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FINAL 08/11/10
REIMBURSEMENT AGREEMENT
by and between the
COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO
and the
CITY OF ATASCADERO
Dated as of September 1, 2010
(Atascadero Redevelopment Project)
01034.01
REIMBURSEMENT AGREEMENT
THIS REIMBURSEMENT AGREEMENT, dated as of September 1, 2010, by and between
the COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO (the "Agency") and the
CITY OF ATASCADERO (the "City"),
WITNESSETH
WHEREAS, the Agency is a duly constituted redevelopment agency under the laws of
the State of California and pursuant to such laws has duly proceeded with redevelopment
activities within the Atascadero Redevelopment Project (the "Project Area") within the City,
WHEREAS, the redevelopment plan for the Project Area provides for tax increment
financing in accordance with the provisions of Chapter 6, Part 1 of Division 24 of the California
Health and Safety Code and Section 16 of Article XVI of the Constitution of the State of
California, and
WHEREAS, the Agency is authorized, with the consent of the City Council of the City,
to pay all or part of the value of the land for and the cost of the installation and construction of
any building, facility, structure or other improvements which are publicly owned, upon a
determination by the Agency and said City Council that such buildings, facilities, structures or
other improvements are of benefit to the Project Area,
WHEREAS, when the value of such land or the cost of the installation and construction
of such building, facility, structure or other improvement, or both, has been or will be paid or
provided for initially by the City, the Agency may enter into a contract with the City under
which it agrees to reimburse the City for all or part of the value of such land or all or part of the
cost of such building, facility, structure or other improvement, or both, by periodic payments
over a period of years,
WHEREAS, the obligation of the Agency under such contract shall constitute an
indebtedness of the Agency for the purpose of carrying out the redevelopment project for the
Project Area, which indebtedness may be made payable out of taxes levied in the Project Area
and allocated to the Agency under subdivision (b) of section 33670 of the California Health and
Safety Code, or out of any other available funds,
WHEREAS, the City has undertaken the financing of certain public facilities (the
"Project") which will be of substantial benefit to the Project Area,
WHEREAS, the parties hereto in consideration of their mutual undertakings, past and
present, herein and otherwise, desire to provide for repayment by the Agency to the City of the
of a portion of the moneys paid as Lease Payments under and as defined in the Lease
Agreement (each as hereinafter defined), entered into between the Atascadero Public Financing
Authority and the City in the amounts specified in Exhibit A attached hereto and incorporated
herein, which Lease Agreement provided financing for the Project; and
WHEREAS, the Agency and the City have previously determined by resolution that the
Project is of benefit to the Project Area,
NOW, THEREFORE, in consideration of the mutual covenants herein contained it is
agreed by and between the parties hereto as follows
cm
Section 1 Definitions Unless the context otherwise requires, the terms defined in this
Section 1 shall, for all purposes of this Reimbursement Agreement and of any amendment
ft► hereto, and of any certificate, opinion, estimate or other document herein mentioned, have the
meanings herein specified. Any capitalized term not defined herein shall have the meaning
given to such term in the Lease Agreement.
"Agency" means the Community Redevelopment Agency of Atascadero, a
redevelopment agency and public body, corporate and politic, duly organized and existing
under and by virtue of the laws of the State of California.
"Authority" means the Atascadero Public Financing Authority, a joint exercise of powers
authority, duly organized and existing under and by virtue of the laws of the State of California.
"Business Day" means any day of the year other than a Saturday, Sunday or a day on
which banks are authorized or required to be closed in the city in which the Trustee is located.
"City" means the City of Atascadero, a general city and municipal corporation duly
organized and existing under and by virtue of the Constitution and laws of the State of
California.
"Fiscal Year" means each twelve-month period beginning on July 1 of any year and
ending on June 30 of the succeeding year, or any other twelve-month period hereafter adopted
by the City as its official fiscal year period.
"Law" means the Community Redevelopment Law of the State of California,
constituting Part 1 of Division 24 of the California Health and Safety Code and the acts
amendatory thereof and in supplement thereto Whenever reference is made in this
Reimbursement Agreement to the Law, reference is made to the Law as in force on the date of
the execution of this Reimbursement Agreement, unless the context otherwise requires.
"Lease Agreement" means that certain lease agreement, by and between the Authority, as
lessor, and the City, as lessee, dated as of September 1, 2010
"Lease Payments" means all amounts paid by the City as lease payments pursuant to
Section 4.4 of the Lease Agreement.
"Project Area" means the Atascadero Redevelopment Project of the Agency
"Tax Increment Revenues" means all taxes allocated to, and paid into a special fund of the
Agency for the Project Area pursuant to Article 6 of Chapter 6 of the Law and Section 16 of
Article XVI of the Constitution of the State of California, and as provided in the redevelopment
plan for the Project Area, including all payments and reimbursements, if any, to the Agency
specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate
limitations, but excluding any amounts required to be paid to other taxing agencies pursuant to
section 33401 of the Law and any amounts required to be used to improve the communities
supply of low or moderate income housing pursuant to Section 33334.2 of the Law
"Trustee" means The Bank of New York Mellon Trust Company, N.A., its successors and
assigns, acting as trustee under the Trust Agreement, or any other entity then performing the
function of Trustee under the Trust Agreement.
Section 2. Reimbursement; Other Payments Subject to pledges of Tax Increment
Revenues heretofore or hereafter made by the Agency, the Agency and the City agree that, to
the extent necessary but only to the extent available in any Fiscal Year, Tax Increment Revenues
-2-
shall be used and applied to repay the City for all current or previously unreimbursed Lease
Payments made by the City to the Authority under the Lease Agreement. This Reimbursement
Agreement may be amended from time to time by the parties hereto for any purpose and with
any effect whatsoever
Section 3 Default by Agency The Agency's obligations hereunder shall constitute debt
of the Agency for purposes of the Law If the Agency has available Tax Increment Revenues and
shall fail to repay the City or shall fail to pay any other payment required to be paid hereunder
at the time specified herein, and such failure shall continue for a period of ten (10) days, then
the City or, if applicable, any assignee, shall be entitled to exercise any and all remedies
available pursuant to law
Section 4. Remedies Not Exclusive No remedy herein conferred upon the City shall be
exclusive of any other remedy and each and every remedy shall cumulative and shall be in
addition to every other remedy given hereunder or hereafter conferred on the City
-3-
IN WITNESS WHEREOF, the parties hereto have executed this Reimbursement
Agreement as of the day and year first above written.
Attest -
Attest,
Im
En
Marcia McClure .Forgerson
Secretary
Marcia McClure Torgerson
City Clerk.
-4-
COMMUNITY REDEVELOPMENT
AGENCY OF ATASCADERO
By
UIO&
Wade G McKinney
Executive Director
CITY OF ATASCADERO
By
Wade G. McKinney
City Manager
Lease
Payment
Date
3/15/11
9/15/11
3/15/12
9/15/12
3/15/13
9/15/13
3/15/14
9/15/14
3/15/15
9/15/15
3/15/16
9/15/16
3/15/17
9/15/17
3/15/18
9/15/18
3/15/19
9/15/19
3/15/20
9/15/20
3/15/21
9/15/21
3/15/22
9/15/22
3/15/23
9/15/23
3/15/24
9/15/24
3/15/25
9/15/25
3/15/26
9/15/26
3/15/27
9/15/27
3/15/28
9/15/28
3/15/29
9/15/29
3/15/30
9/15/30
3/15/31
9/15/31
3/15/32
9/15/32
3/15/33
9/15/33
3/15/34
9/15/34
EXHIBIT A
AMOUNTS TO BE REIMBURSED
Principal
Component
$ 210,000.00
215,000.00
225,000 00
235,000.00
245,000.00
250,000.00
260,000.00
270,000.00
275,000.00
295,000.00
305,000.00
315,000.00
330,000.00
350,000.00
365,000.00
380,000.00
405,000 00
420,000 00
440,000.00
465,000.00
490,000 00
Interest
Component
$445,96563
382,256.25
382,256.25
382,256.25
382,256.25
382,256.25
382,256.25
382,256.25
379,106.25
379,106.25
375,343.75
375,343 75
371,968.75
371,968 75
367,856.25
367,856.25
362,956.25
362,956.25
358,581.25
358,581.25
353,706.25
353,706.25
348,306.25
348,306.25
341,431.25
341,431.25
335,531.25
335,531.25
329,050.00
329,050.00
322,750.00
322,750.00
314,500.00
314,500.00
305,750.00
305,750.00
296,625.00
296,625.00
287,125.00
287,125.00
277,000.00
277,000.00
266,500.00
266,500 00
255,500.00
255,500.00
243,875.00
243,875.00
rW (Continued on next page)
Exhibit A
Page 1
Total
Lease
Payment
$ 445,965.63
382,256.25
382,256.25
382,256.25
382,256.25
382,256.25
382,256.25
592,256.25
379,106.25
594,106.25
375,343.75
600,343 75
371,968.75
606,968.75
367,856.25
612,856.25
362,956.25
612,956.25
358,581.25
618,581.25
353,706.25
623,706.25
348,306.25
623,306.25
341,431.25
636,431.25
335,531.25
640,531.25
329,050.00
644,050.00
322,750.00
652,750.00
314,500.00
664,500.00
305,750.00
670,750.00
296,625.00
676,625.00
287,125.00
692,125.00
277,000.00
697,000.00
266,500.00
706,500.00
255,500.00
720,500.00
243,875.00
733,875.00
Lease
Payment
Date
3/15/35
9/15/35
3/15/36
9/15/36
3/15/37
9/15/37
3/15/38
9/15/38
3/15/39
9/15/39
3/15/40
9/15/40
on
(Continued from preceding page)
Principal
Component
1,365,000.00
1,430,000.00
1,500,000.00
1,575,000.00
1,655,000.00
1,740,000.00
Interest
Component
231,62550-
231,625.00
31,62500231,625.00
197,500 00
197,500.00
161,750 00
161,750 00
124,250 00
124,250.00
84,875 00
84,875.00
43,500 00
43,500.00
Exhibit A
Page 2
Total
Lease
Payment
231,625.00
1,596,625.00
197,500.00
1,627,500.00
161,750.00
1,661,750.00
124,250.00
1,699,250.00
84,875.00
1,739,875.00
43,500.00
1,783,500.00