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HomeMy WebLinkAboutSpecial Meeting Agenda Packet 011411ARCHIVE COPY CITY CLERK NOTICE OF A SPECIAL MEETING COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO Friday, January 14, 2011 5:30 p.m. City of Atascadero City Hall 6907 EI Camino Real, Conference Room #4 Atascadero, California CONTRACTING SERVICES WITH THE CITY OF ATASCADERO AND BUDGET ADJUSTMENTS ROLL CALL: 1. Mid Year Budget Adjustments and Appropriations ■ Recommendations: Agency Board: 1. Adopt Draft Resolution amending the 2010-2011 fiscal year budget; and, 2. Appropriate funds for Blight Elimination Projects and for Contract Services for Blight Elimination and Economic Growth for future fiscal years as Staff has recommended below: Fiscal Year Project Total Contract Services for Blight Reduction and Economic Growth Blight Elimination Projects 2011-2012 $ 774,680 $ 705,000 $ 1,479,680 2012-2013 $ 782,530 $ 1,032,000 $ 1,814,530 2013-2014 $ 798,810 $ 45,000 $ 843,810 2014-2015 $ 801,700 $ 1,020,000 $ 1,821,700 2015-2016 $ 813,880 $ 45,000 $ 858,880 2016-2017 $ 816,540 $ 1,020,000 $ 1,836,540 2017-2018 $ 833,040 $ 25,000 $ 858,040 $ 5,621,180 $ 3,892,000 $ 9,513,180 1 Fiscal Impact: $445,970 decrease in Redevelopment Agency General Fund revenues and $2,962,260 increase in Redevelopment Agency General Fund expenditures for fiscal year 2010-2011 • $14,400,280 increase in Redevelopment Agency 2010 Financing Project Fund revenues and $14,400,280 increase in Redevelopment Agency 2010 Financing Project Fund expenditures for fiscal year 2010-2011 $2,145,970 increase in revenues for Redevelopment Agency 2010 Financing Debt Service Fund and $741,310 increase in expenditures for Redevelopment Agency 2010 Financing Debt Service Fund for fiscal year 2010-2011 • $5,383,800 increase in expenditures for Low/Moderate Income Housing Fund for fiscal year 2010-2011 $1,479,680 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2011-2012 $1,814,530 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2012-2013 $843,810 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2013-2014 • $1,821,700 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2014-2015 • $858,880 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2015-2016 • $1,836,540 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2016-2017 ® $858,040 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2017-2018 [Executive Director] 2. Historic City Hall Project Contract and Loan Agreement • Recommendations: Agency Board: 1. Adopt the Draft Resolution irrevocably allocating funds for completion of the City of Atascadero's Historic City Hall Project; and, 2. Authorize the Executive Director to execute a Financing Contract with the City of Atascadero for the Historic City Hall Project; and, 3. Authorize the Executive Director to execute a Loan Agreement with the City of Atascadero for the Historic City Hall Project. • Fiscal Impact: Expenditure of $13,000,000 in budgeted 2010 Financing Project Funds. Loan of $10,000,000 in Redevelopment Agency General funds and 2010 Financing Project funds. [Executive Director] 2 3. Blight Elimination Projects Contract ■ Recommendations: Agency Board: 1. Adopt Draft Resolution irrevocably allocating funds for completion of the Agency Identified Blight Elimination Projects; and, 2. Authorize the Executive director to execute a Change Order to the City of Atascadero for the Financing Agreement dated December 9, 2009 for the Zoo Wall Improvement Project in the amount of $180,000; and, 3. Authorize the Executive Director to execute a Financing Contract with the City of Atascadero for the Agency Identified Blight Elimination Projects. ■ Fiscal Impact: Expenditure of $8,176,820 in budgeted Redevelopment Agency General funds and 2010 Financing Project funds. [Executive Director] 4. Affordable Housing Contract ■ Recommendations: Agency Board: 1. Adopt the Draft Resolution irrevocably allocating funds for the production of 24 affordable housing units; and, 2. Authorize the Executive Director to execute a Financing Contract with the City of Atascadero for the production of 24 affordable housing units. ■ Fiscal Impact: Expenditure of $5,383,800 in Low/Moderate Income Housing funds. [Executive Director] 5. Contract Service for Blight Reduction and Economic Growth ■ Recommendations: Agency Board: 1. Adopt the Draft Resolution irrevocably allocating funds for Contract Services for Blight Reduction and Economic Growth; and, 2. Authorize the Executive Director to execute a Financing Contract with the City of Atascadero for contract services for blight reduction and economic growth. ■ Fiscal Impact: Expenditure of $5,621,180 in Redevelopment Agency General funds. [Executive Director] ADJOURNMENT: The Community Redevelopment Agency will adjourn to the next Regular Session. STATE OF CALIFORNIA COUNTY OF SAN LUIS OBISPO CITY OF ATASCADERO MARCIA MCCLURE TORGERSON, C.M.C., being fully sworn, deposes, and says: That she is the duly elected City Clerk of the City of Atascadero and that on Thursday, January 13, 2011, she caused the above Notice to be posted on the doors of the City's Administration Building, 6907 EI Camino Real in Atascadero, California. MARCIA MCCLURE TORGERSON, C.M.C. City Clerk City of Atascadero 3 ITEM NUMBER: RA #1 DATE: 01/14/11 Community Redevelopment Agency of Atascadero Staff Report - Executive Director Mid Year Budget Adjustments and Appropriations RECOMMENDATIONS: 1. Adopt Draft Resolution amending the 2010-2011 fiscal year budget; and 2. Appropriate funds for Blight Elimination Projects and for Contract Services for Blight Elimination and Economic Growth for future fiscal years as follows: Fiscal Year Project Total Contract Services for Blight Reduction and Economic Growth Blight Elimination Projects 2011-2012 $ 774,680 $ 705,000 $ 1,479,680 2012-2013 $ 782,530 $ 1,032,000 $ 1,814,530 2013-2014 $ 798,810 $ 45,000 $ 843,810 2014-2015 S 801,700 $ 1,020,000 $ 1,821,700 2015-2016 $ 813,880 $ 45,000 $ 858,880 2016-2017 $ 816,540 $ 1,020,000 $ 1,836,540 2017-2018 $ 833,040 $ 25,000 $ 858,040 $ 5,621,180 $ 3,892,000 $ 9,513,180 9 ITEM NUMBER: RA #1 DATE: 01/14/11 DISCUSSION: The Redevelopment Agency worked diligently all summer on long-term planning for the Redevelopment Area. The Board defined the seven-year plan, prioritized projects, and ,ssued bonds to be used for the projects. This Agenda item updates the appropriations to reflect the workplan. There are six categories of adjustments: • Issuance of Bonds — Debt Service • Contract Services for Blight Reduction and Economic Growth • Blight Elimination Projects • Historic City Hall Project • Affordable Housing Projects • Urban Futures, Inc. Affordable Housing Analysis Issuance of Bonds — Debt Service $14,400,280 increase in revenues in the 2010 Financing Project Fund for fiscal year 2010-2011 $445,970 decrease in revenues in the Agency General Fund for fiscal year 2010-2011 $2,145,970 increase in revenues in the 2010 Financing Debt Service Fund for fiscal year 2010-2011 $741,310 increase in expenses in the 2010 Financing Debt Service Fund for fiscal year 2010-2011 Bonds were issued over the summer obligating the Agency for future payments. The bond proceeds will be used primarily for the Historic City Hall Project. Budget appropriations were not completed at the time of the issue, so are being included in this Mid -Year Budget Adjustment. The appropriations reflect bond proceeds, debt service reserve, debt service payments, movement of increment to the debt service fund and costs of issuance. Contract Services for Blight Reduction and Economic Growth $774,680 - $833,040 annually for fiscal years 2011-2012 through 2017-2018 There are several components to the contract services for blight reduction and economic growth. These include: • Downtown maintenance and beautification • Economic development • Tourism, marketing and promotions • Modest administration costs X ITEM NUMBER: RA #1 DATE: 01/14/11 Blight Eliminations Projects $25,000 - $2,962,260 annually for fiscal years 2010-2011 through 2017-2018 The Board prioritized outstanding Blight Elimination Projects during the planning sessions and determined the Projects of greatest benefit to the Project Area. In addition, there are adjustments for Projects that are already in progress. The Blight Elimination Project List is as follows: • 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 Avenue Bridge Historic City Hall Project $13,000,000 for fiscal year 2010-2011 The bond issue during the summer was made primarily to complete the Historic City Hall Project. This Project is expected to cost in excess of $40 million, but with grants and public assistance from the Federal Emergency Management Agency and the California Emergency Management Agency, the Agency's portion of the cost is $13 million. The appropriation was not made previously at the time of the bond issue. Affordable Housing Projects $5,343,800 for fiscal year 2010-2011 This appropriation funds a contract with the City for the production of 24 affordable housing units to meet the needs of the community and in accordance with the Housing Production Plan and the State Health and Safety Code. Urban Futures, Inc. Affordable Housing Analysis $40,000 for fiscal year 2010-2011 The Agency Board expressed an interest in buying homes to implement the adopted Housing Production Plan. Urban Futures, Inc. (UFI) was hired to perform an analysis to best meet the needs of the Plan and the community. 7 ITEM NUMBER: RA #1 DATE: 01/14/11 Amendments to the Current Budget The following table reflects proposed budget amendments to the fiscal year 2010-2011 budget. 2010-2011 Budget Amendments Revenues: Bond Proceeds Increment Total Increase /(Decrease) to Revenues Expenses: Issuance of Bonds Cost of Issuance Debt Service Blight Reduction and Economic Growth Blight Elimination Projects Historic City Hall Project Affordable Housing Services Contract Services- Affordable Housing Analysis Total Increase /(Decrease) to Expenditures $ - $ 14, 400, 280 $ 1,700,000 (445, 970) 445,970 (445,970) 14,400,280 2,145,970 295,340 445,970 2,962,260 1,400,280 - 13, 000, 000 - - 5,343,800 40,000 2,962,260 14, 400, 280 741,310 5,383,800 Net Increase / (Decrease) to Fund Balance $ (3,408,230) $ - $ 1,404,660 $ (5,383,800) 2010 Financing Lo Moderate RDA General` 2010 Financing Debt Service Income Fund Project Fund I Fund Housing Fund $ - $ 14, 400, 280 $ 1,700,000 (445, 970) 445,970 (445,970) 14,400,280 2,145,970 295,340 445,970 2,962,260 1,400,280 - 13, 000, 000 - - 5,343,800 40,000 2,962,260 14, 400, 280 741,310 5,383,800 Net Increase / (Decrease) to Fund Balance $ (3,408,230) $ - $ 1,404,660 $ (5,383,800) ITEM NUMBER: RA #1 DATE: 01/14/11 The following table reflects proposed budget appropriation for the Redevelopment Agency General Fund for the fiscal years indicated. Budget Appropriations for Fiscal Year 2011-2012 through 2017-2018 Redevelopment Agency General Fund Revenues: Bond Proceeds Increment Total Increase /(Decrease) to Revenues Expenses: Issuance of Bonds Blight Reduction and Economic Growth Blight Elimination Projects Historic City Hall Project Affordable Housing Services Contract Services- Affordable Housing Analysis Total Increase /(Decrease) to Expenditures Fiscal Year 2011-2012 1 2012-2013 1 2013-2014 1 2014-2015 1 2015-2016 1 2016-2017 1 2017-2018 rr 774,680 782,530 798,810 801,700 813,880 816,540 833,040 705,000 1,032,000 45,000 1,020,000 45,000 1,020,000 25,000 1,479,680 1,814,530 843,810 1,821,700 858,880 1,836,540 858,040 Net Increase / (Decrease) to Fund Balance $ (1,479,680) $ (1,814,530) $ (843,810) $ (1,821,700) $ (858,880) $ (1,836,540) $ (858,040) FISCAL IMPACT: • $445,970 decrease in Redevelopment Agency General Fund revenues and $2,962,260 increase in Redevelopment Agency General Fund expenditures for fiscal year 2010-2011 • $14,400,280 increase in Redevelopment Agency 2010 Financing Project Fund revenues and $14,400,280 increase in Redevelopment Agency 2010 Financing Project Fund expenditures for fiscal year 2010-2011 $2,145,970 increase in revenues for Redevelopment Agency 2010 Financing Debt Service Fund and $741,310 increase in expenditures for Redevelopment Agency 2010 Financing Debt Service Fund for fiscal year 2010-2011 • $5,383,800 increase in expenditures for Low/Moderate Income Housing Fund for fiscal year 2010-2011 • $1,479,680 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2011-2012 • $1,814,530 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2012-2013 • $843,810 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2013-2014 • $1,821,700 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2014-2015 • $858,880 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2015-2016 .01 ITEM NUMBER: RA #1 DATE: 01/14/11 $1,836,540 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2016-2017 $858,040 increase in expenditures for the Redevelopment Agency General Fund in fiscal year 2017-2018 ATTACHMENT: 1. Draft Resolution Amending the 2010-2011 fiscal year budget, and appropriating funding for fiscal years 2011-2012 through 2017-2018. 10 ITEM NUMBER: RA #1 DATE: 01/14/11 DRAFT RESOLUTION A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO AMENDING 2010-2011 FISCAL YEAR BUDGET AND APPROPRIATING REDEVELOPMENT AGENCY GENERAL FUNDS WHEREAS, the City Council adopted Resolution RA 2009-0002 setting for the budget for fiscal years 2009-2010 and 2010-2011; and, WHEREAS, the Agency Board hereby wishes to amend said budget. NOW, THEREFORE, BE IT RESOLVED, by the Agency Board of the Community Redevelopment Agency of Atascadero SECTION 1. The appropriation amounts are amended as follows: Agency General Fund 2010 Financing Project Fund 2010 Financing Debt Service Fund Low / Moderate income Housing Fund 2010-2011 Increase / (Decrease) Revenue Budget Adjutments -$445,970 $14,400,280 $2,145,970 $0 Expenditure Budget Adjustments $2,962,260 $14,400,280 $741,310 $5,383,800 SECTION 2. Redevelopment Agency General Funds are appropriated in the following amounts for the indicated fiscal year: 11 Increase/ Fiscal Year (Decrease) Amount 2011-2012 $ 1,479,680 2012-2013 $ 1,814,530 2013-2014 $ 843,810 2014-2015 $ 1,821,700 2015-2016 $ 858,880 2016-2017 $ 1,836,540 2017-2018 $ 858,040 11 ITEM NUMBER: RA #1 DATE: 01/14/11 SECTION 3. These changes are effective immediately upon adoption of this resolution. On motion by Board Member and seconded by Board Member the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: A YES: NOES: ABSENT: ADOPTED: ATTEST: Marcia McClure Torgerson, C.M.C., Board Secretary APPROVED AS TO FORM: Brian A. Pierik, Agency General Counsel 12 COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO By: Roberta Fonzi, Chairperson ITEM NUMBER: RA #2 DATE: 01/14/11 Community Redevelopment Agency of Atascadero Staff Report - Executive Director Historic City Hall Project Contract and Loan Agreement RECOMMENDATIONS: Agency Board: 1. Adopt the Draft Resolution irrevocably allocating funds for completion of the City of Atascadero's Historic City Hall Project; and 2. Authorize the Executive Director to execute a Financing Contract with the City of Atascadero for completion of the Historic City Hall Project; and 3. Authorize the Executive Director to execute a Loan Agreement with the City of Atascadero for the Historic City Hall Project. DISCUSSION: The Agency Board has indicated, through past actions, that the Historic City Hall Project is a high priority. This priority is high enough that project costs outside the work that will be reimbursed by FEMA, Cal EMA, CCHE and other sources have been budgeted to be funded with Agency general funds and proceeds from the recent financing (bond/reimbursement agreement). The Agency began budgeting for this project in fiscal year 2006-2007 and funding for the Project is included in the Agency's budget. Construction activities for the Project have begun and bond/reimbursement agreement proceeds are now available. Since the earthquake occurred in fiscal year 2003/2004, the Redevelopment Agency has demonstrated financial commitment to the Project by: • Repeated budgeting for cash contributions (transfers) to the City's Historic City Hall Project Fund in order to fund expected Project amounts that will not be paid for by FEMA, CaIEMA, CCHE or other funding sources. • Entering into a financing arrangement in order to fund the Project. (In order to receive a lower interest rate, the City issued bonds, but the Agency received the bond proceeds and is responsible for paying all debt service on the Bonds.) • Providing "Due To /Due From" cash advances to the City's Historic City Hall Project Fund in order to pay invoices while waiting for grant determinations and reimbursements 13 Ir order to protect funding for this Project, the City and Agency need to formalize and document the Agency's commitment to complete the Historic City Hall Project. Staff is recommending that the Board take the following three actions: (1) Adopt the attached draft resolution determining that the Project meets the required findings in Health and Safety Code Section 33445, reaffirming the Agency's financial commitment to the Project, approving the expenditure of Agency funds, approving the loan of Agency funds for the Project, and approving the execution of the Financing Contract irrevocably committing a total of $13,000,000 of Agency Funds to the Project. (2) Authorize the Executive Director to execute a Financing Contract with the City to provide funding for the completion of the Project This Contract commits the Agency to pay a total of $13,000,000 for the Project. This commitment is part of a legally binding financing agreement with the City and once pledged, cannot be reversed. The Agency will not pay the City any additional administrative funds and any funds remaining at the end of the project will be returned to the Agency. (3) Authorize the Executive Director to execute a Loan Agreement with the City in order to provide the necessary cash flow necessary for the Project. This agreement commits the Agency to loan the City up to a maximum outstanding amount of $10,000,000 for cash flow needs of the Project. This loan is intended to be a revolving loan whereby the City borrows enough to pay immediate costs associated with the Project, and then immediately pays back the Agency as it receives cash/reimbursement from the other funding sources. The Project The City's Historic City Hall building, is located at 6500 Palma Avenue in Atascadero, California. This Historic City Hall Project provides for repair, hazard mitigation, and rehabilitation of the vacant Historic City Hall building, grounds, parking lot and adjacent ,.. infrastructure. The project will enhance the beauty of the downtown, increase tourism ' interest in the site and alleviate the blighted conditions. 14 Benefit to Project Area/ Elimination of Blight The Atascadero Administration Building or Historic City Hall was constructed in between 1914 and 1918 by E.G. Lewis the founder of Atascadero. The building is a unique 60,000 square foot, four story, octagonal Italian Renaissance structure that is prominently located in the center of Atascadero and is the dominant feature of Downtown Atascadero. The building is located at the end of the Sunken Gardens Park which was laid out in a classical Beaux Art design to create an axial view corridor to the Building from EI Camino Real and US 101 the two primary travel corridors in Atascadero and northern San Luis Obispo County. Due to the building's architectural grandeur and its historic importance, the Atascadero Administration Building is listed on United States National Register of Historic Places. The Administration Building and Sunken Gardens are proximately located in the center Downtown Atascadero and are visible throughout the Downtown. On December 22, 2003 the building was significantly damaged by the magnitude 6.2, San Simeon Earthquake. The earthquake caused both internal structural damage and physical exterior damage to the building. Rendered unsafe by the earthquake, the building has remained unoccupied since 2003. In its current condition, the Atascadero Administration building meets multiple definitions of both physical and economic blight including: • Long term vacancy • Visible exterior damage • Vandalism and loitering • Security fencing of site • Road closure • Closure of public parking • Impairment of economic investment in surrounding area Due to the building's historic designation and local importance, demolition and removal of the building is impossible. Therefore, the only possible means of eliminating the blighted conditions of the reoccupy the building. building is to repair and Once the Administration Building is repaired the following benefits would occur in Downtown Atascadero further reducing blight throughout the Downtown area: • The visual character and integrity of the most prominent civic structure in County would be restored. • Significant social, political and economic public activity would occur in and around the Building. • Tourist and travelers would be attracted to the Building and Sunken Gardens. • Private economic investment around the Sunken Gardens and EI Camino Real would be expected to occur. • The entire Downtown business district will benefit from the restoration of the most significant architectural and social feature in the center of the Downtown district. • New businesses and services would be attracted to the area near the Building. • Improved vehicular and pedestrian circulation would occur. • Additional public parking would be available. • Vandalism and loitering around the building would be significantly reduced. 15 No Other Method of Financing With the condition of the local, state, and national economy, the City has reduced the general fund budget. All but the highest Council priorities have been cancelled or postponed. The City has indicated to the Agency that sufficient funding is not otherwise available. It is not practical to arrange for an assessment district or other funding mechanism for the project at this time. Consistency with Implementation Plan The Agency's Redevelopment Implementation Plan was last revised in June of 2008. The completion of the Historic City Hall Project is consistent with the Plan and helps to accomplish two of the goals set forth in Section 210, Objectives of the Redevelopment Plan. • Section 210.16 — Protection of significant historical buildings, including, but not limited to the City Administration Building and the Colony House. • Section 210.15 — Elimination or mitigation of other existing blighting conditions and influences, including incompatible and uneconomic land uses, obsolete or substandard structures, inadequate and deteriorated public facilities, and/or small, multiple ownership, irregular or landlocked parcels. • Section 210.6 — Improvement and revitalization of the downtown. • Section 210.11 — Creation/enhancement of recreational and cultural opportunities available to the residents of the Project Area and of the community at -large, including enhancement of Atascadero Lake Park. FISCAL IMPACT: Expenditure of $13,000,000 in budgeted 2010 Financing Project Funds. Loan of $10,000,000 in Redevelopment Agency General funds and 2010 Financing Project funds. ATTACHMENTS: 1. Draft Resolution 2. Draft Financing Contract- Historic City Hall Project 3. Draft Loan Agreement— Historic City Hall Project 16 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, WHEREAS, the construction of the Project conforms to the General Plan of the City; and, LA 44860-2062-7976 v 17 WHEREAS, a portion of the funding for the Project is through Federal and State �,Hnbursement grants; and, WHEREAS, pursuant to Health and Safety Code Section 33445, the Agency may, with !lAe 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 :opayment 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 a; ommit 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 ibz k 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 ��"ianc*ng for the Project; and, WHEREAS, the staff report to the Agency at its meeting held on January 14, 2011 (the _)taff Report," incorporated herein by reference), which sets forth facts supporting the findings made in this Resolution pursuant to Section 33445 of the Health and Safety Code, has been epared to accompany this Resolution. I S, NOW, THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of Atascadero: I. 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 fields 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. On motion by Board Member and seconded by Board Member the foregoing resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: 19 ABSENT: ADOPTED: ATTEST: Marcia McClure Torgerson, C.M.C., Board Secretary APPROVED AS TO FORM: Brian A. Pierik, Agency General Counsel NEI COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO Roberta Fonzi, Chairperson FINANCING CONTRACT HISTORIC CITY HALL PROJECT THIS FINANCING 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, 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 City lacks sufficient capital or general funds available which could be used to fully fund 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 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 attract additional tourists, assist with improving physical aesthetics, and alleviate blighting conditions in the area serving as the gateway to the Project Area; and, 21 WHEREAS, the Project is consistent with and will promote the Agency's implementation Plan; 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 with the City pursuant to which the Agency will irrevocably commit the Agency Funds and the Agency Loan to the Project 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, pursuant to Health and Safety Code Section 33445, and specifically subsection (e)(2)(B) of that Section, 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 public meeting of the Agency was held on January 14, 2011 wherein the Agency adopted Resolution No. making all required findings for the use of Agency monies for the Project pursuant to Section 33445. 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 Project through reimbursement of the City's share of Project costs, up to a defined amount. The contents of this Contract are intended to be as comprehensive as possible with respect to the Agency's commitment of Agency Funds (as defined in paragraph 3 of this contract) to the Project yet not exhaustive with respect to additional issues and expenses that may arise relative to the development of the Project. 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. The Parties understand that the City will be required to complete final planning and public bidding required on the Project. Those final plans and the public bidding are prerequisites for the City's construction of the Project, including the improvements that will be of benefit to the Project Area. 3. The estimated total cost of the Project is $42,926,000 ("Total Cost"). The Agency anticipates that the Project will address the goals and objectives of the Redevelopment Plan for 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 total sum of thirteen million dollars and no cents ($13,000,000.00) ("Agency -unds") to the Project to pay for the Project's direct benefit to the Project Area. 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 2 22 expenses associated in any way with the Proieet including, but not limited to, services and costs for 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. Any previous commitment by the Agency of Agency Funds to the Project shall be deducted from the $13,000,000.00 total amount of Agency Funds available for the Project. 5. Within thirty (30) business days of the Parties executing this Contract, Agency shall segregate the sum of thirteen million dollars and no cents ($13,000,000.00), less any of Agency Funds already spent to date on the Project, within the Agency's accounts to be held in a separate account ("Historic City Hall Project Account") to pay the Agency's share of the Project costs. The Agency Funds shall be held in the Historic City Hall Project Account until 2 months from the latest of the date the project is completed, the date of the final invoice, or the date of resolution of the final audit by regulatory/granting agencies. The City shall request reimbursement from the Agency for Project costs actually incurred and the Agency shall reimburse the City from the Agency Funds from the Historic City Hall Project Account. 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 receives pursuant to California Health and Safety Code Section 33670 (the "Bonds"). The City covenants and agrees with respect to the Project 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 anv action that would cause the Bonds to be considered "hedge bonds" within the meaning of J 23 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 19861, 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 8952 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 neglicyent 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 obligations, as set forth herein, are binding on the successors, assigns or heirs, including any private or public entities, of both parties. 9. 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 By: Wade G. McKinney Executive Director ATTEST: By: Marcia McClure Torgerson, C.M.0 Board Secretary Date: APPROVED AS TO FORM Communih- Redevelopment Agency of Atascadero By: Brian A. Pierik, Agency General Counsel 24 4 CITY By: Wade G. McKinney City Manager ATTEST: By: Marcia McClure Torgerson, C.M.C. City Clerk Date: APPROVED AS TO FORM City, of Atascadero By: Brian A. Pierik, City Attorney LOAN AGREEMENT FOR HISTORIC CITY HALL PROJECT 1. PARTIES AND EFFECTIVE DATE 1.1 Parties to this Agreement. The parties to this Loan Agreement ("Agreement") are (i) The Redevelopment Agency of the City of Atascadero ("Agency"). a public body, and (ii) The Citv of Atascadero ("City"), a California municipal corporation. This Agreement is dated as of January 14, 2011, for reference purposes only. This Agreement will not become effective until the Effective Date described in Section 1.2 below.I 1.2 Effective Date. This Agreement will become legally effective and binding as of the date ("Effective Date") on which this Agreement has been approved by the City Council and the Agency's governing board and executed by the City's and Agency's duly authorized representatives. 2. RECITALS. 2.1 The City Council previously adopted a Redevelopment Plan (the "Redevelopment Plan") for a redevelopment project area (the "Project Area") 2.2 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. 2.3 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. 2.4 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. 2.5 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. ' All Section references shall be to Sections of this Agreement, unless otherwise stated. 25 Loan Agreement Atascadero Redevelopment Agency City of Atascadero Page 2 2.6 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. 2.7 The City lacks sufficient capital or general funds available which could be used to hilly fund the Project and bring it to completion and it is not practical to arrange for assessment district or similar financing for the Project. 2.8 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 attract additional tourists, assist with improving physical aesthetics, and alleviate blighting conditions in the area serving as the gateway to the Project Area. Plan. 2.9 The Project is consistent with and will promote the Agency's Implementation 2.10 Pursuant to Health and Safety Code Section 33445, and specifically subsection (e)(2)(B) of that Section, the Agency may, with the consent of the City Council, pay part or all of the cost of the Project if the Board and the City make certain specified findings. 2.11 Pursuant to Health and Safety Code 33125, the Agency has the general power to execute instruments necessary or convenient to the exercise of its powers and may therefore enter into an agreement to loan funds for the Project; and 2.12 The A-ency Board approved, via adoption of Resolution No. at a duly noticed public meeting of the Agency on January 14, 2011, this no -interest loan agreement with the City to meet the cash flow needs of the Project while the City is waiting for Federal and State grant funds and any other reimbursement grants funds made by third parties to be forwarded to meet incurred Project costs. 2.13 A wherein the Agency adopted Resolution No. making all required findings for the use of Agency monies for the Project pursuant to Section 33445. 3. TERMS. 3.1 Loan Amount; Disbursement of Funds; Repayment of Funds. Loan Agreement Loan Agreement Atascadero Redevelopment Agency & City of Atascadero Page 3 3.1.1 Loan Amount. Agency hereby commits to keep on reserve an amount not to exceed ten million dollars and zero cents ($10,000,000.00) ("Agency Loan"). The entire Loan Amount shall be reserved for the duration of the Project to serve as a revolving loan or series of bridge loans to keep the Project's cash flow liquid during periods in which the City is awaiting reimbursement by the Federal or State government for amounts to which one or both of those governments have pledged to provide funding or is awaiting any other grants made by third parties that would create a situation in which the City would experience a delay between submitting a request for payment and receipt of payment such that the Agency Loan could be necessary to provide sufficient cash flow for the Project. .3.1.2 Disbursement of Funds. The Agency agrees to disburse to the City all or any portion of the total Agency Loan amount upon request by the City. 3.1.3 Projected Repayment of Funds. City agrees to repay to Agency outstanding loan proceeds within thirty (30) days of receipt of grant funds from the Federal or State government(s), or funds from other third party sources. City shall complete the repayment of outstanding loan proceeds within three (3) years of the final disbursement of Federal and State grant funds following completion of the Project audit by the Federal Emergency Management Agency. 3.2 Interest. Any and all portions of the Agency Loan disbursed by the Agency to the City shall not bear interest. 3.3 Commitment to Complete Repayment. In the event the Federal or State government or other third party granting entity does not fulfill its obligation to disburse to City the grant funds that the parties anticipate will be available to repay the Agency Loan, City agrees to repay the Agency Loan, or any portion thereof demanded by the Agency, within ten (10) days following demand by the Agency, provided that such demand may not be made prior to the sixth (6th) anniversary of the completion of the Project. 3.4 Subordination. The City's obligations hereunder shall be paid primarily from the grant funds available to the City from the Federal and State governments for completion of the Project. Obligations not paid out of these funds shall be paid out of all legally available funds of the City. The City's obligations under this Agreement are subject and subordinate to 27 Ln"n Aa—pmnnt Loan Agreement Atascadero Redevelopment Agency & City of Atascadero Page 4 any preexisting City indebtedness including, without implied limitation, bonded indebtedness, and to any other indebtedness including, without implied limitation, bonded indebtedness, which is incurred subsequent to the Effective Date of this Agreement. Without any further action or agreement required of the Agency, the Agency hereby expressly subordinates to any and all such City indebtedness, either heretofore or hereafter incurred, the Agency's right to receive repayment of all or any portion of the Loan. 3.5 No Third Party Beneficiaries. This Agreement is for the sole and exclusive benefit of the Agency and the City. No person or entity not a party to this Agreement is intended to be benefited by any provision of this Agreement and no person or entity not a party to this Agreement shall have any rights, causes of action, or claims against either the Agency or the City due to the fact either the Agency's and/or the City's entry into and performance or non- performance pursuant to this Agreement. 3.5 Counterpart Originals. This Agreement may be executed in two (2) counterpart originals, each of which shall be deemed to be an original, but, when taken together, shall constitute one and the same instrument. CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY A California Municipal Corporation OF ATASCA.DERO A California Public Agency Tom O'Malley, Mayor ATTEST: Marcia McClure Torgerson, City Clerk :ate: APPROVED AS TO FORM: Brian A. Pierik, City Attorney Wade McKinney, Executive Director Marcia McClure Torgerson, Board Secretary Date: Brian A. Pierik, Agency General Counsel ITEM NUMBER: RA #3 DATE: 01/14111 Community Redevelopment Agency of Atascadero Staff Report - Executive Director Blight Elimination Projects Contract RECOMMENDATIONS: Agency Board: 1. Adopt the Draft Resolution irrevocably allocating funds for completion of the Agency Identified Blight Elimination Projects; and 2. Authorize the Executive Director to execute a Change Order in the amount of $180,000 to the City of Atascadero for the Financing Agreement dated December 9, 2009 for the Zoo Wall Improvement Project; and 3. Authorize the Executive Director to execute a Financing Contract with the City of Atascadero for the Agency Identified Blight Elimination Projects. DISCUSSION: The Agency Board has indicated, through past actions, that there is a short list of priority blight elimination projects that the Board would like to see complete. The Agency has either appropriated funding, begun the projects, or has agreed on a priority list of projects that will be completed with current Agency resources. In totality these projects are collectively known as the Identified Blight Elimination Projects and are referred to herein after as "The Project." The Agency began budgeting for many of these projects in the budget cycle that included fiscal years 2005-2006 and 2006-2007. In order to protect funding for the Project, the City and Agency need to formalize and document the Agency's commitment to complete the Project. Staff is recommending that the Board take the following actions: (1) Adopt the attached draft resolution determining that the Project meets the required findings in Health and Safety Code Section 33445, reaffirming the Agency's financial commitment to the Project, approving the expenditure of Agency funds, and approving the execution of the Financing Contract irrevocably committing a total sum of eight million one hundred seventy-six 29 thousand eight hundred twenty dollars ($8,176,820.00) of Agency Funds to the Project. (2) Authorize the Executive Director to execute a Financing Contract with the City to provide funding for the completion of the Project. This Contract commits the Agency to pay a total sum of eight million one hundred seventy- six thousand eight hundred twenty dollars ($8,176,820.00) for the Project. This commitment is part of a legally binding financing contract with the City and once pledged, cannot be reversed. The Agency will not pay the City any additional administrative funds and any funds remaining at the end of the project will be returned to the Agency. The Project ,chile estimated dollar amounts are provided for each phase of the Project, these are informational purposes only. The executed contract is intended to be for the totality ?roject. yfinding Signage $ 168,000 .�wntown Pedestrian Bridge 1,680,000 -downtown Parking 840,000 E;!owntown Restrooms 672,000 Commercial Property Purchase 2,050,000 Archway Sign 720,000 Creek Trail Extension 1,512,000 ,.reek Improvements 150,000 1`aiden Statue Restoration 51,590 N wntown Streetscape 252,820 f ,)wntown Lighting Projects 72,200 Lewis Ave Bridge 8,210 Total Project Cost $ 8,176,820 Wayfinding Signage: The Wayfinding Signage Project provides for plans and I %,istruction of the Wayfinding Program including downtown pedestrian signs, one entrance (to the City) sign, and one monument sign. The Signage will enhance pedestrian and motor traffic navigation in the downtown area will help the traveling public locate key economic development interests within the Redevelopment Area .,(kly and easily. The signage will create interest for the public to spend more time in rs area, or identify places or activities that they may have otherwise not known about w explored. V?rntown Pedestrian Bridge: The Downtown Pedestrian Bridge provides for the -e ign and construction of a pedestrian bridge across Atascadero Creek and will link 'he Colony Square commercial development area with the downtown / Sunken Gardens ,ea. It will create a convenient linkage for pedestrians to travel, shop, and dine more si1v in the currently underutilized downtown core and will enhance pedestrian and -)tar traffic in that area. writown Parking: The proposed parking lot in the downtown core will make it aIe,: `er and more convenient for the public to visit the businesses and activities in this M portion of the Redevelopment Area. The offsite parking allows commercial land to be fully developed with building square footage, with little or no area dedicated to parking spaces. Downtown Restrooms: The restroom facility will reduce the need for unsightly portable toilet facilities during community events, enhance the area for additional business and recreational activities, and will also reduce homeless or other individuals from using the creek riparian area for the same purpose. Commercial Property Purchase: The Downtown core is currently characterized as older underutilized structures with current business activities that are not consistent with the City's economic development goals. The purchase of property would allow the RDA to create a seed project that will set the tone both architecturally and functionally in a manner consistent with RDA Plan and community vision. Archway Sign: The proposed archway sign will create a strong attractive architectural element that signifies the Downtown core "place". It will establish an architectural theme that other building renovations or new construction can incorporate that will help create a unifying theme for the downtown area. Creek Trail Extension: The creek trail extension will create a landscaped and suitably maintained pedestrian corridor that links the Downtown and Redevelopment Area together making the public's experience of shopping, dining or recreating in the area easier and more enjoyable. It will also reduce vehicular traffic and air pollution in the area by supplying an alternative mode of transportation. Creek improvements: Atascadero Creek is a major riparian corridor through the downtown, and it provides flood control protection, passive recreation and wildlife habitat. The proposed Creek Improvement project provides for creek clean up, bank stabilization, and will enhance the visual appearance of the creek as well as help maintain it in a healthy condition. Maiden Statue Restoration: The Maiden 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 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. The Statue has suffered from years of vandalism, neglect and well intended but inappropriate modifications that resulted in a dilapidated condition. The proposed restoration, transport, installation and site improvements of the Statue will revitalize it to a near original condition and locate the Statue in a suitable protective site to help preserve the beauty into the future. Downtown Streetscape: The Project will replace an older, blighted concrete bridge railing that not only looks poorly but also does not meet current highway safety standards. The decorative railing, pilasters and lighting will enhance the safety and appearance of the bridge over Atascadero Creek. 31 Downtown Lighting Project: Portions of the downtown are dark and unsuitable for pedestrian use at night-time. Consequently businesses have not thrived, nor are they open after dark in the area, leading to a reduced ability of owners to invest in the appearance of their buildings / businesses. The improved lighting will allow businesses to effectively stay open later, enhance safety, deter crime, improve sales and reinvest in the structure appearance. Lewis Avenue Bridge Project: The Lewis Avenue Bridge Project provides for the required Atascadero Creek establishment period maintenance and vegetation control �3cessary as a result of the recent construction of the Lewis Avenue Bridge over the Atascadero Creek. The bridge enhances pedestrian and motor traffic in and around the Downtown area. Benefit to Project Area /Elimination of Blight The fundamental purpose of redevelopment agencies is to eliminate blight in areas where private enterprise is unable to do so. A blight assessment made in conjunction .with the designation of the Project Area in 1999 clearly determined that blighted 7onditions existed in the Redevelopment Agency area. There are both physical `°onditions and economic conditions which constitute blight in Downtown Atascadero including: • Unsafe or unhealthy buildings that may result from code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. • Conditions preventing or substantially hindering the effective use or capacity of buildings or lots, which may be caused by substandard design, inadequate size given present market conditions, lack of parking, lack of sufficient pedestrian traffic paths, lack of appropriate vehicle traffic calming solutions, inadequate tourist assistance, facilities and infrastructure, lack of public sanitary facilities, or similar factors. • Adjacent or nearby uses that are incompatible with each other and prevent economic development of the area. • Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots in an area developed for urban use and served by utilities; and, Irne following blighted conditions existed in Downtown Atascadero on January 13, 2011 r n the 6000 block of EI Camino Real: 32 Incompatible auto repair land uses in Downtown. Vacant lot with possible contamination 33 Vacant Lot with junk storage Vacant Fire Damage Building 34 Unusually high number of vacant buildings — board up Jack-in-the-Box Unusually high number of vacant buildings —with vandalism occurring 35 Wayfinding Signage & Archway Sign There is currently no effective signage in the Downtown Area which prevents the traveling public from easily locating key economic development interests. This reduces the amount of activity at the businesses in the Redevelopment Area and leads to blight and an underused commercial community. The Signage will enhance pedestrian and vehicular traffic navigation in the downtown area will help tourists and residents to locate businesses and recreational activities easily and effortlessly. The signage will create interest for the public to spend more time in the area and identify places or activities that they may have otherwise not known about or explored. It will also establish an architectural theme that other building renovations or new construction can incorporate that will help create a unifying theme for the downtown area. Downtown Pedestrian Bridge Currently there exists no direct link from the City's new entertainment hub, Colony Square, and the Downtown. The new theater in Colony Square will draw after -dark patrons that may park, shop or dine in the Downtown area. Without sufficient safe and lighted pedestrian paths, the Redevelopment Area businesses will likely be underutilized and will be less attractive not only to visitors, but also to additional private investment. The Bridge will create this convenient linkage for pedestrians to travel, shop, and dine more easily in the currently underutilized downtown core and will enhance pedestrian and vehicular traffic in that area. It will encourage public use of the area and will, in turn, attract additional private investment thereby eliminating blight. Downtown Parking With the increase of public use of the Downtown area, the need for parking is even more critical. Close, safe, and lighted parking is a priority for Downtown visitors. Particularly with the new theaters opening up soon, the need to for available parking increases. Without sufficient parking, business, restaurant and entertainment customers will be less likely to patronize their favorite shops. The proposed parking lot in the downtown core will make it easier and more convenient for the public to visit the businesses and activities in this portion of the Redevelopment Area and encourages additional public usage of the businesses and amenities in the Downtown. The offsite parking allows commercial land to be fully developed with building square footage, with little or no area dedicated to parking spaces. This opens up more space to be used for commercial purposes and encourages additional private investment. 36 Downtown Restrooms There are no public sanitary facilities in the Downtown. Community, recreational and business -sponsored events require the use of portable toilet facilities. These facilities are unsightly and often deter greater public participation in the events. Additionally, without another near -by option, transient and other individuals use the creek riparian area for the same purpose. The restroom facility will reduce the need for the portable toilet facilities and will enhance the area for additional community activities, bringing more business to the area merchants. This will also encourage longer shopping, dining and entertainment visits to the Downtown. Commercial Property Purchase The Downtown core is currently characterized as older underutilized structures with current business activities that are not consistent with the City's economic development goals. There are unusual amount of vacant building and lots. Blight issues associated with these include junk storage, boarded -up buildings, still standing burned buildings, potential contamination, incompatible land uses, vandalism, aesthetic unsightliness, and attractive nuisance for transients, criminals, and delinquents. The purchase of property would allow the RDA to create a seed project that will set the tone both architecturally and functionally in a manner consistent with RDA Plan and community vision. Such conditions of commercial property can be a deterrent to private investments and tourism. The purchase and renovation of such properties would have a big impact on blight elimination. Creek Trail Extension & Creek Improvements The Atascadero Creek as it passes through Downtown can either be a beautiful community feature or a blighted deterrent to general public use of the area. There currently is no landscaped and suitably maintained pedestrian corridor to links together the Downtown and Colony Park Community Center in Redevelopment Area. Because the area is full of vegetation and doesn't have a path or public access, it is attractive to the transient and juvenile populations. Use of the Creek areas by these populations causes trash buildup, living area camps, and potentially dangerous and unsanitary conditions. Installation of a landscaped pedestrian path, flood control protection, creek clean up, and bank stabilization would transform the Downtown segment of the Atascadero Creek into a delightful community asset. It would encourage general public use of the area, would increase Downtown area business and community activity, and deter unwanted creek activities. 37 Maiden Statue Restoration The Maiden Statue was located in the City's Sunken Gardens and was in dire need to restoration. It has suffered from years of vandalism, neglect and well intended but inappropriate modifications that resulted in a dilapidated condition. It was an eyesore in the middle of Downtown. The Agency contracted with Ethos Art Restoration in Cambria to complete the restoration. That portion of the Project is almost finished and the remainder of the Project would include the relocation of the Statue to Atascadero and its installation at an appropriate location. The restoration of the Statue to near original condition and its prominent display for public viewing would enhance the beauty of the location and encourage tourism and visitors to the area. Downtown Streetscape All phases of the Downtown Streetscape Project have renovated and restored Downtown street pavement, curb, gutter, sidewalk, bulb -outs, medians, drainage, and street furniture. The final phase of the Project will replace an older, blighted concrete bridge railing that not only looks poorly but also does not meet current highway safety standards. Replacement of the railing and installation of pilasters and lighting will enhance the safety and appearance of the bridge over Atascadero Creek, and will bring it up to highway safety standards. Downtown Lighting Project Portions of the downtown are dark and unsuitable for pedestrian use at night-time. Consequently businesses have not thrived, nor are they open after dark in the area, leading to a reduced ability of owners to invest in the appearance of their buildings / businesses. Limited lighted conditions tend to increase criminal activity in the area. The improved lighting will allow businesses to effectively stay open later, thereby improving sales. It will also enhance personal, property, and merchant safety, deter crime, and allow property and business owners to have more available funds to reinvest in the structure appearance. Lewis Avenue Bridge Project The recent construction of the Lewis Avenue Bridge over the Atascadero Creek enhances the pedestrian and vehicular traffic in and around the Downtown area. The last portion of the Lewis Avenue Bridge Project provides for the required contractual Atascadero Creek maintenance and vegetation control necessary as a result of the .,ridge construction. 0 No Other Method of Financing With the condition of the local, state, and national economy, the City has reduced the general fund budget. All but the highest Council priorities have been cancelled or postponed. The City has indicated to the Agency that sufficient funding is not otherwise available. It is not practical to arrange for an assessment district or other funding mechanism for the project at this time. Consistency with Implementation Plan The Agency's Redevelopment Implementation Plan was last revised in June of 2008. The completion of the Project is consistent with the Plan and helps to accomplish goals set forth in Section 210, Objectives of the Redevelopment Plan. • Section 210.1 — The assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation. • Section 210.3 — The provision of adequate land for parking and open space. • Section 210.5 — Expansion and diversification of the community's economic and employment base, through the facilitation of more year-round employment opportunities, including industrial development and expansion, the removal of incompatible land uses, and the installation of public infrastructure. In addition to the Downtown area, the Agency may participate in projects for the purposes of achieving this objective in the industrial area located east of Lewis Avenue, south of Traffic Way and north of Atascadero Creek and west of Rosario/railroad tracks. • Section 210.6 — Improvement and revitalization of the downtown. • Section 210.7 — Increasing the capture of potential commercial trade. • Section 210.8 — Improvement of traffic circulation consistent with the General Plan. • Section 210.10 — Improvement of historical infrastructure deficiencies consistent with goals of the Plan -including street pavement, curb, gutter, sidewalk, sewer, water and storm drainage. • Section 210.11 — Creation/enhancement of recreational and cultural opportunities available to the residents of the Project Area and of the community at -large, including enhancement of Atascadero Lake Park. • Section 210.13 — Elimination of incompatible land uses. • Section 210.14 — Transition of obsolete land uses or uses causing the under - utilization of the underlying land, and assembly of properties to best meet current market needs. • Section 210.15 — Elimination or mitigation of other existing blighting conditions and influences, including incompatible and uneconomic land uses, obsolete or 39 substandard structures, inadequate and deteriorated public facilities, and/or small, multiple ownership, irregular or landlocked parcels. 7�oo Wall Improvement Project —he Agency Board awarded a contract for the completion of the Zoo Wall Improvement -project to the City on December 8, 2009. At that time construction was estimated at $240,000. Since that time, the Project has been better defined and a more current estimate has been established at $420,000. This increase requires a change order to the original contract with the City, for both the time allotted and the funding allocated. FISCAL IMPACT: Expenditure of $8,176,820 in budgeted Redevelopment Agency General funds and 2010 Financing Project funds. ATTACHMENTS: 1. Draft Resolution 2. Draft Financing Contract — Agency Identified Blight Elimination Projects 21 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO, CALIFORNIA, IRREVOCABLY ALLOCATING FUNDS FOR COMPLETION OF THE AGENGY IDENTIFIED BLIGHT ELIMINATION PROJECTS 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, 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 Impro\tements Maiden Statue Restoration Downtown Streetscape Downtown Lighting Projects Lewis A\/e Bridge 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 Wayfinding 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, 41 WHEREAS, the Wayfinding Signage Project listed in the Project List was ranked by the _,ency 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 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 m-anked 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; o.nd, 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 ,,urism, improve sanitation and eliminate blight in the downtown area which is included in the ?Redevelopment Project Area; and, M 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. 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, M 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 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 rejected by the City Council and will go out to bid a second ime; 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, -n, 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, 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, M WHEREAS, the Agency intends to provide finding ("the Agency Funds") to assist the Cite ,,vith the cost of the Projects because the Projects will directly benefit the Project Area; and, WHEREAS, the estimated cost of the individual Projects on the Project List are as foll"A;�: Wayfinding Signage Downtown Pedestrian Bridge Downtown Parking Downtown Restrooms Commercial Property Purchase Archway Sign Creek Trail Extension Creek Impro\tements Maiden Statue Restoration Downtown Streetscape Downtown Lighting Projects Lewis A\/e 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. making all required findings for the use of Agency funds for the Projects pursuant to Section 33445; and, and, WHEREAS, the construction of the Project conforms to the General Plan of the City; WHEREAS, the City lacks 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, City -paid bond issue or any other similar financing for the Project; and, WHEREAS, the Agency may enter into a binding contract ("Contract") with the City pursuant to which the Agency will irrevocably commit the Agency Funds to the Projects; and, WHEREAS, a staff report (the "Staff Report," incorporated herein by reference), which sets forth facts supporting the findings made in this resolution pursuant to Section 33445 of the rte; alth and Safety Code, has been prepared to accompany this resolution; 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 construction of the Project if the Board and the City make certain specified findings. NOW, THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of Ataseadero: 1. That the Board hereby finds and determines that: (a) the Projects will be of benefit to the Project Area; (b) no other reasonable method of financing the gap between the total cost of the Projects and the funds available to the City is available to the community; (c) the Projects will assist in the elimination of one or more blighting conditions inside the Project Area; and (d) Agency assistance for the Projects 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 materials regarding the Project provided to the Agency. 2. That the Agency reaffirms its financial commitment to the Projects and desires that the Projects move forward in a manner that will most effectively provide the foregoing benefits to the Project Area. 3. The Board directs the Executive Director of the Agency to execute the Contract with the City irrevocably committing the Agency Funds to the City for the Projects and requiring that the Agency Funds be held in a separate account. 5. The Board approves the expenditure of Agency Funds as set forth in the Contract, between the Agency and the City and submitted to the Agency in connection with consideration of this Resolution. 6. The Agency hereby authorizes the Executive Director of the Agency to segregate a total 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") upon execution of the Contract governing the use of and accounting for the Agency Funds. IT IS FURTHER RESOLVED AND ORDERED that this resolution will become effective January 14, 2011 upon the approval by the Agency's Board of Directors. M On motion by Board Member and seconded by Board Member , the foregoing resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO By: Roberta Fonzi, Chairperson ATTEST: Marcia McClure Torgerson, C.M.C., Board Secretary APPROVED AS TO FORM: Brian A. Pierik, Agency General Counsel 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 I 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 Wayfmding 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 Wayfinding Signage Project listed in the Project List has been a priority nor the Agency governing Board and has been funded in two of the three previous two-year 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; WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List provides or the design and construction of a pedestrian bridge across Atascadero Creek from Colony `��uare to the Sunken Gardens to enhance pedestrian and reduce motor traffic in the downtown rea 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 c-­cle; and, WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List was inked by the Agency governing Board in June, 2010, as the number two priority of all ��_.�.tstanding 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 vcsign and construction of parking improvements identified in the Downtown Parking Study of x_06 and whose purpose is to enhance business and tourism and eliminate blight in the wntown area which is included in the Redevelopment Project Area; and. WHEREAS, the Downtown Parking Project listed in the Project List has been a priority �- the Agency governing Board and has been funded in three previous two-year budget cycles; 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 ��sign and construction of public restroom facilities in the Downtown area to enhance business A 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. 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 51 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 evious 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 rejected 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 hroughout 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 :luired 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 end to eliminate blight in the Redevelopment Project Area; and, 4 52 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, WIEREAS, 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, WHEREAS, the estimated cost of the individual Projects on the Project List are as follows: 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. _ making all required findings for the use of Agency funds for the Projects pursuant to Section 33445. 5 53 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 'he 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 scall segregate the sum of eight million one hundred seventy-six thousand eight hundred twenty collars ($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 -J-tall 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 firom the closure of any grants related to the Project. The City shall request reimbursement from tiie Agency for Projects' costs actually incurred and the Agency shall reimburse the City from }he Agency Funds in the Blight Elimination Project Fund. It is understood and agreed between Parties that any funds remaining in the Blight Elimination Project Fund at the expiration of 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 :ist, 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 'MW be the proceeds of tax exempt bonds secured by the tax increment revenue the Agency 54 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 anv 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 55 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. By: Wade G. McKinney Executive Director ATTEST: By: Marcia McClure Torgerson, C.M.C. Board Secretary Date: APPROVED AS TO FORM Community Redevelopment Agency of Atascadero By: Brian A. Pierik, Agency General Counsel 56 E. C U&I By: Wade G. McKinney City Manager ATTEST: By: Marcia McClure Torgerson, C.M.C. City Clerk Date: APPROVED AS TO FORM City of Atascadero By: Brian A. Pierik, City Attorney ITEM NUMBER: RA #4 DATE: 01/14/11 Community Redevelopment Agency of Atascadero Staff Report — Executive Director Production of 24 Affordable Housing Units Contract RECOMMENDATIONS: Agency Board: 1. Adopt the Draft Resolution irrevocably allocating funds for the production of 24 affordable housing units; and 2. Authorize the Executive Director to execute a Financing Contract with the City of Atascadero for the production of 24 affordable housing units. DISCUSSION: One of the fundamental purposes of redevelopment is to increase and improve the community's supply of low and moderate income housing. In addition to being a purpose that is dictated by the State Health and Safety Code, the Agency Board has indicated, through past actions, that affordable housing is a priority. Since the Board's adoption of the Housing Production Plan, 183 market rate residential dwelling units have been constructed within the Redevelopment Agency Project Area, which requires that 28 low to moderate income units be provided (11 very low income units and 17 low / moderate income units). The Agency has thus far sponsored the production of four (4) very low income units within the Project Area, which leaves a remaining obligation to produce twenty-four (24) additional affordable housing units. Section 33334.3 of the Health and Safety Code stipulates that the Agency may use Low / Moderate Income Housing funds to pay for services provided through interagency agreements, for the purpose of producing affordable housing units. Among the Board's past actions is the adoption of an Affordable Housing Funds Policy, which allows the City to facilitate in the financial participation of affordable housing projects. In addition, the City currently provides a full staff of planning, construction and finance professionals, who are experienced in the planning, financing and construction of affordable housing projects. The expertise of City staff is currently used by the Agency, as these individuals have contacts in the community and can best ensure that the appropriate developers are selected to build the required affordable housing units. 57 Thus, City staff is able to best leverage the affordable housing funds, making the City a proper entity to assist in providing affordable housing. In order to protect funding for the production of the remaining 24 affordable housing units, the City and Agency need to formalize and document the Agency's commitment tc :�cr;plete the project. Staff is recommending that the Board take the following two actions: (1) Adopt the attached draft resolution approving the expenditure of Low / Moderate Income Housing funds, approving the execution of the Financing Contract irrevocably committing a total of $5,543,800 of these Agency funds to the project. (2) Authorize the Executive Director to execute a Financing Contract with the City to provide funding for the completion of the project. This Contract commits the Agency to pay a total of $5,543,800 for the production of the remaining 24 affordable housing units. This commitment is a legally binding financing agreement with the City and once pledged, cannot be reversed. The Agency will not pay the City any additional administrative funds. FISCAL IMPACT: Expenditure of $5,383,800 in Low/Moderate Income Housing funds. ATTACHMENTS: 1. Draft Resolution 2. Draft Financing Contract - Production of 24 Affordable Housing Units RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO, CALIFORNIA, IRREVOCABLY ALLOCATING FUNDS FOR THE PRODUCTION OF 24 AFFORDABLE HOUSING UNITS 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, Sections 33000 et. seq. of the Law states that one of the fundamental purposes of redevelopment is to increase and improve the community's supply of low and moderate income housing; and, WHEREAS, the Law requires that 20% of the tax increment revenues received by the Agency be placed in a Low and Moderate Income Housing Fund ("LMIHF"). The LMIHF funds are to be used to increase, improve and preserve the supply of low and moderate income housing in the Project Area and within City limits (H&S 33334.2); and, WHEREAS, The Agency must replace low and moderate income housing that is removed as a result of a redevelopment project (the replacement rule, H&S 33413(a)); and, WHEREAS, 15% of all housing constructed in a redevelopment project area must be affordable to low and moderate -income persons and families (the inclusionary rule, H&S 33413(b)); and, WHEREAS, the Law requires that each redevelopment agency shall adopt a Housing Production Plan, in conjunction with its Implementation Plan, which is consistent with the governing General Plan Housing Element. In addition, Sections 33413.5 and 33334.5 require replacement housing plans for any units that will be demolished within the Project Area; and, WHEREAS, on July 6, 1999, the Agency adopted the Housing Production Plan in conjunction with its Implementation Plan, and amended it on June 10, 2008; and, WHEREAS, on November 28, 2006, the Agency approved a funding request from Habitat for Humanity; and, 59 WHEREAS, on November 27, 2007, the Agency authorized execution of an agreement with Tierra West Advisors, LLC to provide affordable housing policy and strategy development consultant services; and, WHEREAS, on November 25, 2008, the Agency adopted an Affordable Housing Funds Policy (the "Housing Policy"), allowing the City to facilitate in the financial participation of affordable housing projects; and, WHEREAS, on December 8, 2009, the Agency appropriated $500,000 from the LMIHF for the purpose of a loan program for downtown affordable housing and related retail uses, finding the program consistent with the. Housing Policy; and, WHEREAS, on August 27, 2010, the Agency executed an agreement with Urban Futures Inc. to provide affordable housing on-call professional services; and, WHEREAS, since the Housing Production Plan's adoption, 183 market rate residential dwelling units have been constructed within the Redevelopment Agency Project Area, which requires that 28 low to moderate income units be provided (I 1 very low income units and 17 low / moderate income units); and, WHEREAS, the Agency has sponsored the production of four (4) very low income units within the Project Area, which leaves a remaining obligation to produce twenty-four (24) additional affordable housing units (the "Project"); and, WHEREAS, the Project conforms to the General Plan of the City; and, WHEREAS, the Agency may enter into a binding contract (the "Contract") with the City pursuant to which the Agency will irrevocably commit the LMIHF funds to the Project and due to the Agency's previous commitment to the Project as described above, the Agency desires to do so; and, WHEREAS, a staff report to the Agency at its meeting held on January 14, 2011 (the "Staff Report," incorporated herein by reference), which sets forth fact supporting the findings made in this Resolution pursuant to the Law, has been prepared to accompany this Resolution; and, WHEREAS, pursuant to Section 33334.3 of the Law, the Agency may use LMIHF funds to pay for services provided through interagency agreements, including usual indirect costs related thereto, for the purpose of producing affordable housing units; and, Of WHEREAS, the City provides a full staff of planning, construction and finance professionals, who are experienced in the planning, financing and construction of affordable housing projects. NOW, THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of Atascadero: 1. That the Agency reaffirms its financial commitment to the Project and desires that the Project move forward in a manner that will most effectively comply with the Housing Policy and the Housing Production Plan. 2. That the Board directs the Executive Director of the Agency to execute the Contract with the City irrevocably committing LMIHF funds to the City for the Project And requiring that the LMIHF funds be held in a separate account ("LMIHF account") 3. That the Board approves the expenditure of the LMIHF funds to enter into an agreement with the City for the production of 24 affordable housing units, of which seven (7) will be very low income units and seventeen (17) will be low / moderate income units, as set forth in the contract, between the Agency and the City and submitted to the Agency in connection with consideration of this Resolution. 4. That the Agency authorizes the Executive Director of the Agency to segregate $5,543,800 within the LMIHF accounts to be held in a separate LMIHF account upon execution of the Agreement governing the use of and accounting for the LMIHF funds. 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. On motion by Board Member and seconded by Board Member the foregoing resolution is hereby adopted in its entirety on the following roll call vote: AYES: 61 NOES: ABSENT: ADOPTED: ATTEST: Marcia McClure Torgerson, C.M.C., Board Secretary APPROVED AS TO FORM: Brian A. Pierik, Agency General Counsel 62 COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO By: Roberta Fonzi, Chairperson FINANCING CONTRACT PRODUCTION OF 24 AFFORDABLE HOUSING UNITS THIS FINANCING 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 I 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, Sections 33000 et. seq. of the Law states that one of the fundamental purposes of redevelopment is to increase and improve the community's supply of low and moderate income housing; and, WHEREAS, the Law requires that 20% of the tax increment revenues received by the Agency be placed in a Low and Moderate Income Housing Fund ("LMIHF"). The LMIHF funds are to be used to increase, improve and preserve the supply of low and moderate income housing in the Project Area and within City limits (H&S 33334.2); and, WHEREAS, The Agency must replace low and moderate income housing that is removed as a result of a redevelopment project (the replacement rule, H&S 33413(a)); and, WHEREAS, 15% of all housing constructed in a redevelopment project area must be affordable to low and moderate -income persons and families (the inclusionary rule, H&S 33413(b)); and, WHEREAS, the Law requires that each redevelopment agency shall adopt a Housing Production Plan, in conjunction with its Implementation Plan, which is consistent with the governing General Plan Housing Element. In addition, Sections 33413.5 and 33334.5 require replacement housing plans for any units that will be demolished within the Project Area; and, WHEREAS, since the Housing Production Plan's adoption, 183 market rate residential dwellina units have been constructed within the Redevelopment Agency Project Area, which requires that 28 low to moderate income units be provided (I 1 very low income units and 17 low / moderate income units); and, WHEREAS, the Agency has sponsored the production of four (4) very low income units within the Project Area, which leaves a remaining obligation to produce twenty-four (24) additional affordable housing units (the "'Project"); and, 63 WHEREAS, the Project conforms to the General Plan of the City; 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 LMIHF funds to the Project and due to the Agency's previous commitment to the Project the Agency intends to provide funding in the amount of $5,543,800.00 ("the LMIHF Funds") to ,�_ssis, the City with the cost of the Project because the Project will directly benefit the Project Area; and, WHEREAS, the City provides a full staff of planning, construction and finance professionals, who are experienced in the planning, financing and construction of affordable housing projects; and, WHEREAS, pursuant to Section 33334.3 of the Law, the Agency may use LMIHF funds to pay for services provided through interagency agreements, including usual indirect costs related thereto, for the purpose of producing affordable housing units; and, WHEREAS, a duly noticed public meeting of the Agency was held on January 14, 2011 wl-ierein the Agency adopted Resolution No. making all required findings for the use of the LMIHF Funds for the Project pursuant to Section 33445. 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 Project through reimbursement of the City's share of Project costs, up to a defined amount. The contents of this Contract are intended to be as comprehensive as possible with respect to the Agency's commitment of LMIHF Funds (as defined in paragraph 3 of this contract) to the Project yet not exhaustive with respect to additional issues and expenses that may arise relative to the development of the Project. In the event that issues and expenses occur that are not identified in this Contract, the arties agree to work together in good faith to resolve each matter. 2. The Agency anticipates that the Project will address the goals and objectives of "Ae Redevelopment Plan for the Project Area and will be of benefit to the Project Area by increase, improving and preserving the supply of low and moderate income housing in the Project Area and within City limits. The Agency has agreed to commit a total sum of five million five hundred forty-three thousand eight hundred dollars and no cents ($5,543,800.00) `LMIHF Funds") to the Project to pay for the Project's direct benefit to the Project Area. 3. Within thirty (30) business days of the Parties executing this Contract, Agency shall segregate the sum of five million five hundred forty-three thousand eight hundred dollars nd no cents ($51,543,800.00) within the Agency's accounts to be held in a separate account ("LMIHF Account") to pay the Project costs. The Agency Funds shall be held in the LMIHF Account until 2 months from the latest of the date the project is completed or the date of the final invoice. The City shall request reimbursement from the Agency for Project costs actually utiured and the Agency shall reimburse the City from the LMIHF Funds from the LMIHF __,-_c,'tint. •A 4. In contemplation of the provisions of Section 895.2 of the California Goverment 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. 5. These oblications, as set forth herein, are binding on the successors. assigns or heirs, including any private or public entities, of both parties. 6. 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 Bv: Wade G. McKinney Executive Director ATTEST: By: Marcia McClure Torgerson, C.M.C. Board Secretary Date: APPROVED AS TO FORM Community Redevelopment Agency of Atascadero By: Brian A. Pierik, Agency General Counsel J CITY By: Wade G. McKinney City Manager ATTEST: BY: Marcia McClure Torgerson, C.M.C. City Clerk Date: APPROVED AS TO FORM City of Atascadero BY: Brian A. Pierik, City Attorney 65 66 ITEM NUMBER: RA #5 ITEM NUMBER: RA #5 DATE: 01/14/11 Community Redevelopment Agency of Atascadero Staff Report- Executive Director Contract Service for Blight Reduction and Economic Growth RECOMMENDATIONS: Agency Board: 1. Adopt the Draft Resolution irrevocably allocating funds for Contract Services for Blight Reduction and Economic Growth; and, 2. Authorize the Executive Director to execute a Financing Contract with the City of Atascadero for contract services for blight reduction and economic growth. DISCUSSION: The Agency Board has indicated, through past actions, that the reduction of blight and economic growth are high priorities. The Agency has put considerable investment into economic development, Downtown maintenance and beautification, tourism, marketing and promotions to enhance the Project Area. Section 33126(b) of the State Health and Safety Code 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. In other words, the Agency may contract with the City of Atascadero for blight reduction and economic growth services. The activities that have been provided to date by the Agency include but are not limited to: • Economic Growth: • Investment in the City's Office of Economic Development • Staff time or professional services toward economic development • The Fagade Improvement Program • Site Design Assistance / Design Guidelines • Economic Development Studies • Permit Fee Waiver Program • Sign Program • Legal services and pertinent professional development of staff • Other economic stimulus services 67 • Tourism, Marketing and Promotions: • Advertising • Special Events • Visitor's and Conference Bureau • Tourism, marketing and promotions contract • Other tourism, marketing or promotion services • Downtown Maintenance and Beautification: • Sunken Gardens maintenance and costs • Downtown landscape maintenance • Downtown tree trimming • Fountain maintenance • Sidewalk steam cleaning • Street sweeping • Empty trash cans • Trash pick-up and weeding • Spot maintenance • Janitorial service -trash pick-up • Sunken Gardens holiday enhancements • Other downtown maintenance and beautification • Administration: • Independent auditor services • Professional legal services • Supplies and administrative staff time • Other administration services The contract between the Agency and the City is for a period of seven (7) years. After that time, the Agency and the City will re-evaluate the need for such services and will, at that time, negotiate an additional contract if desired by both parties. The Agency has proven its commitment to blight reduction and economic growth with past actions including: • The Agency commissioned an Economic Strategy and Economic Feasibility Study in 2007 and a Tourism Study in 2008 (the "Studies") to best determine how efforts of the Agency would be carried out • The Office of Economic Development (the "OED") was established in December 2008. The OED is comprised of a group of City employees dedicated to increasing revenues through economic development, stimulating the City's economy, implementing the Studies, and carrying out the Agency's mission of eliminating blight and creating economic prosperity in the Project Area The OED has engaged in several stimulus programs to grow the City's economy and entered into agreements for fagade improvements, grant programs for signs and building permits, loan guarantees, and the participants in these programs need continued support and administrative assistance 68 • The OED is both creating and coordinating tourism and marketing efforts to promote travel to the community as a family destination in the central coast of California, and the OED has entered into agreements for providing these services including advertising online, through TV and radio, publications and proactive social media and web -based initiatives • The OED is aggressively working to streamline the City's permit process and serves in an "ombudsperson" capacity assisting projects through the development process • The OED promotes the business community and has developed programs to both retain existing business and attract new business to the community • The Agency implemented a Business Stimulus Program in June of 2009, serving businesses both citywide and specifically in the Downtown zone • The Agency's Business Stimulus Program includes a comprehensive marketing campaign, fee relief, streamlined permit processing, a business -friendly website, implementation of a revised Downtown fagade program, wayfinding signage, an investment in parking in the Downtown, and affordable housing/building rehabilitation No Other Method of Financing With the condition of the local, state, and national economy, the City has reduced the general fund budget. All but the highest Council priorities have been cancelled or postponed. The City has indicated to the Agency that sufficient funding is not otherwise available. It is not practical to arrange for an assessment district or other funding mechanism for the services at this time. Consistency with Implementation Plan The Agency's Redevelopment Implementation Plan was last revised in June of 2008. The Contract Services are consistent with the Plan and helps to accomplish goals set forth in Section 210, Objectives of the Redevelopment Plan. • Section 210.1 — The assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation • Section 210.2 — The provision of opportunities for participation by owners and tenants in the revitalization of their properties. • Section 210.4 — The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements, which provide unity and integrity. • Section 210.5 — Expansion and diversification of the community's economic and employment base, through the facilitation of more year-round employment opportunities, including industrial development and expansion, the removal of incompatible land uses, and the installation of public infrastructure. In addition to the Downtown area, the Agency may participate in projects for the purposes of achieving this objective in the industrial area located east of Lewis Avenue, south of Traffic Way and north of Atascadero Creek and west of Rosario/railroad tracks. • Section 210.6 — Improvement and revitalization of the downtown. 69 • Section 210.7 — Increasing the capture of potential commercial trade. • Section 210.11 — Creation/enhancement of recreational and cultural opportunities available to the residents of the Project Area and of the community at -large, including enhancement of Atascadero Lake Park. • Section 210.13 Elimination of incompatible land uses Section 210.14 Transition of obsolete land uses or uses causing under -utilization of the underlying land, and assembly of properties to best meet current market needs. ® Section 210.15 — Elimination or mitigation of other existing blighting conditions and influences, including incompatible and uneconomic land uses, obsolete or substandard structures, inadequate and deteriorated public facilities, and/or small, multiple ownership, irregular or landlocked parcels. FISCAL IMPACT: E;- ,enditure of $5,621,180 in Redevelopment Agency General funds. ATTACHMENTS: 1. Draft Resolution 2. Draft Financing Contract - Blight Reduction and Economic Growth 4 70 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO, CALIFORNIA, IRREVOCABLY ALLOCATING FUNDS FOR CONTRACT SERVICE FOR BLIGHT REDUCTION AND ECONOMIC GROWTH 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, the City and Agency have declared blight elimination and economic development to be a top priority; 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 Facade 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 71 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 1=: edevelopment 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 Agency, which was established in June 2000, is tasked with eliminating blight in the Redevelopment Area by creating jobs, 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 Agency commissioned an Economic Strategy and Economic Feasibility Study in 2007 and a tourism study in 2008 (the "Studies") to best determine how efforts of the Agency would be carried out; and, WHEREAS, the City established the Office of Economic Development (the "OED") in December 2008, to increase revenues through economic development, stimulate the City's economy, implement the Studies, and carry out the Agency's mission of eliminating blight and creating economic prosperity in the redevelopment area; and, WHEREAS, the OED has engaged in several stimulus programs to grow the City's economy and entered into agreements for fayade improvements, grant programs for signs and building permits, loan guarantees, and the participants in these programs need continued support and administrative assistance; and, WHEREAS, the OED is both creating and coordinating tourism and marketing efforts to promote travel to the community as a family destination in the central coast of California, and the OED has entered into agreements for providing these services including advertising online, through TV and radio, publications and proactive social media and web -based initiatives; and, 72 WHEREAS, the OED is aggressively working to streamline the City's permit process and serves in an "ombudsperson" capacity assisting projects through the development process; and WHEREAS, the OED promotes the business community and has developed programs to both retain existing business and attract new business to the community; and, WHEREAS, the Agency implemented a Business Stimulus Program in June of 2009, serving businesses both citywide and specifically in the downtown zone; and, WHEREAS, the Agency's Business Stimulus Program includes a comprehensive marketing campaign, fee relief, streamlined permit processing, a business -friendly website, implementation of a revised downtown facade program, wayfinding signage, an investment in parking in the downtown, affordable housing/building rehabilitation; 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 desires to enter into a binding contract ("Contract") with the City pursuant to which the Agency will irrevocably commit Agency monies to provide funding in the amount of $5,621,180.00 (the "Agency Funds") because the Contract Service will directly benefit the Project Area:. and, WHEREAS, a staff report to the Agency at its meeting held on January 14, 2011 (the "Staff Report," incorporated herein by reference), which sets forth fact supporting the findings made in this Resolution pursuant to the Law, has been prepared to accompany this Resolution. NOW, THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of Ataseadero: 1. That the Agency reaffirms its financial commitment to the Contract Service activities and desires that these activities move forward in a manner that will most effectively provide the foregoing benefits to the Project Area. 2. That the Board approves the expenditure of the Agency Funds set forth in the Contract, between the Agency and the City and submitted to the Agency in connection with consideration of this Resolution. 73 I. 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 Contract services and requiring that the Agency Funds be held in a separate account (Economic Growth Account). 4. That the Board directs the Executive Director of the Agency to segregate 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 the Economic Growth Account upon execution of the Contract governing the use of and accounting for the Agency Funds. 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. On motion by Board Member and seconded by Board Member . the foregoing resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: ATTEST: Marcia McClure Torgerson, C.M.C., Board Secretary APPROVED AS TO FORM: Brian A. Pierik, Agency General Counsel 74 COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO By: Roberta Fonzi, Chairperson 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 jobs, 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 Facade 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 75 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. 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 76 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 77 AGENCY Bv: Wade G. McKinney Executive Director ATTEST: By: Marcia McClure Torgerson, C.M.C. Board Secretary Date: APPROVED AS TO FORM Community Redevelopment Agency of Atascadero By: Brian A. Pierik, Agency General Counsel F. CITY By: Wade G. McKinney City Manager ATTEST: By: Marcia McClure Torgerson, C.M.C. City Cleric Date: APPROVED AS TO FORM City of Atascadero By: Brian A. Pierik, City Attorney NOTICE OF A SPECIAL MEETING ATASCADERO CITY COUNCIL Friday, January 14, 2011 5:45 p.m. City of Atascadero City Hall 6907 EI Camino Real, Conference Room #4 Atascadero, California CONTRACTING SERVICES WITH THE COMMUNITY REDEVELOMENT AGENCY OF ATASCADERO ROLL CALL: 1. Historic City Hall Contract and Loan Agreement ■ Recommendations: Council: 1. Adopt the Draft Resolution confirming the allocation of funds for completion of the City of Atascadero's Historic City Hall Project; and, 2. Authorize the City Manager to execute a Financing Contract with the Community Redevelopment Agency of Atascadero for the Historic City Hall Project; and, 3. Authorize the Mayor to execute a Loan Agreement with the Community Redevelopment Agency of Atascadero for the Historic City Hall Project. ■ Fiscal Impact: No net fiscal impact. Receipt of $13,000,000 and $10,000,000 in loan funds from the Community Redevelopment Agency of Atascadero. Expenditure of $13,000,000 on the Historic City Hall Project. [City Manager] 1 2.iight Elimination Projects Contract r Recommendations: Council: 1. Adopt the Draft Resolution confirming the allocation of funds for completion of the Agency Identified Blight Elimination Projects; and, 2. Amend the budget by increasing Transfer from Redevelopment Agency Revenues by $180,000 and appropriating $180,000 of these revenues for the Zoo Wall Improvement Project; and, 3. Authorize the City Manager to execute a Change Order with the Community Redevelopment Agency of Atascadero for the Financing Agreement dated December 9, 2009 for the Zoo Wall Improvement Project in the amount of $180,000; and, 4. Authorize the City Manager to execute a Financing Contract with the Community Redevelopment Agency of Atascadero for Agency Identified Blight Elimination Projects. ■ Fiscal Impact: No net fiscal impact. Receipt of $8,176,820 from the Community Redevelopment Agency of Atascadero. Expenditure of $8,176,820 on Blight Elimination Projects. [City Manager] 3. Affordable Housing Contract ■ Recommendation: Council authorize the City Manager to execute a Financing Contract with the Community Redevelopment Agency of Atascadero for the production of 24 affordable housing units. ■ Fiscal Impact: No net fiscal impact. Receipt of $5,383,800 from the Community Redevelopment Agency of Atascadero; Expenditure of $5,383,800 on Affordable Housing. [City Manager] 4 Contract Services for Bliaht Reduction and Economic Growth ■ Recommendation: Council authorize the City Manager to execute a Financing Contract with the Community Redevelopment Agency of Atascadero for contract services for blight reduction and economic growth. ■ Fiscal Impact: No net fiscal impact. Receipt of $5,621,180 from the Community Redevelopment Agency of Atascadero; Expenditure of $5,621,180 on Blight Reduction and Economic Growth. [City Manager] tt�k .IOURNMENT: i;. e City Council will adjourn to the next Regular Session scheduled on Tuesday, January 25, 20111, at 6:00 p.m. STATE OF CALIFORNIA COUNTY OF SAN LUIS OBISPO ': i -Y OF ATASCADERO MARCIA MCCLURE TORGERSON, C.M.C., being fully sworn, deposes, and says: That she is the duly elected City Clerk of the City of Atascadero and that on Thursday, January 13, 2011, she caused the above i%!otice to be posted on the doors of the City's Administration Building, 6907 EI Camino Real in Atascadero, California. MARCIA MCCLURE TORGERSON, C.M.C. City Clerk City of Atascadero 2 Atascadero City Council Staff Report - Administrative Services ITEM NUMBER: #1 DATE: 01/14/11 Historic City Hall Project Contract and Loan Agreement RECOMMENDATIONS: Council: 1. Adopt the Draft Resolution confirming the allocation of funds for completion of the City of Atascadero's Historic City Hall Project; and 2. Authorize the City Manager to execute a Financing Contract between the Community Redevelopment Agency of Atascadero and the City of Atascadero, for the Historic City Hall Project; and 3. Authorize the Mayor to execute a Loan Agreement with the Community Redevelopment Agency of Atascadero for the Historic City Hall Project. DISCUSSION: The Redevelopment Agency Board has indicated, through past actions, that the Historic City Hall Project is a high priority. This priority is high enough that project costs outside the work that will be reimbursed by FEMA, Cal EMA and CCHE have been budgeted to be funded with Agency general funds and proceeds from the recent bond issue. The Agency began budgeting for this project in fiscal year 2006-2007 and funding for the Project is included in the Agency's budget. Construction activities for the Project have begun and bond/reimbursement agreement proceeds are now available. Since the earthquake occurred in fiscal year 2003/2004, the Redevelopment Agency has demonstrated financial commitment to the Project by: • Repeated budgeting for cash contributions (transfers) to the City's Historic City Hall Project Fund in order to fund expected Project amounts that will not be paid for by FEMA, CalEMA, CCHE or other funding sources. • Entering into a financing arrangement in order to fund the Project. (In order to receive a lower interest rate, the City issued bonds, but the Agency received the bond proceeds and is responsible for paying all debt service on the Bonds.) • Providing "Due To /Due From" cash advances to the City's Historic City Hall Project Fund in order to pay invoices while waiting for grant determinations and reimbursements 3 In order to protect funding for this Project, the City and Agency need to formalize and document the Agency's commitment to complete the Historic City Hall Project. Staff is recommending that the Council take the following two actions: (1) Authorize the City Manager to execute a Financing Contract with the Redevelopment Agency in order to receive funding for the completion of the Project. This Contract commits the Agency to pay a total of $13,000,000 for the Project. This commitment is part of a legally binding financing agreement with the City and once pledged, cannot be reversed. The City will only receive reimbursement for actual amounts spent and any additional administrative funds and any funds remaining at the end of the project will be returned to the Agency. (2) Authorize the City Manager to execute a Loan Agreement with the Redevelopment Agency in order to provide the necessary cash flow for the Project. This agreement commits the Agency to loan the City up to a maximum outstanding amount of $10,000,000 for cash flow needs of the Project. This loan is intended to be a revolving loan whereby the City borrows enough to pay immediate costs associated with the Project, and then immediately pays back the Agency as it receives cash/reimbursement from the other funding sources. Execution of this agreement commits the City to completing the Historic City Hall Project and being reimbursed by the Agency (up to $13,000,000) for the Project. The City will be reimbursed for actual costs incurred and shall not receive any additional administrative funds from the Agency. Any funds remaining at the end of the Project shall revert to the Agency. FISCAL IMPACT: No net fiscal impact. Receipt of $13,000,000 and $10,000,000 in loan funds from the Community Redevelopment Agency of Atascadero. Expenditure of $13,000,000 on the Historic City Hall Project. ATTACHMENTS: 1. Draft Resolution 2. Draft Financing Contract - Historic City Hall Project 3. Draft Loan Agreement — Historic City Hall Project !� RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, CONFIRMING THE ALLOCATION OF 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, 5 WHEREAS, the Project is consistent with and will promote the Agency's Implementation Plan; and, WHEREAS, the construction of the Project conforms to the General Plan of the City; and, 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, the Agency has made the requisite findings pursuant to section 33445 and has committed to provide the City with a grant of money for the Project ("Agency Funds") as well as access to additional funds on a loan basis ("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 City Council at its meeting held on January 14, 2011 (the "Staff Report," incorporated herein by reference), which sets forth facts supporting the findings 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 City Council of the City of Atascadero: 1. That the City Council 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 City Council further 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 City Council consents to the Agency's 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 City Council consents to the Agency 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 City Council directs the City Manager to execute the Contract with the Agency concerning the Agency Funds. 6. That the City Council hereby authorizes the City Manager to execute the Agency Loan. IT IS FURTHER RESOLVED AND ORDERED that this resolution will become effective upon the effective date of approval by the City Council. On motion by Council Member and seconded by Council Member , the foregoing resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO BY: Tom O'Malley, Mayor �l ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: 3rian A. Pierik, City Attorney FINANCING CONTRACT HISTORIC CITY HALL PROJECT THIS FINANCING 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, 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 City lacks sufficient capital or general funds available which could be used to fully fund 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 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 attract additional tourists, assist with improving physical aesthetics, and alleviate blighting conditions in the area serving as the gateway to the Project Area; and, X WHEREAS, the Project is consistent with and will promote the Agency's i.-nplementation Plan; 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 with the City pursuant to which the Agency will irrevocably commit the Agency Funds and the Agency Loan to the Project 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, pursuant to Health and Safety Code Section 33445, and specifically subsection (e)(2)(B) of that Section, 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 -p ecified findings; and, WHEREAS, a duly noticed public meeting of the Agency was held on January 14, 2011 wherein the Agency adopted Resolution No. making all required findings for the use of Agency monies for the Project pursuant to Section 33445. 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 Project through reimbursement of the City's share of Project costs, up to a defined amount. The contents of this Contract are intended to be as comprehensive as possible with respect to the Agency's commitment of Agency Funds (as defined in paragraph 3 of this contract) to the Project yet not exhaustive with respect to additional issues and expenses that may arise relative to the development of the Project. 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. The Parties understand that the City will be required to complete final planning and public bidding required on the Project. Those final plans and the public bidding are prerequisites for the City's construction of the Project, including the improvements that will be of benefit to the Project Area. 3. The estimated total cost of the Project is $42,926,000 ("Total Cost"). The Agency anticipates that 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 by alleviating blighting conditions, attracting additional tourists, and assisting with improving physical aesthetics.. The Agency has agreed to commit a total sum of thirteen million dollars and no cents ($13,000,000.00) ("Agency Funds") to the Project to pay for the Project's direct benefit to the Project Area. 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 2 10 expenses associated in any way with the Project including, but not limited to, services and costs for 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. Any previous commitment by the Agency of Agency Funds to the Project shall be deducted from the $13,000,000.00 total amount of Agency Funds available for the Project. 5. Within thirty (30) business days of the Parties executing this Contract, Agency shall segregate the sum of thirteen million dollars and no cents ($13,000,000.00), less any of Agency Funds already spent to date on the Project, within the Agency's accounts to be held in a separate account ("Historic City Hall Project Account") to pay the Agency's share of the Project costs. The Agency Funds shall be held in the Historic City Hall Project Account until 2 months from the latest of the date the project is completed, the date of the final invoice, or the date of resolution of the final audit by regulatory/granting agencies. The City shall request reimbursement from the Agency for Project costs actually incurred and the Agency shall reimburse the City from the Agency Funds from the Historic City Hall Project Account. 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 receives pursuant to California Health and Safety Code Section 33670 (the "Bonds"). The City covenants and agrees with respect to the Project 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 Reportin . 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 3 11 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 agreement as defined in Section 895 of said code, the Parties hereto, as .oetween 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 obligations, as set forth herein, are binding on the successors, assigns or heirs, including any private or public entities, of both parties. 9. 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 By: Wade G. McKinney Executive Director ATTEST: By: Marcia McClure Torgerson, C.M.C. Board Secretary Date: APPROVED AS TO FORM Community Redevelopment Agency of Atascadero By: Jan A. Pierik, Agency General Counsel 12 4 CITY By: Wade G. McKinney City Manager ATTEST: By: Marcia McClure Torgerson, C.M.C. City Clerk Date: APPROVED AS TO FORM City of Atascadero By: Brian A. Pierik, City Attorney LOAN AGREEMENT FOR HISTORIC CITY HALL PROJECT 1. PARTIES AND EFFECTIVE DATE 1.1 Parties to this Agreement. The parties to this Loan Agreement ("Agreement") are (i) The Redevelopment Agency of the City of Atascadero ("Agency"), a public body, and (ii) The City of Atascadero ("City"), a California municipal corporation. This Agreement is dated as of January 14, 2011, for reference purposes only. This Agreement will not become effective until the Effective Date described in Section 1.2 below.t 1.2 Effective Date. This Agreement will become legally effective and binding as of the date ("Effective Date") on which this Agreement has been approved by the City Council and the Agency's governing board and executed by the City's and Agency's duly authorized representatives. 2. RECITALS. 2.1 The City Council previously adopted a Redevelopment Plan (the "Redevelopment Plan") for a redevelopment project area (the "Project Area") 2.2 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. 2.3 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. 2.4 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. 2.5 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. ' All Section references shall be to Sections of this Agreement, unless otherwise stated. 13 Loan Agreement Ataseadero Redevelopment Agency & City of Ataseadero Page 2 2.6 The Project is estimated to cost $42,926,000, of which the majority of the funding 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. 2.7 The City lacks sufficient capital or general funds available which could be used to fully fund the Project and bring it to completion and it is not practical to arrange for assessment district or similar financing for the Project. 2.8 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 attract additional tourists, assist with improving physical aesthetics, and alleviate blighting conditions in the area serving as the gateway to the Project Area. Plan. 2.9 The Project is consistent with and will promote the Agency's Implementation 2.10 Pursuant to Health and Safety Code Section 33445, and specifically subsection (e)(2)(B) of that Section, the Agency may, with the consent of the City Council, pay part or all of the cost of the Project if the Board and the City make certain specified findings. 2.11 Pursuant to Health and Safety Code 33125, the Agency has the general power to execute instruments necessary or convenient to the exercise of its powers and may therefore enter into an agreement to loan funds for the Project; and 2.12 The Agency Board approved, via adoption of Resolution No. at a duly noticed public meeting of the Agency on January 14, 2011, this no -interest loan agreement with the City to meet the cash flow needs of the Project while the City is waiting for Federal and State grant funds and any other reimbursement grants funds made by third parties to be forwarded to meet incurred Project costs. 2.13 A wherein the Agency adopted Resolution No. making all required findings for the use of Agency monies for the Project pursuant to Section 33445. 3, TERMS. 3.1 Loan Amount; Disbursement of Funds; Repayment of Funds. _' 4 Loan Agreement Atascadero Redevelopment Agency & City of Atascadero Page 3 3. 1.1 Loan Amount. Agency hereby commits to keep on reserve an amount not to exceed ten million dollars and zero cents ($10,000,000.00) ("Agency Loan"). The entire Loan Amount shall be reserved for the duration of the Project to serve as a revolving loan or series of bridge loans to keep the Project's cash flow liquid during periods in which the City is awaiting reimbursement by the Federal or State government for amounts to which one or both of those governments have pledged to provide funding or is awaiting any other grants made by third parties that would create a situation in which the City would experience a delay between submitting a request for payment and receipt of payment such that the Agency Loan could be necessary to provide sufficient cash flow for the Project. 3.1.2 Disbursement of Funds. The Agency agrees to disburse to the City all or any portion of the total Agency Loan amount upon request by the City. 3.1.3 Projected Repayment of Funds. City agrees to repay to Agency outstanding loan proceeds within thirty (30) days of receipt of grant funds from the Federal or State government(s), or funds from other third party sources. City shall complete the repayment of outstanding loan proceeds within three (3) years of the final disbursement of Federal and State grant funds following completion of the Project audit by the Federal Emergency Management Agency. 3.2 Interest. Any and all portions of the Agency Loan disbursed by the Agency to the City shall not bear interest. 3.3 Commitment to Complete Repayment. In the event the Federal or State government or other third party granting entity does not fulfill its obligation to disburse to City the grant funds that the parties anticipate will be available to repay the Agency Loan, City agrees to repay the Agency Loan, or any portion thereof demanded by the Agency, within ten (10) days following demand by the Agency, provided that such demand may not be made prior to the sixth (6th) anniversary of the completion of the Project. 3.4 Subordination. The City's obligations hereunder shall be paid primarily from the grant funds available to the City from the Federal and State governments for completion of the Project. Obligations not paid out of these funds shall be paid out of all legally available funds of the City. The City's obligations under this Agreement are subject and subordinate to 15 Loan Agreement Atascadero Redevelopment Agency & .`y of Atascadero Pacie 4 any preexisting City indebtedness including, without implied limitation, bonded indebtedness, aT,d' to any other indebtedness including, without implied limitation, bonded indebtedness, which ;s incurred subsequent to the Effective Date of this Agreement. Without any further action or agreement required of the Agency, the Agency hereby expressly subordinates to any and all such itv indebtedness, either heretofore or hereafter incurred, the Agency's right to receive repayment of all or any portion of the Loan. 3.5 No Third Party Beneficiaries. This Agreement is for the sole and exclusive 'Denefit of the Agency and the City. No person or entity not a party to this Agreement is intended to be benefited by any provision of this Agreement and no person or entity not a party to this ^: sireement shall have any rights, causes of action or claims against either the Agency or the City due to the fact either the Agency's and/or the City's entry into and performance or non- performance pursuant to this Agreement. 3.5 Counterpart Originals. This Agreement may be executed in two (2) counterpart originals, each of which shall be deemed to be an original, but, when taken together, shall constitute one and the same instrument. CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY A California Municipal Corporation OF ATASCADERO A California Public Agency By: By: Tom O'Malley, Mayor Wade McKinney, Executive Director ATTEST: I-Jarcia McClure Torgerson, City Clerk Marcia McClure Torgerson, Board Secretary Date: Date: APPROVED AS TO FORM: Brian A. Pierik, City Attorney Brian A. Pierik, Agency General Counsel 16 Atascadero City Council Staff Report - Administrative Services ITEM NUMBER: #2 DATE: 01/14/11 Blight Elimination Projects Contract RECOMMENDATIONS: Council: 1. Adopt the Draft Resolution confirming the allocation of funds for completion of the Agency Identified Blight Elimination Projects; and, 2. Amend the budget by increasing Transfer from Redevelopment Agency Revenues by $180,000 and appropriating $180,000 of these revenues for the Zoo Wall Improvement Project; and, 3. Authorize the City Manager to execute a Change Order in the amount of $180,000 with the Community Redevelopment Agency of Atascadero for the Financing Agreement dated December 9, 2009 for the Zoo Wall Improvement Project; and, 4. Authorize the City Manager to execute a Financing Contract with the Community Redevelopment Agency of Atascadero for Agency Identified Blight Elimination Projects. DISCUSSION: The Agency Board has indicated, through past actions, that there is a short list of priority blight elimination projects that the Board would like to see complete. The Agency has either appropriated funding, begun the projects, or has agreed on a priority list of projects that will be completed with current Agency resources. In totality these projects are collectively known as the Identified Blight Elimination Projects and are referred to herein after as "The Project." The Agency began budgeting for many of these projects in the budget cycle that included fiscal years 2005-2006 and 2006-2007. In order to protect funding for the Project, the City and Agency need to formalize and document the Agency's commitment to complete the Project. Staff is recommending that the Board take the following actions: 17 (1) Adopt the attached draft resolution determining that the Project meets the required findings in Health and Safety Code Section 33445, reaffirming the Agency's financial commitment to the Project, approving the expenditure of Agency funds, and approving the execution of the Financing Contract irrevocably committing a total sum of eight million one hundred seventy-six thousand eight hundred twenty dollars ($8,176,820.00) of Agency Funds to the Project. (2) Authorize the Executive Director to execute a Financing Contract with the City to provide funding for the completion of the Project. This Contract commits the Agency to pay a total sum of eight million one hundred seventy- six thousand eight hundred twenty dollars ($8,176,820.00) for the Project. This commitment is part of a legally binding financing contract with the City and once pledged, cannot be reversed. The Agency will not pay the City any additional administrative funds and any funds remaining at the end of the project will be returned to the Agency. ._,ecution of this agreement commits the City to completing the Identified Blight iimination Projects and being reimbursed by the Agency (up to $8,176,820.00) for the Project. The City will be reimbursed for actual costs incurred and shall not receive any -:_� , itional administrative funds from the Agency. Any funds remaining at the end of the Project shall revert to the Agency. Project 'Nhile estimated dollar amounts are provided for each phase of the Project, these are Jr informational purposes only. The executed contract is intended to be for the totality Project. ayfinding Signage awntown Pedestrian Bridge r?owntown Parking Downtown Restrooms Commercial Property Purchase A-chway Sign eek Trail Extension ek Improvements Mia'den Statue Restoration i?r,,vntown Streetscape D, nrntown Lighting Projects L8Wis Ave Bridge Total Project 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 Wayfinding Signage: The Wayfinding Signage Project provides for plans and ucnstruction of the Wayfinding Program including downtown pedestrian signs, one VFance (to the City) sign, and one monument sign. The Signage will enhance ,-�� .. estrian and motor traffic navigation in the downtown area will help the traveling 16 public locate key economic development interests within the Redevelopment Area quickly and easily. The signage will create interest for the public to spend more time in the area, or identify places or activities that they may have otherwise not known about or explored. Downtown Pedestrian Bridge: The Downtown Pedestrian Bridge provides for the design and construction of a pedestrian bridge across Atascadero Creek and will link the Colony Square commercial development area with the downtown / Sunken Gardens area. It will create a convenient linkage for pedestrians to travel, shop, and dine more easily in the currently underutilized downtown core and will enhance pedestrian and motor traffic in that area. Downtown Parking: The proposed parking lot in the downtown core will make it easier and more convenient for the public to visit the businesses and activities in this portion of the Redevelopment Area. The offsite parking allows commercial land to be fully developed with building square footage, with little or no area dedicated to parking spaces. Downtown Restrooms: The restroom facility will reduce the need for unsightly portable toilet facilities during community events, enhance the area for additional business and recreational activities, and will also reduce homeless or other individuals from using the creek riparian area for the same purpose. Downtown Property Purchase: The Downtown core is currently characterized as older underutilized structures with current business activities that are not consistent with the City's economic development goals. The purchase of property would allow the RDA to create a seed project that will set the tone both architecturally and functionally in a manner consistent with RDA Plan and community vision. Archway Sign: The proposed archway sign will create a strong attractive architectural element that signifies the Downtown core "place". It will establish an architectural theme that other building renovations or new construction can incorporate that will help create a unifying theme for the downtown area. Creek Trail Extension: The creek trail extension will create a landscaped and suitably maintained pedestrian corridor that links the Downtown and Redevelopment Area together making the public's experience of shopping, dining or recreating in the area easier and more enjoyable. It will also reduce vehicular traffic and air pollution in the area by supplying an alternative mode of transportation. Creek Improvements: Atascadero Creek is a major riparian corridor through the downtown, and it provides flood control protection, passive recreation and wildlife habitat. The proposed Creek Improvement project provides for creek clean up, bank stabilization, and will enhance the visual appearance of the creek as well as help maintain it in a healthy condition. Maiden Statue Restoration: The Maiden 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 19 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. The Statue has suffered from years of vandalism, neglect and well intended but inappropriate modifications that resulted in a dilapidated condition. The proposed restoration Project of the Statue will revitalize it to a near original condition, provide a suitable protective enclosure to help preserve the beauty iMto the future, and provide for relocation and installation of the Statue to an appropriate location in Atascadero. Downtown Streetscape: The Project will replace an older, blighted concrete bridge railing that not only looks poorly but also does not meet current highway safety standards. The decorative railing, pilasters and lighting will enhance the safety and appearance of the bridge over Atascadero Creek. Downtown Lighting Project: Portions of the downtown are dark and unsuitable for pedestrian use at night-time. Consequently businesses have not thrived, nor are they open after dark in the area, leading to a reduced ability of owners to invest in the appearance of their buildings / businesses. The improved lighting will allow businesses ) effectively stay open later, enhance safety, deter crime, improve sales and reinvest in the structure appearance. Lewis Avenue Bridge Project: The Lewis Avenue Bridge Project provides for the required contractual Atascadero Creek maintenance and vegetation control necessary s a result of the recent construction of the Lewis Avenue Bridge over the Atascadero ;.reek. The bridge enhances pedestrian and motor traffic in and around the Downtown trea. No Other Method of Financing With the condition of the local, state, and national economy, the City has reduced the general fund budget. All but the highest Council priorities have been cancelled or postponed. The City has indicated to the Agency that sufficient funding is not otherwise available. It is not practical to arrange for an assessment district or other funding mechanism for the Project at this time. Zoo Wall Improvement Project hhe Redevelopment Agency contracted with the City on December 8, 2009 for the yompletion of the Zoo Wall Improvement Project. At that time construction was estimated at $240,000. Since that time, the Project has been better defined and a more ;,arrent estimate has been established at $420,000. This increase requires a change order to the original contract with the City, for both the time allotted and the funding allocated and a budget amendment reflecting the net zero increase in revenues and expenses. 20 FISCAL IMPACT: No net fiscal impact. Receipt of $8,176,820 from the Community Redevelopment Agency of Atascadero. Expenditure of $8,176,820 on Agency Identified Blight Elimination Projects. ATTACHMENTS: 1. Draft Resolution 2. Draft Financing Contract — Agency Identified Blight Elimination Projects 21 22 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, CONFIRMING THE ALLOCATION OF FUNDS FOR COMPLETION OF THE AGENCY IDENTIFIED BLIGHT ELIMINATION PROJECTS 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 A(,encv 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, 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 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 Downtown Pedestrian Bridge Project listed in the Project List provides for the design and construction of a pedestrian bridge across Atascadero Creek from Colony 23 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 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 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 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 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 .he Redevelopment Project Area; and, WHEREAS, the Creek Trail Extension Project listed in the Project List provides for the design and construction of an extension of the Ataseadero Creek trail from the Downtown area to ,he 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 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 P_edevelopment Project Area; 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 it for display in the Civic Center. It was located in the City's downtown and included in the 24 Redevelopment Project Area at the time that it was transported to Cambria, California for restoration: 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 pavino 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 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 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, 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 facilities in the Project List upon their completion will be owned and operated by the City; and, WHEREAS, the estimated cost of the individual Projects on the Project List are as follows: Wayfinding Signage $ 168,000 Downtown Pedestrian Bridge 1,680,000 Downtown Parking 840,000 Downtown Restrooms 672,000 Commercial Property Purchase 2,050,000 Archway Sign 720,000 Creek Trail Extension 1,512,000 Creek Improvements 150,000 Maiden Statue Restoration 51,590 Downtown Streetscape 252,820 Downtown Lighting Projects 72,200 Lewis Ave Bridge 8,210 Total Projects' Cost $ 8,176,820 ; and 25 WHEREAS, the Agency intends to provide funding ("the Agency Funds") to assist the Cl,, - ,'i.th the cost of the Projects because the Projects will directly benefit the Project Area; and, WHEREAS, the Projects will address the goals and objectives of the Redevelopment Pian for the Project Area and will be of benefit to the Project Area in that the Projects will attract onal 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 h.i1;Jlementation Plan; and, and, WHEREAS, the constriction of the Projects conforms to the General Plan of the City; WHEREAS, pursuant to Health and Safety Code Section 33445, the Agency may, with :,n—nt of the City, pay part or all of the cost of the Project if the Board and the Cite make specified findings; and, WHEREAS, the Agency has made the requisite findings pursuant to section 33445 and _e.s committed to provide the City with a Agency Funds for the Projects; and, WHEREAS, the City lacks sufficient capital or general funds available which could be _:-,ed to undertake the Project and bring it to completion and it is not practical to arrange for assessment district, City -paid bond issue or any other similar financing for the Project; and, WHEREAS, the staff report to the City Council at its meeting held on January 14, 2011 tAe "Staff Report," incorporated herein by reference), which sets forth facts supporting the _dings made in this Resolution pursuant to Section 33445 of the Health and Safety Code, has )een prepared to accompany this Resolution. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Atascadero: 1. That the City Council hereby finds and determines pursuant to California Health and Safety Code section 33445 that: (a) the Projects 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 the Projects 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 City Council consents to the Agency's 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. 3. That the City Council consents to the Agency 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. 4. That the City Council directs the City Manager to execute the Contract with the Agency concerning the Agency Funds. IT IS FURTHER RESOLVED AND ORDERED that this resolution will become effective January 14, 2011 upon the approval by the City Council. On motion by Council Member and seconded by Council Member , the foregoing resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Tom O'Malley, Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney 27 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, 29 WHEREAS, the Wayfinding Signage Project listed in the Project List has been a priority tilt Agency governing Board and has been funded in two of the three previous two-year �t 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; WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List provides the design and construction of a pedestrian bridge across Ataseadero Creek from Colony snare to the Sunken Gardens to enhance pedestrian and reduce motor traffic in the downtown an and is included in the Redevelopment Project Area, and, WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List has been a p?nrity for the Agency governing Board and has been funded in a previous two-year budget and, WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List was �, d by the Agency governing Board in June, 2010, as the number two priority of all Landing projects; and, WHEREAS, the Downtown Pedestrian Bridge Project listed in the Project List has c instruction documents that are approximately 90% complete; and, WHEREAS, the Downtown Parking Project listed in the Project List provides for the _,:sign 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 ?owz:town area which is included in the Redevelopment Project Area; and, WHEREAS, the Downtown Parking Project listed in the Project List has been a priority f- ?)e Agency governing Board and has been funded in three previous two-year budget cycles; z:nu. WHEREAS, the Downtown Parking Project listed in the Project List was ranked by the A,gency governing Board in June, 2010, as the number three priority of all outstanding projects; ar I WHEREAS, the Downtown Restroom Project listed in the Project List provides for the and construction of public restroom facilities in the Downtown area to enhance business �r 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 L ency governing Board in June, 2010, as the number four priority of all outstanding projects; DO 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- vear 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 ?010, 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 creel: 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 31 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 rejected 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, 4 32 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 finds 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 finding ("the Agency Funds") to assist the City with the cost of the Projects because the Projects will directly benefit the Project Area; and, WHEREAS, the estimated cost of the individual Projects on the Project List are as follows: 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. making all required findings for the use of Agency funds for the Projects pursuant to Section 33445. 5 33 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 auree 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 zdditional 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 fiends 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 6 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 anv 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(8) 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 35 10. This Contract shall be governed by the laws of California and represents the entire aureement 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 By: Wade G. McKinney Executive Director ATTEST: By: Marcia McClure Torgerson. C.M.C. Board Secretary Date: APPROVED AS TO FORM Community Redevelopment Agency of Atascadero By: _ Brian A. Pierik, Agency General Counsel 36 8 CITY By: Wade G. McKinney City Manager ATTEST: By: Marcia McClure Toraerson, C.M.C. City Clerk Date: APPROVED AS TO FORM City of Atascadero By: Brian A. Pierik, City Attorney Atascadero City Council Staff Report - Administrative Services ITEM NUMBER: #3 DATE: 01/14/11 Production of 24 Affordable Housing Units Contract RECOMMENDATION: Council authorize the City Manager to execute a Financing Contract with the Community Redevelopment Agency of Atascadero for the production of 24 affordable housing units. DISCUSSION: One of the fundamental purposes of redevelopment is to increase and improve the community's supply of low and moderate income housing. In addition to being a purpose that is dictated by the State Health and Safety Code, the Agency Board has indicated, through past actions, that affordable housing is a priority. Since the Board's adoption of the Housing Production Plan, 183 market rate residential dwelling units have been constructed within the Redevelopment Agency Project Area, which requires that 28 low to moderate income units be provided (11 very low income units and 17 low / moderate income units). The Agency has thus far sponsored the production of four (4) very low income units within the Project Area, which leaves a remaining obligation to produce twenty-four (24) additional affordable housing units. Among the Board's past actions is the adoption of an Affordable Housing Funds Policy, which allows the City to facilitate in the financial participation of affordable housing projects. In addition, the City currently provides a full staff of planning, construction and finance professionals, who are experienced in the planning, financing and construction of affordable housing projects. The expertise of City staff is currently used by the Agency, as these individuals have contacts in the community and can best ensure that the appropriate developers are selected to build the required affordable housing units. Thus, City staff are able to best leverage the affordable housing funds, making the City a proper entity to assist in providing affordable housing. In order to protect funding for the production of the remaining 24 affordable housing units, the City and Agency need to formalize and document the Agency's commitment to complete the project. Staff is recommending that the Board take the following two actions: 37 (1) Authorize the City Manager to execute a Financing Contract with the Redevelopment Agency in order to receive funding for the completion of the project. This Contract commits the Agency to pay a total of $5,543,800 for the production of the remaining 24 affordable housing units. This commitment is part of a legally binding financing agreement with the City and once pledged, cannot be reversed. The City will only receive reimbursement for actual amounts spent. r ;uion of this agreement commits the City to the production of the remaining 24 7rdable housing units and being reimbursed by the Agency (up to $5,543,800) for the ,10 ect. The City will not receive any additional administrative funds from the Agency. r'SSCAL IMPACT: No net fiscal impact. Receipt of $5,383,800 from the Community Redevelopment n,,, of Atascadero; Expenditure of $5,383,800 on Affordable Housing. ATTACHMENTS: 1. Draft Financing Contract - Production of 24 Affordable Housing Units 3` FINANCING CONTRACT PRODUCTION OF 24 AFFORDABLE HOUSING UNITS THIS FINANCING 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, Sections 33000 et. seq. of the Law states that one of the fundamental purposes of redevelopment is to increase and improve the community's supply of low and moderate income housing, and, WHEREAS, the Law requires that 20% of the tax increment revenues received by the Agency be placed in a Low and Moderate Income Housing Fund ("LMIHF"). The LMIHF funds are to be used to increase, improve and preserve the supply of low and moderate income housing in the Project Area and within City limits (H&S 33334.2); and, WHEREAS, The Agency must replace low and moderate income housing that is removed as a result of a redevelopment project (the replacement rule, H&S 33413(a)); and, WHEREAS, 15% of all housing constructed in a redevelopment project area must be affordable to low and moderate -income persons and families (the inclusionary rule.. H&S 33413(b)); and, WHEREAS, the Law requires that each redevelopment agency shall adopt a Housing Production Plan, in conjunction with its Implementation Plan, which is consistent with the governing General Plan Housing Element. In addition, Sections 33413.5 and 33334.5 require replacement housing plans for any units that will be demolished within the Project Area; and, WHEREAS, since the Housing Production Plan's adoption, 183 market rate residential dwelling units have been constructed within the Redevelopment Agency Project Area, which requires that 28 low to moderate income units be provided (11 very low income units and 17 low / moderate income units); and, WHEREAS, the Agency has sponsored the production of four (4) very low income units within the Project Area, which leaves a remaining obligation to produce twenty-four (24) additional affordable housing units (the "Project"), and, 39 WHEREAS, the Project conforms to the General Plan of the City; and, WHEREAS, the Agency is authorized by the California Redevelopment Law to enter into _�__ ,,iing contract with the City pursuant to which the Agency will irrevocably commit the -_MIHF funds to the Project and due to the Agency's previous commitment to the Project the Agency intends to provide funding in the amount of $5,543,800.00 ("the LMIHF Funds") to the City with the cost of the Project because the Project will directly benefit the Project and. WHEREAS, the City provides a full staff of planning, construction and finance n ofessionals, who are experienced in the planning, financing and construction of affordable dousing projects. and, WHEREAS, pursuant to Section 33334.3 of the Law, the Agency may use LMIHF funds pay for services provided through interagency agreements, including usual indirect costs thereto, for the purpose of producing affordable housing units; and, WHEREAS, a duly noticed public meeting of the Agency was held on January 14, 2011 _in the Agency adopted Resolution No. making all required findings for the use LMIHF Funds for the Project pursuant to Section 33445. 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 Farcies with respect to the Agency's commitment to fund the Project through reimbursement of the City's share of Project costs, up to a defined amount. The contents of this Contract are -ntended to be as comprehensive as possible with respect to the Agency's commitment of -Mi-AF Funds (as defined in paragraph 3 of this contract) to the Project yet not exhaustive with respect to additional issues and expenses that may arise relative to the development of the -oject. In the event that issues and expenses occur that are not identified in this Contract, the agree to work together in good faith to resolve each matter. 2. The Agency anticipates that the Project will address the goals and objectives of Ji, Redevelopment Plan for the Project Area and will be of benefit to the Project Area by i crease, improving and preserving the supply of low and moderate income housing in the 1'roject Area and within City limits. The Agency has agreed to commit a total sum of five million five hundred forty-three thousand eight hundred dollars and no cents ($5,543,800.00) 'LMIHF Funds") to the Project to pay for the Project's direct benefit to the Project Area. 3. Within thirty (30) business days of the Parties executing this Contract, Agency shall segregate the sum of five million five hundred forty-three thousand eight hundred dollars i,: no cents ($5,543,800.00) within the Agency's accounts to be held in a separate account LMiHF Account") to pay the Project costs. The Agency Funds shall be held in the LMIHF account until 2 months from the latest of the date the project is completed or the date of the final Gln, Dice. The City shall request reimbursement from the Agency for Project costs actually enc -erred and the Agency shall reimburse the City from the LMIHF Funds from the LMIHF 2 4C 4. 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. 5. These obligations. as set forth herein, are binding on the successors, assigns or heirs, including any private or public entities, of both parties. 6. 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 Bv: Wade G. McKinney Executive Director ATTEST: Bv: Marcia McClure Torgerson, C.M.C. Board Secretary Date: APPROVED AS TO FORM Community Redevelopment Agency of Atascadero By: Brian A. Pierik, Agency General Counsel CITY By: Wade G. McKinney City Manager ATTEST: By: Marcia McClure Torgerson, C.M.C. City Clerk Date: APPROVED AS TO FORM City of Atascadero By: Brian A. Pierik, City Attorney 41 42 City of Atascadero Staff Report -Administrative Services ITEM NUMBER: #4 ITEM NUMBER: #4 DATE: 01/14/11 Contract Services for Blight Reduction and Economic Growth RECOMMENDATION: Council authorize the City Manager to execute a Community Redevelopment Agency of Atascadero fo reduction and economic growth. DISCUSSION: Financing Contract with the r contract services for blight The Agency Board has indicated, through past actions, that the reduction of blight and economic growth are high priorities. The Agency has put considerable investment into economic development, Downtown maintenance and beautification, tourism, marketing and promotions to enhance the Project Area. Section 33126(b) of the State Health and Safety Code 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. In other words, the Agency may contract with the City of Atascadero for blight reduction and economic growth services. The activities that have been provided to date by the Agency include but are not limited to: • Economic Growth: • Investment in the City's Office of Economic Development • Staff time or professional services toward economic development • The Fagade Improvement Program • Site Design Assistance / Design Guidelines • Economic Development Studies • Permit Fee Waiver Program • Sign Program • Legal services and pertinent professional development of staff • Other economic stimulus services 43 • Tourism, Marketing and Promotiions: • Advertising • Special Events • Visitor's and Conference Bureau • Tourism, marketing and promotions contract • Other tourism, marketing or promotion services • Downtown Maintenance and Beautification: • Sunken Gardens maintenance and costs • Downtown landscape maintenance • Downtown tree trimming • Fountain maintenance • Sidewalk steam cleaning • Street sweeping • Empty trash cans • Trash pick-up and weeding • Spot maintenance • Janitorial service -trash pick-up • Sunken Gardens holiday enhancements • Other downtown maintenance and beautification • Administration: • Independent auditor services • Professional legal services • Supplies and administrative staff time • Other administration services The contract between the Agency and the City is for a period of seven (7) years. After that time, the Agency and the City will re-evaluate the need for such services and will, at that time, negotiate an additional contract if desired by both parties. FISCAL IMPACT: No net fiscal impact. Receipt of $5,621,180 from the Community Redevelopment Agency of Atascadero; Expenditure of $5,621,180 on Blight Reduction and Economic Growth. ATTACHMENT: 1. Draft Financing Contract - Blight Reduction and Economic Growth 2 44 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 creatingjobs, 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 Facade 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 45 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 fundinL- S in the amount of .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. 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 ree to work together in good faith to resolve each matter. M 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. J 47 'IGENCY By: Wade G. McKinney Executive Director ATTEST: By: Marcia McClure Torgerson, C.M.C. Board Secretary Date: APPROVED AS TO FORM Community Redevelopment Agency of Atascadero Brian A. Pierik, Agency General Counsel W; CITY By: Wade G. McKinney City Manager ATTEST: By: Marcia McClure Torgerson, C.M.0 City Clerk Date: APPROVED AS TO FORM City of Atascadero By: Brian A. Pierik, City Attorney