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HomeMy WebLinkAbout2011-009 Financing Blight Reduction & Economic Growth RDA 77 �. p2 (1 (e)�'S- ao !J FINANCING CONTRACT CONTRACT SERVICE FOR BLIGHT REDUCTION AND ECONOMIC GROWTH THIS CONTRACT ("Contract") is made and entered into 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 City and Agency have declared blight elimination and economic development to be a top priority; and, WHEREAS, the Agency is tasked with eliminating blight in the Redevelopment Area by creating fobs, improving properties, and attracting new businesses through marketing and business attraction efforts, and, WHEREAS, the Agency is given certain legal abilities that provide a revenue stream for these activities including collecting tax increment and issuing financings, and, WHEREAS, the Agency has used these revenues to purchase properties, build capital projects, and implement programs that market and develop the community's economy; and, WHEREAS, the City has commenced a number of activities to reduced blight and promote economic growth (the "Contract Service"), including but not limited to Economic Development—services may include but are not limited to providing an Office of Economic Development; implementing a Fagade Improvement Program, providing Site Design Assistance, executing a Permit Fee Waiver Program, conducting Economic Development Studies, implementing a Sign Program, and providing other economic stimulus programs in the Redevelopment Area Tourism Marketing and Promotion — services may include but are not limited to advertising; conducting special events, supporting the Visitors & Conference Bureau, providing a Tourism, Marketing and Promotion Program, and providing other tourism, marketing and promotion services Downtown Maintenance and Beautification — services may include but are not limited to providing a higher maintenance level in the Sunken Gardens, maintenance downtown streetscape and landscape, downtown tree trimming services, Sunken Gardens fountain maintenance, steam cleaning of the downtown sidewalks, street sweeping in the downtown core, trash pickup and other extra maintenance services in the downtown core, provision and maintenance of holiday enhancements, and other downtown maintenance and beautification services Administration — includes administrative costs related to the provision and funding economic development, tourism, marketing, promotion and downtown maintenance and beautification. Services may include, but are not limited to legal fees, invoice payment; record retention services, audit services, and other administrative services, and, WHEREAS, the Contract Service addresses the goals and objectives of the Redevelopment Plan for the Project Area and will be of benefit to the Project Area in that the Contract Service will alleviate blighting conditions, attract additional tourists and assist with improving physical aesthetics, and, WHEREAS, the Contract Service is consistent with and will promote the Agency's Implementation Plan, and, WHEREAS, Section 33126(b) of the Law dictates that the Agency may contract with any other agency for the furnishing of any necessary staff services associated with or required by redevelopment and which could be performed by the staff of an agency; and, WHEREAS the Agency is authorized by the California Redevelopment Law to enter into a binding contract with the City pursuant to which the Agency will irrevocably commit the Agency Funds to the Contract Service the Agency intends to provide funding in the amount of $5,621,180 ("the Agency Funds") to assist the City with the cost of the Contract Services because the Contract Services will directly benefit the Project Area, and, WHEREAS, the Agency desires to contract for Contract Services for a period of seven years and, WHEREAS, a duly noticed public meeting of the Agency was held on January 14, 2011 wherein the Agency adopted Resolution No RA 2011-005 making all required findings for the use of Agency monies for the Contract Service NOW THEREFORE, the Parties hereto state and agree as follows 1 The purpose of this Contract is to set forth the understanding and agreement of the Parties with respect to the Agency's commitment to fund the Contract Service The contents of this Contract are intended to be as comprehensive as possible with respect to the Agency's commitment of Agency Funds to the Contract Service yet not exhaustive with respect to additional issues and expenses that may arise relative to the development of the Contract Service In the event that issues and expenses occur that are not identified in this Contract, the Parties agree to work together in good faith to resolve each matter 2 2 The Parties understand that the City will be required to complete public bidding as required on the Contract Service The public bidding may be prerequisites for the City's Contract Service activities, including improvements that will be of benefit to the Project Area. 3 The Agency anticipates that the Contract Service will address the goals and objectives of the Redevelopment Plan for the Project Area and will be of benefit to the Project Area by alleviating blighting conditions, attracting additional tourists, and assisting with improving physical aesthetics The Agency has agreed to commit a sum of five million six hundred twenty-one thousand one hundred eighty dollars and no cents ($5,621,180 00) ("Agency Funds") over the next seven fiscal years to pay for the direct benefit to the Project Area. 4 Within thirty (30) business days of the Parties executing this Contract, Agency shall segregate the sum of five million six hundred twenty-one thousand one hundred eighty dollars and no cents ($5,621,180 00), within the Agency's accounts to be held in a separate account ("Economic Growth Account") to pay the Contract Service costs for the next seven fiscal years The City shall request reimbursement from the Agency for Contract Service costs actually incurred and the Agency shall reimburse the City from the Agency Funds from the Economic Growth Account. 5 The Agency agrees that, at the conclusion of seven fiscal years, the Agency and the City shall evaluate the success of the Contract Service activities to determine the future need of such Contract Service to benefit the Project Area. 6 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 agreement 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 7 This obligations, as set forth herein, are binding on the successors, assigns or heirs, including any private or public entities, of both parties 8 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 Contract Service for Blight Elimination and Economic Growth effective January 14, 2011, and caused the same to be executed by their duly authorized officers as set forth below 3 AGENCY CITY By. By. Wade cKinney Wade G McKinney Executive Director City Manager ATTEST ATTEST �au By- Marcia McClure Torgerson, C'.M.0 Marcia McClure Torgerson, C.M.0 ' Board Secretary City Clerk f Date / — is—)) Date APPROVED AS TO FORM APPROVED AS TO FORM Community Redevelopment Agency City of Atascadero of Atascadero L_�a. 4 B c� By y �. Brian A. Pierik, Agency General Counsel Brian A Pierik, City Attorney 4