HomeMy WebLinkAboutR43-Economic Development Agency
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
e
FROM:
Maggie Pacheco
Executive Director
SUBJECT:
Street-Manchester, LLC - Redevelopment
Project Stndy Agreement (Fairway Homes
Project - IVDA Redevelopment Project Area)
DATE:
July 26, 2007
Svnonsls of Previous Commisslon/CounclVCommittee Actlon(s):
On May 24, 2007, Redevelopment Committee Members Estrada and Johnson discussed this item and it was requested by
Committee Member Estrada that the Agency place this item before the Community Development Commission for their
consideration without a recommendation of the Redevelopment Committee.
Recommended Motion(s):
e
(Communitv Develonment Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing
the Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute (I) a
Redevelopment Cooperation Agreement by and between the Agency and Inland Valley Development Agency
("IVDA") and (2) a Redevelopment Project Study Agreement by and between the Agency and Street-Manchester,
LLC (Fairway Homes Project - IVDA Redevelopment Project Area)
Contact Person(s):
Maggie Pacheco
Phone:
(909) 663-1044
3"'
Project Area(s):
IVDA Redevelopment Project Area
Ward(s):
Supporting Data Attached:
iii Staff Report iii Resolution(s) iii Agreement(s)/Contract(s) IiIMap(s) 0 Letter(s)
FUNDING REQUIREMENTS:
Amount: $
-0-
Source:
Budget Authority:
N/A
N/A
SIGNATURE:
Maggie Pacheco, Executive Dir
e Services Director
Commission/Council Notes:
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P,\Agendas\Comm J)ev CotmtisJion\COC 2007\0&-06-07 S--Manchester (Fairway Homes) ERN doe
COMMISSION MEETING AGENDA
Meeting Date: 08lO6I2007
Agenda Item Number: .l!JL
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
STREET-MANCHESTER. LLC - REDEVELOPMENT PROJECT STUDY AGREEMENT
(FAIRWAY HOMES PROJECT - IVDA REDEVELOPMENT PROJECT AREA)
BACKGROUND:
Street-Manchester, LLC ("Developer") has prepared Tentative Tract Map No. 18385 and an Initial
Study (for independent review by the City of San Bernardino ("City")) for the development of
approximately 20 acres in the southern end of the City ("Project No. I") consisting of vacant and/or
underutilized property of which said 20 acres are controlled by the Developer. A portion of Project
No. I is occupied by a golf driving range. Project No. I is generally located west of Waterman
Avenue, south of East Dumas Street and north of the San Bernardino Golf Course and is located within
the Inland Valley Development Agency ("IVDA") Redevelopment Project Area ("IVDA Project
Area"). Project No. I envisions a single lot residential condominium development. The proposed
development consists of 102 single-family condominium homes ("Green Court Deluxe") and 94 paired
condominium homes ("Green Court Standard") ranging in size from I ,400 to 2,200 square feet. The
homes would be multi-story, containing private open space which would be combined with enhanced
common areas, including pedestrian paseos, recreational facilities and outdoor living spaces.
Currently, the zoning designation for Project No. I includes Light Industrial ("IL") and Public
Commercial Recreation ("PCR"). Therefore, the Developer is requesting a General Plan Amendment
to change the zoning designation to Residential Medium ("RM"). The RM land use designation
permits up to 14 dwelling units per acre and the proposed project density would be 9.5 dwelling units
per acre. Project No. I has been reviewed by the City's Development Services Department and on May
31,2007, the Environmental/Development Review Committee ("E/DRC") approved this item and will
now go before the Planning Commission.
CURRENT ISSUE:
The Developer has approached the Agency and is requesting that the Agency provide assistance in
studying the viability of developing a large area adjacent to Project No. 1. This adjacent area could
potentially include approximately 30 acres generally located west of Waterman Avenue, south of
Orange Show Road and north of East Dumas Street ("Project No.2"). Currently, the zoning
designations for Project No. 2 include Office Industrial Park ("OIP"), PCR and IL. As such, the
Developer would more than likely need to seek a zone change that would accommodate the variety of
land uses contemplated by the Developer, should the proposed development uses prove to be viable.
The Developer currerttly anticipates that Project No. 2 will be developed with residential uses of
varying densities, with denser multi-family product being located in closer proximity to the existing
rail line and less dense single-family product being located farthest away from the existing rail line,
with attached product in between.
On May 24, 2007, the Agency made a presentation to the Redevelopment Committee concerning the
Developer's proposed Project No. I and the desire to enter into a study agreement with the Agency
concerning Project No.2. During the discussions regarding the study agreement for Project No.2,
Councilman Johnson stated that his aunt and employer, Bonnie S. Johnson, owned property within
~\Aaeftdas\Comm [)ev Commission\CDC 2001\01-06-07 Streel:-Mancbester (Fairway Homes) ERN_doc:
COMMISSION MEETING AGENDA
Meeting Date: 08I86I2ll87,
Agenda Item Number: ~iJ3
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Economic Development Agency Staff Report
Street Manchester. LLC (Fairway Homes) ERN
Page 2
Project No.2. After some discussion it was determined that Councilman Jolmson could not participate
in recommending that this item be forwarded to the Community Development Commission of the City
of San Bernardino ("Commission"). Therefore, Councilwoman Estrada requested that the Agency
place this item before the Commission for their consideration without a recommendation of the
Redevelopment Committee.
Consequently, Staff recommends that the Agency. and the Developer explore the feasibility of
developing Project No. 2 under a Redevelopment Cooperation Agreement between the Agency and
IVDA and a Redevelopment Project Study Agreement ("Agreement") between the Agency and the
Developer. It should be noted that more than I year ago, the IVDA considered approval of this type of
agreement with the Developer; however, opted to refer the matter to the Agency under the auspices of
the cooperation agreement arrangement betwe.en the IVDA and the different jurisdictions involved in
the IVDA Project Area. Under the Agreement, the Developer and the Agency will study and
determine the feasibility ("Feasibility Study") of developing Project No.2; entering into a development
agreement for Project No.2; and explore the possibility of entering into a development agreement for
Project No. I. However, there are several benchmarks built into the Agreement relative to the
Developer's progress with Project No. I and Project No.2 that must be met by the Developer or the
Agreement can be terminated by the Agency. Due to the benchmarks, numerous parcels and multiple
property ownership, and development complexities, the Agreement contemplates a Feasibility Study
period of 12 months from the effective date of the Agreement, following approval by the Commission.
Attached Exhibit "A" identifies the approximate configurations of Project No. 1 and Project No.2.
Development of Project No.1 and Project No.2 are on different entitlement tracks.
ENVIRONMENTAL IMP ACT:
The Agreement is categorized as Statutory Exemption under the California Environmental Quality Act
("CEQA"), per Public Resource Code Sections 21102 and 21150.
FISCAL IMPACT:
None.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
Maggie Pacheco, Exec
P:\AJmdu\COrml Dev Commission\CDC 2007\08-06-07 Street-Manchester (Fairway Homr;s) ERN,doc
COMMISSION MEETING AGENDA
Meeting Date: 0lllO6l2007
Agenda Item Number: It'll
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE (1) A
REDEVELOPMENT COOPERATION AGREEMENT BY AND. BETWEEN
THE AGENCY AND INLAND VALLEY DEVELOPMENT AGENCY ("IVDA")
AND (2) A REDEVELOPMENT PROJECT STUDY AGREEMENT BY AND
BETWEEN THE AGENCY AND STREET-MANCHESTER, LLC (FAIRWAY
HOMES PROJECT - IVDA REDEVELOPMENT PROJECT AREA)
WHEREAS, Street-Manchester, LLC (the "Developer"), controls approximately 20 acres of
vacant and/or underutilized property generally located west of Waterman Avenue, south of East
Dumas Street and north of the San Bernardino Golf Course ("Project No. I"), in the Inland Valley
Development Agency ("IVDA") Redevelopment Project Area ("IVDA Project Area"); and
WHEREAS, the Developer has proposed a project on the Project No. I area consisting of
102 single-family condominium homes and 94 paired condominium homes ranging in size from
1,400 to 2,200 square feet for private home ownership; and
WHEREAS, the Developer desires to study the feasibility of developing approximately 30
acres which is adjacent to Project No. I and generally located west of Waterman Avenue, south of
Orange Show Road and north of East Dumas Street ("Project No.2"); and
WHEREAS, on October 8, 2003, the IVDA Board adopted a policy allowing member
jurisdictions to undertake redevelopment activities within the IVDA Project Area pursuant to a
generic Redevelopment Cooperation Agreement adopted through Resolution No. 2003-11; and
WHEREAS, the Developer's Project NO.1 and Project No.2 are located within the IVDA
22 ProjectArea;and
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WHEREAS, the Agency and the IVDA will enter into a Redevelopment Cooperation
24 Agreement ("Cooperation Agreement") to receive the IVDA's authority and powers relative to the
25 Agency's obligations under the Redevelopment Project Study Agreement ("Agreement"); and
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WHEREAS, the Community Development Commission of the City of San Bernardino
e 27 ("Commission"), as the governing board of the Agency, has determined that the Agreement is
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1 per Public Code Sections 21102 and 21150. The Executive Director of the Agency is authorized to
2 file an appropriate Notice of Determination Exemption with the County Clerk for the approval of
3 the Agreement; and
4 wHEREAS, it is appropriate for the Commission to take action with respect to the
5 Cooperation Agreement and the Agreement.
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMrvlISSION OF THE CITY
OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
Section 1.
The Commission hereby approves (I) the Cooperation Agreement by and
between the Agency and the IVDA and (2) the Agreement by and between the Agency and the
Developer in the form as presented at the meeting of the Commission at which this Resolution is
adopted, and the Commission further authorizes the Executive Director of the Agency to execute
said Cooperation Agreement and Agreement and to take all actions set forth in the Cooperation
Agreement and Agreement and make such technical and conforming changes as may be approved
by the Agency Counsel.
Section 2.
The Executive Director of the Agency is authorized to file an appropriate
Notice of Determination Exemption with the County Clerk for the approval of the Agreement.
Section 3.
The Resolution shall become effective immediately upon its adoption.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO ("AGENCY'') TO EXECUTE (1) A
REDEVELOPMENT COOPERATION AGREEMENT BY AND BETWEEN
THE AGENCY AND INLAND VALLEY DEVELOPMENT AGENCY ("IVDA")
AND (2) A REDEVELOPMENT PROJECT STUDY AGREEMENT BY AND
BETWEEN THE AGENCY AND STREET-MANCHESTER, LLC (FAIRWAY
HOMES PROJECT - IVDA REDEVELOPMENT PROJECT AREA)
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a meeting
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thereof, held on the day of ,2007, by the following vote to wit:
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Commission Members: Ayes Nays Abstain Absent
10 ESTRADA
11 BAXTER
12 BRINKER
13 DERRY
e 14 KELLEY
15 JOHNSON
16 MC CAMMACK
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18 Secretary
19 The foregoing Resolution is hereby approved this day of ,2007.
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22 Patrick J. Morris, Chairperson
Community Development Commission
23 of the City of San Bernardino
24 Approved as to Form:
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By:
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AgencyC unse ~~
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REDEVELOPMENT COOPERATION AGREEMENT
BY AND BETWEEN THE
INLAND VALLEY DEVELOPMENT AGENCY
AND THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
(Street-Manchester, LLC - Fairway Homes)
This Redevelopment Cooperation Agreement (this "Agreement") is dated as of August 6,
2007, by and between the Inland Valley Development Agency, a joint powers authority, established
under the laws of the State of California (the "IVDA"), and the Redevelopment Agency of the City
of San Bernardino, a public body, corporate and politic (the "Agency"), and is entered into with
respect to the following facts set forth in the Recitals:
- RECITALS -
WHEREAS, Street-Manchester, LLC (the "Developer"), has proposed a project on
approximately 20.6 acres generally located west of Waterman Avenue, south of East Dumas Street
and north of the San Bernardino Golf Course consisting of 102 single-family condominium homes
and 94 paired condominium homes ranging in size from 1,400 to 2,200 square feet (the "Project
No.1"); and
WHEREAS, the City of San Bernardino (the "City") and the Agency have been engaged in
efforts to address blighting conditions in a portion of the City generally located west of Watennan
Avenue, south of Orange Show Road and north of the San Bernardino Golf Course; and
WHEREAS, the Developer desires the assistance of the Agency to study the feasibility of
developing approximately 30 acres adjacent to Project No. I generally located west of Waterman
Avenue, south of Orange Show Road and north of East Dumas Street with residential uses of
varying densities (the "Project No.2"); and
WHEREAS, the project is one (1) or more OPA'sIDDA's for Project No.1 and Project No.
2 (the "Project"); and
WHEREAS, it is necessary and appropriate for the Agency to enter into this Agreement
between the Agency and the IVDA in order to provide for the IVDA to transfer authority to the
Agency to undertake the implementation of the Project with the Developer; and
WHEREAS, the Project, as defined herein, is situated within the IVDA Redevelopment
Project Area ("Project Area") which is a special redevelopment project area administered by the
IVDA; and
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WHEREAS, the IVDA has been e$tablished 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 ("NAFB") located within the City; and
WHEREAS, the member governmental entities of the IVDA include the County of San
Bernardino, a political subdivision of the State of California, the City of Colton, a municipal
corporation, the City ofLoma Linda, a municipal corporation, and the City, a charter 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 NAFB 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 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 Project Area as more fully
described in the Redevelopment Plan; 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 NAFB, 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 NAFB;
and
WHEREAS, the Agency seeks to initiate certain redevelopment activities affecting the
Project, as defmed herein, which is situated within the Project Area but which is not part of the
NAFB; and
WHEREAS, the IVDA 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 which are also within the Project Area.
NOW, THEREFORE, THE INLAND V ALLEY DEVELOPMENT AGENCY AND THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 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.
Section 2. Accomplishment of Public PurPoses. The parties acknowledge and agree that
this Agreement provides the IVDA, 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 which could not
otherwise be accomplished within the foreseeable future unless the parties to this Agreement agree
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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
33413, et seq., and shall be considered as an agreement entered into by and between the IVDA 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 near the NAFB in the Project
Area. This Agreement shall provide the IVDA with additional assistance from the Agency to
undertake redevelopment activities in the portion of the Project Area where the Project is located, as
more fully depicted in Exhibit "A" attached hereto. The parties presently anticipate that a
Redevelopment Project Study Agreement (the "Study Agreement") for the feasibility study for the
redevelopment ofthe Project site shall be executed with Street-Manchester, LLC by the Agency.
Section 3.
Grant of Redevelopment Powers to the Agency for the Proiect.
(a) Except as set forth in Section 3(b) and Section 3(c) of this Agreement, the IVDA
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 "Council"), as
applicable, the right, 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
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 Project.
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, rights and authorities
of the IVDA as set forth in the Redevelopment Plan with respect to the lands and property situated
within the Project, 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.
No such action of the City or the Agency, as applicable with respect to the exercise of such
redevelopment powers affecting the Project, needs to 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 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 respect to the Project pursuant to this Agreement, the IVDA 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 Project as authorized by this Agreement.
(b) Notwithstanding the provisions of Section 3(a), the City and the Agency shall not
ImlIate any amendment of the Redevelopment Plan or any amendment or supplement to the
Implementation Plan for the Project Area without first obtaining the written approval of the IVDA
in its sole and absolute discretion.
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(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 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 term is defined in Section 4.
Section 4. Transfer of a Certain Portion of the IVDA Tax Increment Funds for the
Redevelooment of the Proiect.
(a) In addition to the meaning of certain words and phrases as set forth in the preceding
Recital paragraphs and sections ofthis Agreement, the following definitions shall apply to usage of
the terms set forth in this Agreement:
(i) "Project Properties Base Year" means and refers to the secured property tax roll assessed
valuation of the properties within the Project Properties for ad valorem property tax
purposes, for the 2006-2007 fiscal year of the NDA as shown on the secured property
tax assessment rolls of the County Assessor;
(ii) "Project 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 Project;
. (iii) "Project Properties" means and refers to the approximately 50 acres of land in the
Project which is also depicted in Exhibit "A";
(iv) "Street-Manchester, LLC - Fairway Homes" 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 Project. The Project shall be more particularly
identified in the written notice provided to the NDA by the Agency under Section 4(e);
(v) "Tax Increment Revenue" means and refers to those revenues, if any, received by the
NDA under Article VII, Section B(702) of the Redevelopment Plan as related to the
Project Properties;
(vi) "Transfer Revenue" means and refers to a portion of the tax increment revenue of the
NDA attributable to the Project 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
Project Properties subject to the conditions set forth in Section 4.
(b) Transfer Revenue is a portion of the tax increment revenue of the NDA generated
by the Project Properties by virtue of the Project, if any, each fiscal year, in excess of such tax
increment revenue of the IVDA attributed to the Project Properties Base Year, net of the low- and
moderate-income housing set-aside obligation of the NDA 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
NDA with respect to the Project Properties which is payable by the NDA in such fiscal year under
the School District Agreements as set forth in Section 4(f).
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(c) Provided the Agency has given the IVDA the notice described in Section 4(e),
commencing no sooner than the 2007-2008 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 Project Properties, if any, for each such fiscal year
following the Project 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 Project Properties by virtue of the 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, 2030. Any unpaid balance of the Project Properties Indebtedness as may exist as of
July I, 2030, 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, 2007, funds, or incurred indebtedness
in connection with the redevelopment of all or any portion of the Project Properties Indebtedness,
including, without limitation, indebtedness incurred under one (I) or more separate agreements by
and between the Agency and the City 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
Project. The Agency shall, as a condition precedent to the receipt of Transfer Revenue on each May
I, commencing on May 1, 2008, submit to the IVDA, a suitably detailed written statement of the
outstanding unpaid balance of Project Properties Indebtedness incurred by the Agency, including
the relevant terms of repayment of such Project Properties Indebtedness.
(e) By a date not later than October 31,2008, the Agency shall give notice to the IVDA
that the Agency entered into one (1) or more written agreements with third-parties for a
redevelopment feasibility study of at least one-half (Yz) of the acres of land included in the Project.
Such notice shall contain a suitably detailed description of the Project and the current balance, as of
the date of such notice of the Project 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.
(f) 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 Project Properties. The calculation of the amount of the Transfer Revenue to be remitted by the
IVDA to the Agency shall be a 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 and the
IVDA may charge a proportion of fee against the Tax Revenues for third-party costs associated with
such administration.
(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
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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 Project 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 Project Properties, as
permitted by Health and Safety Code Section 33334.2(a)(I)(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 or
fiscal years, as applicable, 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 it relates to the
Project Properties indebtedness and the Transfer Revenue payable by the IVDA to the Agency for
the Project Properties indebtedness. The IVDA and the Agency further agree, upon thirty (30) days
written request, to exchange suitably detailed and written accounting and audit records related to the
Project Properties 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 Project
Properties indebtedness amounts incurred by the Agency with respect to the redevelopment of the
Project Properties.
(j) Except as set forth in this Agreement as it relates to Transfer Revenues, no other tax
increment revenue or other funds or assets of the IVDA are subject 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 otherwise 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. 2007 Indebtedness of the Agencv Relating to the Proiect. As of
June 30, 2007, the Agency has incurred no debt in redevelopment indebtedness with respect to its
efforts to address conditions of blight in the Project, including indebtedness incurred for the
acquisition of the property. No cost, expense or indebtedness incurred by the Agency with respect
to the Project prior to June 30, 2007, shall be deemed to be an eligible cost or indebtedness of the
Agency for purposes of calculating the Project Properties indebtedness.
Section 6. Notices. Formal notices, demands and communications between the IVDA
and the Agency shall be deemed sufficiently given if (i) dispatched registered or certified mail via
United States Postal Service, postage prepaid, return receipt requested, as designated in this Section
6; (ii) by personal delivery; (iii) express delivery service with written verification of delivery; or (iv)
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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:
IVDA:
Inland Valley Development Agency
Attention: Executive Director
294 South Leland Norton Way
San Bernardino, California 92408
AGENCY:
Redevelopment Agency of the City of San Bernardino
Attention: Maggie Pacheco, Executive Director
20 I North "E" Street, Suite 30 I
San Bernardino, California 92401
Notices which are dispatched by registered or certified mail through the United States 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 delivery. 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 delivery receipt, and
notices dispatched through electronic transmittals shall be deemed to have been given upon
telephonic verification of receipt.
Section 7. Indemnification and Hold Harmless. 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 Agency. 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 between the IVDA and the Agency with respect to the transfer of the
redevelopment powers of the IVDA affecting the Project.
Section 9. Invaliditv 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 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 ofthe date set forth in the introductory paragraph.
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THIS AGREEMENT HAS BEEN DULY EXECUTED BY THE AUTHORIZED
REPRESENTATNES OF THE PARTIES HERETO AS SET FORTH BELOW.
IVDA
Inland Valley Development Agency,
a joint powers authority
Date:
By:
Co-Chair
By:
Co-Chair
(SEAL)
ATTEST:
By:
.Clerk of the Board
Approved as to Form:
By:
General Counsel
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Date:
By:
Maggie Pacheco, Executive Director
Approved as to Form and Legal Content:
By f/~~~
. Agenc)' ounse . ~
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