of the City of San Bernardino By: i h Valles C airperson of the Community Development Commission, its governing board (SEAL) ATTEST: " / / (/:1)/ ..' ,/ / /: ., .' L L / I / .../ c / C' <' A9e'r'i.cy/ S~cretary/ / / / APPROVED AS TO FORM AND CONTENT: ~~ Agency Sp c al Counsel 6 5B2002:11016.2