06 - JOINT 5-Year Implementation Plan-Reso-COOP

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Implementation of Programs and Projects March 7, 2011 Page 2 DISCUSSION In June of 2010, the Agency adopted aFive-Year Plan, which establishes goals to support economic development, commercial, industrial and community revitalization and to provide and preserve affordable housing. To implement the programs, activities and projects associated with each goal, the Agency has made redevelopment fund commitments based on estimated available tax increment revenue and debt financing structures. (Exhibit 1) Currently, the Agency is actively involved in the development of various projects that have been identified in the Five-Year Implementation Plan covering the Agency's merged project area. Many of the identified projects are anticipated to assist the economic recovery of the City, as well as ensure the creation of locally-based, quality jobs. In response to the Governor's proposed State budget package and proposals for FY 2011-12, which include recommending the elimination of redevelopment agencies "to realign the delivery of state services to counties and local governments" and eliminate a projected State deficit of $25.4 billion, it is recommended to reaffirm the Agency's obligations, programs and projects identified under the Five-Year Implementation Plan for 2010/11 - 2014/15. In the current budget environment, the Agency's ability to carry out the Five-Year Implementation Plan objectives may be limited. Historically, the Agency has successfully partnered with the City to effectuate a number of capital projects and programs. Pursuant to the California Redevelopment Law, Health & Safety Code Section 33220, certain public bodies, including the City, may aid and cooperate with the City in the planning, undertaking, construction and operation of redevelopment projects. Building on this success, the Agency. desires assistance and cooperation in the implementation and completion of these activites. By entering into the Cooperative Agreement, the Agency will pledge the unencumbered assets and resources in the current FY 2010-11 Budget and the Net Tax Increment (defined as gross tax increment less County administrative fees, statutory pass-throughs, and Housing Set-Aside) from FY 2011-12 through FY 2014-15 to protect and secure existing obligations and to acquire, construct, develop and implement projects specified in the approved budgets and spending plan. The purpose of this Cooperative Agreement is to facilitate the implementation of those activites pursuant to the terms and conditions outlined in the Cooperative Agreement. 6-2