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HomeMy WebLinkAboutRA 2011-002RESOLUTION NO RA 2011-002 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO, CALIFORNIA, IRREVOCABLY ALLOCATING FUNDS FOR COMPLETION OF THE CITY OF ATASCADERO'S HISTORIC CITY HALL PROJECT WHEREAS, the City Council for the City of Atascadero (the "City") has adopted the Redevelopment Plan for the Project Area (the "Redevelopment Plan"), and, WHEREAS, the Community Redevelopment Agency of Atascadero (the "Agency") and the Agency Board of Directors ("Board") 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 in the Project Area, and, WHEREAS, on December 22, 2003, the San Simeon earthquake, declared a natural disaster by the President of the United States, severely damaged the historic City Hall building, located in the Project Area within the City; and, WHEREAS, the City has commenced a construction project to rehabilitate the Historic City Hall (the "Project"), which public facilities upon their completion will be owned and operated by the City; and, WHEREAS, the Project includes design, de -construction, construction, project/construction management, inspection, testing, permitting, construction support, grant administration, general conditions and other costs associated with the repair, hazard mitigation and rehabilitation of the Historic City Hall, its grounds, adjacent parking lot and adjacent public infrastructure, and, WHEREAS, the Project is estimated to cost $42,926,000, of which the majority of the funding will come from Federal and State grant funds due to the historic nature of the City Hall and the fact that it was damaged in a natural disaster, but there remains a gap between the total estimated cost of the Project and the amount of grant funds and other public funds available for the Project; and, WHEREAS, the Project 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 Project will alleviate blighting conditions, attract additional tourists and assist with improving physical aesthetics, and, WHEREAS, the Project is consistent with and will promote the Agency's Implementation Plan, and, Community Redevelopment Agency of Atascadero Resolution No. RA 2011-002 Page 2 of 4 WHEREAS, the construction of the Project conforms to the General Plan of the City, and, Ulm WHEREAS, a portion of the funding for the Project is through Federal and State reimbursement grants, and, WHEREAS, pursuant to Health and Safety Code Section 33445, the Agency may, with the consent of the City, pay part or all of the cost of the Project if the Board and the City make certain specified findings, and, WHEREAS, on August 8, 2006 the Agency's Board appropriated $2 million to be used as matching funds for the grant reserved for the City by the California Cultural and Historical Endowment ("CCHE"), and, WHEREAS, on May 13, 2008, the Board appropriated an additional $6,527,700 to cover an existing funding shortfall for the rehabilitation Project and to assure the CCHE that the City intends to move forward with the Project; and, WHEREAS, on July 27, 2010, the Board approved a reimbursement agreement by and between the City and the Agency to provide for the Agency to reimburse the City for the City's repayment of bonds issued by the City to assist with the financing of the Project; and, WHEREAS, the Agency is authorized by the California Redevelopment Law to enter into a binding contract ("Contract") with the City pursuant to which the Agency will irrevocably commit Agency monies, and due to the Agency's reimbursement obligation, the Agency intends to provide funding in the amount of $13,000,000 00 ("the Agency Funds") to assist the City with the cost of the Project because the Project will directly benefit the Project Area, and, WHEREAS, the Agency is authorized by the California Redevelopment Law to enter into a binding loan agreement ("Loan Agreement") with the City and the Agency intends to execute a no -interest loan agreement with the City, providing up to $10,000,000 00 ("the Agency Loan") of monies to the City, to serve as a "bridge loan" to meet the cash flow needs of the Project while the City is waiting for Federal and State grant funds to be forwarded to meet incurred Project costs, and, WHEREAS, the City's only means of providing sufficient cash flow for the project while awaiting these reimbursement funds is through the Agency Loan, and, WHEREAS, in the absence of the Agency Funds and the Agency Loan, the City would lack sufficient capital or general funds available which could be used to undertake the Project and bring it to completion and it is not practical to arrange for assessment district or similar financing for the Project, and, WHEREAS, the staff report to the Agency at its meeting held on January 14, 2011 (the "Staff Report," incorporated herein by reference), which sets forth facts supporting the findings Community Redevelopment Agency of Atascadero Resolution No. RA 2011-002 Page 3 of 4 made in this Resolution pursuant to Section 33445 of the Health and Safety Code, has been prepared to accompany this Resolution. NOW, THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of Atascadero 1 That the Board hereby finds and determines pursuant to California Health and Safety Code section 33445 that (a) the Project will be of benefit to the Project Area by helping to eliminate blight within the Project Area, (b) no other reasonable method of financing the gap between the total cost of construction of the Project and the funds available to the City is available to the community; (c) Agency assistance for the Project is consistent with the Agency's current Implementation Plan. The factual and analytical basis used by the Agency in making these findings and determinations is set forth in the Staff Report, and records regarding the Project. 2 That the Board finds and determines that pursuant to California Health and Safety Code section 33445(e)(2)(B), the use of tax increment funds for the Project is authorized because the City Hall was damaged in a earthquake that was declared by the President of the United States to be a natural disaster 3 That the Agency reaffirms its financial commitment to the Project and desires that the Project continue to move forward in a manner that will most effectively provide the foregoing benefits to the Project Area. 4 That the Board approves the expenditure of the Agency Funds and Agency Loan set forth in the Contract, between the Agency and the City and submitted to the Agency in connection with consideration of this Resolution. 5 That the Board directs the Executive Director of the Agency to execute the Contract with the City irrevocably committing the Agency Funds and the Agency Loan to the City for the Project and requiring that the Agency Funds be held in a separate account (Historic City Hall Project Account) 6 That the Board directs the Executive Director of the Agency to segregate thirteen million dollars and no cents ($13,000,000 00), within the Agency's accounts to be held in a the Historic City Hall Project Account upon execution of the Contract governing the use of and accounting for the Agency Funds 7 That the Agency hereby authorizes the Executive Director of the Agency to execute a loan agreement for up to $10,000,000 with the City of Atascadero and to, in his discretion, segregate that amount within the Agency's accounts to be held in a separate account upon execution of the documentation memorializing the Agency Loan. IT IS FURTHER RESOLVED AND ORDERED that this resolution will become effective upon the effective date of approval by the Agency's Board of Directors. Community Redevelopment Agency of Atascadero Resolution No. RA 2011-002 Page 4 of 4 On motion by Board Member O'Malley and seconded by Board Member Clay, the foregoing resolution is hereby adopted in its entirety on the following roll call vote AYES Board Members Clay, Kelley, O'Malley, Sturtevant, and Chairperson Fonzi NOES None ABSENT None ADOPTED January 14, 2011 COMMUNITY REDEVELOPMENT AGENCY OFATASCADERO By Roberta onzi, Chairperson �1 ATTEST Marcia McClure Torgerson, C.M.0 , Board Secretary APPROVED AS TO FORM Brian A. Pierik, Agency General Counsel