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HomeMy WebLinkAboutCDC/2005-03 (See Cdrnpariion Reso Nos. CDC/2005-2;2005-12;2005-13) RESOLUTION NO. CDC/200S-3 2 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERT AIN REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO, CALIFORNIA (EI Paseo Petroleum, LLC - Slh & Mt. Vernon in the Mt. Vernon Corridor Redevelopment Project Area) 3 4 5 6 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") has 7 entered into that certain Disposition and Development Agreement ("Agreement") and Lease 8 Agreement ("Lease Agreement") with El Paseo Petroleum, LLC, ("Developer")as approved 9 and authorized for execution by the Community Development Commission of the City of San 10 Bernardino ("Commission") on January 10,2005; and 11 WHEREAS, the Mayor and Common Council of the City of San Bernardino 12 ("Council") authorized and approved the Agreement and Lease Agreement on January 10,2005; 13 and 14 WHEREAS, said Agreement and Lease Agreement provide that the Developer construct 15 certain private, commercial improvements on the site, which improvements include an ARCO- 16 Branded Service Station consisting of nine multiple point dispensers which will provide 18 17 fueling stations and associated underground storage tanks, an AM/PM Mini Mart, and a self- 18 service car wash, and the proposed AM/PM Mini-Mart will include a license to sell beer and 19 wine intended for off-site consumption ("Project"); and 20 WHEREAS, the Agency and Developer are committed to expending certain Agency and 21 Developer funds in order to implement the Project; and 22 WHEREAS, the City of San Bernardino ("City") will accrue new sale tax benefits as a 23 result of the Project, and the City desires to remit to the Agency a portion of the new sale tax 24 benefits for certain term, or any other available resources available to the City, based on the 25 P. \Agendas\Resolutions\Resolulions\2005\05-01-IO EI Pasco CDC Rcso C.OOC -1- ~ CDC/2005-3 performance of the Developer, in accordance with the provisions of the Agreement and Lease 2 Agreement; and 3 WHEREAS, the Commission deems it desirable to approve and authorize the execution 4 of the Redevelopment Cooperation and Financing Agreement by and between the Agency and 5 City substantially in the form as attached hereto for the purpose of providing the source of funds 6 to the Agency to fulfill its obligations under the Agreement and Lease Agreement and to allow 7 the Agency to carry out its redevelopment and economic development responsibilities in 8 accordance with the Mount Vernon Corridor Redevelopment Plan ("Plan"). 9 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION, AS 10 THE GOVERNING BODY OF THE CITY OF SAN BERNARDINO, DOES HEREBY 11 RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 12 Section 1. The Commission hereby find and determine that the recitals as contained 13 herein are accurate and correct in all respects. 14 Section 2. The Commission hereby approve the form of the Redevelopment 15 Cooperation and Financing Agreement substantially in the form as attached hereto and 16 authorize the execution of the final form of the Redevelopment and Financing Agreement by the 17 Executive Director of the Agency, together with such additional changes and modifications as 18 deemed necessary by the Executive Director of the Agency and Agency Special Counsel to 19 implement the intent ofthis Resolution. 20 Section 3. The approval, execution and implementation of the Redevelopment 21 Cooperation and Financing Agreement does not constitute a "Project" within the provisions or 22 meaning of the California Environmental Quality Act of 1970, as amended ("CEQA"), and no 23 environmental review is required in connection with the approval, execution and 24 implementation of the Redevelopment Cooperation and Financing Agreement. 25 Section 4. This Resolution shall become effective immediately upon its adoption. P:\Agendas\Rcsolutions\Resolutions\200S\OS-OJ-10 EI Pasco COC Reso C.doc -2- CDC/200S-3 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, CALIFORNIA (El Paseo Petroleum, LLC - 5th & Mt. Vernon in the Mt. Vernon Corridor Redevelopment Project Area) 2 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by Community joint adj ourned regular Development Commission of the City of San Bernardino at a meeting 7 thereof, held on the 10th day of January ,2005, by the following vote to wit: 8 9 Commission Members: 10 ESTRADA 11 LONGVILLE 12 MCGINNIS DERRY 13 KELLEY 14 JOHNSON 15 MC CAMMACK 16 Ayes X X Nays Abstain Absent x x x x ...JL ,/'7 . ,~ (/, . 17 18 The foregoing resolution is hereby approved this 1/i:L January ,2005. 19 20 21 alles, Chairperson nity Development Commission 22 San Bernardino 23 Approved as to form and Legal Content: 24 By ~ 1. p~ (; ity Attorney 25 P:\Agendas\Resolutions\Resolutions\2005\OS-OI-IO EI Pasco CDC Reso C.doc -3- CITY OF SAN BERNARDINO AND REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT (Mt. Vernon Corridor Redevelopment Project Area) THIS REDEVELOPMENT COOPERATION AND FINANCING AGREEMENT (the "Agreement") is dated as of January 10, 2005, 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 and charter city existing pursuant to the provisions of the constitution of the State of California (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 Disposition and Development Agreement, dated as of January 10,2005 (the "DDA"), by and between the Agency and El Paseo Petroleum, LLC, a California limited liability company (the "Developer"), for the acquisition by the Agency and transfer to the Developer of certain lands within the City for the construction of, at the minimum, an ARCO Service Station consisting of nine multiple point dispensers which will provide 18 fueling positions and associated underground storage tanks, an AM/PM Mini- Mart, and a self-service car wash or similar credit rated tenants to that of an ARCO Service Station (the "Business"); and WHEREAS, the implementation of the DDA will confer financial benefits to the City in terms of redevelopment and reuse of the site of the Business and the creation of an aggregate of not less than sixteen (16) new jobs within the City; and WHEREAS, the DDA will also provide the City with a significant source of new tax revenues from the establishment of the Business and the investment of Agency funds to cause the- acquisition of land, clearance thereof and to provide for certain off-site adjacent public improvements; and WHEREAS, the Agency shall incur certain financial obligations, described below as (the "DDA Obligations"), in connection with the implementation by the Agency of the performance items required of the Agency pursuant to the DDA and the expenditure of Agency funds to cause the site acquisition, the site clearance and the payment of certain on-site and off-site development related costs all to be paid from currently available Agency sources of funds; and 4826-8309-6320 1 P:\Agendas\Agenda Attachments\Agrmts-Amend 2005\05-01-10 EI Paseo Coop and rinancing Agrmt.rtf WHEREAS, the anticipated tax increment revenues to be generated by the Business on the Site, to be leased by the Agency to the Developer, will not be sufficient to reimburse the Agency for the costs to be incurred by the Agency in furtherance of the DDA, and the Agency does not presently have a source of tax increment revenues sufficient to reimburse the Agency for those payments of the amounts required to satisfy the DDA Obligations; and WHEREAS, it is necessary and desirable for the City and the Agency to enter into this Agreement to provide the Agency with financial resources which will enable the Agency to achieve a reasonable expectation ofreimbursement for all or a portion of the amount of the DDA Obligations, the payment of which in satisfaction of the DDA Obligations of the Agency will hereafter be remitted by the Agency under the DDA. NOW, THEREFORE, THE CITY AND THE AGENCY HEREBY AGREE AS FOLLOWS: Section 1. The City hereby authorizes and acknowledges that the Agency will incur certain financial and performance obligations under the DDA Obligations, which are payable by the Agency in whole from certain Agency funds which are presently available to the Agency. The tax increment revenues to be generated to the Agency from the project to be constructed by the Developer will be insufficient to fully repay the Agency for such initial payments of the DDA Obligations within any financially reasonable period of time. To further encourage the Agency to incur the DDA Obligations and to allow the Agency to timely fulfill all DDA Obligations and the other financial obligations of the Agency, the City agrees to enter into this Agreement to provide such long-term assistance to the Agency for the recapture of additional revenues from an amount that is equivalent to the sales tax revenues that will be received by the City from the operations of the Business on the site as shall be developed by the Developer For the purposes of this Agreement, the words "DDA Obligations" mean and include any financial and performance obligation that the Agency may undertake in furtherance of that certain DDA. 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 amounts determined in the manner as provided in Section 4 hereof. The City shall disburse the proceeds of the City Assistance in annual installments (each a "City Assistance Payment", as further defined in Section 4) on each of the first through the tenth anniversaries of the Opening Date (as defined herein). The receipt by the Agency of each City Assistance Payment shall be deemed to be a partial reimbursement to the Agency of the DDA Obligations. 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 redevelopment activities of the Agency pursuant to the DDA. 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 4826-8309-6320 2 P:\Agendas\Agenda Attachments\Agrmts-Amend 2005\05-01-10 EI Paseo Coop. and Financing Agrmt.rtf 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 Cali fomi a concerning the creation of indebtedness by the City. Section 4. (a) The first day of the calendar month next succeeding the date on which the Business first opens for new business activities to the general public is referred to herein as the "Opening Date", which date is presently intended to be on or before January 1,2006. The initial City Assistance Payment shall be made on the first anniversary of the Opening Date, calculated from first calendar day of the month following the actual opening for business as described above, in an amount determined in accordance with Section 4(b), herein. 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), herein. (b) The City Assistance Payments to the Agency shall be equal to One Hundred Percent (100%) of 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 Business from the sale or lease of all tangible personal property from the Business during the first ten (10) years of operation of the Business as presently anticipated to commence in Fiscal Year 2006 and to terminate as of the conclusion of the Fiscal Year 2016 or portions thereof or within other fiscal years of the City based upon the final determination of the Opening Date as defined in subsection (a) above. (c) The precise amount of the City Assistance Payments shall be determined by the Agency for each Fiscal Year by reference to Revenue and Taxation Code Sections 7200, et seq., and related remittance advice or information provided to the City by the State Board of Equalization. If Revenue and Taxation Code Sections 7200, et seq., are amended, substituted or modified, following the 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 Fiscal 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 Business opens for retail sales 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 from legally available funds of the City. 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. 4826-8309-6320 3 P:\Aeendas\Agcnda Attachments\Agmts-Amend 2005\03-01-10 EI Pasco Coop. and Fin. Agmt.rtf Section 5. The Agency shall be deemed to use and apply each City Assistance Payment to partially assist in the reimbursement to the Agency for funds advance by the Agency as required pursuant to the DDA for fulfillment and satisfaction of the DDA Obligations of the Agency. 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 reimburse for the DDA Obligations as incurred by the Agency. Each such written invoice of the Agency shall set forth the current unpaid balance of the DDA Obligations and provide an accounting of all payments made by the Agency towards the reimbursement of the DDA Obligations during the term ofthis 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 DDA Obligations are reimbursed in full by the Agency from the City Assistance Payments and the tax increment revenues generated by the development of the Developer upon which the Business is operated. 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 oftime provided in Section 7. [SIGNATURES ON FOLLOWING PAGEl 4826-8309-6320 4 P'\AaendaslAgenda Attad1mcnlslAgnm-Amend 200S\OS-OI-IO EI Paseo Coop. and F;n. Ajp1tt.rtf IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date first above written. CITY (SEAL) / t:ZL~ Judi alles yor of the City of San Bernardino ATTEST: ~h.~ APPROVED AS TO FORM: ,b?~ ,C"ty Attorney (/ AGENCY Redevelopment Agency of the City of San B~?dino t/2 (SEAL) ATTESL ~ J%:"a~ 4826-8309-6320 1 5