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HomeMy WebLinkAboutCDC/2003-27 (See Companion Resolution 2003-246) RESOLUTION NO. CDC/2003-27 2 3 A 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 (REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT _ IMPERIAL IMPORTS INC., DBA TOYOTA OF SAN BERNARDINO, SCION OF SAN BERNARDINO AND SAN BERNARDINO HYUNDAI) 4 5 6 7 8 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") 9 has entered into that certain 2003 Redevelopment Participation Agreement with Imperial 10 Imports Inc., DBA Toyota of San Bernardino, Scion of San Bernardino and San Bernardino 11 Hyundai ("Imperial Imports Inc.") as approved and authorized for execution by this 12 Commission pursuant to separate action of this Commission on behalf of the Agency; and 13 WHEREAS, the implementation of said 2003 Redevelopment Participation Agreement 14 contemplates that certain funds will be made available to the Agency from the City of San 15 Bernardino (the "City"), based upon the index of financial benefits accruing to the City 16 calculated upon the financial performance of the project identified in the Southeast Industrial 17 Park Participation Agreement; and 18 WHEREAS, the Agency is required pursuant to the 2003 Redevelopment Participation 19 Agreement to remit certain payments to Imperial Imports Inc. related to the number of 20 employment opportunities generated by the new sales location within the Southeast Industrial 21 Park Project Area based upon an index of financial performance of Imperial Imports, Inc. which 22 has a direct positive financial benefit upon the City General Fund; and 23 WHEREAS, the Commission deems it desirable to approve and authorize for execution the form of the Redevelopment Cooperation and Financing Agreement by and between the 24 25 -1- P:\Agendas\Resolutions\Resolutlons\2003\03-08-18 Byundal CF Agr CDC Reso.doc CDC/2003-27 2 Agency and City substantially in the form as attached hereto for the purpose of providing the source of funds required of the Agency to fulfill its obligations to Imperial Imports Inc. pursuant to the Redevelopment Participation Agreement. 3 4 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: 5 6 7 Section 1. The Commission hereby finds and determines that the recitals as 8 contained herein are accurate and correct in all respects. 9 Section 2. The Commission hereby approves the Redevelopment Cooperation and 10 Financing Agreement attached hereto and incorporated herein by reference. The Agency 11 Executive Director, or his or her designee, is hereby authorized to execute the Redevelopment 12 Cooperation and Financing Agreement on behalf of the Agency in substantially the form 13 attached hereto, together with such nonsubstantive modifications as deemed necessary and as 14 approved by the Executive Director, or his or her designee, with the concurrence of the City 15 Attorney. 16 Section 3. The approval, execution and implementation of the Redevelopment 17 Cooperation and Financing Agreement does not constitute a "Project" within the provisions or 18 meaning of the California Environmental Quality Act of 1970, as amended ("CEQA"), and no 19 environmental review is required in connection with the approval, execution and 20 implementation of the Redevelopment Cooperation and Financing Agreement. 21 Section 4. This Resolution shall take effect from and after the date of adoption and 22 shall not be repealed or amended to adversely affect the rights of the parties thereto so long as 23 the Redevelopment Cooperation and Financing Agreement remains in effect and requires 24 performance obligations of the parties. Section 5. The Resolution shall become effective immediately upon its adoption. 25 -2- P:\Agendas\ResolutioDs\Resolutions\2003\03-08-18 Hyundal CF Agr CDC Reso.doc CDC/2003-27 5 A 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 (REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT _ IMPERIAL IMPORTS INC., DBA TOYOTA OF SAN BERNARDINO, SCION OF SAN BERNARDINO AND SAN BERNARDINO HYUNDAI) 2 3 4 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 7 Community Development Commission of the City of San Bernardino at a j t. reg. meeting 8 thereof, held on the 18th day of August 9 Commission Members: Ayes Navs 10 ESTRADA X LONGVILLE X 11 - MCGINNIS X 12 DERRY -X- 13 SUAREZ X 14 X ANDERSON 15 MC CAMMACK 16 17 ,2003, by the following vote to wit: Abstain Absent X Yn rp~ Secretary 18 19 The foregoing resolution is hereby approved this I <:tn-\: day of August ,2003. 24 ~...~~ Betty Dean Anderson, Vice Chair Community Development Commission City of San Bernardino 20 21 22 23 By: 25 -3- P:\Agendas\Resolutlons\Resolutlons\2003\03-08-18 Byundal CF Agr CDC Reso.doc CDC/2003-27 CITY OF SAN BERNARDINO AND REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT (Imperial Imports Inc., DBA Toyota of San Bernardino, Scion of San Bernardino and San Bernardino Hyundai) THIS REDEVELOPMENT COOPERA nON AND FINANCING AGREEMENT (this "Agreement") is dated as of August 18,2003, 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 Participation Agreement, dated as of August 18, 2003, by and between the Agency and Imperial Imports Inc., a California corporation (the "Imperial Imports Agreement"), for the redevelopment and reuse of certain lands within the City as a regional new automobile sales, parts sales and service facility (the "Automobile Dealership"); and WHEREAS, the implementation of the Imperial Imports Agreement will confer substantial benefits on the City in terms of redevelopment and reuse ofthe site of the Automobile Dealership and creation of new jobs within the City; and WHEREAS, the Imperial Imports Agreement will also provide the City with a significant source of new tax revenues from the establishment of the Automobile Dealership; and WHEREAS, the Agency shall incur certain obligations, described below as the "Imperial Imports Agreement Indebtedness," in connection with the Imperial Imports Agreement; and WHEREAS, the Agency does not presently have a source of tax increment revenues from the Automobile Dealership or from other funds to repay Imperial Imports Agreement Indebtedness and it is necessary for the City and the Agency to enter into this Agreement for the Agency to repay the Imperial Imports Agreement Indebtedness, as may hereafter be incurred by the Agency under the Imperial Imports Agreement. NOW, THEREFORE, THE CITY AND THE AGENCY HEREBY AGREE AS FOLLOWS: Section 1. The City hereby authorizes the Agency to incur indebtedness under the Imperial Imports Agreement 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 Agency, as set forth in Section 2 of this Agreement. For the purposes of this Agreement, the words "Imperial Imports Agreement I P:\Clerical Services Dept\Margaret\Agreements-Amendments\Agnnts-Amend 2003\03-08-18 Hyundai C&F Agreement.DOC CDC/2003-27 Indebtedness" mean and include any obligation that the Agency may undertake to payor discharge under that certain Redevelopment Participation Agreement, dated as of September IS, 2003, by and between the Agency and Imperial Imports, Inc., a California corporation. Section 2. Subject to the terms and conditions of this Agreement, the City agrees to provide redevelopment financing assistance to the Agency (the "City Assistance") each year during the term of this Agreement in the total amount payable by the Agency under the Imperial Imports Agreement. The City shall disburse the proceeds of the City Assistance in annual installments (each a "City Assistance Payment") on each of January 31, 2005, through January 31, 2014. The Agency shall use and apply each City Assistance Payment to pay Imperial Imports 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 Imperial Imports 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. Furthermore, 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. Section 4. (a) The date on which the Automobile Dealership 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 January 31, 2005 in an amount determined in accordance with Section 4(b). Thereafter, on each anniversary of the Opening Date through and including January 31, 2014, 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, as follows: (1) The total amount of local sales and use taxes paid to the City, under Revenue and Taxation Code Sections 7200, et seq. (as such statutes hereafter be amended, substituted or modified by any successor local sales and use tax law), in the aggregate in excess of Seventy-five Thousand Dollars ($75,000), on the gross receipts of the Automobile Dealership from the sale or lease of all tangible personal property in each Accounting Year, multiplied by fifty percent (50%) for each respective Accounting Year. (2) The City accounting personnel shall also include an administration fee payable to the Agency in a sum amounting to seven and a half percent (7.5%) of the fifty percent share of funds that is payable to and retained by the City under subsection (1), above. Such administrative fee will be payable to the Agency to cover the cost of audit, accounting and legal fees associated with the Agency's efforts to create new sales tax revenues for the City. 2 P:\Clerical Services Dcpt\Margaret\Agreements.Amendments\Agrmts-Amend 2003\03-08.18 Hyundai C&F Agreement.DOC CDC/2003-27 (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. and Revenue and Taxation Code Section 97.68, sales and use tax remittance advice or information provided to the City by the State Board of Equalization related to the operation of the Automobile Dealership and the foregoing percentages. If Revenue and Taxation Code Sections 7200, et sea. or Revenue and Taxation Code Section 97.68, are amended, substituted or modified in a manner that reduces the total amount of local sales and use taxes or allocation from the Sales and Use Tax Compensation Fund, as the case may be, paid to the City on the gross receipts of the Automobile Dealership from the sale or lease of all tangible personal property below the levels that would otherwise be allocated and paid to the City under Revenue and Taxation Code Sections 7200, et sea. and 97.68, in effect on the date of this Agreement, then the City Assistance Payments shall be computed in each such Accounting Year in accordance with such amendment, substitution or modification of Revenue and Taxation Code Sections 7200, et sea. and Revenue and Taxation Code Section 97.68. (d) Provided the Automobile Dealership 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 Imperial Imports 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 Imperial Imports Agreement Indebtedness. Each such written invoice of the Agency shall set forth the current balance of the Imperial Imports Agreement Indebtedness and provide an accounting of all payments made by the Agency towards the Imperial Imports Agreement Indebtedness during the term of this Agreement. Section 7. This Agreement shall terminate on January 31,2014, with the tenth (lOth) City Assistance Payment under this Agreement. 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. 3 P:\Clerical Services Dept\Margaret\Agreemenls.Amendments\Agnnts.Amend 2003\03.08.18 Hyundai C&F Agreement.DOC CDC/2003-27 IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date first above written. ATTEST: Q~'-0l ..0, ttA/vr<--- City Clerk APPROVED AS TO FORM: CITY City of San Bernardino By: Neil Derry, r Pro Tern City of San Bernardino AGENCY Redevelopment Agency of the City of San Bernardino BY~~,)5Jl.<.-- ~ Betty Dean Anderson, Vice Chair Community Development Commission City of San Bernardino P:\C\erical Services Dept\Margaret\AgreementswAmendmenls\Agrmts-Amend 2003\03-08-18 Hyundai C&F Agreement.DOC 4