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HomeMy WebLinkAboutRA003-2011 Capital ProjectsF777— FINANCING 7r FINANCING CONTRACT ATASCADERO CAPITAL PROJECTS THIS FINANCING CONTRACT ("Contract") is made into and effective this 14th day of January, 2011 by and between the CITY OF ATASCADERO, a general law city and municipal corporation ("City") and the COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO, a public body, corporate and politic ("Agency") Hereinafter, City and Agency shall be referred to collectively as the "Parties" and singularly as the "Party " RECITALS WHEREAS, the City Council previously adopted a Redevelopment Plan (the "Redevelopment Plan") for a redevelopment project area (the "Project Area"), and, WHEREAS, the Agency is vested with responsibility pursuant to the Community Redevelopment Law (Part 1 of Division 24 of Health and Safety Code of the State of California) (the "Law") to implement the Redevelopment Plan both within and without the Project Area, and, WHEREAS, the governing Board of the Agency has identified a list of priority blight elimination projects within the City (Project List) for the Agency; and, WHEREAS, the Agency has commenced or will soon commence construction on each of the projects of the Project List; and, WHEREAS, the Project List consists of the following Projects, hereinafter known collectively as "Projects" Wayfinding Signage Downtown Pedestrian Bridge Downtown Parking Downtown Restrooms Commercial Property Purchase Archway Sign Creek Trail Extension Creek Improvements Maiden Statue Restoration Downtown Streetscape Downtown Lighting Projects Lewis Ave Bridge and WHEREAS, the Wayfinding Signage Project listed in the Project List provides for plans and construction of the Wayfinding Program including downtown pedestrian signs, one entrance (to the City) sign, and one monument sign to enhance pedestrian and motor traffic navigation in the downtown area and is included in the Redevelopment Project Area, and, WHEREAS, the Wayfindmg Signage Project listed in the Project List has been a priority for the Agency governing Board and has been funded in two of the three previous two-year budget cycles, and, WHEREAS, the Wayfinding Signage Project listed in the Project List was ranked by the Agency governing Board in June, 2010, as the number one priority of all outstanding projects and, WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List provides for the design and construction of a pedestrian bridge across Atascadero Creek from Colony Square to the Sunken Gardens to enhance pedestrian and reduce motor traffic in the downtown area and is included in the Redevelopment Project Area, and, WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List has been a priority for the Agency governing Board and has been funded in a previous two-year budget cycle, and, WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List was ranked by the Agency governing Board in June, 2010, as the number two priority of all outstanding projects, and, WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List has construction documents that are approximately 90% complete, and, WHEREAS, the Downtown Parking Project listed in the Project List provides for the design and construction of parking improvements identified in the Downtown Parking Study of 2006 and whose purpose is to enhance business and tourism and eliminate blight in the downtown area which is included in the Redevelopment Project Area, and, WHEREAS, the Downtown Parking Project listed in the Project List has been a priority for the Agency governing Board and has been funded in three previous two-year budget cycles, and, WHEREAS, the Downtown Parking Project listed in the Project List was ranked by the Agency governing Board in June, 2010, as the number three priority of all outstanding projects, and, WHEREAS, the Downtown Restroom Project listed in the Project List provides for the design and construction of public restroom facilities in the Downtown area to enhance business and tourism, improve sanitation and eliminate blight in the downtown area which is included in the Redevelopment Project Area, and, WHEREAS, the Downtown Restroom Project listed in the Project List was ranked by the Agency governing Board in June, 2010, as the number four priority of all outstanding projects, and, 2 WHEREAS, the Commercial Property Purchase Project listed in the Project List provides for the purchase of property in the Redevelopment Area to encourage investment and development and to eliminate blight in the Redevelopment Project Area, and, WHEREAS, the Commercial Property Purchase Project listed in the Project List has been a priority for the Agency governing Board and has been funded in two of the three previous two- year budget cycles, and, WHEREAS, the Commercial Property Purchase Project listed in the Project List was ranked by the Agency governing Board in June, 2010, as the number five priority of all outstanding projects, and, WHEREAS, the Archway Sign Project listed in the Project List provides for the construction of an archway sign as part of the larger Downtown design. The Sign has been fully designed and replicates an historic sign that previously existed Downtown and whose purpose is to enhance business and tourism and eliminate blight in the downtown area which is included in the Redevelopment Project Area, and, WHEREAS, the Archway Sign Project listed in the Project List has been a priority for the Agency governing Board and has been funded in two of the three previous two-year budget cycles, and, WHEREAS, the Archway Sign Project listed in the Project List was ranked by the Agency governing Board in June, 2010, as the number seven priority of all outstanding projects, and, WHEREAS, the Creek Trail Extension Project listed in the Project List provides for the design and construction of an extension of the Atascadero Creek trail from the Downtown area to the City's new Colony Park Community Center to enhance pedestrian traffic between the two endpoints while promoting a pedestrian -friendly green community and the elimination of blight in the downtown area which is included in the Redevelopment Project Area, and, WHEREAS, the Creek Trail Extension Project listed in the Project List was ranked by the Agency governing Board in June, 2010, as the number eight priority of all outstanding projects, and, WHEREAS, the Creek Improvements Project listed in the Project List provides for creek clean up, bank stabilization, and aesthetics to enhance the downtown area and is included in the Redevelopment Project Area, and, WHEREAS the Creek Improvements Project listed in the Project List has been a priority for the Agency governing Board and has been funded in the three previous two-year budget cycles, and, WHEREAS, the Maiden Statue Restoration Project listed in the Project List provides for the restoration, relocation, and re -installation of the historic Maiden Statue This Statue is also known as the Wrestling Bacchantes and was created by the Italian artist Petrilla and exhibited at the 1904 World's Fair by the Italian Government. Atascadero's Founder, E G Lewis, purchased 3 it for display in the Civic Center It was located in the City's downtown and included in the Redevelopment Project Area at the time that it was transported to Cambria, California for restoration, and, WHEREAS the Maiden Statue Restoration Project listed in the Project List has been a priority for the Agency governing Board and has been funded in the three previous two-year budget cycles, and, WHEREAS, the Downtown Streetscape Project listed in the Project List provides for the design and construction of decorative sidewalk and bridge railings, decorative lighting, and street paving within the downtown core to enhance safety, improve transportation and eliminate blight which is a priority goal included in the Redevelopment Area goals, and, WHEREAS, the Downtown Streetscape Project listed in the Project List is the third and last phase to complete the project; and, WHEREAS, the Downtown Streetscape Project listed in the Project List has been a priority for the Agency governing Board and the various phases have been funded in the five previous two-year budget cycles, and, WHEREAS, the Downtown Streetscape Project listed in the Project List is fully designed and has gone out to bid, bids were refected by the City Council and will go out to bid a second time, and, WHEREAS, the Downtown Streetscape Project listed in the Project List received appropriated grant funding from the Federal American Recovery and Reinvestment Act in the amount of $685,000, and, WHEREAS, the Downtown Lighting Project listed in the Project List provides for the design and construction of decorative lighting and power outlet improvements throughout the downtown area to enhance tourism, improve safety and eliminate blight fronting properties throughout the downtown core which is a priority goal included in the Redevelopment Area goals, and, WHEREAS, the Downtown Lighting Project listed in the Project List has been a priority for the Agency governing Board and has been funded in the three previous two-year budget cycles, and, WHEREAS, the Agency has expended over $75,000 over the last 5 years on the Downtown Lighting Project listed in the Project List; and, WHEREAS, the Lewis Avenue Bridge Project listed in the Project List provides for the required contractual Atascadero Creek maintenance and vegetation control necessary as a result of the recent construction of the Lewis Avenue Bridge over the Atascadero Creek within in the Redevelopment Area to enhance pedestrian and motor traffic in and around the Downtown Area and to eliminate blight in the Redevelopment Project Area, and, 2 WHEREAS, the Agency contributed significant funding for the construction of the Lewis Avenue Bridge Project and the required creek maintenance is a condition of that Project; and, WHEREAS, the Lewis Avenue Bridge Project listed in the Project List has been a priority for the Agency governing Board and has been funded in the three previous two-year budget cycles, and, WHEREAS, the facilities in the Project List upon their completion will be owned and operated by the City; and, WHEREAS, the City lacks sufficient capital or general funds available which could be used to fully fund the Projects and bring them to completion and it is not practical to arrange for assessment district, City -paid bond issue, or similar financing for the Projects, and, WHEREAS, the Projects will address the goals and objectives of the Redevelopment Plan for the Project Area and will be of benefit to the Project Area in that the Projects will attract additional tourists, assist with improving physical aesthetics, deter crime, stimulate additional desired activity in the Project Area, and alleviate blighting conditions in the Project Area, and, WHEREAS, the Projects are consistent with and will promote the Agency's Implementation Plan, and, WHEREAS, the Agency intends to provide funding ("the Agency Funds") to assist the City with the cost of the Projects because the Projects will directly benefit the Project Area, and, follows WHEREAS the estimated cost of the individual Projects on the Project List are as Wayfinding Signage Downtown Pedestrian Bridge Downtown Parking Downtown Restrooms Commercial Property Purchase Archway Sign Creek Trail Extension Creek Improvements Maiden Statue Restoration Downtown Streetscape Downtown Lighting Projects Lewis Ave Bridge Total Projects Cost $ 168 000 1 680 000 840 000 672,000 2 050 000 720 000 1 512 000 150 000 51 590 252 820 72 200 8 210 $ 8 176 820 and WHEREAS, pursuant to Health and Safety Code Section 33445, the Agency may, with the consent of the City Council, pay part or all of the cost of the construction of the Project if the Board and the City make certain specified findings, and, WHEREAS, a duly noticed Agency meeting was held on January 14, 2011 wherein the Agency adopted Resolution No RA 2011-003 making all required findings for the use of Agency funds for the Projects pursuant to Section 33445 5 NOW, THEREFORE, the Parties hereto state and agree as follows 1 The purpose of this Contract is to set forth the understanding and contract of the Parties with respect to the Agency's commitment to fund the Projects The contents of this Contract are intended to be as comprehensive as possible with respect to the Agency's commitment of funds to the Projects yet not exhaustive with respect to additional issues that may arise relative to the development of the Projects. In the event that issues occur that are not identified in this Contract, the Parties agree to work together in good faith to resolve each matter 2 The Parties understand that the City will be required to complete final planning and public bidding required on the Projects. Those final plans and the public bidding are prerequisites for the City's construction of the Projects, including the improvements that will be of benefit to the Project Area. 3 The estimated total cost of the Projects is $8,176,820 ("Total Cost") The Agency anticipates that the Projects will address the goals and objectives of the Redevelopment Plan for the Project Area and will be of benefit to the Project Area in that the Projects will attract additional tourists, assist with improving physical aesthetics, deter crime, stimulate additional desired activity in the Project Area, and alleviate blighting conditions in the Project Area. The Agency has agreed to commit a total sum of eight million one hundred seventy-six thousand eight hundred twenty dollars ($8,176,820 00) ("Agency Funds") to the Projects to pay for the direct benefit to the Project Area. The parties understand and agree that while the estimated total cost of the Projects is $8,176,820, the actual cost for each individual component of the Projects is subject to change The Agency's commitment of $8,176,820 is a commitment to all of the Projects and recognizes that some components will cost less than the estimate and some will cost more Any cost in excess of $8,176,820 must be borne by the City 4 The Parties agree that the Agency shall use the Agency Funds to the extent that such funds have not been previously committed to pay for and/or reimburse City for costs and expenses associated in any way with the design and construction of the Projects 5 Within thirty (30) business days of the Parties executing this Contract, Agency shall segregate the sum of eight million one hundred seventy-six thousand eight hundred twenty dollars ($8,176,820 00) within the Agency's accounts to be held in a separate account (`Blight Elimination Projects Fund") to pay the Agency's share of the Projects' costs. The Agency Funds shall be held in the Blight Elimination Project Fund until the later of two (2) months from the date the project is completed, two (2) months from the date of the final invoice, or six (6) months from the closure of any grants related to the Project. The City shall request reimbursement from the Agency for Projects' costs actually incurred and the Agency shall reimburse the City from the Agency Funds in the Blight Elimination Project Fund. It is understood and agreed between the Parties that any funds remaining in the Blight Elimination Project Fund at the expiration of the later of two (2) months from the date the Project List is completed, two (2) months from the date of the final invoice, or six (6) months from the closure of any grants related to the Project List, shall revert to the full control and discretion of the Agency 6 The City understands and agrees that a portion of the source of the Agency Funds may be the proceeds of tax exempt bonds secured by the tax increment revenue the Agency 0 receives pursuant to California Health and Safety Code Section 33670 (the "Bonds") The City covenants and agrees with respect to the Projects to comply with all applicable requirements of the federal Internal Revenue Code necessary to preserve the tax-exempt status of the interest on the Bonds and specifically covenants, without limiting the generality of the foregoing, as follows (a) Private Activity The City will take no action or refrain from taking any action or make any use of the proceeds of the Bonds or of any other monies or property which would cause the Bonds to be "private activity bonds" within the meaning of Section 141 of the Internal Revenue Code of 1986, as amended, and (b) Arbitrage The City will make no use of the proceeds of the Bonds or of any other amounts or property, regardless of the source, or take any action or refrain from taking any action which will cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and (c) Federal Guaranty The City will make no use of the proceeds of the Bonds or take or omit to take any action that would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended, and (d) Information Reporting. The City will cooperate with the Agency in providing information that the Agency needs to comply with the informational reporting requirement of Section 149(e) of the Internal Revenue Code of 1986, as amended, and (e) Hedge Bonds, The City will make no use of the proceeds of the Bonds or any other amounts or property, regardless of the source, or take any action or refrain from taking any action that would cause the Bonds to be considered "hedge bonds" within the meaning of Section 149(g) of the of the Internal Revenue Code of 1986, as amended, unless the City takes all necessary action to assure compliance with the requirements of Section 149(g) of the of the Internal Revenue Code of 1986, as amended, to maintain the tax exempt status of interest on the Bonds for federal income tax purposes and such action has been approved by the Agency 7 In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being Parties to an contract as defined in Section 895 of said code, the Parties hereto, as between themselves pursuant to the authorization contained in Sections 895.2 and 895 6 of said code, will each assume the full liability imposed upon it or any of its officers, agents or employees by law for personal injury, property damage or loss to third Parties caused by a negligent or wrongful act or omission of that party occurring in the performance of the Contract. To achieve the above stated purpose, each party indemnifies and holds harmless the other party for any damage, loss, cost or expense arising out of its own negligent or wrongful acts or omissions. 8 This Contract shall be governed by the laws of California and represents the entire contract of the Parties as to the subject matter of this 9 These obligations, as set forth herein, are binding on the successors, assigns or heirs, including any private or public entities, of both parties 7 10 This Contract shall be governed by the laws of California and represents the entire agreement of the Parties as to the subject matter of this Contract. IN WITNESS WHEREOF, the City and Agency have approved the foregoing FINANCING CONTRACT effective January 14, 2011, and caused the same to be executed by their duly authorized officers as set forth below AGENCY KfBy - Wade G McKinney Executive Director ATTEST By - Marcia McClure Torgerson, C.M.0 Board Secretary Date f`-1 APPROVED AS TO FORM Community Redevelopment Agency of Atascadero By- _- CJ - Brian A. Pierik, Agency General Counsel CITY By-_UAa Wade G McKinney City Manager ATTEST By - Marcia McClure Torgerson, C .M.0 City Clerk Date APPROVED AS TO FORM City of Atascadero Brian A. Pierik, City Attorney