HomeMy WebLinkAbout06 - JOINT 5-Year Implementation Plan-Reso-COOP~ f
MEEt'16~G SATE.
MARCH 7, 2011
TITLE:
RESOLUTION AND COOPERATIVE AGREEMENT FOR
THE IMPLEMENTATION OF PROGRAMS AND
PROJECTS ESTABLISHED IN THE 2010/11 - 2014/15
FIVE-YEAR IMPLEMENTATION PLAN
CITY MANAGER EXECUI°IVEr~IiRECTC7R
RE .TAN
CITY COUNCIL
CLERK OF CODfdCIL tDSE ONLY:
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1. Adopt a resolution of the City Council making certain findings for the Community
Redevelopment Agency to fund and implement programs and projects established in the
2010/11 - 2014/15 Five-Year Implementation Plan.
2. Authorize the City Manager and Clerk of the Council to execute the attached Cooperative
Agreement with the Community Redevelopment Agency (Agency) in the amount not-to-
exceed $210 million for the implementation of programs and projects established in the
2010/11 - 2014/15 Five-Year Implementation Plan, subject to non-substantive changes
approved by the City Manager and City Attorney.
COMMUNITY REDEVELOPMENT AGENCY
1. Adopt a resolution of the Community Redevelopment Agency making certain findings for the
Agency to fund and implement programs and projects established in the 2010/11 - 2014/15
Five-Year Implementation Plan.
2. Authorize the Executive Director and the Agency Secretary to execute the attached
Cooperative Agreement with the City of Santa Ana (City) in the amount not-to-exceed $210
million for the implementation of programs and projects established in the 2010/11 - 2014/15
Five-Year Implementation Plan, subject to non-substantive changes approved by the
Executive Director and Agency General Counsel.
6-1
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
Implementation of Programs and Projects
March 7, 2011
Page 3
FISCAL IMPACT
Funds are available in the Merged Project Area Capital Improvements Project fund (account no.
57018830-various), South Main Commercial Corridor Capital Project fund (account no. 55318830-
various), Low and Moderate Housing Capital Project fund (account no. 50718830-various), and
administration funds (account no. 50718810-various, 50718820-various, 57018841-various,
57018842-various, 57018843-various). Tax increment revenue receipts for FY 2011-12 through
FY 2014-15 will be allocated in each respective fund.
APPROVED AS TO FUNDS AND ACCOUNTS:
Nancy T. Ed rds
Interim Exec ve Director
Community Development Agency
y
'C~\C`oMt~0.S~d'xl gip. v~ ~
Francisco Gutierrez
Executive Director ~
Finance & Management Services Agency
NTE/mlr
Exhibits: 1. Five-Year Implementation Plan
2. Council Resolution
3. CRA Resolution
4. Cooperative Agreement
6-3
For Item #6 Exhibits,
please refer to the March 7, 2011
City Council Agenda
Joint City Council /Community
Redevelopment Agency Agenda Item #80B
6-4
REFER TO CDA'S SHAREPOINT - CRA 03-07-2011
OR COUNCIL ITEM #80B DATED 03-07-11
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July 1, 2010 -June 0, 2015
EXHIBIT 1
3-1-11 LES
RESOLUTION NO. 2011-
A RESOLUTION OF THE CITY COUNCIL OF SANTA ANA
APPROVING A COOPERATIVE AGREEMENT REGARDING THE
IMPLEMENTATION OF PROGRAMS AND PROJECTS
ESTABLISHED IN THE 2010/11-2014/15 FIVE-YEAR
IMPLEMENTATION PLAN WITH THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA
AND MAKING CERTAIN FINDINGS RELATED THERETO
PURSUANT TO SECTION 33445 OF THE HEALTH & SAFETY
CODE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS
FOLLOWS:
Section 1: The City Council of the City of Santa Ana hereby finds, determines and
declares as follows:
A. The Community Redevelopment Agency of the City of Santa Ana
(hereinafter referred to as the "Agency") is engaged in activities necessary
to execute and implement the Redevelopment Plan for the Merged Project
Area (the "Redevelopment Plan").
B. The intent of the Redevelopment Plan is, in part, to provide for the
construction and installation of necessary public infrastructure and
facilities, and to facilitate the repair, restoration and/or replacement of
existing public facilities and to perform specific actions necessary to
promote the redevelopment and the economic revitalization of the Project
Area, and to expend tax increment to accomplish the goals and objectives
of the respective redevelopment projects.
C. The Agency has adopted its Five-Year Implementation Plan
(2010111-2014115) for the Project Area, as amended from time to time
(the "Implementation Plan"), with established goals to support affordable
housing, economic development, community revitalization, and
institutional revitalization. To implement the projects, programs and
activities associated with each goal, the Agency has made redevelopment
fund commitments based on estimated available tax increment revenue
and debt financing structures.
D. The Agency and City of Santa Ana (the "City") wish to cooperate
with one another to bring about the redevelopment of the Merged Project
EXHI~IT 2
Area and accomplish various projects and programs set forth in the
Redevelopment Plan and the Implementation Plan.
E. Pursuant to Section 33220 of the Community Redevelopment Law
(Health and Safety Code section 33000, et seq.) (the "CRL") certain public
bodies, including the City may aid and cooperate in the planning,
undertaking, construction, or operation of redevelopment projects.
F. The Agency and City have prepared a Cooperative Agreement (the
"Agreement") to provide for the implementation of certain projects set forth
in the Implementation Plan attached hereto as Exhibit 1 (the "Projects"),
and to make payments by the Agency to the City to reimburse the City for
the cost to the City for performing its obligations thereunder.
The programs and activities associated with the Projects include,
but are not limited to, acquisition and disposition of property, design,
planning, preparation of construction bid documents, financial analysis,
financing and new construction or rehabilitation. To carry out the Projects
in accordance with the objectives and purposes of the Redevelopment
Plan for the Project Area and the Implementation Plan, the Agency
desires assistance and cooperation in the implementation and completion
of the Projects. The City wishes to enter into the Agreement with the
Agency to aid the Agency and cooperate with the Agency to expeditiously
implement the Projects in accordance with the Redevelopment Plan for
the Project Area and the Implementation Plan and undertake and
complete all actions necessary or appropriate to ensure that the
objectives of the Redevelopment Plan for the Project Area and the
Implementation Plan is fulfilled within the time effectiveness of the Project
Area.
G. The Agency wishes to enter the Agreement with the City for the
pledge of net available tax increment to finance the Projects. The
purpose of the agreement is to facilitate the implementation of the
Projects and to provide funding necessary to effectuate the completion of
the Projects with net available tax increment in this current fiscal year and
forthcoming fiscal years. "Net tax increment" is defined as gross tax
increment, less County Administrative Fees, statutory pass-throughs and
debt service. By approving and entering into the Agreement, the Agency
will approve the pledge of net available increment from the Project Area to
pay for the Projects.
G. Section 33445 of the Health & Safety Code, part of the California
Redevelopment Law, provides that the Agency may pay for all or part of the
2
cost of installation and construction of any building, facility, structure or
other improvement which is publicly owned either within or without the
project area, upon the consent of the City, if the following findings can be
made:
1. That the public improvement is of benefit to the project area
or the immediate neighborhood in which the project is located and
helps to eliminate blight;
2. That no other reasonable means of financing the publicly
owned improvement is available to the community; and
3. That the payment of funds for the cost of the publicly owned
improvement is consistent with the Implementation Plan.
H. The City finds that the Projects will be of benefit to the merged
Project Area as well as benefit the immediate neighborhood and all
residents and visitors to the City. This finding is supported by the fact that
public improvements in general facilitate the removal of blight and help
create a safe, more cohesive and economically dynamic community.
Development of library, park and recreational facilities, as well as public
parking and open space improvements assist in removal of blight within
densely populated neighborhoods currently underserved with these types of
amenities. Public safety and street improvements eliminate blight, improve
traffic flow, increase the safety of residents, promote job create and
promote business attraction and retention. The City, public and business
community will significantly benefit from the proposed public facilities on the
Schedule of Projects. These public improvements will beautify public
streets, promote business, and improve public infrastructure necessary to
spur economic revitalization in the Project Area.
I. The City determines that it lacks funds to pay for the Projects at this
time, and there are no other reasonable means of financing said
improvements. It has been difficult for the City, by itself, to provide
sufficient funds to support the implementation of major public projects,
programs, and activities. The limited resources of the City's General Fund
are committed to previously incurred obligations and planned projects.
J. The City further finds and determines that the payment of funds for
the implementation of the public projects, programs and activities is
consistent with the Implementation Plan adopted pursuant to Health and
Safety Code Section 33490.
3
K. The City finds that it is in the best interests of the City and the
common benefit of residents, employees, business tenants and property
owners within the Project Area and the City as a whole for the Projects to
be developed and constructed.
L. The use of funds in the Agency's low and moderate income housing
fund for the Projects located outside of the Project Area can be used in
accordance with Section 33334.2 of the CRL because the use of such
funds will be of benefit to the Project Area.
M. The City Council has received and heard all oral and written
objections to the proposed payments by the Agency to the City for the
Projects as described in the Agreement, and to other matters pertaining to
this transaction, and all such oral and written objections are hereby
overruled.
N. The City Council hereby finds and determines that the foregoing
findings are true and correct.
Section 2. The City Council hereby consents to the payment by the Agency of
up to $210,000,000.00 in Agency funds from the Merged Project Area for these public
projects, programs and activities, in accordance with that certain Cooperative Agreement
to be executed between the Agency and the City.
Section 3. The City Manager or his designess is hereby authorized to take all
steps, and to sign all documents and instruments necessary to implement and carry out
and implement the Agreement, and to administer the City's obligations, responsibilities
and duties to be performed under the Cooperative Agreement on behalf of the City.
Section 4. The Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
4
ADOPTED this day of , 2011.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph Straka, Interim City Attorney
By:
Lisa E. Storck
Assistant City Attorney
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of Council, do hereby attest to and certify the attached
Resolution No. 2011- to be the original resolution adopted by the City Council
of the City of Santa Ana on
Date:
Clerk of Council
City of Santa Ana
5
3.3.11 LES
RESOLUTION NO. 2011-
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF SANTA ANA APPROVING A COOPERATIVE
AGREEMENT REGARDING THE IMPLEMENTATION OF
PROGRAMS AND PROJECTS ESTABLISHED IN THE 2010/11-
2014/15 FIVE-YEAR IMPLEMENTATION PLAN WITH THE CITY
OF SANTA ANA AND MAKING CERTAIN FINDINGS RELATED
THERETO PURSUANT TO SECTION 33445 OF THE HEALTH &
SAFETY CODE
BE IT RESOLVED BY THE OF THE COMMUNITY REDEVELOPMENT
AGENCY CITY OF SANTA ANA, AS FOLLOWS:
Section 1: The Community Redevelopment Agency Board hereby finds,
determines and declares as follows:
A. The Community Redevelopment Agency of the City of Santa Ana
(hereinafter referred to as the "Agency") is engaged in activities necessary
to execute and implement the Redevelopment Plan for the Merged Project
Area (the "Redevelopment Plan").
B. The intent of the Redevelopment Plan is, in part, to provide for the
construction and installation of necessary public infrastructure and
facilities, and to facilitate the repair, restoration and/or replacement of
existing public facilities and to perform specific actions necessary to
promote the redevelopment and the economic revitalization of the Project
Area, and to expend tax increment to accomplish the goals and objectives
of the respective redevelopment projects.
C. The Agency has adopted its Five-Year Implementation Plan
(2010/11-2014115) for the Project Area, as amended from time to time
(the "Implementation Plan"), with established goals to support affordable
housing, economic development, community revitalization, and
institutional revitalization. To implement the projects, programs and
activities associated with each goal, the Agency has made redevelopment
fund commitments based on estimated available tax increment revenue
and debt financing structures.
D. The Agency and City of Santa Ana (the "City") wish to cooperate
with one another to bring about the redevelopment of the Project Area
and accomplish various projects and programs set forth in the
EXHI~IT 3
Redevelopment Plan and the Implementation Plan.
E. Pursuant to Section 33220 of the Community Redevelopment Law
(Health and Safety Code section 33000, et seq.) (the "CRL") certain public
bodies, including the City may aid and cooperate in the planning,
undertaking, construction, or operation of redevelopment projects.
F, The Agency and City have prepared a Cooperative Agreement (the
"Agreement") to provide for the implementation of certain projects set forth
in the Implementation Plan attached hereto as Exhibit 1 (the "Projects"),
and to make payments by the Agency to the City to reimburse the City for
the cost to the City for performing its obligations thereunder.
The programs and activities associated with the Projects include,
but are not limited to, acquisition and disposition of property, design,
planning, preparation of construction bid documents, financial analysis,
financing and new construction or rehabilitation. To carry out the Projects
in accordance with the objectives and purposes of the Redevelopment
Plan for the Project Area and the Implementation Plan, the Agency
desires assistance and cooperation in the implementation and completion
of the Projects. The City wishes to enter into the Agreement with the
Agency to aid the Agency and cooperate with the Agency to expeditiously
implement the Projects in accordance with the Redevelopment Plan for
the Project Area and the Implementation Plan and undertake and
complete all actions necessary or appropriate to ensure that the
objectives of the Redevelopment Plan for the Project Area and the
Implementation Plan is fulfilled within the time effectiveness of the Project
Area.
G. The Agency wishes to enter the Agreement with the City for the
pledge of net available tax increment to finance the Projects. The
purpose of the agreement is to facilitate the implementation of the
Projects and to provide funding necessary to effectuate the completion of
the Projects with net available tax increment in this current fiscal year and
forthcoming fiscal years. "Net tax increment" is defined as gross tax
increment, less County Administrative Fees, statutory pass-throughs and
debt service. By approving and entering into the Agreement, the Agency
will approve the pledge of net available increment from the Project Area to
pay for the Projects.
G. Section 33445 of the Health & Safety Code, part of the California
Redevelopment Law, provides that the Agency may pay for all or part of the
cost of installation and construction of any building, facility, structure or
2
other improvement which is publicly owned either within or without the
project area, upon the consent of the City, if the following findings can be
made:
1. That the public improvement is of benefit to the project area
or the immediate neighborhood in which the project is located and
helps to eliminate blight;
2. That no other reasonable means of financing the publicly
owned improvement is available to the community; and
3. That the payment of funds for the cost of the publicly owned
improvement is consistent with the Implementation Plan.
H. The Agency and City find that the Projects will be of benefit to the
merged Project Area as well as benefit the immediate neighborhood and all
residents and visitors to the City. This finding is supported by the fact that
public improvements in general facilitate the removal of blight and help
create a safe, more cohesive and economically dynamic community.
Development of library, park and recreational facilities, as well as public
parking and open space improvements assist in removal of blight within
densely populated neighborhoods currently underserved with these types of
amenities. Public safety and street improvements eliminate blight, improve
traffic flow, increase the safety of residents, promote job create and
promote business attraction and retention. The City, public and business
community will significantly benefit from the proposed public facilities on the
Schedule of Projects. These public improvements will beautify public
streets, promote business, and improve public infrastructure necessary to
spur economic revitalization in the Project Area.
I. The City has determined that it lacks funds to pay for the Projects at
this time, and there are no other reasonable means of financing said
improvements. It has been difficult for the City, by itself, to provide
sufficient funds to support the implementation of major public projects,
programs and activities. The limited resources of the City's General Fund
are committed to previously incurred obligations and planned projects.
J. The Agency and the City further find and determine that the payment
of funds for the implementation of the public projects, programs and
activities is consistent with the Implementation Plan adopted pursuant to
Health and Safety Code Section 33490.
K. The Agency and City find that it is in the best interests of the City and
the common benefit of residents, employees, business tenants and
property owners within the Project Area and the City as a whole for the
Projects to be implemented and developed.
L. The use of funds in the Agency's low and moderate income housing
fund for the Projects located outside of the Project Area can be used in
accordance with Section 33334.2 of the CRL because the use of such
funds will be of benefit to the Project Area.
M. The Agency Board and City Council have received and heard all oral
and written objections to the proposed payments by the Agency to the City
for the Projects as described in the Agreement, and to other matters
pertaining to this transaction, and all such oral and written objections are
hereby overruled.
N. The Agency Board hereby finds and determines that the foregoing
findings are true and correct.
Section 2. The Agency hereby consents to the payment by the Agency to the
City of up to $210,000,000.00 in Agency funds from the Merged Project Area for these
public projects, programs and activities, in accordance with that certain Cooperative
Agreement to be executed between the Agency and the City.
Section 3. The Executive Director of the Agency, or his/her designee, is hereby
authorized to take all steps, and to sign all documents and instruments necessary to
implement and carry out and implement the Cooperative Agreement, and to administer
the Agency's obligations, responsibilities and duties to be performed under the
Cooperative Agreement on behalf of the Agency.
Section 4. The Executive Director of the Agency, or her/his designee, is hereby
authorized to execute the Cooperative Agreement on behalf of the Agency, together with
such non-substantive changes as may be approved by the Agency Executive Director
and the Agency General Counsel.
Section 5. The Recording Secretary for the Agency shall attest to and certify
the vote adopting this Resolution.
ADOPTED this day of , 2011.
Miguel A. Pulido
Chair
APPROVED AS TO FORM:
Joseph Straka, Interim General Counsel
By:
Lisa E. Storck
Assistant Counsel
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Boardmembers:
Boardmembers:
Boardmembers:
Boardmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Secretary of the Agency, do hereby attest to and certify the attached
Resolution No. 2011- to be the original resolution adopted by the Community
Redevelopment Agency of the City of Santa Ana on , 2011.
Date:
Secretary, Community Redevelopment Agency
COOPERATIVE AGREEMENT BETWEEN THE
COMMUNITY REDEVELOPMENT AGENCY
AND THE CITY OF SANTA ANA FOR THE
PAYMENT OF COSTS ASSOCIATED WITH CERTAIN
REDEVELOPMENT AGENCY FUNDED
PROJECTS/PROGRAMS
THIS COOPERATIVE AGREEMENT is entered into this 7th day of March, 2011, by and
between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a
public body corporate and politic (the "Agency"), and the CTfY OF SANTA ANA, a charter city
and municipal corporation duly organized and existing under the Constitution and laws of the State
of California (the "City").
WITNESSETH
A. The Agency is undertaking certain activities necessary for the execution of the City
of Santa Ana redevelopment projects (the "Projects") under the provisions of the California
Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) ("CRL") and
pursuant to the Redevelopment Plan for the Projects.
B. The intent of the Redevelopment Plan is, in part, to provide for the construction and
installation of necessary public infrastructure and facilities and to facilitate the repair, restoration
and/or replacement of existing public facilities and to perform specific actions necessary to promote
the redevelopment and the economic revitalization of the Project Areas; to increase, improve and
preserve the community's supply of low and moderate income housing, some of which maybe
located or implemented outside the Project Areas; and to take all other necessary actions to
implement the redevelopment plans for the respective Project Areas and to expend tax increment to
accomplish the goals and objectives of the respective redevelopment projects.
C. The Agency has adopted its Five-Year Implementation Plan (2010/11-2014/15)
for the Merged Project Area, as amended from time to time (the "Implementation Plan"), with
established goals to support affordable housing, economic development, community
revitalization, and institutional revitalization, To implement the projects, programs and activities
associated with each goal ("Projects"), the Agency has made redevelopment fund commitments
based on estimated available tax increment revenue and debt financing structures.
D. The Agency and City of Santa Ana (the "City") wish to cooperate with one
another to bring about the redevelopment of the Project Area and accomplish various projects
and programs set forth in the Redevelopment Plan and the Implementation Plan. Pursuant to
Section 33220 of the Community Redevelopment Law (Health and Safety Code section 33000,
et seq.) (the "CRL") certain public bodies, including the City may aid and cooperate in the
planning, undertaking, construction, or operation of redevelopment projects.
E. In considering the Agency's desire to ensure timely implementation and
EXHI~IT 4
completion of the Projects, the Agency wishes to enter this Agreement with the City for the
pledge of net available tax increment to finance the Projects. The purpose of this Agreement is
to facilitate the implementation of the Projects and to provide funding necessary to effectuate the
completion of the Projects with net available tax increment in this current fiscal year and
forthcoming fiscal years. "Net tax increment" is defined as gross tax increment, less County
Administrative Fees, statutory pass-throughs and debt service. By approving and entering into
the Agreement, the Agency will approve the pledge of net available increment from the Project
Area to pay for the Projects.
F. The City and Agency by resolution have each found that the use of Agency
redevelopment funding for the Publicly Owned Improvements included herein is in accordance with
Section 33445 and 33445.1 of the CRL and other applicable law. Such Council and Agency
resolutions are each based on the authority, with the consent of the Council, to pay all or part of the
cost of the installation and constmction of any building, facility, structure, or other improvement
which is publicly owned, either within or outside a Project Area, if the City Council makes certain
determinations.
G. By approving and entering into this Agreement, the Agency has approved the pledge
of net available tax increment from the Project Areas to pay for the Projects and Programs.
FI. The obligations of the Agency under this Agreement shall constitute an indebtedness
of the Agency for the purpose of carrying out the Redevelopment Plan for the Merged Project Area.
I. The Recitals are an integral part of this Agreement and set forth the intentions of the
parties and the conditions on which the parties have decided to enter into this Agreement.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
AGENCY OBLIGATIONS
A. The Projects are those projects, programs and activities which are listed in the attached
Implementation Plan. The Agency wishes to pay to the City an amount equal to the cost to the City
to carry out the Projects. The Agency's obligations under this agreement, including without
limitation the Agency's obligation to make the payments to the City required by this Agreement,
shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment of
the Merged Project Area and are obligations to make payments authorized and incurred pursuant to
redevelopment law. The obligations of the Agency set forth in this Agreement are contractual
obligations that, if breached, could subject the Agency to damages and other liabilities or remedies.
B. The obligations of Agency under this Agreement shall be payable out of net available tax
increment, as defined in above Recitals and/or as defined or provided for in any applicable
constitutional provision, statute or other provision of law now existing or adopted in the future,
levied by or for the benefit of taxing agencies in the Merged Project Area, and allocated to the
Agency and/or any lawful successor entity of the Agencyand/or any entity established by law to
carry out any of the redevelopment plans for the Merged Project Area and/or expend tax increment
or pay indebtedness of the Agency to be repaid with tax increment, pursuant to Section 33670 of the
CI2L or any applicable constitutional provision, statute or other provision of law now existing or
adopted in the future. In the event that additional funds are required in order to make the Agency
payments to the City required by this Agreement, the Agency shall make such other payments from
income received by the Agency from its projects and programs or any other additional funds
available to it.
C. The indebtedness of Agency under this Agreement shall be subordinate to the rights of
the holder(s) of any existing bonds, notes or other instruments of indebtedness (all referred to herein
as "indebtedness") of the Agency incurred or issued to finance the Merged Project Area, including
without ]imitation any pledge of tax increment revenues from the Merged Project Area to pay any
portion of the principal (and otherwise comply with the obligations and covenants) of any bond(s)
issued or sold with respect to the Merged. Project Area.
2. CITY OBLIGATIONS
A. The City shall accept any funds offered by the Agency pursuant to this Agreement and
shall devote those funds to completion of the projects, programs and activities by (i) reimbursing the
City of using such funds to make City expenditures to perform the work required to carry out and
complete the Projects; (il) utilizing such funds to pay debt service on bonds or other indebtedness or
obligations that the City has or will incur for such purposes; and/or paying such funds into a special
fund of the City to be held and expended only for the purpose of satisfying the obligations of the
City hereunder.
B. It is the responsibility of the City to pay all development and construction costs in
connection with the Projects from funds paid to the City by the Agency under this Agreement.
C. The City shall perform its obligations hereunder in accordance with all applicable
provisions of federal, state and local laws, including its obligation to comply with environmental
laws such as CEQA, and shall timely complete the work required for each of the Projects set forth in
the Plan.
3. COMPENSATION AND METHOD OF PAYMENT
The Agency shall contribute to the projects, programs and activities set forth in the
Implementation Plan in an amount not to exceed Two Hundred Ten Million Dollars
($210,000,000.00), with the breakdown of Project costs as shown in Exhibit A attached hereto and
incorporated herein. The Agency shall reimburse the City for the cost to the City of performing its
obligations hereunder. The amount to be paid by the Agency hereunder shall be paid in the same
fiscal year as the year in which the debts are incurred by the City.
4. LIABILITY AND INDEMNIFICATION
In contemplation of the provisions of Section 895.2 of the Government Code of the State of
California imposing certain tort liability jointly upon public entities solely by reason of such entities
being parties to an agreement as defined by Section 895 of said Code, the parties hereto, as between
themselves, pursuant to the authorization contained in Section 895.4 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
injury caused by negligent or wrongful act or omission occurring in the performance of this
Agreement to the same extent that such liability would be imposed in the absence of Section 895.2
of said Code. To achieve the above-stated purpose each party indemnifies and holds harmless the
other party for any loss, costs or expense that maybe imposed upon such other party solely by
virtue of said Section 895.2. The provisions of Section 2778 of the California Civil Code are made a
part hereof as if fully set forth herein.
5. SEVERABILITY
If any term, provision, covenant or condition of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall
continue in full force and effect unless the rights and obligations of the parties have been materially
altered or abridged by such invalidation, voiding or unenforceability.
6. EFFECTIVE DATE OF AGREEMENT
This Agreement shall take effect from and after the date of adoption and approval by the
City and the Agency pursuant to of5cial action of the governing bodies thereof and shall be
effective for a duration not to exceed the time necessary for the City to complete the work and for
the Agency to pay the City in full. This Agreement shall apply to all activities carried out by the
City as set forth in Section 1 hereto.
7. BINDING ON SUCCESSORS
This Agreement shall be binding on and shall inure to the benefit of all successors and
assigns of the parties, whether by agreement or operation of law.
IN WITNESS WHEREOF, the parties hereto have executed this Cooperative Agreement the date
and year first above written.
ATTEST: CITY OF SANTA ANA
Maria D. Huizar
Clerk of the Council
ATTEST:
Maria D. Huizar
Secretary
APPROVED AS TO FORM:
Joseph Straka
Interim City Attorney/Agency General
Counsel
By
David N. Ream
City Manager
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA
By:
Nancy T. Edwards
Interim Executive Director
By: Lisa E. Storck
Assistant City Attorney/Assistant Counsel