HomeMy WebLinkAboutR03-Economic Development Agency
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DEVBLOPIIIft DBPIuurmn.. OF 'I'D
CITY OF SAlt BBDARDI~
UODEST FOR CCMUSSION/COUBCIL ACTION
From:
tEnETH J. HENDERSON
Executive Director
Subject: VERDIIIOIIT-AREA IDRASTRUC-
TVRE nlWlCIBG PLAIt
Date:
Auaust IS, 1991
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$JDDpsis of Previous C~ssiaa/Council/Cammittee Action(s):
On July 19, 1991, the Mayor and Common Council and Community
Development Commissions discussed certain issues with respect to the
Verdemont Area Infrastructure Financing Plan, took actions authoriZing
staff to prepare the appropriate mutual benefit resolutions and
appropriated $2.4 million dollars in tax allocation bond proceeds to
finance said improvements.
Reco..ended Motion:
(Mavor Aftd CnMMon Council)
MOTION A:
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAlII BERNARDINO, CALIFORNIA, FINDING BENEFIT TO THE STATE
COLLEGE REDEVELOPMENT PROJECT AREA IN THE USE OF TAX
INCREMENT IlEVERUES AND BOND PROCEEDS FOR THE PAYMENT OF
INFRASTRUCTURE COSTS IN THE VERDEMONT AREA.
CIIOTIONS COIITIRUED TO lIEXT PACK...)
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Administrator
~ON
EKecutive Director
Contact Person(s): Ken Henderson
Phone:
5081
Project Area(s): State Colleae
Ward(s) :
Five (5)
Supporting Data Attached:
Staff Reoort: Benefit Resolutions
FUNDING REQUIREMENTS:
Amount: $2.400.000
Source: Tax Allocation B.P.
Budget Authority:
Commissiaa/Council Notes:
KJH:lab:Ol07E
COIMISSION AGENDA
Meetiua Date: 08/19/91
Agenda Item No: ~
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. DEVELOPIIKBT DBP~QUBST FOR COIIRCIL/CCRlISSIOB~T'DB ACTIOB
Verdeaont-Area Infrastructure FiDaD.cill& Plan
Prepared: Aquat 15. 1991
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Recnm..nded Rotion(s) Continued...
MOTION B:
KJH:1ab:0107E
(C~itv Deve10ument Cnm.issian)
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERKARDINO. CALIFORNIA. FINDING BENEFIT TO THE STATE
COLLEGE REDEVELOPMENT PROJECT AREA IN THE USE OF TAX
INCREMENT REVENUES AND BOND PROCEEDS FOR THE PAYMENT OF
INFRASTRUCTURE COSTS IN THE VERDEMONT AREA.
COtMlSSIOB AGERDA
MeetiD& Date: 08/19/1991
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DBVELOPIIBBT DBPh.........;a:
STAFF UPORT
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Verd_t-Area Infrastructure
Ffft.neina Plan ;
On July 19, 1991, the Mayor and Common Council and Community
Development Commission convened to discuss various financings for the
Verdemont-Area Infrastructure Financing Plan. Also included in the
discussion was the process and costs associated with Assessment
District Number 987. Based upon these discussions, the following
programs and activities were selected for inclusion in the
Infrastructure Financing Plan:
s) Chestnut Avenue Storm Drain and Debris Basin
b) Box Culvert at Palm Avenue and Kendall Drive
c) Traffic Signal at Palm Avenue and Kendall Drive
d) Right-of-Way Improvements Along Palm Avenue
e) Incidental Costs (Assessment District Formation Costs)
(100%)
( 50%)
( 50%)
( 50%)
( 50%)
The total estimated cost to the Development Department for the
improvements and activities listed above is $2.4 million dollars. The
funds would be appropriated from the State College Redevelopment
Project Area's share of the 1990 tax allocation bond issue. Also
included in the decision to finance the above referenced improvements
was financial assistance to low-to-moderate income households who meet
certain HUD-approved eligibility criteria.
Based upon the foregoing and previous policy actions taken by the Mayor
and Common Council and Community Development Commission, staff
recommends adoption of the attached Resolutions.
KJH:lab:Ol07E
COIIIISSION AGEIID.l
Meeting Date: 08/19/1991
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT"
COMMISSION OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, FINDING BENEFIT TO THE STATE
COLLEGE REDEVELOPMENT PROJECT AREA IN THE
USE OF TAX INCREMENT REVENUES AND BOND
PROCEEDS FOR THE PAYMENT OF INFRASTRUCTURE
COSTS IN THE VERDEMONT AREA
WHEREAS, the City of San Bernardino, California (the
"City"), is a municipal corporation and a charter city duly
created and existing pursuant to the Constitution and the laws of
the State of California (the "City"); and
WHEREAS, the Community Development Commission of the
City of San Bernardino (the "Commission") on behalf of the
Redevelopment Agency of the City of San Bernardino (the
"Agency"), is a redevelopment agency, a public body, corporate
and politic of the State of California, organized and existing
pursuant to the Community Redevelopment Law (Part 1 of
Division 24) commencing with Section 33000 of the Health and
Safety Code of the State of California (the "Act"); and
WHEREAS, pursuant to Section 33445 of the Act, the
Agency may, with the consent of the Mayor and Common Council of
the city (the "Council"), pay all or a part of the cost of
installation and construction of any building, facility,
structure or other improvement which is publicly owned either
within or without the boundaries of a redevelopment project area
if the Agency determines: (1) that such buildings, facilities,
structures or other improvements are of benefit to the
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1 redevelopment project area or the immediate neighborhood ,in which
2 the project is located, regardless of whether such improvements
3 are within another project area, or in the case of a project area
4 in which substantially all the land i. publicly owned that the
5 improvements are of benefit to an adjacent project area of the
6 Agency, and (2) that no other reasonable means of financing such
7 buildings, facilities, structures or other improvements is
8 available to the community, and such determination by the Agency
9 and the Council shall be final and conclusive; and
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WHEREAS, the City and the Agency have previously
adopted the redevelopment plan for a project area encompassed by
the State College Redevelopment project (the "Project Area"); and
WHEREAS , it is in the interests of the present
landowners within the project Area and the residents, both within
the Project Area and within the City generally, that the Agency
cause the undertaking of certain public improvements in the
Verdemont area of the City (the "Verdemont Area") which
improvements consist of, but are not limited to, the construction
of the Chestnut Drain facilities, the installation of box culvert
improvements in the vicinity of the intersection of Kendall Drive
and Palm Avenue, the installation of certain traffic signal
improvements at the intersection of Kendall Drive and Palm
Avenue, the construction of right-of-way improvements along Palm
Avenue and various other related infrastructure improvements
(collectively such improvements shall be referred to as the
"Verdemont Improvements"); and
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1 WHEREAS, the city has previously cau,ed the
2 establishment of its Assessment District No. 987 within the
3 Verdemont Area to pay for a portion of the costs of certain
4 infrastructure items required for the Verdemont Area including a
5 portion of the costs of the Verdemont Improvements; and
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24 WHEREAS, the Verdemont Area is located within the
25 northern portion of the City and provides a residential base to
26 households, including several low-income households, who are
27 employed and who may find employaent within the Project Area and
28 who rely on services provided within the Project Area; and
WHEREAS, the revenues generated through the
establishment of Assessment District No. 987 are insufficient to
pay all of the costs of the infrastructure items required for the
Verdemont Area, including the total costs of the Verdemont
Improvements as described hereinabove; and
WHEREAS, many low income households reside in the
Verdemont Area and the levy of assessments pursuant to Assessment
District No. 987 is causing a hardship on many such households;
and
WHEREAS, the City has previously experienced difficulty
in providing affordable housing to persons employed within the
City as well as the Project Area and has suffered a jOb/housing
imbalance which has negatively impacted upon the development
potential of the Project Area and the City generally; and
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1 WHEREAS, since the Verdemont Area is located wi,thin the
2 northern portion of the City, it is at a higher elevation than
3 most other areas of the City and accordingly, any drainage runoff
4 that occurs in the Verdemont Area has ~he potential, and does in
5 fact, drain into other portions of the City, thereby burdening
6 the capacity of the city's drainage system and negatively
7 impacting such other portions of the City which are served by the
8 drainage system, including the Project Area; and
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24 WHEREAS, the drainage system of the City is one large
25 inteqrated system and as such, the undertaking of improvements in
26 one area of the drainage system through the installation of the
27 drainage facilities which are included within the Verdemont
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WHEREAS, additional development in the Verdemont Area
which is occurring in order to provide a greater residential base
for other areas of the City, including the Project Area, will
have the impact of causing a qreater amount of drainage runoff
which in turn will adversely impact the other portions of the
drainage system of the city, including the Project Area; and
WHEREAS, the installation of the Verdemont Improvements
is necessary in order to ease the impact on the runoff capacity
of other portions of the City'S drainage system and allow the
drainage system to function effectively and thereby ensure the
health, safety and welfare of Project Area residents as well as
other residents of the City; and
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Improvements will ))enefit other portions of the syst~ which
includes that portion located within the Project Area'; and
WHEREAS, ))ecause of the proxilllity ))etween the Verdemont
Area and the Project Area, Kendall Drive serves as a major
arterial connecting the Verdemont Area with the Project Area and
as such it provides traffic access to residents and occupants of
the Project Area; and
WHEREAS, the signal improvements and other related
right-of-way improvements to Kendall Drive and Palm Avenue would
improve traffic safety conditions on major arterials providing
access to and from the Project Area thereby ))enefitting the
14 residents of the Project Area; and
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16 WHEREAS, in order to assist in financing the
17 undertaking of the Verdemont Improvements, the Agency deems it
18 desirable to loan certain moneys to the city from revenues
19 attributable to the Project Area, which loan of monies shall be
20 evidenced by a Loan Agreement (the "Loan Agreement")
21 substantially in the form as attached hereto as Exhibit "A" and
22 incorporated herein by this reference; and
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WHEREAS, the Loan Agreement provides that the Agency
shall make disbursements of the Loan proceeds only as such moneys
are required by the city to either pay the costs of the Verdemont
Improvements or to make payments of assessments levied under
Assessment District No. 987 on behalf of any low and moderate
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1 income households who have demonstrated to the City and.~gency a
2 hardship in the ability to fund any such assessments;" and
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WHEREAS, in order to promote~the City's health, safety
and welfare, it is important that the Verdemont Improvements
required for the Verdemont Area be financed in order to ensure
the orderly development of the Project Area and neighboring areas
and that the City and the Agency approve the Loan Agreement so as
to facilitate the construction of such improvements; and
WHEREAS, it is appropriate at this time for the
Commission to make certain findings and determinations and take
certain action with respect to the installation of the Verdemont
Improvements.
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE,
DETERMINE AND ORDER AS FOLLOWS:
section 1. The Recitals hereinabove are true and
correct and are incorporated herein by this reference.
section 2. The Commission hereby approves the
funding by the Agency of the costs of the Verdemont Improvements
to be undertaken in the Verdemont Area which are of benefit to
the Project Area and other neighborhoods within the City for the
reasons set forth in the Recitals hereinabove. In addition, the
Commission approves the funding of all or a portion of any
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1 assessments levied pursuant to Assessment District No~ 987 on
2 behalf of any eliqible low-income households who are neqatively
3 impacted by the imposition of such assessments. The Commission
4 further finds and determines that no other reasonable means of
5 financinq the installation of the Verdemont Improvements, or of
6 fundinq assessments on behalf of low-income households is
7 presently available to the city and that the City and the Aqency
8 require the use of revenues qenerated from the Project Area to
9 fund the Verdemont Improvements and to fund any assessment
10 payments on behalf of low-income households.
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27 section 5. The Commission hereby approves the
28 establishment of a loan with the City pursuant to the terms of a
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section 3. The provision of the Verdemont
Improvements in the Verdemont Area will improve drainaqe runoff
conditions throuqhout the City and particularly the Project Area
thereby easinq the burden on the city's drainaqe system which
will make the Project Area, which is also served by the drainaqe
system, more desirable for residential and other development
which will in turn help eliminate bliqht within such Project
Area.
section 4. The provision of the siqnal improvements
and related riqht of way improvements will improve traffic safety
conditions on major arterials which provides access to and from
the Project Area which in turn will make such Project Area more
desirable for development and thereby further assist in
eliminatinq bliqhtinq conditions within such Project Area.
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1 Loan Aqreement which will be substantially in the ..form of
2 Exhibit "A" attached hereto and incorporated herein by this
3 reference and hereby authorizes the Chairman and the Secretary to'
4 execute the Loan Aqreement as may be- modified by any chanqes
5 approved by the Executive Director of the Aqency and Aqency
6 Counsel as well as such other documents as may be necessary in
7 order to impl_ent the loan transaction as described hereinabove.
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Section 6. The Commission Secretary is hereby
authorized and directed to cause this Resolution to be
transmitted to the City for consideration in connection with
appropriate action by that body.
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1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THFj CITY OF
SAN BERNARDINO, CALIFORNIA, FINDING BENEFIT TO THE STATE COLLEGE
2 REDEVELOPMENT PROJECT AREA IN THE USE OF TAX INCREMENT REVENUES
AND BOND PROCEEDS FOR THE PAYMENT OF INFRASTRUCTURE COSTS IN THE
3 VERDEMONT AREA
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Section 7.
The findinqs 'and determinations herein
shall be final and conclusive. This Resolution shall take effect
upon the date of its adoption.
I HEREBY CERTIFY that the foreqoinq Resolution was duly
adopted by the Community Development Commission of the City of
San Bernardino at a
meetinq
thereof, held on the
day of
1991, by the followinq vote, to wit:
commission Members:
ABSTAIN
AID
BAn
ABSENT
ESTRADA
REILLY
HERNANDEZ
MAUDSLEY
MINOR
POPE-LUDLAM
MILLER
Secretary
The foreqoinq resolution is hereby approved this
day of , 1991.
W. R. Holcomb, Chairman
Community Development commission
of the City of San Bernardino
Approved as to form and leqal
26 By: ~fi~
27 ./ Aqency nsel
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content:
1IIIlO\IIOOI\DOC'A97
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1 STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
2 CITY OF SAN BERNARDINO )
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I, Secretary of the Community
Development Commission of the City of San Bernardino, DO HEREBY
CERTIFY that the foregoing and att:ached copy of Community
Development Commission of the City of San Bernardip.o Resolution
No. is a full, true and correct copy of that now on
file in this office.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the official seal of the community Development Commission
of the city of San Bernardino this day of
, 1991.
Secretary of the
community Development
Commission of the City of San
Bernardino
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LOAN AGREEMENT
(VERDEMONT IMPROVEMENTS)
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THIS LOAN AGREEMENT is entered into as of the day
,
of August, 1991, by and between the Redevelopment Aqency of the
City of San Bernardino (the "Aqency") and the City of
San Bernardino (the "City") with reference to the followinq facts:
R E C I TAL S
A. The Aqency is a redevelopment aqency, a public body,
corporate and politic within the State of California, orqanized and
existinq pursuant to the Community Redevelopment Law (Part 1 of
Division 24) commencinq with Section 33000 of the Health and Safety
c:; Code of the State of California (the "Act").
B. The city of San Bernardino, California, is a
municipal corporation and a charter city duly created and existinq
pursuant to the Constitution of the State of California.
C. The City has previously caused the establishment of
its Assessment District No. 987 within the Verdemont Area of the
city (the "Verdemont Area") in order to pay for a portion of the
costs of certain infrastructure items required within the Verdemont
Area.
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D. The costs of the infrastructure items necessary for
the Verdemont Area exceed the amounts to be levied under Assessment
District No. 987 and accordinqly the City is seekinq alternative
financinq sources in order to adequately f~d all of the costs of
the infrastructure items required for the Verdemont Area.
E. The Aqency and the City previously caused the
adoption of a Redevelopment Plan (the "Redevelopment Plan") for the
project area encompassed by the state Colleqe Redevelopment Project
(the "State Colleqe Project Area").
F. The State Colleqe Project Area is in close vicinity
to the Verdemont Area and, as such, many residents and occupants of
c:J the State Colleqe Project Area and the Verdemont Area interact in
connection with both employment and housinq opportunities.
G. The Aqency and the city deem it desirable for the
Aqency to loan certain monies, derived from tax increment revenues
attributable to the state Colleqe Project Area, to the city in
order to fund a portion of the costs of undertakinq those certain
infrastructure items required for the Verdemont Area.
NOW, THEREFORE, in consideration of the foreqoinq and the
mutual covenants and conditions set forth herein, the parties
hereto aqree as follows:
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1.
Aaencv Loan.
The Aqency hereby aqrees to loan to
the City (the "Loan") certain monies, derived from tax increment
revenues attributable to the State Colleqe Project Area to (i) fund
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the costs of certain infrastructure items necessary for the
Verdemont Area and (ii) to subsidize the payment of assessments
attributable to Assessment District No. 987 which are or have been
levied on low- and moderate-income households who are sufferinq a
hardship throuqh the inability to pay such assessments. The Loan
shall be established on the followinq terms:
a. The Loan proceeds will be used exclusively by the
City for the purposes of causinq the undertakinq of the
infrastructure improvements required for the Verdemont Area, to
o subsidize the payment of assessments levied throuqh Assessment
District No. 987 on behalf of low- and moderate-income households
who have demonstrated a hardship to the City and the Aqency and to
pay any incidental costs attributable thereto.
b.
The term of the Loan shall be for
years. The
principal amount of the Loan shall be due, toqether with accrued
interest thereon, on
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The City shall have the riqht to
prepay all or a part of the Loan plus accrued interest without
penalty.
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c. Interest shall accrue at the rate of __, per Annum
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from the date that funds representing Loan proceeds are advanced to
the City and will continue until the debt is paid in full.
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2.
RenaVllent.
The city agrees to repay the Agency
for the Loan created pursuant to this Agreement from and to the
extent funds are available to the City through the levy of
assessments or through other sources as may be legally available to
the city for the repayment of such funds.
3. Miscellaneous.
a. This Loan Agreement shall bind and inure to the
o benefit of the successors and assigns of each of the parties
hereto.
b. Each party agrees to perform any further acts and
execute and deliver any documents which may be necessary to carry
out the provisions or intent of this Loan Agreement.
c. This Loan Agreement may be amended at any time by
the written agreement of the parties hereto.
No amendment or
waiver of the terms hereof shall be valid unless contained in
writing and executed by the parties to this Loan Agreement.
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d. The parties hereby agree that this Loan Agreement
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has been executed and delivered in the state of California and
shall be construed, enforced and governed by the laws thereof.
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e. In the event that any provision in this Loan
Agreement shall be held invalid or unenforceable, such provision
shall be severable from, and such invalidity or unenforceability
shall not be construed to have any effect on, the remaining
provisions of this Loan Agreement.
f. This Loan Agreement contains the entire agreement
between the parties hereto pertaining to the subject matter hereof,
with the exception of the other agreements referenced explicitly or
c:; implicitly herein. This Loan Agreement supersedes all prior and
contemporaneous agreements and understandings of the parties with
respect to the matters resolved herein, and there are no
warranties, representations or other agreements between the parties
in connection with the subject matter hereof, except as set forth
or referred to herein.
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IN WITNESS WHEREOF, the parties have signed this-Loan
Aqreement as of the date first above written.
APPROVED AS TO
FORM AND CONTENT:
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REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO
By:
APPROVED AS TO
FORM AND CONTENT:
CITY OF SAN BERNARDINO
By:
SBBOIOlIOIIJIOCI4",""
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SBBOIOlIOIIJlOCl49l
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RESOLUTION NO.
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"City"), is a municipal corporation and a charter city duly
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
FINDING BENEFIT TO THE STATE COLLEGE
REDEVELOPMENT PROJECT AREA IN THE USE OF TAX
INCREMENT REVENUES AND BOND PROCEEDS FOR THE
PAYMENT OF INFRASTRUCTURE COSTS IN THE
VERDEMONT AREA
WHEREAS, the city of San Bernardino, California (the
created and existing pursuant to the Constitution and the laws of
the State of California (the "City"); and
WHEREAS, the Community Development Commission of the
City of San Bernardino (the "Commission") on behalf of the
Redevelopment
of
City
San Bernardino
(the
Agency
the
of
"Agency"), is a redevelopment agency, a public body, corporate
and politic of the State of California, organized and existing
pursuant
the
Community
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of
Redevelopment
(Part
Law
to
Division 24) commencing with Section 33000 of the Health and
Safety Code of the State of California (the "Act"); and
WHEREAS, pursuant to Section 33445 of the Act, the
Agency may, with the consent of the Mayor and Common Council of
the City (the "council"), pay all or a part of the cost of
installation
construction
building,
facility,
of
and
any
structure or other improvement which is publicly owned either
within or without the boundaries of a redevelopment project area
if the Agency determines:
(1) that such buildings, facilities,
structures
other
improvements
are
benefit
to
the
of
or
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1 redeveiopment project area or the i_ediate neighDorhood.in which
2 the project is located, regardless of whether such improvements
S are within another project area, or in the case of a project area
4 in which substantially all the land iw publicly owned that the
5 improvements are of benefit to an adjacent project area of the
6 Agency, and (2) that no other reasonable means of financing such
7 buildings, facilities, structures or other improvements is
8 available to the community, and such determination by the Agency
9 and the Council shall be final and conclusive; and
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WHEREAS, the City and the Agency have previously
adopted the redevelopment plan for a project area encompassed by
the State College Redevelopment Project (the "Project Area"); and
WHEREAS, it is in the interests of the present
landowners within the Project Area and the residents, both within
the Project Area and within the City generally, that the Agency
cause the undertaking of certain public improvements in the
Verdemont area of the City (the "Verdemont Area") which
improvements consist of, but are not limited to, the construction
of the Chestnut Drain facilities, the installation of box culvert
improvements in the vicinity of the intersection of Kendall Drive
and Palm Avenue, the installation of certain traffic signal
improvements at the intersection of Kendall Drive and Palm
Avenue, the construction of right-of-way improvements along Palm
Avenue and various other related infrastructure improvements
(collectively such improvements shall be referred to as the
"Verdemont Improvements"); and
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1 WHEREAS, the City has previously cau,ed the
2 establishment of its Assessment District No. 987 within the
3 Verdemont Area to pay for a portion of the costs of certain
4 infrastructure items required for the Verdemont Area including a
5 portion of the costs of the Verdemont Improvements; and
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WHEREAS, the revenues generated through the
establishment of Assessment District No. 987 are insufficient to
pay all of the costs of the infrastructure items required for the
Verdemont Area, including the total costs of the Verdemont
Improvements as described hereinabove; and
WHEREAS, many low income households reside in the
Verdemont Area and the levy of assessments pursuant to Assessment
District No. 987 is causing a hardship on many such households;
and
WHEREAS, the City has previously experienced difficulty
in providing affordable housing to persons employed within the
City as well as the Project Area and has suffered a job/housing
imbalance which has negatively impacted upon the development
potential of the Project Area and the City generally; and
WHEREAS, the Verdemont Area is located wi thin the
northern portion of the City and provides a residential base to
households, including several low-income households, who are
employed and who may find employment within the Project Area and
who rely on services provided within the Project Area; and
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WHEREAS, since the Verdemont Area is located w~thin the
northern portion of the City, it is at a hiqher elevation than
most other areas of the City and accordinqly, any drainaqe runoff
that occurs in the Verdemont Area has the potential, and does in
fact, drain into other portions of the City, thereby burdeninq
the capacity of the City'S drainaqe system and neqatively
impactinq such other portions of the City which are served by the
drainaqe system, includinq the Project Area; and
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11 which is occurrinq in order to provide a qreater residential base
12 for other areas of the City, includinq the Project Area, will
13 have the impact of causinq a qreater amount of drainaqe runoff
14 which in turn will adversely impact the other portions of the
15 drainaqe system of the City, includinq the Project Area; and
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WHEREAS, the installation of the Verdemont Improvements
is necessary in order to ease the impact on the runoff capacity
of other portions of the city's drainaqe system and allow the
drainaqe system to function effectively and thereby ensure the
health, safety and welfare of Project Area residents as well as
other residents of the City; and
WHEREAS, the drainaqe system of the city is one larqe
inteqrated system and as such, the undertakinq of improvements in
one area of the drainaqe system throuqh the installation of the
drainaqe facilities which are included within the Verdemont
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1 Improvements will benefit other pM"tions of the syst~m which
2 includes that portion located within the Project Area1 and
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4 WHEREAS, because of the proxi'mi ty between the Verdemont
5 Area and the Project Area, Kendall Drive serves as a major
6 arterial connectinq the Verdemont Area with the Project Area and
7 as such it provides traffic access to residents and occupants of
8 the Project Area; and
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WHEREAS, the siqnal improvements and other related
riqht-of-way improvements to Kendall Drive and Palm Avenue would
improve traffic safety conditions on major arterials providinq
access to and from the Project Area thereby benefittinq the
residents of the Project Area; and
WHEREAS, in order to assist in financinq the
undertakinq of the Verdemont IlIprovements, the Aqency deems it
desirable to loan certain lIoneys to the City from revenues
attributable to the Project Area, which loan of monies shall be
evidenced by a Loan Aqreement (the "Loan Aqreement")
substantially in the form as attached hereto as Exhibit "A" and
incorporated herein by this reference; and
WHEREAS, the Loan Aqreement provides that the Aqency
shall make disbursements of the Loan proceeds only as such moneys
are required by the City to either pay the costs of the Verdemont
Improvements or to make payments of assessments levied under
Assessment District No. 987 on behalf of any low and moderate
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4 WHEREAS, in order to promote. the City's health, safety
5 and welfare, it is important that the Verdemont Improvements
6 required for the Verdemont Area be financed in order to ensure
7 the orderly development of the Project Area and neiqhborinq areas
8 and that the City and the Aqency approve the Loan Aqreement so as
9 to facilitate the construction of such improvements; and
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11 WHEREAS, it is appropriate at this time for the City to
12 make certain findinqs and determinations and take certain action
13 with respect to the installation of the Verdemont Improvements.
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25 Project Area and other neiqhborhoods within the city for the
26 reasons set forth in the Recitals hereinabove. In addition, the
27 Council approves the fundinq of all or a portion of any
28 assessments levied pursuant to Assessment District No. 987 on
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income households who have demonstrated to the City and Aqency a
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hardship in the ability to fund any such assessments;. and
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE,
DETERMINE AND ORDER AS FOLLOWS:
Section 1. The Recitals hereinabove are true and
correct and are incorporated herein by this reference.
Section 2. The Council hereby approves the fundinq
by the Aqency of the costs of the Verdemont Improvements to be
undertaken in the Verdemont Area which are of benefit to the
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1 behalf of any eliqible low-income households who are n~qatively
2 impacted by the imposition of such assessments. The Council
3 further finds and determines that no other reasonable means of
4 financinq the installation of the Ver4emont Improvements, or of
5 fundinq assessments on behalf of low-income households is
6 presently available to the city and that the city and the Aqency
7 require the use of revenues generated from the Project Area to
8 fund the Verdemont Improvements and to fund any assessment
9 payments on behalf of low-income households.
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11 Section 3. The provision of the Verdemont
12 Improvements in the Verdemont Area will improve drainaqe runoff
13 conditions throuqhout the City and particularly the Project Area
14 thereby easing the burden on the City'S drainage system which
15 will make the Project Area, which is also served by the drainaqe
16 system, more desirable for residential and other development
17 which will in turn help eliminate blight within such Project
18 Area.
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section 4. The provision of the signal improvements
and related right of way improvements will improve traffic safety
conditions on major arterials which provides access to and from
the Project Area which in turn will make such Project Area more
desirable for development and thereby further assist in
eliminatinq bliqhting conditions within such Project Area.
section 5. The Council hereby approves the
establishment of a loan with the City pursuant to the terms of a
Loan Aqreement which will be substantially in the form of
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1 Exhibit "An attached hereto and incorporated herein ..by this
2 reference and hereby authorizes the Mayor and the City Clerk to
3 execute the Loan Agreement as JUly be modified by any chanqes
4 approved by the Mayor and City Attorney and such other documents
5 as may be necessary in order to implement the loan transaction as
6 described hereinabove.
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Section 6. The City Clerk is hereby authorized and
directed to cause this Resolution to be transmitted to the Aqency
for consideration in connection with appropriate action by that
body.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, FINDING BENEFIT TO THE STAT!' COLLEGE
2 REDEVELOPMENT PROJECT AREA IN THE USE OF TAX INCREMENT REVENUES
AND BOND PROCEEDS FOR THE PAYMENT OF INFRASTRUCTURE COSTS IN THE
3 VERDEMONT AREA
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Section 7.
The findings 'and determinations herein
shall be final and conclusive. This Resolution shall take effect
upon the date of its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly
adopted by the Mayor
and Common Council of the
City of
San Bernardino at a
meeting
thereof, held on the
day of
1991, by the following vote, to wit:
AYES:
Council Members
NAYS:
ABSENT :
City Clerk
The foregoing
resolution
is hereby approved this '
day of
, 1991.
Mayor of the city of
San Bernardino
Approved as to form and legal content:
JAMES F. PENMAN
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
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I, City Clerk of the city of San
Bernardino, DO HEREBY CERTIFY that the foregoing and attached
copy of Mayor and Common Council of the city of San Bernardino
Resolution No. is a full, true and correct copy of that
now on file in this office.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the official seal of the Mayor and Common Council of the
City of San Bernardino this day of
1991.
City Clerk
City of San Bernardino
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LOAN AGREEMENT
(VERDEMONT IMPROVEMENTS)
THIS LOAN AGREEMENT is entered into as of the day
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of August, 1991, by and between the Redevelopment Agency of the
City of San Bernardino (the "Agency") and the City of
San Bernardino (the "City") with reference to the following facts:
RECITALS
A. The Agency is a redevelopment agency, a public body,
corporate and politic within the State of California, organized and
existing pursuant to the Community Redevelopment Law (Part 1 of
Division 24) commencing with Section 33000 of the Health and Safety
Code of the State of California (the "Act").
B. The City of San Bernardino, California, is a
municipal corporation and a charter city duly created and existing
pursuant to the Constitution of the State of California.
C. The City has previously caused the establishment of
its Assessment District No. 987 within the Verdemont Area of the
City (the "Verdemont Area") in order to pay for a portion of the
costs of certain infrastructure items required within the Verdemont
Area.
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D. The costs of the infrastructUre items necessary for
the Verdemont Area exceed the amounts to be levied under Assessment
District No. 987 and accordinqly the City is seekinq alternative
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financinq sources in order to adequately fund all of the costs of
the infrastructure items required for the Verdemont Area.
E. The Aqency and the city previously caused the
adoption of a Redevelopment Plan (the "Redevelopment Plan") for the
project area encompassed by the state colleqe Redevelopment Project
(the "state Colleqe Project Area").
F. The state colleqe Project Area is in close vicinity
to the Verd_ont Area and, as such, many residents and occupants of
o the state Colleqe Project Area and. .the Verdemont Area interact in
connection with both _ployment and housinq opportunities.
G. The Aqency and the city deem it desirable for the
Aqency to loan certain monies, derived from tax increment revenues
attributable to the state Colleqe Project Area, to the City in
order to fund a portion of the costs of undertakinq those certain
infrastructure items required for the Verdemont Area.
NOW, THEREFORE, in consideration of the foreqoinq and the
mutual covenants and conditions set forth herein, the parties
hereto aqree as follows:
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1.
Aaencv Loan.
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The Agency hereby agrees to loan'to
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the City (the "Loan") certain monies, derived from tax increment
revenues attributable to the state college Project Area to (i) fund
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the costs of certain infrastructure items necessary for the
Verdemont Area and (ii) to subsidize the payment of assessments
attributable to Assessment District No. 987 which are or have been
levied on low- and moderate-income households who are suffering a
hardship through the inability to pay such assessments. The Loan
shall be established on the followinq terms:
a. The Loan proceeds will be used exclusively by the
City for the purposes of causing the undertakinq of the
infrastructure improvements required for the Verdemont Area, to
o subsidize the payment of assessments levied through Assessment
District No. 987 on behalf of low- and moderate-income households
who have demonstrated a hardship to the city and the Agency and to
pay any incidental costs attributable thereto.
b.
The term of the Loan shall be for
years. The
principal amount of the Loan shall be due, toqether with accrued
interest thereon, on
The city shall have the right to
prepay all or a part of the Loan plus accrued interest without
penalty.
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c. Interest shall accrue at the rate of _, per annum
from the date that funds representinq Loan proceeds are advanced to
the city and will continue until the debt is paid in full.
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2.
Renavment.
The City aqrees to repay the Aqency
for the Loan created pursuant to this Aqreement from and to the
extent funds are available to the City throuqh the levy of
assessments or throuqh other sources as may be leqally available to
the City for the repayment of such funds.
3. Miscellaneous.
a. This Loan Aqreement shall bind and inure to the
o benefit of the successors and assiqns of each of the parties
hereto.
b. Each party aqrees to perform any further acts and
execute and deliver any documents which may be necessary to carry
out the provisions or intent of this Loan Aqreement.
c. This Loan Aqreement may be amended at any time by
the written aqreement of the parties hereto.
No amendment or
waiver of the terms hereof shall be valid unless contained in
writinq and executed by the parties to this Loan Aqreement.
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d. The parties hereby agree that this Loan Agreement
has been executed and delivered in the State of California" and
shall be construed, enforced and governed by the laws thereof.
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e. In the event that any provision in this Loan
Agreement shall be held invalid or unenforceable, such provision
shall be severable from, and such invalidity or unenforceability
shall not be construed to have any effect on, the remaining
provisions of this Loan Agreement.
f. This Loan Agreement contains the entire agreement
between the parties hereto pertaining to the subject matter hereof,
with the exception of the other agreements referenced explicitly or
implicitly herein. This Loan Agreement supersedes all prior and
contemporaneous agreements and understandings of the parties with
respect to the matters resolved herein, and there are no
warranties, representations or other agreements between the parties
in connection with the subject matter hereof, except as set forth
or referred to herein.
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IN WITNESS WHEREOF, the parties have siqned this Lean
Aqreement as of the date first above written.
APPROVED AS TO
FORM AND CONTENT:
REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO
By:
APPROVED AS TO
FORM AND CONTENT:
CITY OF SAN BERNARDINO
By:
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