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HomeMy WebLinkAboutR27-Economic Development Agency / ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco Deputy Director SUBJECT: COOPERATION AGREEMENT- INLAND VALLEY DEVELOPMENT AGENCY (IVDA), CITY OF SAN BERNARDINO AND REDEVELOPMENT AGENCY (NORTH ARDEN-GUTHRIE AREA -- IVDA _m__mmm_________m____m_____________m______________________________m____________________________"______~~Q__!~~_'!_~~~)_m____m___mm_______________ SvnoDsis of Previous Commission/Council/Committee Action(s): DATE: September II, 2003 QR1G\NAL On August 21, 2003, Redevelopment Committee Members Suarez and Estrada voted to recommend that the Community Development Commission and Mayor and Common Council consider this action for approval. Recommended Motion(s): (Communitv DeveloDment Commission) MOTION A: A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ("COMMISSION") AUTHORIZING THE CHAIRPERSON OF THE COMMISSION TO EXECUTE A REDEVELOPMENT COOPERATION AGREEMENT BY AND AMONG THE INLAND V ALLEY DEVELOPMENT AGENCY, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND THE CITY OF SAN BERNARDINO RELATING TO THE INITIATION OF STUDIES FOR THE REDEVELOPMENT OF LANDS PREVIOUSLY ACQUIRED BY THE AGENCY AND RELATING TO TRANSFER OR DELEGATION OF REDEVELOPMENT AUTHORITY TO THE AGENCY RELATIVE TO PROPERTIES IN THE NORTH ARDEN-GUTHRIE AREA ("ARDEN-GUTHRIE IMPLEMENTATION AREA") (Mavor and Common Couucil) MOTIONB: A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE A REDEVELOPMENT COOPERATION AGREEMENT BY AND AMONG THE INLAND VALLEY DEVELOPMENT AGENCY, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND THE CITY OF SAN BERNARDINO RELATING TO THE INITIATION OF STUDIES FOR THE REDEVELOPMENT OF LANDS PREVIOUSLY ACQUIRED BY THE AGENCY AND RELATING TO TRANSFER OR DELEGATION OF REDEVELOPMENT AUTHORITY TO THE AGENCY RELATIVE TO PROPERTIES IN THE NORTH ARDEN- ____________________________gY.I~I"'___~~_c:~_I"'l':g~_'!Ii~_F:}M~_I,I"'M!':~'I.:~:!:!2~~_6::L___________________________________mm____ Contact Person( s): Maggie Pacheco Phone: (909) 663-1044 7th Project Area(s) N/A Ward(s): Supporting Data Attached: 1>'1 Staff Report 1>'1 Resolution(s) 1>'1 Agreement(s)/Contract(s) 1>'1 Map(s) 0 Letters SIGNATURE: -0- Source: N/A getAUthOrity~ N/A R... cU' 'V<-U- ~ Maggid:lr'checo, Deputy Director I ---------------------------------------------------------------------------------~----------...__._---------------------------------------------------------------------------------------~ Commission/Council Notes: ~ (1)<:'-1 Lw3~ d-'l -;~~~~~~:~~-~::~~~~\~~~;;I;~~-~~~-:;r-~~-~-;t-e-~~~~~------------------------------------coMMIssioi~-MEETiNG-AG-ENDA----- Meeting Date: 09/15/2003 Ageuda Item Number: 1(:Jj .. ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Cooveration Al!reement - Inland Vallev Develovment Al!encv (lVDA), City of San Bernardino and Redevelovment Al!encv (North Arden-Guthrie Area - IVDA Proiect Area) BACKGROUND: Over eighty (80%) percent of the IVDA Project Area is located within the City of San Bernardino and because of staffing limitations and IVDA's emphasis of concentrating their redevelopment powers on the civilian reuse of Norton Air Force Base ("Base"), there is very little effort dedicated by IVDA to areas outside the Base. Redevelopment of adjacent Off Base areas is equally important to Base reuse and absolutely critical to the successful revitalization of member cities. For this reason, there have been continuous discussions relating to the transfer or delegation of redevelopment authority by the IVDA to member jurisdictions, such as the City of San Bernardino, through its Economic Deve]opment Agency, to promote and expedite specific Off Base redevelopment activities. Moreover, because of this, both the City and Agency have been extremely active in the removal of blight in one of the most notorious areas within the IVDA Project boundaries, commonly known for high crime and deterioration, the Arden-Guthrie neighborhood. Generally, Arden-Guthrie's location is Guthrie to the west, Arden to the east, Sunrise to the south, and Highland to the north, encompassing aJ?proximately 26 acres. The south end of Arden-Guthrie is zoned residential (between Sunrise and]9 streets). The Agency/City efforts have been to restore the existing four-p]exes by acquiring HUD foreclosures, causing those units to be rehabilitated and insuring that the units are resold to homeowners. Code Enforcement efforts have been to insure that property owners are complying with City codes and if not, to take the necessary action to insure that units are returned to decent and sanitary conditions. If owners refuse to cooperate with the City, the owners are taken to hearing and given an opportunity to remedy the violation and failure to do so has resulted in either rehabilitation or demolition of unsafe units. Less than 50% of the four-p]exes in South Arden- Guthrie are owner occupied. The Agency alone has expended in excess of $1 million in the acquisition and rehabilitation of some of these units. City services such as Code Enforcement and Fire are ongoing daily. In the North Arden-Guthrie area (north of 20th Street) ("Area"), several years ago the City re-zoned the area, approximately 13 acres, to public/commercial recreation. This area is referred to as the Arden-Guthrie Implementation Area in the attached Cooperation Agreement. As such, in anticipation of some future development consistent with zoning, the Agency has been involved in the acquisition, assemblage and demolition of properties and presently controls 43 of the 73 parcels in this Area, thus investing in excess of $] 0 million in the process. This does not account for City Code, Fire and Police (see attached Map). CURRENT ISSUE: While the Agency's acquisition and the City's demolition efforts have been ongoing for several years, up until recently developer interest in redeveloping the Area has been very limited. However, because of a recent serious interest expressed by Sonnenblick Del-Rio, a Real Estate Development Company with 39 years of commercial and retail development experience, both Agency and IVDA P:lAgendaslComm Dcv CommissionlCDC 2003\03-09-15 lVDA Coop Agr CDC Item.doc COMMISSION MEETING AGENDA Meeting Date: 09/15/2003 Agenda Item Number: R..;...7 : Economic Development Agency Staff Report IVDA Cooperation Agreement Page 2 Staff have discussed entering into a cooperation agreement, similar to the IVDAI Agency Cooperation Agreement for the HUB Project, whereby IVDA would agree to transfer and delegate to the Agency its redevelopment authority within the Arden-Guthrie area. The City is party to the Cooperation Agreement solely for the purpose of exercising those legislative body functions of the IVDA as may be required by the Cooperation Agreement. Specifically, a cooperation arrangement would authorize the Agency to undertake redevelopment implementation within the noted Area, which would also include a provision to ensure that the Agency comply with the IVDA's Owner Participation Rules. The Cooperation Agreement provides for the Agency to incur all expenses associated with the implementation of a specific project within the Area and furthermore, to the extent that the Agency's undertakings result in an actual development project, the Agency is requesting that IVDA consider transferring a portion of the new tax increment to the Agency, pursuant to Section 4 of the proposed Cooperation Agreement (present estimated assessed valuation of privately-owned (30) parcels is $33,000 yearly). This would enable the Agency to recapture a portion ofthe millions of dollars it has invested in the Area. If a development proposal is viable, the assemblage of the remaining 30 parcels will need to occur, thus possibly increasing Agency acquisition and demolition costs. Staff is confident that the ultimate development would result in creation of not only new tax increment for the IVDA project area, but also new sales tax for the City. Once a project concept is refined, Staff will be able to provide a better understanding of the economic benefits to the City, Agency, and IVDA. Assuming the Community Development Commission and IVDA approve the cooperation arrangement, it would be the intent of Agency Staff to immediately provide owner participation notices to the remaining owners within the Area to request submittal of competing proposals to the Sonnenblick Del-Rio proposal. Owners would be given the standard 30 days in which to submit competing proposals and the Agency/IVDA would have approximately 45 days in which to determine if said proposals meet or exceed the City's development standards. Once these Rules are implemented and a proposal and development entity selection is determined, Staff would return to the Redevelopment Committee and ultimately the Community Development Commission with a recommendation on the specific development entity proposal. ENVIRONMENTAL IMPACT: None at this time. FISCAL IMPACT: None at this time. RECOMMENDATION: That the Community Development Commission and Mayor and Common Council adopt the attached resoluti~lJKi/ l 't'4/ G P:\Agendas\Comm Dcv CommissionlCDC 2003\03-09-15 IVDA Coop Agr CDC Itemdoc COMMISSION MEETING AGENDA Meeting Date: 09/15/2003 Agenda Item Number: /i.;.J el 2 el3 14 e25 tr~'O,nnfQ'V RESOLUTIO~~Jj=::' " 3 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BER"IARDINO ("COMMISSION") AUTHORIZING THE CHAIRPERSON OF THE COMMISSION TO EXECUTE A REDEVELOPMENT COOPERATION AGREEMENT BY AND AMONG THE INLAND VALLEY DEVELOPMENT AGENCY, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND THE CITY OF SAN BERNARDINO RELATING TO THE INITIATION OF STUDIES FOR THE REDEVELOPMENT OF LANDS PREVIOUSLY ACQUIRED BY THE AGENCY AND RELATING TO TRANSFER OR DELEGATION OF REDEVELOPMENT AUTHORITY TO THE AGENCY RELATIVE TO PROPERTIES IN THE NORTH ARDEN-GUTHRIE AREA ("ARDEN- GUTHRIE IMPLEMENTATION AREA") 4 5 6 7 8 9 10 1] IS WHEREAS, for the past many years the City of San Bernardino (the "City") and th Redevelopment Agency of the City of San Bernardino (the "Agency") have been engaged i efforts to address blighting conditions in a portion of the City known as the Arden-Guthri neighborhood; and WHEREAS, the Arden-Guthrie neighborhood has been afflicted with a number 0 physical and economic conditions of blight over the years, as these terms are defined in Healt and Safety Code Section 33032, including without limitation, conditions of substandar structures and dwellings, residential overcrowding, substandard property maintenanc 12 16 17 18 conditions, inadequate design of improvements, abandonment of property, depreciating an 19 stagnant property values, and criminal activity which has occurred at rates substantially highe than crime rates in other neighborhoods of the City; and WHEREAS, the Agency, in cooperation with the City, has previously embarked on 20 21 22 program to acquire properties in the Arden-Guthrie neighborhood and to relocate the persons an households occupying such property into safe, sanitary and decent housing in other suitabl locations; and 23 24 WHEREAS, as of June 30, 2003. the Agency has incurred a redevelopment indebtednes in excess of $1 0,000,000 in connection with its previous efforts to address conditions of blight i -1- P:\Agendas\Resoluflons\Resolutions\2003\OJ-09.15 JYDA CDC R<<o.doc _ 2 _13 14 _25 3 the Arden-Guthrie neighborhood and to prevent the spread of blight from the Arden-Guthri neighborhood into nearby neighborhoods and communities; and WHEREAS. the City believes it is necessary and appropriate for the Agency to acquir additional lands in the Arden-Guthrie neighborhood in order the foster a commercially viabl and economically sustainable plan of redevelopment and reuse of the Arden-Guthri neighborhood and to prevent the spread of blight in the Arden-Guthrie neighborhood into othe surrounding neighborhoods and communities; and 4 5 6 7 WHEREAS, the Arden-Guthrie neighborhood IS situated within the redevelop men project area of the Inland Valley Development Project which is a special redevelopment projec area administered by the Inland Valley Development Agency (the "NDA"); and WHEREAS, the NDA has been established pursuant to a joint exercise of power agreement in January 1990, for the purpose of assisting in the conversion, redevelopment an civilian reuse of the former Norton Air Force Base located within the City of San Bernardino' and 8 9 ]0 ]] 12 WHEREAS, the member governmental entities of the IVDA include the County of S Bernardino, a political subdivision of the State of California, and the City of Colton, a municipa 15 corporation, and the City of Lorna Linda, a municipal corporation, and the City; and 16 WHEREAS, the NDA has been granted specific powers by the State Legislature in 198 17 (Stats. 1989 c.545 and See Now Stats 1997, c.580 and Health and Safety Code Section 33492.40 ]8 et seq.) to assist in the redevelopment of the former Norton Air Force Base and the lands i 19 proximity thereto pursuant to the Community Redevelopment Law (Health and Safety Cod 20 Section 33000, et seq., hereinafter referred to as the "CRL"); and 2] WHEREAS, the IVDA has adopted the Redevelopment Plan for the Inland Valle 22 Redevelopment Project Area (the "Redevelopment Plan") in accordance with the provisions 0 23 the CRL, and the Redevelopment Plan provides for certain redevelopment activities to b 24 undertaken within the redevelopment project area as more fully described in the Redevelopmen Plan (the "Project Area"); and -2- P;\Agend"'\R~~oJullons\Re.,,]utions\2003\03-09.151\'DA CDC Reso.doc tit 2 3 4 5 6 7 8 9 10 11 12 e13 14 15 16 17 18 19 WHEREAS, the Arden-Guthrie neighborhood is located within the Project Area; and WHEREAS, at the present time, substantially all the financial and administrative staf resources available to the IVDA are devoted to the implementation of certain agreement affecting the former Norton Air Force Base induding an agreement entitled "Agreemen Between the Department of the Air Force and the Inland Valley Development Agency," date March 7, 1995, as amended, and an agreement entitled "Master Disposition and Developmen Agreement", dated November 6, 2002, both of which specifically relate to the civilian reuse an redevelopment of the lands comprising the former Norton Air Force Base; and WHEREAS, the Agency seeks to initiate certain plans, studies and redevelopmen activities affecting the Arden-Guthrie Implementation Area as defined in Exhibit "B" of the 2003 Redevelopment Cooperation Agreement ("Agreement") which are situated within the Projec Area but which are not part of the former Norton Air Force Base; and WHEREAS, the IVDA, the City and the Agency deem that the approval and implementation of this Agreement are consistent with the Redevelopment Plan and the purposes and intent of the CRL and in particular Health and Safety Code Section 33492.40, et seq., to expeditiously accomplish the redevelopment of certain lands located in the City of San Bernardino which are also within the Project Area. 20 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: 21 Section] . The Recitals of this Resolution are true and correct. Section 2. The Community Development Commission of the City of San 22 Bernardino as the governing board of the Agency hereby requests that the governing board of 23 the IVDA provide assistance and cooperation to the City and the Agency in connection with the 24 study of a specific plan for redevelopment of the Arden-Guthrie Implementation Area. The "25 ,., Community Development Commission of the City of San Bernardino hereby respectfully -3- P:lAgtnd.l\Ruolullons\Rt$olllthms\2003\03.Q9-IS IVDA CDC RUlI.do( _ requests the governing board of the IVDA to consider the approval of a 2003 Redevelopment Cooperation Agreement (Arden-Guthrie) by and among the IVDA, the Agency and the City in the form as attached to this Resolution as Exhibit "A". Subject to the approval by the governing board of the IVDA of the Redevelopment Cooperation Agreement, the Chair of the Community Development Commission of the City of San Bernardino is further authorized and directed to execute the final form of the Agreement on behalf of the Agency together with such technical and conforming changes as may be approved by the Agency General Counsel. The Resolution shall become effective immediately upon its adoption. 2 3 4 5 6 7 8 Section 3. 9 /1/ 10 /1/ 11 /1/ 12 /1/ _ 13 /1/ 14 /1/ 15 /1/ 16 //1 17 /1/ 18 /1/ ]9 /1/ 20 /1/ 21 22 /1/ 23 /1/ 24 /1/ _25 /1/ -4- P:\Ag~ndu\Re!io]ullon!i\Resoluljon!i\.2003\03.09-15IVDA CDC Rew.dot .1 .13 14 .25 2 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ("COMMISSION") AUTHORIZING THE CHAIRPERSON OF THE COMMISSION TO EXECUTE A REDEVELOPMENT COOPERATION AGREEMENT BY AND AMONG THE INLAND V ALLEY DEVELOPMENT AGENCY, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND THE CITY OF SAN BERNARDINO RELATING TO THE INITIATION OF STUDIES FOR THE REDEVELOPMENT OF LANDS PREVIOUSLY ACQUIRED BY THE AGENCY AND RELATING TO TRANSFER OR DELEGATION OF REDEVELOPMENT AUTHORITY TO THE AGENCY RELATIVE TO PROPERTIES IN THE NORTH ARDEN-GUTHRIE AREA ("ARDEN- GUTHRIE IMPLEMENTATION AREA") 3 4 5 6 7 8 9 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 10 Community Development Commission of the City of San Bernardino at a meeting II thereof, held on the day of ,2003, by the following vote to wit: Commission Members: Abstain Absent Ayes Navs 12 15 ESTRADA LONGVILLE MCGINNIS DERRY SUAREZ 16 17 ANDERSON 18 MC CAMMACK 19 Secretary 20 The foregoing resolution is hereby approved this day of ,2003. 21 22 Judith Valles, Chairperson Community Development Commission of the City of San Bernardino 23 24 By: .5. P:\Agud..\Rfwlutlonl\Rl"!illlutlnnl\200JI03-09-1 S IVDA CDC Rew.doc e 2003 REDEVELOPMP,T COOPERA nON AGREEr\lEl'\T BY Al'\D AMOl'\G THE TI\LAl'\D VALLEY DEVELOPMEl'\T AGEl'\CY, THE CITY OF SAN BEIU>JARDD\O, Al'\D THE REDEVELOP!vlEl'\T AGEl'\CY OF THE CITY OF SAN BERJ\ARD[}';O (Arden-Guthrie) e Dated as of September , 2003 e Exhibit "A" e e e 2003 REDEVELOPME?\.'T COOPERA nO]\; AGREEME?\.'T (Arden-Guthrie) This 2003 Redevelopment Cooperation Agreement (the "Agreement") IS dated as of September _, 2003 by and among the Inland Valley Development Agency, a Joint powers authority established under the laws of the State of California (the "IVDA"), the City of San BemardIno, a charter city (the "City"), and the Redevelopment Agency of the CIty of San Bernardino, a body corporate and politic (the "Agency") and IS entered Into with respect to the following facts set forth in the RecItals: -- RECITALS -- WHEREAS, for the past many years the CIty of San BernardinO (the "City") and the Redevelopment Agency of the CIty of San Bernardino (the "Agency") have been engaged In efforts to address blighting conditions in a portion of the City known as the Arden-Guthrie neighborhood; and WHEREAS, the Arden-Guthrie neighborhood has been afflicted with a number of phYSical and economic conditions of blight over the years, as these tenns. are defined in Health and Safety Code Section 33032, including without IImitatlOn, conditions of substandard structures and dwellings, residential overcrowding, substandard property maintenance conditions, Inadequate design of improvements, abandonment of property, depreciating and stagnant property values, and criminal activity which has occurred at rates substantially higher than crime rates In other neighborhoods of the City; and WHEREAS, the Agency, in cooperation with the City, has previously embarked on a program to acquire properties in the Arden-Guthrie neighborhood and to relocate the persons and households occupying such property Into safe, sanitary and decent housing in other suitable locations; and WHEREAS, as of June 30, 2003, the Agency has incurred a redevelopment indebtedness in excess of $1 0,000,000 in connection with Its previous efforts to address conditions of blight in the Arden-Guthrie neighborhood and to prevent the spread of blight from the Arden-Guthrie neighborhood into nearby neighborhoods and communities; and WHEREAS, the City believes it is necessary and appropriate for the Agency to acquire additional lands In the Arden-Guthrie neighborhood in order the foster a commercially viable and economically sustainable plan of redevelopment and reuse of the Arden-Guthrie neighborhood and to prevent the spread of blight in the Arden-Guthrie neighborhood into other surrounding neighborhoods and communities; and WHEREAS, the Arden-Guthrie neighborhood is situated within the redevelopment project area of the Inland Valley Development Project which is a special redevelopment project area administered by the Inland Valley Development Agency (the "IVDA"); and 1 Exhibit "A" P ',.Clerl'a~ SC"lCe~ Dcp['Marga,e' Aglccrnenl\.Amcndmcnl\ AgrTTlII-A.mcnd 200)-,03-09-15 lVDA Agreement DOC e e e WHEREAS, the [VDA has been establIshed pursuant to a Joint exercIse of powers agreement in January 1990, for the purpose of assIstIng In the comersJOn, rede\'e1opment and cmlian reuse of the fonner 1\orton AIr Force Base located withIn the City of San BernardIno: and WHEREAS, the member governmental entItIes of the [VDA include the County of San Bernardino, a polItical subdl\'islon of the State of CalifornIa, and the City of Colton, a munlclpa] corporation, and the City of Loma Linda, a mUl1lcipal corporallon, and the CIty; and WHEREAS, the [\'DA has been granted specIfic powers by the State Legls]ature in 1989 (Stats. 1989 c.545 and See 1\ow Stats 1997, c.580 and Hea]th and Safety Code Section 33492.40, et seq.) to assist In the redevelopment of the former Norton Air Force Base and the lands In proximity thereto pursuant to the Community Redevelopment Law (Health and Safety Code Section 33000, et seq., hereinafter referred to as the "CRL"); and WHEREAS, the NDA has adopted the Redevelopment Plan for the In]and Valley Redeve]opment Project Area (the "Redeve]opment Plan") in accordance with the proVIsions of the CRL, and the Redevelopment Plan provides for certain rede\'e]opment actIVities to be undertaken wlthm the redevelopment project area as more fully described in the Redeve]opment Plan (the "Project Area"); and WHEREAS, the Arden-GuthrIe neIghborhood IS located withIn the Project Area; and WHEREAS, at the present time, substantially all the financial and admil1lstratlve staff resources available to the NDA are devoted to the implementation of certain agreements affecting the former Norton An Force Base ll1c1uding an agreement entItled "Agreement Between the Department of the Air Force and the lnland Valley Development Agency," dated March 7, 1995, as amended, and an agreement entitled "Master Disposition and Development Agreement", dated 1\ovember 6, 2002, both of which specifically relate to the ciVIlIan reuse and redevelopment of the lands comprising the fonner 1\orton Air Force Base; and WHEREAS, the Agency seeks to initiate certain plans, studies and redevelopment actIVIties affecting the Arden-Guthrie Imp]ementation Area, as defined herein, which are situated within the Project Area but which are not part of the former 1\'orton Air Force Base; and WHEREAS, the NDA, the City and the Agency deem that the approval and Imp]ementation of this Agreement are consistent With the Redevelopment Plan and the purposes and intent of the CRL and in particular Hea]th and Safety Code Section 33492.40, et seq., to expeditiously accomplIsh the redevelopment of certain lands located in the City of San Bernardino which are also within the Project Area. NOW, THEREFORE, THE INLA1\'D DEVELOPMENT AGENCY, THE CITY OF SAN BER1\ARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BER1\ARDI1\O DO HEREBY MUTUALLY AGREE AS FOLLOWS: Section 1. Recitals. The parties acknowledge and agree that the reCitals as set forth above are accurate and correct in all respects. 2 Exhibit "A" P,CI.,",.I Se,-"ces Jepl !vIArl?orct .A~rHmer.I'-AmendmenlsAgrm[\,AJncn~ 20CJ,03.09.1~ I\DA Alireemenl DOC e e e Section 2. Accomplishment of Public Purposes. The parties acknowledge and agree that this Agreement prO\ldes the IVDA, the City and the Agency with a means to foster the rcdelelopment of a portion of the Project Area located within the mUnicipal boundanes of the City of San Bernardino which could not otherWise be accomplished within the foreseeable future unless the parties to the Agreement agree to exercise certain responsibilities as set forth herein. Tim Agreement IS Intended to be consistent with the intent and legal reqUirements of the CRL and In particular Health and Safety Code Section 3349240, et seq.. and shall be considered as an agreement entered 11110 by the IVDA, the City and the Agency to accomplish the removal of blighting conditions wlthll1 the Project Area and to compliment the civilian reuse and rcdel'e]opment of certall1 lands nearby the former )\orton All' Force Base 111 the Project Area. ThiS Agreement shall provide the IVDA with addltlOna] assistance from the City and the Agency to undertake studies and redevelopment activities in the portion of the Project Area commonly known as the Arden-Guthrie neighborhood, as more fully depicted In Exhibit "A" attached hereto. The lands depicted In Exhibit "A" are referred to herein as the "Arden-Guthrie Study Area", The parties presently anticipate that a speCific program of redevelopment shall hereafter be formulated by the City and the Agency potentially invoil'ing third-party landowners and/or developers Within a portion of the Arden-Guthrie Study Area depicted in Exhibit "8" attached hereto, The area designated In Exhibit "B" is referred to herein as the "Arden-Guthrie imp]ementatlon Area," Section 3. Grant of Redevelopment Powers to the CItV and the Agencv/Arden- Guthrie Implementation Area. (a) Except as set forth 111 Section 3(b) and Section 3(c) of thiS Agreement, the IVDA hereby grants to the Agency, actll1g by and through the Community Development CommiSSion of the City of San Bernardll10 (the "Commission") and to the leglslatl\'e body of the Agency actll1g by and through the Mayor and Common Council of the City of San BernardinO (the "City"), as applicable. the nght, power and authority to act for and on behalf of the IVDA for the purpose of exercising all redevelopment powers legally available to the IVDA as set forth in the Redel'elopment Plan, the CRL and 111 particular the proviSIOns of Health and Safety Code Section 3349240, et seq., affectll1g any lands and property situated wlthll1 the Arden-Guthrie Implementation Area, In addition to any other powers which the City and/or the Agency may have, the Agency may, either in its name or on behalf of the IVDA, exercise all of the powers, nghts and authorities of the IVDA as set forth in the Redevelopment Plan with respect to the lands and property situated within the Arden-Guthrie Implementation Area. including, but not limited to, the right to acquire and dispose of real and personal property, to either exerCise the power of eminent domain directly on behalf of the IVDA or request the IVDA to conSider the exercise of such powers in support of the Agency and at the sole discretion of the IVDA, sue and be sued, enter into agreements and undertake such other actions as appropriate to the Intent of this Agreement. 1\0 such action of the City or the Agency, as applicable with respect to the exercise of such redevelopment powers affecting the Arden-Guthrie Implementation Area, need be consented to, ratified or confirmed by the IVDA unless such ratification, consent or confirmation by the IVDA IS otherwise requested at the discretion of the City or the Agency. In the event the 3 Exhibit "A" P C'e'.:a; ~r"'..,ces ucr~ .Ma'garcl'Agfeem.nh-'VT,"n~meni')\'grml'-Ame~~ 200.1 ,(]J-Oq 1\ I\'DA AgreemenL DOC . . e I\'DA is so requested In "TIling by either the CllY or the Agency to ratlfv. consent or confirm any action or Intended action of the City or the Agency wIth the respect to the Arden-Guthrie Implementation Area pursuant to thIs Agreement the IVDA shall consIder such matter as soon as practlcab]e after receIpt of such written request The City and the Agency shall be solely responsIble for the payment of all costs and expenses as may be associated with the Imp]ementation of any redevelopment actIvity as may hereafter be undertaken by the CIty and the Agency in the Arden-Guthrie Implementation Area as authorized by thIs agreement (b) Notwithstanding the pro\'lslOns of Section 3(a), the CIty and the Agency shall not initiate any amendment of the Redevelopment Plan or any amendment or supplement to the Implementation Plan for the In]and Valley Redevelopment Project Area without first obtainll1g the "Tlllen approval of the IVDA in Its sole and absolute discretion. (c) \:otwlthstandll1g the provisions of Section 3(a) or any other part of this Agreement, the City and the Agency shall take no actIon under thIS Agreement which causes the IVDA to incur an indebtedness which is payable from any funds, revenues or assets of the IVDA, except from "Transfer Revenues", If any as this tenn IS defined in Secl10n 4. Section 4. Transfer of a Certain Portion of the NDA Tax Increment Funds for the Redevelopment of the Arden-Guthrie ImplementatIon Area. (a) In addItion to the meaning of certain words and phrases as set forth in the preceding ReCIta] paragraphs and sectIons of thIs Agreement, the following definitions shall apply to usage of the terms set forth In this Agreement: . "Arden-Guthrie Properties Base Year" means and refers to the secured property tax roll assessed valuatIOn of the Arden-Guthrie PropertIes for ad valorem property tax purposes, for the 2002-03 fiscal year of the IVDA as shown on the secured property tax assessment rolls of the County Assessor. . "Arden-Guthrie Properties Indebtedness" means and refers to the indebtedness which the Agency may incur on or after the date of this Agreement with respect to the Arden- GuthrIe Reuse Project . "Arden-Guthne Properties" means and refers to the approximately thirteen (13) acres of land in the Arden-Guthrie Imp]ementation Area which is also depicted In ExhIbit "B". . "Arden-Guthrie Reuse Project" means and refers to a community redevelopment project of the Agency, and the related activities which may hereafter be undertaken by the Agency in the Arden-Guthrie Imp]ementatlon Area. The Arden-Guthrie Reuse Project shall be more particularly identified in the written notice provided to the IVDA by the Agency under Section 4(e). 4 Exhibit "A" P ',Cle"e.' Service, ,kpU'l.'g",CI'.A~reemenl\-.>\mendmen"'Agrm'\-"'menc iOO].fi).(i9.15 J\'DA >l.greemer,1 DOC . . . . "Tax Increment Revenue" mean and refer to those revenues, If any, received by the IVDA under Ar1Ic1e VII, Section B(702) of the Redevelopment Plan as relate to the Arden-Guthne Proper1ies; . "Transfer Revenue" means and refers to a pOr1ion of the tax Increment reVTnue of the IVDA attributable to the Arden-Guthrie Proper1ies described In Section 4(b) which the IVDA shall pay to the Agency each year during the term of this Agreement with respect to indebtedness Incurred by the Agency in connection with the redevelopment of the Arden-Guthrie Proper1ies subject to the conditions set fOr1h In Section 4. (b) Transfer Revenue is a pOr1ion of the tax increment revenue of the rvDA generated by the Arden-Guthrie Proper1ies by virtue of the Arden-Guthrie Reuse Projec!. If any, each fiscal year, In excess of such tax increment revenue of the IVDA attributed to the Arden- Guthrie Proper1les Base Year, net of the ]ow- and moderate-income housing set-aside obligation of the rVDA with respect to such tax increment revenue in each such fiscal year, and fur1her net of the pOr1ion of such tax increment revenue of the rvDA with respect to the Arden-Gutherie Proper1les which is payable by the IVDA in such fiscal year under the Schoo] District Agreements as set for1h In Section 4(1). (c) Provided the Agency has given the rvDA the notice described in Section 4(e), commencing no sooner than the 2005-06 fiscal year of the rvDA, and for each fiscal year of the rVDA thereafter during the term of this Agreement, the IVDA hereby agrees to pay to the Agency the Transfer Revenue attributable to the Arden-Guthrie Proper1les (if any) for each such fiscal year following the Arden-Guthrie Proper1ies Base Year. The obligation of the rvDA to pay the Transfer Revenue to the Agency is a special fund obligation of the rvDA payable solely from the pOr1lOn of the tax increment revenue of the rvDA generated by the Arden-Guthrie Proper1les by virtue of the Arden-Guthrie Reuse Project, if any, in the amount as calculated each fiscal year under the formula set fOr1h in Section 4(b). No Transfer Revenues shall be payable by the rVDA to the Agency for any fiscal year of the rvDA after June 30, 2040. Any unpaid balance of the Arden-Guthrie Proper1les Indebtedness as may exist as of July], 2040, shall be discharged, released and forgiven by the Agency. (d) The IVDA shall only remit the Transfer Revenues calculated pursuant to Section (b) to the extent that the Agency has incurred on or after July I, 2003, funds, or incurred indebtedness in connection with the redevelopment of all or any pOr1ion of the Arden-Guthrie Proper1ies Indebtedness, including without limitation indebtedness Incurred under one or more separate agreements by and between the Agency and the City of San Bernardino or indebtedness to a noteholder, bondholder, trustee or other creditor of the Agency related to costs incurred or paid by the Agency for the redevelopment of the Arden-Guthrie Reuse Project. The Agency shall, as a condition precedent to the receipt of Transfer Revenue on each May I, commencing on May 1, 2005, submit to the rvDA a suitably detaIled written statement of the outstanding unpaid balance of Arden-Guthrie Proper1ies Indebtedness incurred by the Agency, including the relevant terms of repa}ment of such Arden-Guthrie Proper1ies Indebtedness. (e) Bya date not later than June 30, 2007, the Agency shall give notice to the rvDA that the Agency entered Into one or more written agreements with third-par1ies for the acquisition 5 Exhibit "A" P ',(1"'001 Srr.,cCl Dcpl'M.,~art:\Ag,.emc~L~.Amcndmcnt~\Agrml~-Nncnd 2003\03.09. I S IVDA Ag'etme~[ DOC . . e or redevelopment of at least se\en (7) acres of land Included In the Arden-Guthrie Implementat]on Area. Such notice shall contaIn a suitably detailed deSCription of the Arden- Guthr]e Reuse Project and the current balance, as of the date of such notice of the Arden-Guthrie Properties Indebtedness. Concurrently \\]th such notice, the Agency shall also dell\er to the [VDA a copy of such written agreements. In the event that such notice is not gl\.cn by the Agency, then In such event, no Transfer Revenues shal] be payable to the Agency by the lVDA under this Agreement. (f) This Agreement and thc amounts of Transfer Revenue to be remitted by the [VDA to the Agency shall at all times be subject to the provisIOns of the various school district pass-through agreements between the [VDA and the San Bernardino City l'nified Schoo] District, Colton JOInt Unified School District, Redlands Unified School District, County Superintendent of Schools and the San BernardIno Valley College District (eollect]vely, thc "Schoo] District Pass-Through Agreements") as the same are applIcab]e to the increases ]n the tax increment revenues generated by the Arden-Guthrie Properties. The calculatIon of the amount of the Transfer Revenue to be remItted by the IVDA to the Agency shall be net of al] amounts required to be paId by the IVDA to the various schoo] districts pursuant to the School District Pass-Through Agreements. The IVDA shall be solely responsible for the admInistration of the School District Pass- Through Agreements. (g) The NDA has established the Low and Moderate Income Housing Fund for the Inland Valley Rede\.elopment ProJect, and twenty percent (20%) of tax increment revenues received by the IVDA are deposlled into such fund each year, subject to certain decreases authOrized under applicable law SaId twenty percent (20%) figure may be decreased pursuant to Health and Safety Code Section 33334.2(a)(I) and (2) from time-to-time by the ND.'\. If the [VDA detenmnes for the entire Project Area, inclusi\.e of the Arden-Guthrie Properties, to deposit less than said twenty percent (20%) figure for a particular fiscal year, as pernlltted by Health and Safety Code Section 33492.40(e) and 33334.2(a)(2)(A), or if the [YDA determines to make no deposit into the Low- and Moderate-Income Housing Fund for the entire Project Area, ]nclusJ\e of the Arden-Guthne Propenies, as permllted by Hea]th and Safety Code Section 33334.2(a)(] )(A), then in any such event, the Transfer Revenue calcu]atlon as set fonh in Section 4(b) of thiS Agreement for the pamcular fiscal year(s) In which such a findIng is made by the NDA, shall not be subject to any off-set or adjustment correspondIng to any amounts of such tax Increment revenue that the [VDA has not deposited Into the [\'DA Low and Moderate Income HOUSIng Fund. (h) The oblIgation of the NDA to remit any ponion of the Transfer Revenue to the Agency pursuant to this Agreement is, at all times, subordinate to the oblIgations of the NDA Incurred pursuant to any and all tax allocation bonds, notes or other forms of Indebtedness, and all refinancings of any of these, issued or incurred by the NDA to the holders of publicly issued bonds, notes or other forms of Indebtedness considered municipal seCUritIes sold in the muniCipal bond market. (i) The [\!DA and the Agency will cooperate in each year dUring the term of this Agreement in the preparation of the Statement of Indebtedness for the NDA as relates to the Arden-Guthrie Propenies Indebtedness and the Transfer Revenue payable by the rvDA to the Agency for the Arden-Guthrie Propenies Indebtedness. The rvDA and the Agency funher agree, upon thiny (30) days written request, to exchange suitably detailed and written accounting 6 Exhibit "A" ~ C1."oal Ser"('~5 DerL "\1a'~a'cu>'~rccm,~"-A.m<~dmcn'\ A~m11,-.4.mcnJ 2()~'-, C,-Qq. I~ j\'DA Agrrcmcn1 DOC e e e and audit records related to the Arden-Guthrie Properrles Indebtedness and the Transfer Revenue, including the estimates and final remittance amounts of Transfer Revenue each fiscal year as calculated by the IVDA, and the Arden-Guthne Properries Indebtedness amounts Incurred by the Agency wlth respect to the rede\'elopment of the Arden-Guthrie Properrles. IJ) Except as set forrh in tl1l5 Agreement as relates to Transfer Revenues, no other tax lllcrement revenue or other funds or assets of the IVDA are ~ubJect to this Agreement. The IVDA may, but shall not be reqUired, unless subsequently approved by the IVDA on a case-by- case basIs, advance, loan or otherwlse transfer to the Agency other tax Increment revenue as may then be available to the IVDA from the Project Area, subject to applicable law. Section 5. Pre-June 30, 2003 Indebtedness of the Agencv Relating to the Arden- Guthrle Implementation Area. As of June 30, 2003, the Agency has incurred the sum of S I 0,000,000 In redevelopment Indebtedness With respect to its efforrs to address conditions of bhght In the Arden-Guthne Implementation Area, including indebtedness incurred for the acquisition of the properry. ]\0 cost, expense or Indebtedness Incurred by the Agency With respect to the Arden-Guthrie Implementation Area prior to June 30, 2003 shall be deemed to be an eligible cost or Indebtedness of the Agency for purposes of calculating the Arden-Guthrie Properries Indebtedness. Section 6. ]\otices. Formal notices, demands and communications among the IVDA, the Agency and the Clty shall be deemed sufficiently given lf (l) dispatched registered or cerrified mail via United State Postal Service, postage prepaid, return receipt requested, as deSIgnated In thlS Section II, (il) by personal dehver, (Iii) express delivery service with written venfication of dehver, or (iv) by electronic transmittal including fax transmissions With telephomc verification of receipt. Such written notices, demands and commumcations may be sent In the same manner to such other addresses as any parry may from time to time designate by wntten notice to the other parries. Copies of all notices, demands and communications shall be sent as follows: rVDA Inland Valley Development Agency 294 South Leland ]\orron Way San BernardInO, Cahfornia 92408 Attention: Executive Director Agency: Redevelopment Agency of the City of San Bernardino 201 ]\orth "E" Street, ThIrd Floor San BernardInO, California 9240 I Attention: Executive Director City: City of San Bernardino San Bernardino City Hall 300 ]\orrh "D" Street, Sixth Floor San Bernardino, California 92418 Attention: City Administrator 7 Exhibit "A" P CLel,;al S.rYlce, Depl Margarei..Agr.emenll......mendmerd,.Agrml'-Amend 2001 ,03.0Q.1 ~ 1\ DA Agreemen~ [lac e e e l\'otlces whIch are dispatched by regIstered or certIfied maIl through the Umted State Postal ServIce shall be deemed to be gIven three (3) busIness days after deposit wIth the Umted States Postal ServIce, and notices whIch are given by personal delivery shall be deemed gl\en upon such personal delIver. Notices dIspatched by express delIvery ser,'lce shall be deemed to have been given upon receIpt by the party receiving such notice and execution of the delIver receipt, and notices dispatched through electromc transm]ttals shall be deemed to have given upon telephonic venficat]on of receIpt Section 7. Indemmfication and Hold Harmless. The City and the Agency hereby agree to Indemn]fy, defend and hold harmless the IVOA and each of ItS officers, offic]als and employees from any and all loss, lIabIlity, claIm, cost, expense or judgment, including attorney's fees, that may result from the implementation of this Agreement by the City and the Agency. The CIty and the Agency will also defend, indemnify and provide the cost of defense on behalf of the IVOA with respect to any third party challenge to the legalIty or enforceabilIty of this Agreement pursuant to the CRL Such indemn]ficatlon and hold harmless shall apply whether or not the City and'or the Agency, or either of them was at fault or in any manner contnbuted to any such loss, liability, c1a]m, cost, expense or Judgment SectIon 8. EntIre Agreement of the Parties. This Agreement represents the entire agreement by and among the IVOA, the City and the Agency with respect to the transfer of the redevelopment powers of the IVOA affecting the Arden-Guthrie Implementation Area. Section 9. InvalIdirv of Any Provision In the event It is determined that any provision of this Agreement is Invalid or unenforceable as between the parties, the remaining provisions which are determIned to be valid and enforceable shall remain in full force and effect Section 10. Approval and Effective Date of Agreement This Agreement has been duly approved and authorized for execution and delIvery by the governing board of the IVOA, by the Council on behalf of the City and by the Commission on behalf of the Agency, and this Agreement has been duly executed and delIvered by the parties hereto, Th]s Agreement may be executed in counterparts and when fully executed by the parties It shall be effective for all purposes as of the date set forth In the introductory paragraph. 8 Exhibit "A" P '(icrocal Scr,'CC\ Depl."h'garcl A"reemcnt~'Amcndmenl\Agrml\-Amcn~ 200J-,.OJ-09-1 \ )\'[)A "'g,ccmonl DOC e e e THIS AGREEME~T HAS BEE\' DULY EXECUTED BY THE Al'THORIZED REPRESEl\;TA TIVES OF THE PARTIES HERETO AS SET FORTH BELO\\'. rVDA Inland Valley Development Agency Date: By Co-Chair By: Co-Chair (SEAL) ATTEST: By Clerk of the Board Approved as to Form: By: General Counsel [2003 Redevelopment Cooperation Agreement Arden-Guthrie] 9 Exhibit "A" p rlfh:al s~..".c" 8epl'~M~""1 ,_"~re."'"nlL"''-n.nd'l\enl\ Agrml,.Amcnd 2003 (j,.C'9. I ~ 1\ DA A!('eemenl DOC . . . AGE'.'CY Redevelopment Agency of tbe City of San Bernardino Date: By Cbalr oftbe Commul1lty Development COlnmisslon (SEAL) ATTEST By Secretary Approved as to Fonn: By: Agency Counsel [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 10 Exhibit "A" P -"Cle',cal Sen"., l)opIJI.1a,gerel\....greemenrs-."vT1.ndmenIL.\.grml\.Amend 200J\OJ,O".I~ I\'D.... Agreement DOC e e e CITY City of San Bernardino Date By Mayor (SEAL) ATTEST: By: City Clerk Approved as to Form: By City Attorney [2003 Redevelopment Cooperation Agreement: Arden-Guthnc] 11 Exhibit "A" r 'C~fI[.1 So,.,..cel [)epl'..\1'fg.,.:'.Agreemenl~-Am.ndmcnl,'Agrml\-.Amend 200]\03.09.1~ I\'DA Ag,um<:m DOC e e e EXHiBIT "A" "lap of Arden-Guthrie Study Area 12 Exhibit "A" P .Cie,,,.: S"r~ ,e., Dcrl .l.jaJp'" .AgrCtmtnl\-AmcnCmtnl;.,"'~rml,-Amtnd 208.\ -03.09- I ~ IVDA "'greemcr,1 DOC e ~ Q) I- ~ >- "0 :J .... ~- 1-1 ..c:j .... :J c.:> I c: Q) "0 I- ~ ~ h ,. ~ h :;: L oc ~ ~nD:;'''T U::,pJ\ c ~ ~ h ~ ;; '" ~ '" ~ ~ III~~ '" ;::. - ,... if' <r ;" :;:. ;::.. co ~~-~:::::::2;~~~;; r, ..... r< N ..... ( N l;l~lS ....;lIUI)Pl\ , , > < j " ~ ~ ~ ~ N ~ ~ N ~ ~ h r: ~ h h h ::' ~ ~ " ~ :; ::' ~ ~. w C2 ::r:: f-< :::J C,) o z -< z w ~ -< ~:r ~ I- W a: ~ 0:: z 0 " :; ~ ~ c , ~ 2 1;l;lJ1S U01..Jt:<:jWna ~ ~ ~ c " ~ c '" ~ ~ '" ~ o N h '" ;? '" ~ ~ '" ~ o ~ ~ '" h ~ '" ( l~ns J'lWO)~N ::; ~ ~ ~ h ~ ;? ~ c " '" ~ o N )::I;lns ;l1Jlfln~ Exhibit :l '" ~ S :l '" ~ HA" c ~ ! ~I c ~ ~ c ~ ~ ~ ~ c '" c ~ I~ !~ - N ::: N ~ ~ ~ :; u u Vi -= o N ~ :l h N ~ ~ N N N N ~ N ~ ~ ~ ~ " ~ ~ ~ oc ~ ~ ~ ~ ~ ~ oc " ~ ~ ~ ;:, ~ c u u , Vi -5 c ~ ~ ~ N oc ~ oc , ~ ~CJ] c c h ~ ~ ~ h ~ ~ ~ ~. ~ ;; ~ ~ oc " ~ 8 h ~ ~ '" '" ;;mO:l^V;lI..dlV ~I ~I :1 ;; ~ ~ ~ S ~ ~ N ~ ~ N N ~ N ~ N ~ N N N N N ~ ~ ~ ------- ~ N oc ~ oc oc ~ ~ , ~ h ~ ;; - ~ ~ " ~ ~ ~ o , c . -' o ~ ~ o u C , '" ~ ~ ~ oc '" ~ oc '" ~ h '" ~ ~ ~ ~ h o ~ ~ '" ~ ~ '" ~ o N ~ ~ '" ~ ~ ~ ~ ~ ~ N ~ ~ '" ~ N ~ ~ o oc = ~ - - ~ - CO - J: ><: w e e e EXHIBIT "B" Map of Arden-Guthne Implementation Area 13 Exhibit "A" P .Ci""C~1 Ser...cc\ Depl....JI,1argarel '^grcemenl,-A..,.ncncmen'l .',grrnl<-Amrnd ;>003{)J-09-] 5 I\'DA Agreemenl DOC e ra Q) a... oCt C o - ra - c Q) >> E Q) a... ..c: - :J (!) I C Q) '0 a... oCt e ,nU'AV U'PlV co N , "" N ;:;: " ~ ,~ N co C' "- N 52 - - - co co co co N N N N N N N N "- C' - '" v- v- ~. - C' '^ " v- ~ N co C' "- v- C, co - - - - co 0 CO 0 N N N N N N N N N N ) ( P'llS U01.IT'lWna "'" ~ oc 0 N "'" ~ N CO oc ~ C' c' V- "'" N 0 C' t. V- c, 0 - - - - - - 0 0 0 CO 0' N N N N N N N N N N V- "- C' - '" V- V- '" - C' V- C' "- V- ~ N 0 '" "- V- N 0 - - - - - 0 CO CO 0 0 N N N N N N N N 01 N N ) ( lo,ns ^'IUT)j)W ~ ~ 00 0 N "'" ~ 0' 0 00 "'" C' "- V- '<' N '" C' r, V- N '" - - - - - - 0 0 CO 0 0 N N N N N N N N N N N V- "- C' - '" V- V- '" - '" V- C' "- V- ,. N 0 '" ~ V- N - - - - - - c 0 N N N N N N N N N N N ) POllS O'lWO)A\ON "'" ~ 00 '" N , "'" N '" oc '"' C' r, V- '"' N C C' "- V- N 0 - - - - - c 0 CO 0 CO N N N N N N N N N N N V- "- C' - '" V- '^ '" - C' V- C' "- V- '<' N CO '" "- V- N C - - - - - - '" '" '" '" '" N N N N N N N N N N N loons OlJlrn~ ~ " OJ ~ V; ~ o N OJ ::l C OJ ~ "" c " . ""Oil :r: Exhibit "A" - - c:a - - J-- - c:a - J: X w w.J -- c::: ::c 1--< ;:J V Q Z -< Z w.J ~ -< ~i! .1 .13 14 e25 RESOLUTIO'O(Q) fY 2 3 A RESOLUTIO:'/ OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE A REDEVELOPMENT COOPERATION AGREEMENT BY AND AMONG THE INLAND VALLEY DEVELOPMENT AGENCY, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND THE CITY OF SAN BERNARDINO RELATING TO THE INITIATION OF STUDIES FOR THE REDEVELOPMENT OF LANDS PREVIOUSLY ACQUIRED BY THE AGENCY AND RELATING TO TRANSFER OR DELEGATION OF REDEVELOPMENT AUTHORITY TO THE AGENCY RELATIVE TO PROPERTIES IN THE NORTH ARDEN- GUTHRIE AREA ("ARDEN-GUTHRIE IMPLEMENT A TION AREA") 4 5 6 7 8 9 10 WHEREAS, for the past many years the City of San Bernardino (the "City") and th Redevelopment Agency of the City of San Bernardino (the "Agency") have been engaged i efforts to address blighting conditions in a portion of the City known as the Arden-Guthri neighborhood; and WHEREAS, the Arden-Guthrie neighborhood has been afflicted with a number 0 physical and economic conditions of blight over the years, as these terms are defined in Healt and Safety Code Section 33032, including without limitation, conditions of substandar 11 12 15 16 structures and dwellings, residential overcrowding, substandard property maintenanc conditions, inadequate design of improvements, abandonment of property, depreciating an stagnant property values, and criminal activity which has occurred at rates substantially highe than crime rates in other neighborhoods of the City; and WHEREAS, the Agency, in cooperation with the City, has previously embarked on program to acquire properties in the Arden-Guthrie neighborhood and to relocate the persons an households occupying such property into safe, sanitary and decent housing in other suitabl locations; and 17 18 19 20 21 22 23 24 WHEREAS, as of June 30, 2003, the Agency has incurred a redevelopment indebtednes in excess of $10,000,000 in connection with its previous efforts to address conditions of blight i -1- P:\Allcndu\Resolutlons\Resolutlons\2003\OJ-09-1S IVDA :vice ReiD.doc Ie , _13 14 e25 the Arden-Guthrie neighborhood and to prevent the spread of blight from the Arden-Guthri 2 neighborhood into nearby neighborhoods and communities; and 3 WHEREAS, the City believes it is necessary and appropriate for the Agency to acquir additional lands in the Arden-Guthrie neighborhood in order the foster a commercially viabl and economically sustainable plan of redevelopment and reuse of the Arden-Guthri neighborhood and to prevent the spread of blight in the Arden-Guthrie neighborhood into othe surrounding neighborhoods and communities; and WHEREAS, the Arden-Guthrie neighborhood IS situated within the redevelopmen project area of the Inland Valley Development Project which is a special redevelopment projec area administered by the Inland Valley Development Agency (the "IVDA"); and WHEREAS, the IVDA has been established pursuant to a joint exercise of power 4 5 6 7 8 9 10 11 agreement in January 1990, for the purpose of assisting in the conversion, redevelopment an 12 civilian reuse of the former Norton Air Force Base located within the City of San Bernardino' and WHEREAS, the member governmental entities of the IVDA include the County of S 15 Bernardino, a political subdivision of the State of California, and the City of Colton, a municipa 16 corporation, and the City ofLoma Linda, a municipal corporation, and the City; and 17 WHEREAS, the IVDA has been granted specific powers by the State Legislature in 198 18 (Stats. 1989 c.545 and See Now Stats 1997, c.580 and Health and Safety Code Section 33492.40 19 et seq.) to assist in the redevelopment of the former Norton Air Force Base and the lands i 20 proximity thereto pursuant to the Community Redevelopment Law (Health and Safety Cod 21 Section 33000, et seq., hereinafter referred to as the "CRL"); and 22 WHEREAS, the IVDA has adopted the Redevelopment Plan for the Inland Valle 23 Redevelopment Project Area (the "Redevelopment Plan") in accordance with the provisions 0 24 the CRL, and the Redevelopment Plan provides for certain redevelopment activities to b undertaken within the redevelopment project area as more fully described in the Redevelopmen Plan (the "Project Area"); and -2- P:\Agelldlu\Ruolutlons\Rl'solutionsUOOJI03-09-IS IVDA :\Ice Rno.doc e 2 3 4 5 6 7 8 9 10 II 12 el3 14 15 16 WHEREAS, the Arden-Guthrie neighborhood is located within the Project Area; and WHEREAS, at the present time, substantially all the financial and administrative staf resources available to the IVDA are devoted to the implementation of certain agreement affecting the former Norton Air Force Base including an agreement entitled "Agreemen Between the Department of the Air Force and the Inland Valley Development Agency," date March 7, 1995, as amended, and an agreement entitled "Master Disposition and Developmen Agreement", dated November 6, 2002, both of which specifically relate to the civilian reuse an redevelopment of the lands comprising the former Norton Air Force Base; and WHEREAS, the Agency seeks to initiate certain plans, studies and redevelopmen activities affecting the Arden-Guthrie Implementation Area as defined in Exhibit "B" of the 2003 Redevelopment Cooperation Agreement ("Agreement") which are situated within the Projec Area but which are not part of the former Norton Air Force Base; and Whereas, the IVDA, the City and the Agency deem that the approval and implementation of this Agreement are consistent with the Redevelopment Plan and the purposes and intent of the CRL and in particular Health and Safety Code Section 33492.40, et seq., to expeditiously accomplish the redevelopment of certain lands located in the City of San 17 Bernardino which are also within the Project Area. 18 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERE BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, A FOLLOWS: 19 20 21 Section 1. The Recitals of this Resolution are true and correct. Section 2. The Mayor and Common Council hereby request that the governmg 22 board of the IVDA provide assistance and cooperation to the City and the Agency in connection 23 with the study of a specific plan for redevelopment of the Arden-Guthrie Implementation Area. 24 The Mayor and Common Council hereby respectfully request the governing board of the IVDA _25 .. to consider the approval of a 2003 Redevelopment Cooperation Agreement (Arden-Guthrie) by -3- P:\Ag~nd.l\ReloI1l1Ions\Resollltlonl\.100J\03-09-IS IVDA ~cc Ruo.doc e 2 and among the IVDA, the Agency and the City in the form as attached to this Resolution as Exhibit "A". Subject to the approval by the governing board of the IVDA of the 3 Redevelopment Cooperation Agreement, the Mayor is further authorized and directed to 4 execute the final form of the Agreement on behalf of the City together with such technical and 5 conforming changes as may be approved by the City Attorney. 6 Section 3. This Resolution shall take effect upon its adoption and execution in the manner 7 as required by the City Charter. 8 /// /// 9 /// 10 /// 11 /// 12 /// e13 /// 14 /// 15 /11 16 /// 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// e25 /// .4. P:\AgenduIResolullons\Rtsolulions\2003\OJ-09-15IVDA .\-tce Rew.doc e1 2 e13 14 e25 3 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE A REDEVELOPMENT COOPERATION AGREEMENT BY AND AMONG THE INLAND V ALLEY DEVELOPMENT AGENCY, THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BE&~ARDINO ("AGENCY") AND THE CITY OF SAN BERNARDINO RELATING TO THE INITIATION OF STUDIES FOR THE REDEVELOPMENT OF LANDS PREVIOUSLY ACQUIRED BY THE AGENCY AND RELATING TO TRANSFER OR DELEGATION OF REDEVELOPMENT AUTHORITY TO THE AGENCY RELATIVE TO PROPERTIES IN THE NORTH ARDEN- GUTHRIE AREA ("ARDEN-GUTHRIE IMPLEMENTATION AREA") 4 5 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 8 Common Council of the City of San Bernardino at a meeting thereof, held on the 9 10 day of ,2003, by the following vote to wit: Council Members: Navs Abstain Absent Ayes 11 12 ESTRADA LONGVILLE MCGINNIS DERRY SUAREZ ANDERSON MC CAMMACK 15 16 17 18 19 Rachel G. Clark, City Clerk 20 The foregoing resolution is hereby approved this day of ,2003. 21 22 Judith Valles, Mayor City of San Bernardino 23 Approved as to form and Legal Content: By: L 7.~ Uty Attorney 24 -5- P:\Agendas\Re$olutlonl\Resolutions\2003\D3-09-IS I\'DA MCC ReSll.dot e 2003 REDEVELOPME!\T COOPERA nON AGREEME!\T BY AND AMO!\G THE INLA!\D V ALLEY DEVELOPMENT AGENCY, THE CITY OF SAN BERNARDINO, A!\D THE REDEVELOPMENT AGE!\CY OF THE CITY OF SAN BERNARDINO (Arden-Guthrie) e Dated as of September _, 2003 e Exhibit "A" . . . 2003 REDEVELOPMEKT COOPERATION AGREEME:'\T (Arden-Guthrie) This 2003 Redevelopment Cooperation Agreement (the "Agreement") is dated as of September ~, 2003 by and among the Inland Valley Development Agency, a joint powers authority established under the laws of the State of California (the "IVDA"), the City of San Bernardino, a charter city (the "City"), and the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") and is entered into with respect to the following facts set forth in the Recitals: -- RECITALS n WHEREAS, for the past many years the City of San Bernardino (the "City") and the Redevelopment Agency of the City of San Bernardino (the "Agency") have been engaged in efforts to address blighting conditions in a portion of the City known as the Arden-Guthrie neighborhood; and WHEREAS, the Arden-Guthrie neighborhood has been afflicted with a number of physical and economic conditions of blight over the years, as these terms are defined in Health and Safety Code Section 33032, including without limitation, conditions of substandard structures and dwellings, residential overcrowding, substandard property maintenance condllions, inadequate design of improvements, abandonment of property, depreciating and stagnant property values, and criminal activity which has occurred at rates substantially higher than crime rates in other neighborhoods of the City; and WHEREAS, the Agency, in cooperation with the City, has previously embarked on a program to acquire properties in the Arden-Guthrie neighborhood and to relocate the persons and households occupying such property into safe, sanitary and decent housing in other suitable locations; and WHEREAS, as of June 30, 2003, the Agency has incurred a redevelopment indebtedness in excess of $1 0,000,000 in connection with its previous efforts to address conditions of blight in the Arden-Guthrie neighborhood and to prevent the spread of blight from the Arden-Guthrie neighborhood into nearby neighborhoods and communities; and WHEREAS, the City believes it is necessary and appropriate for the Agency to acquire additional lands in the Arden-Guthrie neighborhood in order the foster a commercially viable and economically sustainable plan of redevelopment and reuse of the Arden-Guthrie neighborhood and to prevent the spread of blight in the Arden-Guthrie neighborhood into other surrounding neighborhoods and communities; and WHEREAS, the Arden-Guthrie neighborhood is situated within the redevelopment project area of the Inland Valley Development Project which is a special redevelopment project area administered by the Inland Valley Development Agency (the "IVDA"); and I Exhibit "A" P \Cimcal Ser>',ces Deph.\1arg8rel""'grccments.Amendmenls,^grml~-A.mend 2003,0].09-1 S IVDA Agreement DOC e . e WHEREAS, the rvDA has been established pursuant to a joint exercise of powers agreement in January 1990, for the purpose of assisting in the conversion, redevelopment and civilian reuse of the former Norton Air Force Base located within the City of San Bernardino; and WHEREAS, the member governmental entities of the rvDA include the County of San Bernardino, a political subdivision of the State of California, and the City of Colton, a mUl1lcipal corporation, and the City ofLoma Linda, a municipal corporation, and the City; and WHEREAS, the rvDA has been granted specific powers by the State Legislature in 1989 (Stats. 1989 c.545 and See Now Stats 1997, c.580 and Health and Safety Code Section 33492.40, et seq.) to assist in the redevelopment of the former Norton Air Force Base and the lands in proximity thereto pursuant to the Community Redevelopment Law (Health and Safety Code Section 33000, et seq., hereinafter referred to as the "CRL"); and WHEREAS, the rvDA has adopted the Redevelopment Plan for the Inland Valley Redevelopment Project Area (the "Redevelopment Plan") in accordance with the provisions of the CRL, and the Redevelopment Plan provides for certain redevelopment activities to be undertaken within the redevelopment project area as more fully described in the Redevelopment Plan (the "Project Area"); and WHEREAS, the Arden-Guthrie neighborhood is located within the Project Area; and WHEREAS, at the present time, substantially all the financial and administrative staff resources available to the rvDA are devoted to the implementation of certain agreements affecting the former Norton Air Force Base including an agreement entitled "Agreement Between the Department of the Air Force and the Inland Valley Development Agency," dated March 7, 1995, as amended, and an agreement entitled "Master Disposition and Development Agreement", dated November 6, 2002, both of which specifically relate to the civilian reuse and redevelopment of the lands comprising the former Norton Air Force Base; and WHEREAS, the Agency seeks to initiate certain plans, studies and redevelopment activities affecting the Arden-Guthrie Implementation Area, as defined herein, which are situated within the Project Area but which are not part of the former Norton Air Force Base; and WHEREAS, the rvDA, the City and the Agency deem that the approval and implementation of this Agreement are consistent with the Redevelopment Plan and the purposes and intent of the CRL and in particular Health and Safety Code Section 33492.40, et seq., to expeditiously accomplish the redevelopment of certain lands located in the City of San Bernardino which are also within the Project Area. NOW, THEREFORE, THE INLAND DEVELOPMENT AGENCY, THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DO HEREBY MUTUALLY AGREE AS FOLLOWS: Section I. Recitals. The parties acknowledge and agree that the recitals as set forth above are accurate and correct in all respects. 2 Exhibit "A" P.,Clmcal ServICes Depl'J,1afSare\A~reemenls.Arrn:ndmenl>.Agrmls.Amend 200)'.03-09-15 IVOA ^g.em>ent DOC tit e e Section 2. Accomplishment of Public Purposes. The parties acknowledge and agree that this Agreement provides the IVOA, the City and the Agency with a means to foster the redevelopment of a portion of the Project Area located within the mUnicipal boundaries of the City of San Bernardino which could not otherwise be accomplished within the foreseeable future unless the parties to the Agreement agree to exercise certain responsibilities as set forth herein. This Agreement is intended to be consistent with the intent and legal requirements of the CRL and in particular Health and Safety Code Section 33492.40, et seq., and shall be considered as an agreement entered into by the IVOA, the City and the Agency to accomplish the removal of blighting conditions wllhin the Project Area and to compliment the civilian reuse and redevelopment of certain lands nearby the former Norton Air Force Base in the Project Area. This Agreement shall provide the IVOA with additional assistance from the City and the Agency to undertake studies and redevelopment activities in the portion of the Project Area commonly known as the Arden-Guthrie neighborhood, as more fully depicted in Exhibit "A" attached hereto. The lands depicted m Exhibit "A" are referred to herein as the "Arden-Guthrie Study Area". The parties presently anticipate that a specific program of redevelopment shall hereafter be formulated by the City and the Agency potentially involving third-party landowners and/or developers within a portion of the Arden-Guthrie Study Area depicted in Exhibit "B" attached hereto. The area designated in Exhibit "B" is referred to herein as the "Arden-Guthrie Implementation Area." Section 3. Grant of Redevelopment Powers to the City and the Agency/Arden- Guthrie Implementation Area. (a) Except as set forth in Section 3(b) and Section 3(c) of this Agreement, the rvOA hereby grants to the Agency, acting by and through the Commul1lty Oevelopment Commission of the City of San Bernardino (the "Commission") and to the legislative body of the Agency acting by and through the Mayor and Common Council of the City of San Bernardino (the "City"), as applicable, the right, power and authority to act for and on behalf of the rvOA for the purpose of exercising all redevelopment powers legally available to the rvOA as set forth in the Redevelopment Plan, the CRL and in particular the provisions of Health and Safety Code Section 33492.40, et seq., affecting any lands and property situated within the Arden-Guthrie Implementation Area. In addition to any other powers which the City and/or the Agency may have, the Agency may, either in its name or on behalf of the rvOA, exercise all of the powers, rights and authorities of the rvOA as set forth in the Redevelopment Plan with respect to the lands and property situated within the Arden-Guthrie Implementation Area, including, but not limited to, the right to acquire and dispose of real and personal property, to either exercise the power of eminent domain directly on behalf of the rvOA or request the rvOA to consider the exercise of such powers in support of the Agency and at the sole discretion of the IVOA, sue and be sued, enter into agreements and undertake such other actions as appropriate to the intent of this Agreement. 1\0 such action of the City or the Agency, as applicable with respect to the exercise of such redevelopment powers affecting the Arden-Guthrie Implementation Area, need be consented to, ratified or confirmed by the rvOA unless such ratification, consent or confirmation by the IVOA is otherwise requested at the discretion of the City or the Agency. In the event the 3 Exhibit "A" r,(le',eal Scr. ,ce, Ocrl ',MargarC(.A.gfccmcnls.Amelldmem,Agrm(~.Amend 20030] .09-1 S 1\ DA Agrcemenl DOC e e e IVDA is so requested in writing by either the City or the Agency to ratify, consent or confirm any actIon or intended action of the City or the Agency with the respect to the Arden-Guthrie Implementation Area pursuant to this Agreement, the IVDA shall consider such matter as soon as practicable after receipt of such written request. Tbe City and tbe Agency shall be solely responsible for tbe payment of all costs and expenses as may be associated with tbe implementation of any redevelopment activity as may bereafter be undertaken by the City and tbe Agency in the Arden-Guthrie Implementation Area as autborized by tbis agreement. (b) Notwithstanding tbe provisions of Section 3(a), tbe City and the Agency shall not initiate any amendment of tbe Redevelopment Plan or any amendment or ,upplement to the Implementation Plan for the Inland Valley Redevelopment Project Area without first obtaining tbe written approval of the IVDA in its sole and absolute discretion. (c) Notwitbstanding tbe provisions of Section 3(a) or any other part of this Agreement, tbe City and tbe Agency shall take no action under tbis Agreement which causes tbe IVDA to incur an indebtedness which is payable from any funds, revenues or assets of the IVDA, except from "Transfer Revenues", if any as tbis term is defined in Section 4. Section 4. Transfer of a Certain Portion of the IVDA Tax Increment Funds for the Redevelopment oftbe Arden-Guthrie Implementation Area. (a) In addition to tbe meaning of certain words and phrases as set fortb in the preceding Recital paragrapbs and sections of this Agreement, the following definitions shall apply to usage oftbe terms set fortb in this Agreement: . "Arden-Guthrie Properties Base Year" means and refers to the secured property tax roll assessed valuation of the Arden-Guthrie Properties for ad valorem property tax purposes, for the 2002-03 fiscal year of tbe IVDA as shown on the secured property tax assessment rolls of the County Assessor. . "Arden-Guthrie Properties Indebtedness" means and refers to tbe indebtedness which the Agency may incur on or after the date of this Agreement with respect to the Arden- Guthrie Reuse Project. . "Arden-Guthrie Properties" means and refers to the approximately thirteen (13) acres of land in the Arden-Guthrie Implementation Area which is also depicted in Exhibit "B", . "Arden-Guthrie Reuse Project" means and refers to a community redevelopment project of the Agency, and the related activities which may hereafter be undertaken by the Agency in the Arden-Guthrie Implementation Area. The Arden-Guthrie Reuse Project shall be more particularly identified in the written notice provided to the IVDA by the Agency under Section 4( e). 4 Exhibit "A" P.\Clmcal Ser\'\ce' Dtp\MargArC\\-I.g,e~menls.Amendmenl~Agrml~-Amend 2003'03.09.15 IVDA Agrcemen: DOC e e e . 'Tax Increment Revenue" mean and refer to those revenues, if any, received by the IVDA under Article VII, Section B(702) of the Redevelopment Plan as relate to the Arden-Guthrie Properties; . 'Transfer Revenue" means and refers to a portion of the tax increment revenue of the IYDA attributable to the Arden-Guthrie Properties described in Section 4(b) which the IVDA shall pay to the Agency each year during the term of this Agreement with respect to indebtedness incurred by the Agency in connection with the redevelopment of the Arden-Guthrie Properties subject to the conditions set forth in Section 4. (b) Transfer Revenue is a portion of the tax increment revenue of the IYDA generated by the Arden-Guthrie Properties by virtue of the Arden-Guthrie Reuse Project, If any, each fiscal year, in excess of such tax increment revenue of the IVDA attributed to the Arden- Guthrie Properties Base Year, net of the low- and moderate-income housing set-aside obligation of the IYDA with respect to such tax increment revenue in each such fiscal year, and further net of the portion of such tax increment revenue of the IYDA with respect to the Arden-Gutherie Properties which is payable by the IYDA in such fiscal year under the School District Agreements as set forth in Section 4(f). (c) Provided the Agency has given the IYDA the notice described in Section 4(e), commencing no sooner than the 2005-06 fiscal year of the IVDA, and for each fiscal year of the IYDA thereafter during the term of this Agreement, the IYDA hereby agrees to pay to the Agency the Transfer Revenue attributable to the Arden-Guthrie Properties (if any) for each such fiscal year following the Arden-Guthrie Properties Base Year. The obligation of the IYDA to pay the Transfer Revenue to the Agency is a special fund obligation of the IYDA payable solely from the portion of the tax increment revenue of the IYDA generated by the Arden-Guthrie Properties by virtue of the Arden-Guthrie Reuse Project, if any, in the amount as calculated each fiscal year under the formula set forth in Section 4(b). No Transfer Revenues shall be payable by the IVDA to the Agency for any fiscal year of the IYDA after June 30, 2040. Any unpaid balance of the Arden-Guthrie Properties Indebtedness as may exist as of July I, 2040, shall be discharged, released and forgiven by the Agency. (d) The IVDA shall only remit the Transfer Revenues calculated pursuant to Section (b) to the extent that the Agency has incurred on or after July I, 2003, funds, or incurred indebtedness in connection with the redevelopment of all or any portion of the Arden-Guthrie Properties Indebtedness, including without limitation indebtedness incurred under one or more separate agreements by and between the Agency and the City of San Bernardino or indebtedness to a noteholder, bondholder, trustee or other creditor of the Agency related to costs incurred or paid by the Agency for the redevelopment of the Arden-Guthrie Reuse Project. The Agency shall, as a condition precedent to the receipt of Transfer Revenue on each May I, commencing on May I, 2005, submit to the IVDA a suitably detailed written statement of the outstanding unpaid balance of Arden-Guthrie Properties Indebtedness incurred by the Agency, including the relevant terms of repayment of such Arden-Guthrie Properties Indebtedness. (e) By a date not later than June 30, 2007, the Agency shall give notice to the IYDA that the Agency entered into one or more written agreements with third-parties for the acquisition 5 Exhibit "A" P \C1~fLcal Ser"<ccs Dcrt\.MaTgafcl'AgfttmCn\~.A.mcndmtnl\Agrm(s.Amend 2003'O~.09-15 IVDA Agreement DOC . e . or redevelopment of at least seven (7) acres of land included in the Arden-Guthne Implementation Area. Such notice shall contain a suitably detailed description of the Arden- Guthrie Reuse Project and the current balance, as of the date of such notice of the Arden-Guthrie Properties Indebtedness. Concurrently with such notice, the Agency shall also deliver to the rvDA a copy of such written agreements. In the event that such notice is not given by the Agency, then in such event, no Transfer Revenues shall be payable to the Agency by the IVDA under this Agreement. (I) This Agreement and the amounts of Transfer Revenue to be remitted by the rvDA to the Agency shall at all times be subject to the provisions of the various school district pass-through agreements between the rvDA and the San Bernardino City Unified School District, Colton Joint Unified School District, Redlands Unified School District, County Superintendent of Schools and the San Bernardino Valley College Distnct (collectively, the "School District Pass-Through Agreements") as the same are applicable to the increases In the tax increment revenues generated by the Arden-Guthrie Properties. The calculation of the amount of the Transfer Revenue to be remitted by the IVDA to the Agency shall be net of all amounts required to be paid by the IVDA to the various school districts pursuant to the School District Pass-Through Agreements. The rvDA shall be solely responsible for the administration of the School District Pass-Through Agreements. (g) The IVDA has established the Low and Moderate Income Housing Fund for the Inland Valley Redevelopment Project, and twenty percent (20%) of tax increment revenues received by the rvDA are deposited into such fund each year, subject to certain decreases authonzed under applicable law. Said twenty percent (20%) figure may be decreased pursuant to Health and Safety Code Section 33334.2(a)(I) and (2) from time-to-time by the IVDA. If the IVDA determines for the entire Project Area, inclusive of the Arden-Guthrie Properties, to deposit less than said twenty percent (20%) figure for a particular fiscal year, as permitted by Health and Safety Code Section 33492.40(e) and 33334.2(a)(2)(A), or if the IVDA determines to make no deposit into the Low- and Moderate-Income Housing Fund for the entire Project Area, inclusive of the Arden-Guthrie Properties, as permitted by Health and Safety Code Section 33334.2(a)(1 )(A), then in any such event, the Transfer Revenue calculation as set forth in Section 4(b) of this Agreement for the particular fiscal year(s) in which such a finding is made by the IVDA, shall not be subject to any off-set or adjustment corresponding to any amounts of such tax increment revenue that the rvDA has not deposited into the rvDA Low and Moderate Income Housing Fund. (h) The obligation of the rvDA to remit any portion of the Transfer Revenue to the Agency pursuant to this Agreement is, at all times, subordinate to the obligations of the IVDA incurred pursuant to any and all tax allocation bonds, notes or other forms of indebtedness, and all refinancings of any of these, issued or incurred by the rvDA to the holders of publicly issued bonds, notes or other forms of indebtedness considered municipal securities sold in the municipal bond market. (i) The IVDA and the Agency will cooperate in each year during the term of this Agreement in the preparation of the Statement of Indebtedness for the rvDA as relates to the Arden-Guthrie Properties Indebtedness and the Transfer Revenue payable by the rvDA to the Agency for the Arden-Guthrie Properties Indebtedness. The rvDA and the Agency further agree, upon thirty (30) days written request, to exchange suitably detailed and written accounting 6 Exhibit "A" P '..Clemal SCr>'ICCS Dcpl.Margarelc....greemcOI~.'\mcndmcnl>..Agnnt,-Amend 200Y.O).Q9.15 J\'DA Agreement DOC . . tit and audit records related to the Arden-Guthrie Properties Indebtedness and the Transfer Revenue, including the estimates and final remittance amounts of Transfer Revenue each fiscal year as calculated by the rvDA, and the Arden-Guthrie Properties Indcbtedness amounts incurred by the Agency with respect to the redevelopment of the Arden-Guthne Properties. 0) Except as set forth in this Agreement as relates to Transfer Revenues, no other tax increment revenue or other funds or assets of the IVDA are subject to this Agreement. The rvDA may, but shall not be required, unless subsequently approved by the rvDA on a case-by- case basis, advance, loan or otherwise transfer to the Agency other tax increment revenue as may then be available to the rvDA from the Project Area, subject to applicable law. Section 5. Pre-June 30, 2003 Indebtedness of the Agenc\' Relating to the Arden- Guthrie Implementation Area. As of June 30, 2003, the Agency has incurred the sum of $10,000,000 in redevelopment indebtedness with respect to its efforts to address conditions of blight in the Arden-Guthrie Implementation Area, including indebtedness incurred for the acquisition of the property. No cost, expense or indebtedness incurred by the Agency with respect to the Arden-Guthrie Implementation Area prior to June 30, 2003 shall be deemed to be an eligible cost or indebtedness of the Agency for purposes of calculating the Arden-Guthrie Properties Indebtedness. Section 6. Notices. Formal notices, demands and communications among the rvDA, the Agency and the City shall be deemed sufficiently given if (i) dispatched registered or certified mail via United State Postal Service, postage prepaid, return receipt requested, as designated in this Section II, (ii) by personal deliver, (iii) express delivery service with written verification of deliver, or (iv) by electronic transmittal including fax transmissions with telephonic verification of receipt. Such written notices, demands and communications may be sent in the same manner to such other addresses as any party may from time to time designate by written notice to the other parties. Copies of all notices, demands and communications shall be sent as follows: rvDA: Inland Valley Development Agency 294 South Leland Norton Way San Bernardino, California 92408 Attention: Executive Director Agency: Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Third Floor San Bernardino, California 92401 Attention: Executive Director City: City of San Bernardino San Bernardino City Hall 300 North "0" Street, Sixth Floor San Bernardino, California 92418 Attention: City Administrator 7 Exhibit "A" P,Clenca] Services DcptMargare\AgreemenI5-AmendmcnlS'Agmlls-Amend 2003',03-09.1 S IVDA Agrumen< DOC . . . Notices which are dispatched by registered or certified mail through the United State Postal Ser;ice shall be deemed to be given three (3) business days after deposit with the United States Postal Service, and notices which are given by personal delivery shall be deemed given upon such personal deliver. Notices dispatched by express delivery service shall be deemed to have been given upon receipt by the party receiving such notice and execution of the deliver receipt, and notices dispatched through electronic transminals shall be deemed to have given upon telephonic venfication of receipt. Section 7. Indemnification and Hold Harmless. The City and the Agency hereby agree to indemnify, defend and hold harmless the rvDA and each of its officers, officials and employees from any and all loss, liability, claim, cost, expense or judgment, including attorney's fees, that may result from the implementation of this Agreement by the City and the Agency. The City and the Agency will also defend, indemnify and provide the cost of defense on behalf of the IVDA with respect to any third party challenge to the legality or enforceability of this Agreement pursuant to the CRL. Such indemnification and hold harmless shall apply whether or not the City and/or the Agency, or either of them was at fault or in any manner contributed to any such loss, liability, claim, cost, expense or judgment. Section 8. Entire Agreement of the Parties. This Agreement represents the entire agreement by and among the rvDA, the City and the Agency with respect to the transfer of the redevelopment powers of the rvDA affecting the Arden-Guthrie Implementation Area. Section 9. Invalidity of Any ProvISIon. In the event it is determined that any proVision of this Agreement is invalid or unenforceable as between the parties, the remaining proVISIOns which are determined to be valid and enforceable shall remain in full force and effect. Section 10. Approval and Effective Date of Agreement. This Agreement has been duly approved and authorized for execution and delivery by the governing board of the rvDA, by the Council on behalf of the City and by the Commission on behalf of the Agency, and this Agreement has been duly executed and delivered by the parties hereto. This Agreement may be executed in counterparts and when fully executed by the parties it shall be effective for all purposes as of the date set forth in the introductory paragraph. 8 Exhibit "A" PCieTIcal ServLCe\ Depl\Marg",et'Agfeemenl\-AmendmenI5\Agrmls.~nd 2003\03-09.1 ~ IVDA Agreement DOC e e e THIS AGREEMEl\T HAS BEEN DULY EXECUTED BY THE AUTHORIZED REPRESEl\TA TIVES OF THE PARTIES HERETO AS SET FORTH BELOW. IVDA Inland Valley Development Agency Date: By: Co-Chair By: Co-Chair (SEAL) ATTEST: By: Clerk of the Board Approved as to Form: By: General Counsel [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 9 Exhibit "A" P.CIc"cal Services Depl M.r~afCI Al'rcemcn!\-AmcndmenlsAgrmls.Amend ~003\O).O"'- 15 l\'DA Agreement DOC r I e e e AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Chair of the Community Development Commission (SEAL) ATTEST: By: Secretary Approved as to Form: By: Agency Counsel [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 10 Exhibit "A" P.'Cler,col SCr\'lCCS Deplll.1argarct\Agrecmcn,.-Amendmenls.Agrmls.Amend 2003\03.0':1.15 l\'DA Agreement,DOC e e e CITY City of San Bernardino Date: By: Mayor (SEAL) ATTEST: By: CIty Clerk Approved as to Form: By: City Attorney [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 11 Exhibit "A" P '.OerLCal SCI'KeS Depl."largarel\AgreemenIS-Amendmenl'>J\grm!s-Amend 200]\O]-09.1~ IVDA Agreemcnl.DOC e e e EXHIBIT "A" Map of Arden-Guthrie Study Area 12 Exhibit "A" PCic'Ical Sen.lCeS DCpt'.\1ilfgarel\Apecmenls-AmendmermAgrrnls.Amcnd ~OO) ,03-09-15 jl.'DA Agreemenl DOC ;mO::M\" U;lpJV '" N = ~ ~ N 0 " ;:; - ~ ~ ~ ~ ~ N N ~ - ~ N e. ~ - ~ - ;; ~ -. - :s ;!, ~ ~ ~. ,- :s N - " " ;:; - ~ 0 ~ N N N N N - ) 1:;l:;U1S UOUt'lWIl(] - N ~ 0 :" " N ~ ~ N '" ~ ~ - :: ~ N 0 0 ~ 0 ~ - " - - - ~ ~ 0 ~ ~ - N N N N N N N - -. -. 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N 0 - - - - - - 0 0 0 0 <=> N N N N N N N N N N N l~~JlS ~lJtpn9 ~ " ~ ~ Vl .J:: ~ o N ~ - C " ~ -0 C " -;: ,e? :t Exhibit "A" - - c:c - - I-- - c:c - J: X w ~ 2 ::r: f-; ~ l? o Z -< Z ~ ~ -< ~J:-1;: I- U a: ~ o~ z 0 '" e 2003 REDEVELOPMENT COOPERATION AGREEMENT BY AND AMONG THE INLAND V ALLEY DEVELOPMENT AGENCY, THE CITY OF SAN BERNARDINO, AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (Arden-Guthrie) e Dated as of September _, 2003 e e e e 2003 REDEVELOPMENT COOPERATION AGREEMENT (Arden-Guthrie) This 2003 Redevelopment Cooperation Agreement (the "Agreement") is dated as of September _, 2003 by and among the Inland Valley Development Agency, a joint powers authority established under the laws of the State of California (the "IVDA"), the City of San Bernardino, a charter city (the "City"), and the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") and is entered into with respect to the following facts set forth in the Recitals: -- RECITALS -- WHEREAS, for the past many years the City of San Bernardino (the "City") and the Redevelopment Agency of the City of San Bernardino (the "Agency") have been engaged in efforts to address blighting conditions in a portion of the City known as the Arden-Guthrie neighborhood; and WHEREAS, the Arden-Guthrie neighborhood has been afflicted with a number of physical and economic conditions of blight over the years, as these terms are defined in Health and Safety Code Section 33032, including without limitation, conditions of substandard structures and dwellings, residential overcrowding, substandard property maintenance conditions, inadequate design of improvements, abandonment of property, depreciating and stagnant property values, and criminal activity which has occurred at rates substantially higher than crime rates in other neighborhoods of the City; and WHEREAS, the Agency, in cooperation with the City, has previously embarked on a program to acquire properties in the Arden-Guthrie neighborhood and to relocate the persons and households occupying such property into safe, sanitary and decent housing in other suitable locations; and WHEREAS, as of June 30, 2003, the Agency has incurred a redevelopment indebtedlCcss in excess of $1 0,000,000 in connection with its previous efforts to address conditions of blight in the Arden-Guthrie neighborhood and to prevent the spread of blight from the Arden-Guthrie neighborhood into nearby neighborhoods and communities; and WHEREAS, the City believes it is necessary and appropriate for the Agency to acquire additional lands in the Arden-Guthrie neighborhood in order the foster a commercially viable and economically sustainable plan of redevelopment and reuse of the Arden-Guthrie neighborhood and to prevent the spread of blight in the Arden-Guthrie neighborhood into other surrounding neighborhoods and communities; and WHEREAS, the Arden-Guthrie neighborhood is situated within the redevelopment project area of the Inland Valley Development Project which is a special redevelopment project area administered by the Inland Valley Development Agency (the "IVDA"); and P:\CJcrical Services Ikpr,MargareI\.AgreemcnIS-AmendmenlsIAgnnls-Amcnd 2003\03-09.15 ]VDA Agreement,DOC e . e WHEREAS, the IVDA has been established pursuant to a Jomt exercise of powers agreement in January 1990, for the purpose of assisting in the conversion, redevelopment and civilian reuse of the former Norton Air Force Base located within the City of San Bernardino; and WHEREAS, the member governmental entities of the IVDA include the County of San Bernardino, a political subdivision of the State of California, and the City of Colton, a municipal corporation, and the City of Lorna Linda, a municipal corporation, and the City; and WHEREAS, the IVDA has been granted specific powers by the State Legislature in 1989 (Stats. 1989 c.545 and See Now Stats 1997, c.580 and Health and Safety Code Section 33492.40, et seq.) to assist in the redevelopment of the former Norton Air Force Base and the lands in proximity thereto pursuant to the Community Redevelopment Law (Health and Safety Code Section 33000, et seq., hereinafter referred to as the "CRL"); and WHEREAS, the IVDA has adopted the Redevelopment Plan for the Inland Valley Redevelopment Project Area (the "Redevelopment Plan") in accordance with the provisions of the CRL, and the Redevelopment Plan provides for certain redevelopment activities to be undertaken within the redevelopment project area as more fully described in the Redevelopment Plan (the "Project Area"); and WHEREAS, the Arden-Guthrie neighborhood is located within the Project Area; and WHEREAS, at the present time, substantially all the financial and administrative staff resources available to the IVDA are devoted to the implementation of certain agreements affecting the former Norton Air Force Base including an agreement entitled "Agreement Between the Department of the Air Force and the Inland Valley Development Agency," dated March 7, 1995, as amended, and an agreement entitled "Master Disposition and Development Agreement", dated November 6, 2002, both of which specifically relate to the civilian reuse and redevelopment of the lands comprising the former Norton Air Force Base; and WHEREAS, the Agency seeks to initiate certain plans, studies and redevelopment activities affecting the Arden-Guthrie Implementation Area, as defined herein, which are situated within the Project Area but which are not part of the former Norton Air Force Base; and WHEREAS, the IVDA, the City and the Agency deem that the approval and implementation of this Agreement are consistent with the Redevelopment Plan and the purposes and intent of the CRL and in particular Health and Safety Code Section 33492.40, et seq., to expeditiously accomplish the redevelopment of certain lands located in the City of San Bernardino which are also within the Project Area. NOW, THEREFORE, THE INLAND DEVELOPMENT AGENCY, THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DO HEREBY MUTUALLY AGREE AS FOLLOWS: Section I. Recitals. The parties acknowledge and agree that the recitals as set forth above are accurate and correct in all respects. 2 p: ,Clencal ServIces Depl\Margaret'Agreemenls-Amendmenls\Agrmls-Amcnd 2003\03-09-15 IVDA AgrcemenLDOC e e e Section 2. Accomplishment of Public Purposes. The parties acknowledge and agree that this Agreement provides the rvDA, the City and the Agency with a means to foster the redevelopment of a portion of the Project Area located within the municipal boundaries of the City of San Bernardino which could not otherwise be accomplished within the foreseeable future unless the parties to the Agreement agree to exercise certain responsibilities as set forth herein. This Agreement is intended to be consistent with the intent and legal requirements of the CRL and in particular Health and Safety Code Section 33492.40, et seq., and shall be considered as an agreement entered into by the rvDA, the City and the Agency to accomplish the removal of blighting conditions within the Project Area and to compliment the civilian reuse and redevelopment of certain lands nearby the fonner Norton Air Force Base in the Project Area. This Agreement shall provide the rvDA with additional assistance from the City and the Agency to undertake studies and redevelopment activities in the portion of the Project Area commonly known as the Arden-Guthrie neighborhood, as more fully depicted in Exhibit "A" attached hereto. The lands depicted in Exhibit "A" are referred to herein as the "Arden-Guthrie Study Area". The parties presently anticipate that a specific program of redevelopment shall hereafter be formulated by the City and the Agency potentially involving third-party landowners and/or developers within a portion of the Arden-Guthrie Study Area depicted in Exhibit "B" attached hereto. The area designated in Exhibit "B" is referred to herein as the "Arden-Guthrie Implementation Area." Section 3. Grant of Redevelopment Powers to the City and the Agency/Arden- Guthrie Implementation Area. (a) Except as set forth in Section 3(b) and Section 3(c) of this Agreement, the rvDA hereby grants to the Agency, acting by and through the Community Development Commission of the City of San Bernardino (the "Commission") and to the legislative body of the Agency acting by and through the Mayor and Common Council of the City of San Bernardino (the "City"), as applicable, the right, power and authority to act for and on behalf of the rvDA for the purpose of exercising all redevelopment powers legally available to the rvDA as set forth in the Redevelopment Plan, the CRL and in particular the provisions of Health and Safety Code Section 33492.40, et seq., affecting any lands and property situated within the Arden-Guthrie Implementation Area. In addition to any other powers which the City and/or the Agency may have, the Agency may, either in its name or on behalf of the rvDA, exercise all of the powers, rights and authorities of the rvDA as set forth in the Redevelopment Plan with respect to the lands and property situated within the Arden-Guthrie Implementation Area, including, but not limited to, the right to acquire and dispose of real and personal property, to either exercise the power of eminent domain directly on behalf of the rvDA or request the rvDA to consider the exercise of such powers in support of the Agency and at the sole discretion of the rvDA, sue and be sued, enter into agreements and undertake such other actions as appropriate to the intent of this Agreement. No such action of the City or the Agency, as applicable with respect to the exercise of such redevelopment powers affecting the Arden-Guthrie Implementation Area, need be consented to, ratified or confirmed by the rvDA unless such ratification, consent or confirmation by the rvDA is otherwise requested at the discretion of the City or the Agency. In the event the 3 P:IClerical ServIces Depl\Margan:I\Agreemenls_Amendmenl!i;\Agrmt~.Amend 2003\03-09-15 IVDA Agreemcnl.DOC e e e rvDA is so requested in writing by either the City or the Agency to ratify, consent or confirm any action or intended action of the City or the Agency with the respect to the Arden-Guthrie Implementation Area pursuant to this Agreement, the NDA shall consider such matter as soon as practicable after receipt of such written request. The City and the Agency shall be solely responsible for the payment of all costs and expenses as may be associated with the implementation of any redevelopment activity as may hereafter be undertaken by the City and the Agency in the Arden-Guthrie Implementation Area as authorized by this agreement. (b) Notwithstanding the provisions of Section 3(a), the City and the Agency shall not initiate any amendment of the Redevelopment Plan or any amendment or supplement to the Implementation Plan for the Inland Valley Redevelopment Project Area without first obtaining the written approval of the rvDA in its sole and absolute discretion. (c) Notwithstanding the provisions of Section 3(a) or any other part of this Agreement, the City and the Agency shall take no action under this Agreement which causes the rvDA to incur an indebtedness which is payable from any funds, revenues or assets of the NDA, except from "Transfer Revenues", ifany as this term is defined in Section 4. Section 4. Transfer of a Certain Portion of the NDA Tax Increment Funds for the Redevelopment of the Arden-Guthrie Implementation Area. (a) In addition to the meaning of certain words and phrases as set forth in the preceding Recital paragraphs and sections of this Agreement, the following definitions shall apply to usage of the terms set forth in this Agreement: . "Arden-Guthrie Properties Base Year" means and refers to the secured property tax roll assessed valuation of the Arden-Guthrie Properties for ad valorem property tax purposes, for the 2002-03 fiscal year of the NDA as shown on the secured property tax assessment rolls of the County Assessor. . "Arden-Guthrie Properties Indebtedness" means and refers to the indebtedness which the Agency may incur on or after the date of this Agreement with respect to the Arden- Guthrie Reuse Project. . "Arden-Guthrie Properties" means and refers to the approximately thirteen (13) acres of land in the Arden-Guthrie Implementation Area which is also depicted in Exhibit "B". . "Arden-Guthrie Reuse Project" means and refers to a community redevelopment project of the Agency, and the related activities which may hereafter be undertaken by the Agency in the Arden-Guthrie Implementation Area. The Arden-Guthrie Reuse Project shall be more particularly identified in the written notice provided to the NDA by the Agency under Section 4( e). 4 P,\Clencal Ser.lces Dcpl\Margarel\Agreemenls-Amendmenls\Agrmls-Amend 200JI03-09-15IVDA Agreement,DOC e e e . "Tax Increment Revenue" mean and refer to those revenues, if any, received by the IVDA under Article VII, Section B(702) of the Redevelopment Plan as relate to the Arden-Guthrie Properties; . "Transfer Revenue" means and refers to a portion of the tax increment revenue of the IVDA attributable to the Arden-Guthrie Properties described in Section 4(b) which the IVDA shall pay to the Agency each year during the term of this Agreement with respect to indebtedness incurred by the Agency in connection with the redevelopment of the Arden-Guthrie Properties subject to the conditions set forth in Section 4. (b) Transfer Revenue is a portion of the tax increment revenue of the IVDA generated by the Arden-Guthrie Properties by virtue of the Arden-Guthrie Reuse Project, if any, each fiscal year, in excess of such tax increment revenue of the IVDA attributed to the Arden- Guthrie Properties Base Year, net of the low- and moderate-income housing set-aside obligation of the IVDA with respect to such tax increment revenue in each such fiscal year, and further net of the portion of such tax increment revenue of the IVDA with respect to the Arden-Gutherie Properties which is payable by the IVDA in such fiscal year under the School District Agreements as set forth in Section 4(1). (c) Provided the Agency has given the IVDA the notice described in Section 4(e), commencing no sooner than the 2005-06 fiscal year of the IVDA, and for each fiscal year of the IVDA thereafter during the term of this Agreement, the IVDA hereby agrees to pay to the Agency the Transfer Revenue attributable to the Arden-Guthrie Properties (if any) for each such fiscal year following the Arden-Guthrie Properties Base Year. The obligation of the IVDA to pay the Transfer Revenue to the Agency is a special fund obligation of the IVDA payable solely from the portion of the tax increment revenue of the IVDA generated by the Arden-Guthrie Properties by virtue of the Arden-Guthrie Reuse Project, if any, in the amount as calculated each fiscal year under the formula set forth in Section 4(b). No Transfer Revenues shall be payable by the IVDA to the Agency for any fiscal year of the IVDA after June 30, 2040. Any unpaid balance of the Arden-Guthrie Properties Indebtedness as may exist as of July I, 2040, shall be discharged, released and forgiven by the Agency. (d) The IVDA shall only remit the Transfer Revenues calculated pursuant to Section (b) to the extent that the Agency has incurred on or after July 1, 2003, funds, or incurred indebtedness in connection with the redevelopment of all or any portion of the Arden-Guthrie Properties Indebtedness, including without limitation indebtedness incurred under one or more separate agreements by and between the Agency and the City of San Bernardino or indebtedness to a noteholder, bondholder, trustee or other creditor of the Agency related to costs incurred or paid by the Agency for the redevelopment of the Arden-Guthrie Reuse Project. The Agency shall, as a condition precedent to the receipt of Transfer Revenue on each May I, commencing on May 1, 2005, submit to the IVDA a suitably detailed written statement of the outstanding unpaid balance of Arden-Guthrie Properties Indebtedness incurred by the Agency, including the relevant terms of repayment of such Arden-Guthrie Properties Indebtedness. (e) By a date not later than June 30, 2007, the Agency shall give notice to the IVDA that the Agency entered into one or more written agreements with third-parties for the acquisition 5 P:\ClerlcaJ Services Dep(lMargarel'..Agreemenl~.Amelldmenls\Agrmls-Amend 2003\03-09.15 IVDA Agreemenl.DOC e e e or redevelopment of at least seven (7) acres of land included in the Arden-Guthrie Implementation Area. Such notice shall contain a suitably detailed description of the Arden- Guthrie Reuse Project and the current balance, as of the date of such notice of the Arden-Guthrie Properties Indebtedness. Concurrently with such notice, the Agency shall also deliver to the IVDA a copy of such written agreements. In the event that such notice is not given by the Agency, then in such event, no Transfer Revenues shall be payable to the Agency by the IVDA under this Agreement. (I) This Agreement and the amounts of Transfer Revenue to be remitted by the IVDA to the Agency shall at all times be subject to the provisions of the various school district pass-through agreements between the IVDA and the San Bernardino City Unified School District, Colton Joint Unified School District, Redlands Unified School District, County Superintendent of Schools and the San Bernardino Valley College District (collectively, the "School District Pass-Through Agreements") as the same are applicable to the increases in the tax increment revenues generated by the Arden-Guthrie Properties. The calculation of the amount of the Transfer Revenue to be remitted by the IVDA to the Agency shall be net of all amounts required to be paid by the IVDA to the various school districts pursuant to the School District Pass-Through Agreements. The IVDA shall be solely responsible for the administration of the School District Pass-Through Agreements. (g) The IVDA has established the Low and Moderate Income Housing Fund for the Inland Valley Redevelopment Project, and twenty percent (20%) of tax increment revenues received by the IVDA are deposited into such fund each year, subject to certain decreases authorized under applicable law. Said twenty percent (20%) figure may be decreased pursuant to Health and Safety Code Section 33334.2(a)(1) and (2) from time-to-time by the IVDA. If the IVDA determines for the entire Project Area, inclusive of the Arden-Guthrie Properties, to deposit less than said twenty percent (20%) figure for a particular fiscal year, as permitted by Health and Safety Code Section 33492.40(e) and 33334.2(a)(2)(A), or if the IVDA determines to make no deposit into the Low- and Moderate-Income Housing Fund for the entire Project Area, inclusive of the Arden-Guthrie Properties, as permitted by Health and Safety Code Section 33334.2(a)(1)(A), then in any such event, the Transfer Revenue calculation as set forth in Section 4(b) of this Agreement for the particular fiscal year(s) in which such a finding is made by the IVDA, shall not be subject to any off-set or adjustment corresponding to any amounts of such tax increment revenue that the IVDA has not deposited into the IVDA Low and Moderate Income Housing Fund. (h) The obligation of the IVDA to remit any portion of the Transfer Revenue to the Agency pursuant to this Agreement is, at all times, subordinate to the obligations of the IVDA incurred pursuant to any and all tax allocation bonds, notes or other forms of indebtedness, and all refinancings of any of these, issued or incurred by the IVDA to the holders of publicly issued bonds, notes or other forms of indebtedness considered municipal securities sold in the municipal bond market. (i) The IVDA and the Agency will cooperate in each year during the term of this Agreement in the preparation of the Statement of Indebtedness for the IVDA as relates to the Arden-Guthrie Properties Indebtedness and the Transfer Revenue payable by the IVDA to the Agency for the Arden-Guthrie Properties Indebtedness. The IVDA and the Agency further agree, upon thirty (30) days written request, to exchange suitably detailed and written accounting 6 P:\Clcncal Services Dept\Margarer-Agreclnellts-Amendmena\AgrTnIS-Amend 2003\03-09-15 IVDA Agrttment,DOC . e e e and audit records related to the Arden-Guthrie Properties Indebtedness and the Transfer Revenue, including the estimates and final remittance amounts of Transfer Revenue each fiscal year as calculated by the NDA, and the Arden-Guthrie Properties Indebtedness amounts incurred by the Agency with respect to the redevelopment of the Arden-Guthrie Properties. (j) Except as set forth in this Agreement as relates to Transfer Revenues, no other tax increment revenue or other funds or assets of the NDA are subject to this Agreement. The NDA may, but shall not be required, unless subsequently approved by the NDA on a case-by- case basis, advance, loan or otherwise transfer to the Agency other tax increment revenue as may then be available to the NDA from the Project Area, subject to applicable law. Section 5. Pre-June 30, 2003 Indebtedness of the Agency Relating to the Arden- Guthrie Implementation Area. As of June 30, 2003, the Agency has incurred the sum of $10,000,000 in redevelopment indebtedness with respect to its efforts to address conditions of blight in the Arden-Guthrie Implementation Area, including indebtedness incurred for the acquisition of the property. No cost, expense or indebtedness incurred by the Agency with respect to the Arden-Guthrie Implementation Area prior to June 30, 2003 shall be deemed to be an eligible cost or indebtedness of the Agency for purposes of calculating the Arden-Guthrie Properties Indebtedness. Section 6. Notices. Formal notices, demands and communications among the NDA, the Agency and the City shall be deemed sufficiently given if (i) dispatched registered or certified mail via United State Postal Service, postage prepaid, return receipt requested, as designated in this Section II, (ii) by personal deliver, (iii) express delivery service with written verification of deliver, or (iv) by electronic transmittal including fax transmissions with telephonic verification of receipt. Such written notices, demands and communications may be sent in the same manner to such other addresses as any party may from time to time designate by written notice to the other parties. Copies of all notices, demands and communications shall be sent as follows: NDA: Inland Valley Development Agency 294 South Leland Norton Way San Bernardino, California 92408 Attention: Executive Director Agency: Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Third Floor San Bernardino, California 92401 Attention: Executive Director City: City of San Bernardino San Bernardino City Hall 300 North "D" Street, Sixth Floor San Bernardino, California 92418 Attention: City Administrator 7 P:\Clerical Services Depl\Margarcl\Agrcemenls-Amendmenls\Agrmls-Amend 2003\0)-09-15 lVDA Agreemcnl.DOC e e e Notices which are dispatched by registered or certified mail through the United State Postal Service shall be deemed to be given three (3) business days after deposit with the United States Postal Service, and notices which are given by personal delivery shall be deemed given upon such personal deliver. Notices dispatched by express delivery service shall be deemed to have been given upon receipt by the party receiving such notice and execution of the deliver receipt, and notices dispatched through electronic transmittals shall be deemed to have given upon telephonic verification of receipt. Section 7. Indemnification and Hold Harmless. The City and the Agency hereby agree to indemnify, defend and hold harmless the IVDA and each of its officers, officials and employees from any and all loss, liability, claim, cost, expense or judgment, including attorney's fees, that may result from the implementation of this Agreement by the City and the Agency. The City and the Agency will also defend, indemnify and provide the cost of defense on behalf of the IVDA with respect to any third party challenge to the legality or enforceability of this Agreement pursuant to the CRL. Such indemnification and hold harmless shall apply whether or not the City and/or the Agency, or either of them was at fault or in any manner contributed to any such loss, liability, claim, cost, expense or judgment. Section 8. Entire Agreement of the Parties. This Agreement represents the entire agreement by and among the IVDA, the City and the Agency with respect to the transfer of the redevelopment powers of the IVDA affecting the Arden-Guthrie Implementation Area. Section 9. Invalidity of Anv Provision. In the event it is determined that any provision of this Agreement is invalid or unenforceable as between the parties, the remaining proVIsions which are determined to be valid and enforceable shall remain in full force and effect. Section 10. Approval and Effective Date of Agreement. This Agreement has been duly approved and authorized for execution and delivery by the governing board of the IVDA, by the Council on behalf of the City and by the Commission on behalf of the Agency, and this Agreement has been duly executed and delivered by the parties hereto. This Agreement may be executed in counterparts and when fully executed by the parties it shall be effective for all purposes as of the date set forth in the introductory paragraph. 8 PIClerical Scr..,ce, Depl'Margarct\Agrecmenls-AmendmenIS\Agrmls-Amend 100),,03-09-15 IVDA AgreemenlDOC I ' . . e THIS AGREEMENT HAS BEEN DULY EXECUTED BY THE AUTHORIZED REPRESENTATIVES OF THE PARTIES HERETO AS SET FORTH BELOW. IVDA Inland Valley Development Agency Date: By: Co,Chair By: Co,Chair (SEAL) ATTEST: By: Clerk of the Board Approved as to Form: By: General Counsel [2003 Redevelopment Cooperation Agreement: Arden,Guthrie] 9 p: ,Clerical Services Dcpl.Margarel\Agreemenls-Amcndments\Agmlls-Amend 2003\03-09-15 IVDA Agreement.DOC I - . . e THIS AGREEMENT HAS BEEN DULY EXECUTED BY THE AUTHORIZED REPRESENTATIVES OF THE PARTIES HERETO AS SET FORTH BELOW. IVDA Inland Valley Development Agency Date: By: Co-Chair By: Co-Chair (SEAL) ATTEST: By: Clerk of the Board Approved as to Form: By: General Counsel [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 9 P:C1cflcal Services OCP! J.1argarcl\Agreemenls-Amendmenls\Agrmls-Amcnd 2003\0)-09-15 IVDA Agreement,DOC e e e THIS AGREEMENT HAS BEEN DULY EXECUTED BY THE AUTHORIZED REPRESENTATIVES OF THE PARTIES HERETO AS SET FORTH BELOW. IVDA Inland Valley Development Agency Date: By: Co-Chair By: Co-Chair (SEAL) ATTEST: By: Clerk of the Board Approved as to Form: By: General Counsel [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 9 P:OClerical Ser"'ce> Dep\',Margare\\Agreemenls-Amcndmellts,^gnnls-Amend 2003\03-09.15 IVDA Agreemen1.DOC e e e AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Chair of the Community Development Commission (SEAL) ATTEST: By: Secretary By: [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 10 P.\Clerical Services DepIWargaret\Agreements-A.mendmems\Agrmls-Amend 2003\0)-09-15 IVDA Agreement.DOC e e e AGENCY Redevelopment Agency of the City of San Bernardino Date: By: Chair ofthe Community Development Commission (SEAL) ATTEST: By: Secretary By: [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 10 P:\Clcrical Services Depr,Margatel\Agr~menls.Amendmenls\Agrmts.Amcnd 2003\03-09-15 [\lDA Agreement_DOC . e e AGE)\;CY Redevelopment Agency of the City of San Bernardino Date: By: Chair of the Commumty Development Commission (SEAL) ATTEST: By: Secretary By: [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 10 P,Cie"c~1 ServLCe, DcpI1I>1arj;arel.Agrccmem,-Amendmenls\Agrmls-Amend 2003,03.0Q.15 J\'DA Agreemenl DOC . . . CITY City of San Bernardino Date: By: Mayor (SEAL) ATTEST: By: City Clerk Approved as to Form: [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] II P\Clerlcal ServICes Dcp\\Margarel 'AgreemenIS-A.mendmcnlsAgrmts.Amcnd 2003\03.09-15 IVDA Agreement,DOC . e e CITY City of San Bernardino Date: By: Mayor (SEAL) ATTEST: By: City Clerk Approved as to Form: [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 11 Pc\ClcrlcaJ SCf""iccs Depl,.Margaret\AgT~menls-Arnendmcnls\Agrmts-Amend 2003\03-09-151VDA AgreemenLDOC e e e CITY City of San Bernardino Date: By: Mayor (SEAL) ATTEST: By: City Clerk Approved as to Form: [2003 Redevelopment Cooperation Agreement: Arden-Guthrie] 11 P:,Clencal Se"lces Dept',MargareIAgreements-Amendmenls',Agnnts-Amend 2003,03-09-15 IVDA Agrumenl,DQC e e e EXHIBIT "A" Map of Arden-Guthrie Study Area 12 P'.Clerical Se("\',ce5 Depl'u\.lMgaret\Agreemenls-Asnendments\Agrmts.Amend 2003103-09-15 IVDA AgreemenlDOC ra Q) ... <t ~ "C ::s - .- ... 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EXHIBIT "B" Map of Arden-Guthrie Implementation Area 13 Pc\Clencal Sernees Dcpl'.\largaret,^greemems-Amendments'Agmm-Amcnd 2003\03-09-15 IVDA Agreement,DOC . C'O Q) ... <( c: o - C'O - c: Q) , E - Q) .~ .c: - ::l (!) I c: Q) "'C ... <( e ;>nU;>AV u;>PlV 0 N '"' '"' N 0 <Xl '"' '"' N 0 '" l"- V', N 0 - - - 0 0 0 0 0 N N N N N N N N I"- '" - '" V', V', '" - '" V', l"- V', '"' N 0 '" l"- V', N 0 - - - - - 0 0 0 0 0 N N N N N N N N N N ) l;>;>JlS UO=qwna '"' '" <Xl 0 N '"' '"' N 0 <Xl '"' '" l"- V', '"' N 0 '" l"- V', N 0 - - - - - - 0 0 0 0 0 N N N N N N N N N N N V', I"- '" - '" V', V', '" - '" '" '" I"- '" '"' N 0 '" l"- V', N 0 - - - - - - 0 0 0 0 0 N N N N N N N N N N N ) ( 1;>;>J1S A;>IU!)l:>W '"' '" <Xl 0 N '"' '"' N 0 <Xl '"' '" l"- V', '"' N 0 '" l"- V', N 0 - - - - - - 0 0 0 0 0 N N N N N N N N N N N V', I"- '" - '" V', V', '" - '" V', '" l"- V', '"' N 0 '" l"- V', N 0 - - - - - - 0 0 0 0 0 N N N N N N N N N N N ) l;>;>JlS ;>qwo:>M;>N '"' '" <Xl 0 N '"' '"' N 0 <Xl '"' '" l"- V', '"' N 0 '" I"- '" N 0 - - - - - - 0 0 0 0 0 N N N N N N N N N N N V', I"- '" - '" '" V', '" - '" V', '" I"- '" '"' N 0 '" I"- '" N 0 - - - - - - 0 0 0 0 0 N N N N N N N N N N N l;>;>JlS ;>!Jlpn9 .... <lJ <lJ .... .... Vl -= .... o N ~ ;: :r: f-< :::J (.) Cl Z ~ Z ~ ~ ~ <lJ ::l c: <lJ .f: -0 ~ ::a OJ) :t - - ~ - - .... - ~ - J: >< w ~J:-1ij .... 0 a: ~ o~ zo <: ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNA~I'''_cn'( CI [f:K INTER-OFFICE MEMORANDV.M , 03 OCT 31 P 4 :03 TO: Michelle Taylor, Senior Secretary, City Clerk's Office Q '-1f) I Margaret Parker, Secretary FROM: SUBJECT: Executed Document DATE: October 31, 2003 Enclosed is the fully executed Agreement pertaining to the following resolution: CDC/2003-29 2003 Redevelopment Cooperation Agreement by and among the Inland Valley Development Agency, the City of San Bernardino, and the Redevelopment Agency of the City of San Bernardino (Arden- Guthrie) Please let me know if you have any questions. Thank you, Margaret Enclosure cc: Barbara Lindseth (with Original Executed Agreement) Barbara Sharp (with Copy of Agreement) Maggie Pacheco (with Copy of Agreement) ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): ("'1-1:5 -03 Item # e..-12..-'1 A Vote: Ayes 1- '1 Nays P> Change to motion to amend original docnments: A(" ;ZifrJYlOYI Resolution # ~ O~I '((:P 3 - 2- 'i Abstain ~ Absent G- Reso. # On Attachments: / Contract term: -- Note on Resolution of Attachment stored separately: -=- Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY Date Sent to Mayor: <( ~ 11- 0 ::, Date of Mayor's Signature: Cl-\ I-o.~ Date of ClerklCDC Signature: C:'1- \ :"---C~:3 Date Memo/Letter Sent for Signature: 60 Day Reminder Letter Sent on 30th day: 90 Day Reminder Letter Sent on 45th day: See Attached: See Attached: See Attached: Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985, 8234, 655, 92-389): Copies Distributed to: City Attorney,;if Code Compliance Dev. Services Parks & Rec. Police Public Services Water Notes: NnllNoid After: - By: - Reso. Log Updated: ,/ Seal Impressed: ,/ Date Returned: Yes ./ No By Yes N~ By Yes No ,/ By - Yes No ./ By Yes N07 BlI_ / < EDA ,/ Others: Finance MIS BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.) Ready to File: ~ Date: Revised 01/12/01 ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): '1'-1 S C8 Item # TZ- 2 'l J3 Resolution # Vote: Ayes 1-,\ Nays & Abstain ~~ Change to motion to amend original documents: f't-6fLtcs.;)'O\EoY" u)o3~- dtO~ Absent -e- Reso~ # On Attachments: /' Contract term: -- Note on Resolution of Attachment stored separately: ~ Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY By: Null/Void After: - Date Sent to Mayor: Ci - ('"\ '-03 Date of Mayor's Signature: '1-\ ,-,,53 Date of Clerk/CDC Signature: q - \ 1,; -cr.$ Reso. Log Updated: ..../ Seal Impressed: V Date Memo/Letter Sent for Signature: 4-1ls:'-O:2. See Attached: v' Date Returned: See Attached: See Attached: 60 Day Reminder Letter Sent on 30th day: 90 Day Reminder Letter Sent on 45th day: Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985, 8234, 655, 92-389): YesL No By Yes No~ By Yes No -.L- By Yes No ,/ By Yes No / B - Copies Distributed to: City Attorney .,/ Parks & Rec. Code Compliance Dev. Services Police Public Services Water EDA ,/' Finance MIS Others: Notes: BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc.) Ready to File: ~ Date: Revised 01112/01