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HomeMy WebLinkAboutStaff Report 1.A 01/31/2011DATE: January 31, 2011 TO: Honorable Mayor and City Council/Chair and Members of the Petaluma Community Development Commission (PCDC) through Executive Director FROM: John C. Brown, City Manager Bonne Gaebler, Housing Administrator SUBJECT: Resolution of the City Council and the Petaluma Community Development Commission (PCDC) Authorizing the Expenditure of Tax Increment Funds for Specified Public Improvements and Redevelopment Activities, Adopting Findings Required by Health and Safety Code Section 33445, and Authorizing the Execution of a Cooperative Agreement Between the City of Petaluma and PCDC. RECOMMENDATION It is recommended that the City Council and the PCDC adoptthe attached Resolutions Authorizing the Expenditure of Tax Increment Funds for Specified Public Improvements and Redevelopment Activities, Adopting Findings Required by Health and Safety Code section 33445, and Authorizing the Execution of a Cooperative Agreement between PCDC and the City of Petaluma. BACKGROUND Governor Brown released his budget proposal for Fiscal Year 2011-12 on January 10, 2011, which includes a recommendation to disband redevelopment agencies as of July 1, 2011. The Governor's proposal would use tax increment to fund State obligations, and redistribute tax increment revenues to other taxing entities including the City. Various sources have predicted that the California Legislature will adopt urgency legislation prohibiting redevelopment agencies from entering into new contractual agreements pending action on the Governor's proposal. Legislative efforts are underway to immediately prohibit redevelopment agencies from entering into new obligations. We have been informed that the Senate budget subcommittee will meet to address the redevelopment proposal on February 3rd and the Assembly subcommittee on February 7th. We have also been notified that, in accordance with the Governor's proposed March t, 2011 deadline, the Senate budget drafters plan to complete all hearings by February 14th with a budget proposal to be taken for a vote by both houses shortly thereafter. Lobbyists indicate that no actual budget bill language has yet emerged. As of the writing of this staff report, it is estimated that redevelopment agencies in more than a dozen communities have acted to consider encumbering funds, entering agreements, approving Agenda Review: City Attorney VAFinance Director City Manager�j '- bonds, and otherwise protect their assets from the actions under possible consideration by the Legislature. The majority of these agencies have either already met or have scheduled special meetings in advance of any action the Legislature may take. The action before the City Council and PCDC is to adopt a Cooperative Agreement whereby the Agency pledges funds to support specified projects and activities so that critical, ongoing redevelopment projects are not disrupted by future State actions. DISCUSSION Redevelopment is a critical tool available to the City to promote economic development, complete some of the City's most important public improvements and affordable housing projects. Abandoning these projects now would not only stall the forward momentum the City has developed towards completion, but would represent a significant loss in effort, time, and money already spent towards their implementation. Further, the loss of these funds will negatively impact the City's ability to foster private investment in the community, and to convert underutilized properties and areas of the City to higher and better uses. The Governor's budget reflects the view that redevelopment agencies should be dissolved. It proposes in part to divert a portion of future property taxes that would otherwise go to redevelopment into K-14 districts for education. Page 21 of the Legislative Analyst's January 12th Report on the Budget proposal, comments: "Shifting responsibility for local economic development to local government makes sense. Local communities are in the best position to determine the types of programs and assistance needed to promote development in their communities. Ending state -assisted local economic development programs like redevelopment also makes sense. Redevelopment projects divert property taxes from K-14 districts, increasing state education costs by billions of dollars annually.... recent passage of Proposition 22 limits the Legislature's authority to modify the scope of redevelopment to reduce its costs ...." Staff disagrees with the above conclusions and supports the continuation of PCDC, its important projects, and its authority. The recommended actions before the Council and the PCDC t are a proactive effort to protect, the PCDC's assets by obligating funds for projects, programs, and activities primarily through an agreement between the City and PCDC. Some of these projects, such as Caulfield Lane Crossing, Auto Center Drive Extension, and East Washington Interchange Improvements are already committed through construction contracts or co-operative agreements. Others, such as funds set aside for economic development activities have no such obligations associated with them, and monies needed to support the City's anticipated costs of incorporating a Ranier Crossing into the MSN C-2 project and would appear to be at risk. If the Legislature is successful in prohibiting agencies from taking action to increase their debt, PCDC will have a contract in place with the City committing funds to its priority projects — many of which are in the design phase, are moving forward on the timeframes of partnering agencies, or require additional funding for implementation. Some of the projects, such as the next phase of Rainier and adequate funding for economic development activities are dependent upon issuance of new bonds. In the event that the City is unable to protect these funds, or if the Agency is unable to issue bonds, the City wiil need to find alternative funding sources to to complete the projects identified in Exhibit A of the Cooperative Agreement on behalf of the Agency, or to reprioritize these projects in order to make the best use of any funds that will be available for use. Pursuant to the Cooperative Ageement, all funds would be repaid by the Agency using tax increment funds if available. The public improvement, activities and housing redevelopment projects that are subject to the Cooperative Agreement between the PCDC and the City are described on exhibits attached to the Cooperative Agreement. All of the projects are within one or both of the City's two redevelopment project areas and are consistent with the PCDC Five Year Implementation Plan or the continuation to completion of projects listed in that plan (Rainier). Pursuant to the Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.), section 33445 provides that a redevelopment agency may, with the consent of the legislative body, pay for all or a portion of the cost of the land and cost of construction of any building, facility, structure, or other improvements that are publicly owned and located within or contiguous to the redevelopment project area if the legislative body determines all of the following: (1) The acquisition of land or the installation or construction of buildings, facilities, structures, or other improvements are of benefit to the project area by helping to eliminate blight within the project area or providing housing for low- or moderate -income persons; (2) No other reasonable means of financing the acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned, are available to the community; and (3) The payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements that are publicly owned is consistent with the Five Year Implementation plan adopted by the Agency pursuant to CRL Section 33490. PROJECT LIST AND REOUIRED 33445 FINDINGS The particular public improvements, activities and housing redevelopment projects that are subject to the Cooperative Agreement and the evidence that supports each of the required findings for the projects are as follows: Old Redwood Highwav Interchange Proiect Location — Highway 101 and Old Redwood Highway Project Description — This project upgrades the Old Redwood Highway 101 interchange to meet current standards and future traffic requirements. The proposed interchange includes ramp widening and reconfiguration, traffic operations system improvements, over -crossing structure widening to six lanes, including bicycle lanes and enhanced signalization improvements at the intersections. It is to be constructed independently of the Central B portion of the proposed future widening on US 101, and will provide both safety and congestion relief enhancements. The project has $I OM Measure M funds allocation, with the City/local funds paying for the remaining $20.885M costs. Of that 3 amount, $15,000,000 will be supported.through.PCD,C funding, $5,000,000 of which is a loan to be repaid from Traffic IMpact Mitgation Fees at some future date. Section 33445. Findings: 1. Completion of the public improvements at Old Redwood Highway will help to eliminate blighting conditions in the Petaluma Community Development project area because the infrastructure upgrades and circulation improvements will address roadway and transportation related deficiencies; as well as improving impediments to circulation and access that deter revitalization in the area. 2. The staff has reviewed the City budget and determined that the funds in the General Fund are restricted with the majority of the funds being utilized for public safety expenditures which protect the safety and health of the citizens of Petaluma and therefore there are not funds in the General Fund or its reserves that can be committed to publicly -owned improvements. The staff also investigated outside funding sources and,found that there is a gap in the funds needed that are not covered by the Federal and State programs. PCDC funds are needed to ensure the project will be completed. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. 3. As outlined in the 2007-2012 Implementation Plan, this project fulfills the goals and objectives of the Petaluma Community Development Project Area. Through improving the interchange it will facilitate private investment and revitalize the PCD Project Area by reducing congestion and accommodating long-term growth and development patterns. The project is listed in Table II -3 under Circulation, Landscaping and Parking Improvements of the Implementation Plan. The payment of funds for the cost of the improvements that are publicly owned is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated PCDC Project Cost: $ 899,000 2010-2011 $ 14,101,000 2011-2012 2. Auto Center Drive Extension Proiect Location —Auto Center Drive, Petaluma, CA Project Description — This project extends Auto Center Drive from its current dead end to create a connection to Petaluma Boulevard North, near the Highway 101 interchange. Utility mains will be installed along with new roadway on existing right of way. Section 33445 Findings: 1. This project will benefit the Petaluma Community Development project area by helping eliminate blight. The project will improve circulation and access to underutilized areas. The project creates a connector which will increase development potential in the area to improve existing blighted conditions. 2. The staff has reviewed the City budget and determined that the funds in the General Fund are restricted with the majority of the funds being utilized for public safety expenditures which protect the safety and health of the citizens of Petaluma and therefore there are not funds in the General Fund or its reserves that can be committed to publicly -owned improvements. The staff also investigated outside funding sources, such as Prop 1 B funds which have been included in the amount of $139,000 for this project. PCDC funds are needed to ensure the project will be completed. No �t other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. As outlined in the addendum to the 2007-2012 Implementation Plan, this project fulfills the goals and objectives of the Petaluma Community Development Project Area. Through extending Auto Center Drive to Petaluma Boulevard North, it will facilitate private investment and revitalize the PCD Project Area by reducing congestion and accommodating long-term growth and development in the project area. The project is listed in Table 2, page II -4&5 -in the addendum to the 2007-2012 Implementation Plan under Site Preparation and Development. Anticipated PCDC Project Cost: $1,172,000 2010-2011 101/East Washington Interchange Proiect Location — East Washington and Highway 101 Project Description — This project improves the East Washington Street Interchange with Highway 101 by adding a new northbound on-ramp and realigning the existing southbound on-ramp. Currently, project funding consists of SAFTLU $13.5M, demonstration funds $1 M, Measure M $2.9M, and the City $4M local funds toward project right-of-way acquisitions and construction of the East Washington Interchange, for total available funding of $21 AM. The estimated cost to design -the MSN -C is $6.5M, for a total project cost of $28M. Section 33445 Findings 1. Completion of the public improvements at 101 -Interchange will help to eliminate blighting conditions in the Petaluma Community Development project area because the infrastructure upgrades and circulation improvements will address roadway and transportation related deficiencies; as well as improving impediments to circulation and access that deter revitalization in the area. 2. The staff has reviewed the City budget and determined that the funds in the General Fund are restricted with the majority of the funds being utilized for public safety expenditures which protect the safety and health of the citizens of Petaluma and therefore there are not funds in the General Fund or its reserves that can be committed to publicly -owned improvements. The staff also investigated outside funding sources and found that there is a gap in the funds needed that are not covered by the Federal and State programs that are listed above. PCDC funds are needed to ensure the project will be completed. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. 3. As outlined in the 2007-2012 Implementation Plan, this project fulfills the goals and objectives of the Petaluma Community Development Project Area. Through improving the interchange it will facilitate private investment and revitalize the PCD Project Area by reducing congestion and accommodate long-term growth and development. The project is listed in Table Il -3 under Circulation, Landscaping and Parking Improvements of the Implementation Plan. The payment of funds for the cost of the improvements that are publicly owned is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated PCDC Project Cost: $2,732,000 2010-2011 6 4. Caulfield Railroad Crossing Proiect Location —Caulfield Lane and Hopper Street Project Description — Completion of'a railroad' crossing,, the intersection improvements, and the closing of the existing railroad crossing at Hopper Street /Jefferson Street. Due to future expected rail use, the new location will improve safety and promote future development in the area. Section 33445 Findings: 1. This project will benefit the Petaluma Community Development project area by helping eliminate blight. The undeveloped site will have access from the new railroad crossing. A large site suffers from blight due to lack of development activity for many years. The improved railroad crossing will provide access to potential development and increase capacity of vehicles. The existing crossing was inadequate. 2. The staff has reviewed the City budget and determined that the funds in the General Fund are restricted with the majority of the funds being utilized for public safety expenditures which protect the safety and health of the citizens of Petaluma and therefore there are not funds in the General Fund or its reserves that can be committed to publicly -owned improvements. The staff also investigated outside funding sources and found no other Federal or State sources that would apply .to this project. PCDC funds are needed to ensure the project will be completed. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. 3. As outlined in the 2007-2012 Implementation Plan, this project fulfills the goals and objectives of the Petaluma Community Development Project Area. Through improving the interchange it will facilitate private investment and revitalize the PCD Project Area by reducing congestion and accommodate long-term growth and development patterns. The project is listed in Table 11-3 under Circulation, Landscaping and Parking Improvements of the Implementation Plan. The payment of funds for the cost of the improvements that are publicly owned is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated PCDC Project Cost: $300,000 2010-2011 5. Rainier Avenue Cross-town Connector/Interchange Proiect Location — Rainier Avenue Project Description — This project provides a new interchange and cross-town roadway under -crossing of US 101. SCTA has agreed to incorporate the under -crossing structure as part of the US 101 MSN C-2 widening project, which is currently in design. To ensure inclusion of the under -crossing structure into the MSN C-2 schedule, the interchange component and the under -crossing component are being studied as two separate, independent projects. As part of the work effort for the cross-town connector roadway portion of the project, a project study report/project report and environmental document must be completed. Section 33445 Findings: 1. Completion of the public improvements at Rainier Avenue including a Cross-town connector will help to eliminate blighting conditions in the Petaluma Community 0 Development project area because the infrastructure upgrades and circulation improvements will address roadway and transportation related deficiencies; as well as improving impediments to circulation and access that deter revitalization in the area. This project will improve the infrastructure to improve circulation and provide additional access to downtown and mitigate adverse effects of new development which are goals and objectives of the 2007-2012 Implementation Plan. 2. The staff has reviewed the City budget and determined that the funds in the General Fund are restricted with the majority of the funds being utilized for public safety expenditures which protect the safety and health of the citizens of Petaluma and therefore there are not funds in the General Fund or its reserves that can be committed to publicly -owned improvements. The staff also investigated outside funding sources and found that there is a gap in the funds needed that are not covered by the Federal and State programs. This project is part of a larger CalTrans project of the Highway 101 widening. PCDC funds are needed to ensure the project will be completed. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. To preserve the Rainier project, we are including a $7,000,000 allocation that is not included in the 2007-2012 Implementation Plan. 3. As outlined in the 2007-2012 Implementation Plan, this project fulfills the goals and objectives of the Petaluma Community Development Project Area. By improving the interchange, it will facilitate private investment and revitalize the PCD Project Area by reducing congestion and accommodating long-term growth and development. The project is listed in Table II -3 under Circulation, Landscaping and Parking Improvements of the Implementation Plan. The payment of funds for the cost of the improvements that are publicly owned is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated PCDC Project Cost: $1,472,000 2010-2011 $7,000,000 2013-2014 6. River Trail — Washington to Lakeville Project Location — various locations in PCD project area Project Description — This project implements a portion of the Petaluma River Access and Enhancement Plan from Lynch Creek (Near Lakeville Street) to Washington Street. The project will construct a multimodal path along the project limits and construct a pedestrian bridge over the Petaluma River to close a gap in this important pedestrian route. Section 33445 Findings: 1. This project will benefit the Central Business District and the Petaluma Community Development project areas by helping eliminate blight. The project is necessary to rehabilitate and reconstruct a pathway which will promote multimodal access and connect to the downtown SMART station in both the Central Business District and the Petaluma Community Development project areas. This project will improve bicycle and pedestrian networks in both project areas which is a goal and objective of the 2007-2012 Implementation Plan. 2. The staff has reviewed the City budget and determined that the funds in the General Fund are restricted with the majority of the funds being utilized for public safety expenditures which protect the safety and health of the citizens of Petaluma and therefore there are not funds in the General Fund or its reserves that can be committed to publicly -owned improvements. The staff also investigated outside funding sources and found that there is a gap in the funds needed that are not covered by the Federal and State programs. Measure M funds are another source of funds for this project and will be over a five year period. PCDC funds are needed to ensure the project will be completed. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. As outlined in the 2007-2012 Implementation Plan, this project fulfills the goals and objectives of the Central Business District and Petaluma Community Development Project Areas. The project is listed in Table II -3 under Circulation, Landscaping and Parking Improvements of the Implementation Plan. The payment of funds for the cost of the improvements that are publicly owned is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated PCDC Project Cost: $1,950,000 7, Brownfields Program Location — with entire PCD and CBD areas Project Description — The City has committed to a $200,000 match to a $1 Million Environment Protection Agency Revolving Loan Fund (RLF) Grant. The RLF works in conjunction with several EPA funded assessment grants to provide financial and technical assistance to property owners including property owned by the City of Petaluma for assessment and clean-up of Brownfields within the redevelopment area. Section 33445 Findings: 1. This project will benefit the Central Business District and the Petaluma Community Development project areas by helping eliminate blight on individual property sites. In facilitating hazardous materials assessment and a cleanup program, this program will help development projects that could include existing owner and business tenant participation. 2. The staff has reviewed the City budget and determined that the funds in the General Fund are restricted with the majority of the funds being utilized for public safety expenditures which protect the safety and health of the citizens of Petaluma and therefore there are not funds in the General Fund or its reserves that can be committed, to publicly -owned improvements. The staff also investigated outside funding sources, and as noted above, PCDC funds will be used as a match for an EPA Revolving Loan Fund Grant. PCDC funds are needed to ensure the program continues. No other reasonable means of City financing are available. This project would not be feasible without the use of redevelopment funds. 3. As outlined in the 2007-2012 Implementation Plan, this project fulfills the goals and objectives of the Central Business District and Petaluma Community Development Project Areas. The project is listed in Table II -3 under Site Preparation and Development on page II -10a. The payment of funds for the cost of the improvements that are publicly owned is consistent with the Implementation Plan adopted by PCDC on June 18, 2007. Anticipated PCDC Project Cost: $200,000 1 1 Economic Development/Site Development Location: Within the CBD and PCD Project Areas Project Description: The goal of economic development activities is to develop and promote incentives that address the specific needs of existing businesses and enhance the City's ability to attract new businesses and visitors. Projects and activities will focus on strengthening the downtown and vacant and underutilized areas through both the Central Business District and the Petaluma Community Development project areas. Incentives to encourage mixed-use development oriented to the Petaluma River and to transit nodes will be a goal of economic development. Funds may be used for some publicly -owned properties. 1. The future projects will be within the CBD and PCD project areas and will help eliminate blight by improving adverse and economic conditions. 2. The staff has reviewed the City budget and determined that the funds in the General Fund are restricted with the majority of the funds being utilized for public safety expenditures which protect the safety and health of the citizens of Petaluma and therefore there are not funds in the General Fund or its reserves that can be committed to public -owned improvements. The staff also investigated outside funding sources and found no other Federal or State sources that would apply to this project. PCDC funds are needed to ensure the project will be completed. No other reasonable means of financing are available. This project would not be feasible without the use of redevelopment funds. As outlined in the addendum to the 2007-2012 Implementation Plan, this project fulfills the goals and objectives of the Petaluma Community Development Project Area. The project is listed in Table 2, page II -4&5 in the addendum to the 2007-2012 Implementation Plan under Economic Development. Anticipated PCDC Project Cost: $6,000,000 ATTACHMENTS MENI'S 1. Resolution Authorizing the Expenditure of Tax Increment Funds for Specified Public Improvements and Redevelopment Activities, Adopting Findings Required by Health and Safety Code section_33445, and Authorizing the Execution of a Cooperative Agreement with the City of Petaluma 2. Resolution Authorizing the Expenditure of Tax Increment Funds for Specified Public Improvements and Redevelopment Activities, Adopting Findings Required by Health and Safety Code section 33445, and Authorizing the Execution of a Cooperative Agreement with the Petaluma Community Development Commission. ATTACHMENT 1 PETALUMA COMMUNITY DEVELOPMENT COMMISSION RESOLUTION NO. A RESOLUTION OF THE PETALUMA COMMUNITY.DEVELOPMENT COMMISSION AUTHORIZING THE EXPENDITURE OF TAX -INCREMENT FUNDS FOR SPECIFIED PUBLIC IMPROVEMENTS AND REDEVELOPMENT ACTIVITIES, ADOPTING FINDINGS REQUIRED BY HEALTH AND SAFETY CODE SECTION 33445, AND AUTHORIZING THE EXECUTION OF A COOPERATIVE AGREEMENT BETWEEN THE CITY OF PETALUMA AND THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION WHEREAS, the Petaluma Community Development Commission ("Agency") is a redevelopment agency formed, existing and exercising its powers pursuant to California Community Redevelopment Law, Health and Safety Code Section 33000 et seq. ("CRL"); and WHEREAS, pursuant to authority granted under the CRL, the City Council ("City Council") of the City of Petaluma ("City") has adopted and amended, from time to time, the Redevelopment Plan ,(the "Redevelopment Plan"). The Agency has responsibility to implement the Redevelopment Plan for the Central Business District Project Area and the Petaluma Community Development Project Area (the "Project Areas"); and WHEREAS, in keeping with the goals of the Agency to eliminate blight in the Project Areas in accordance with the Redevelopment Plan and Agency's current Implementation Plan ("Implementation Plan"),, the City and Agency have been working cooperatively regarding the development of certain public improvements in the Project Areas; and WHEREAS, the City and Agency have determined that it would be mutually beneficial to enter into a Cooperative Agreement (the "Agreement") a copy of which is on file with the City Clerk and Agency Secretary, pursuant to which the Agency would agree to pay for certain public improvements and other activities to be undertaken by the City in the furtherance of the redevelopment of the Project Areas; and WHEREAS, pursuant to Section 33445 of the CRL, the Agency may, with the consent of the City, pay for all or a portion of the cost of the land for, and the cost of construction of, any building, facility, structure, or other improvements that are publicly owned and located within or contiguous to the Project Areas if the City Council finds based upon evidence in the record, including, in particular and without limitation the evidence provided in the Staff Report dated January .31, 2011; that: (1) The acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned are of benefit to the Project Areas, by helping to eliminate blight within the Project Areas or providing housing for low- or moderate -income persons; (2) No other reasonable means of financing the acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned, are available to the community; Page 1 of 6 ,b (3) The payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements that are publicly owned is consistent with the implementation plan adopted pursuant to CRL Section 33490; and WHEREAS, the action approved by this Resolution, entering into a cooperative funding agreement for payment of costs associated with future activities, including the Auto Center Drive, the Brownfields Program, the Economic Development Program and the cross-town connector portion of the Rainier Avenue Cross -Town Connector/Interchange Project. described in Exhibit A attached to the Agreement and incorporated herein by reference, the Vintage Chateau II Senior Apartment Project described in Exhibit B attached to the Agreement and incorporated herein by reference, and the Staffing and Administration Expense described in Exhibit C attached to the Agreement and incorporated herein by reference, has no potential for physical effects on the environment and does not approve individual entitlements for any of the Projects described herein, and this action is therefore exempt from review pursuant to the California Environmental Quality Act (CEQA), 14 California Code of Regulations (CEQA Guidelines) Section 15061(b)(3); and WHEREAS, the Auto Center Drive Project, as described in Exhibit A to the Agreement, is also categorically exempt from review pursuant to CEQA Guidelines, Sections 15303(d) and/or. 15304(b) and/or 15304(h); and WHEREAS, the environmental effects of the Old Redwood Highway Interchange Project described in Exhibit A to the Agreement were evaluated in the EIR for the Highway 101 HOV Lane Widening and Improvements Project, Old Redwood Highway to Rohnert Park Expressway, SCH #2003062100, for which an EIR 'was approved on October 23, 2007 and a Caltrans/NEPA Notice of Determination issued on October 29, 2007, and require no further environmental review, because no substantial changes are proposed for this Project and no substantial changes have occurred in the circumstances under which this Project is being undertaken since the EIR was approved, and there is no new information which was not known and could not have been known relating to this Project at the time the EIR was approved. A copy of the EIR is available at www.dot.ca.gov/dist4/envdods.htm; and WHEREAS, the environmental effects of the 101/East Washington Interchange Project described in Exhibit A to the Agreement were previously reviewed in full in the Mitigated Negative Declaration, U.S. Route 101/East Washington Street Interchange, SCH #2007112073, for which a Caltrans/NEPA Determination was made on March 10, 2008. The Project requires no further environmental review'because no substantial changes are proposed for this Project and no substantial changes have occurred in the circumstances under which this Project is being undertaken since the Mitigated Negative Declaration was adopted, and there is no new information which was not known and could not have been known relating to this Project at the time the Mitigated Negative Declaration was adopted. A copy of the EIR is available at www.dot.ta.gov/dist4/envdocs.htm; and WHEREAS, the environmental effects of the Caulfield Railroad Crossing Project described in Exhibit A to the Agreement were previously reviewed in the Environmental Impact Report for the Central Petaluma Specific Plan (CPSP) SCH #2002112039, which was approved prior to adoption of the CPSP; and for which a notice of determination. was issued by the City on June 30, 2003. The Project requires no further environmental review because no substantial changes are proposed for this Project and no substantial changes have occurred in the circumstances under which this Project is being undertaken since the EIR was certified was adopted, and there is no new information which was not known and could not have been known Page 2 of 6 relating to this Project at the time the EIR was certified. A copy of the EIR is available at the City of Petaluma, Planning Department, 11 English Street, Petaluma, CA; and WHEREAS, the environmental effects of the interchange portion of the Rainier Avenue Cross-town Connector/Interchange ("Rainier") Project described in Exhibit A to the Agreement were previously reviewed in full in the- EIR/EIS for the U.S. Highway 101 MSN C-2 Widening Project, SCH #2001042115, for which a Caltrans Notice of Determination issued on July 27, 2009, and a Record of Decision for NEPA was filed on October 29, 2010. The interchange portion of the Project requires no further environmental review because no substantial changes are proposed for the interchange portion of the Project and no substantial changes have occurred in the circumstances under which the interchange portion of the Project is being undertaken since the EIR/EIS was approved, and there is no new information which was not known and could not have been known relating to the interchange portion of the Project at the time the EIR/EIS was approved. A copy of the EIR is available at www.dot.ca.gov/dist4/envdocs.htm; and WHEREAS, the environmental effects of the River Trail — Washington to Lakeville Project described in Exhibit A to the, Agreement were evaluated in a Mitigated Negative Declaration approved by the City for which a Notice of Determination was issued on May 16, 2005 and require no further environmental review, because no.substantial changes are proposed for this Project and no substantial changes have occurred in the circumstances under which this Project is being undertaken since the Mitigated Negative Declaration was approved and'. there is no new information which was not known and could not have been known relating to this Project at the time the Mitigated Negative Declaration was approved. A copy of the Mitigated Negative Declaration is available at the City of Petaluma, Department of Public Works, 11 English Street, Petaluma, CA; and WHEREAS, the environmental effects of the Logan Place Senior Apartment Project, APN # 019-202-013, described in Exhibit B to the Agreement were previously reviewed in a Mitigated Negative Declaration adopted by the City on May 18, 2009. The Project requires no further environmental review because no substantial changes are proposed for this Project and no substantial changes have occurred in the circumstances under which this Project is being undertaken since the Mitigated Negative Declaration was adopted, and there is no new information which was not known and could not have been known relating to this Project at the time the Mitigated Negative Declaration was adopted. A copy of the Mitigated Negative Declaration is available at the City of Petaluma, Planning Department, 11 English Street, Petaluma, CA; and WHEREAS, the Staff Report accompanying this Resolution, the Agreement, the Redevelopment Plan, and the Implementation Plan provide additional information upon which the findings and actions set forth in this Resolution are based; and WHEREAS, the expenditure of tax increment funds for the projects identified in the Agreement will be of benefit to the Project Areas by helping to eliminate blight within the Project Areas or providing housing for low- or moderate -income persons; and WHEREAS, the expenditure of tax increment funds for the publicly -owned improvements is consistent with the Implementation Plan adopted by the Agency pursuant to Health and Safety Code Section 33490, in that it will further the goals and objectives of the Redevelopment Page 3 of 6 JY Plan, improve the appearance of the Project Areas, eliminate' blight, improve access to businesses .in the Project Areas, and support economic development; and WHEREAS, the activities and improvements proposed to be funded pursuant to the Agreement are provided for in the Redevelopment Plan, and the expenditure of tax increment funds for such .improvements is consistent with the Implementation Plan adopted by the Agency pursuant to Health and Safety Code Section 33490; and .WHEREAS, the publicly -owned improvements proposed to be funded pursuant to the Agreement will not generate cash flow to the City or Agency, and therefore cannot support debt service; the City has no unrestricted general fund revenue available for such purposes without a reduction in vital community services; and the City does not have and cannot reasonably obtain revenue available for such purposes, and therefore no other reasonable means of financing the activities and improvements exists. Page 4 of 6 J3 NOW, THEREFORE, BE IT RESOLVED BY THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION that it hereby: 1. Finds based upon the foregoing recitals and the evidence in the record, including, in particular and without limitation the evidence provided in the Staff Report accompanying this Resolution, dated January 31, 2011, that: (i) the expenditure of tax increment funds for publicly - owned improvements identified in the Agreement will be of benefit to the Project Areas by helping to eliminate blight within the Project Areas or providing housing for low- or moderate - income persons, (ii) no other reasonable means of financing such improvements is reasonably available, and (iii) payment for such improvements is consistent with the Implementation Plan adopted in connection with the Redevelopment Plan. 2. Approves the Agency's 'expenditure of tax increment funds in the amounts and for the purposes specified in the Agreement. 3. Approves the actions to be undertaken and the services to be provided by the City as specified in the Agreement. 4. Authorizes the Agency Executive Director to execute the Agreement on behalf of the Agency substantially in the form of the Cooperative Agreement attached hereto and to undertake such actions and to execute such additional instruments as may be necessary or desirable in order to carry out the intent of this Resolution, including without limitation, the listing of the Agency's obligations set forth in the Agreement on the statement of indebtedness to be filed with the County Auditor. 5. Declares that if any provision, sentence, clause, section or part of this Resolution is found to be unconstitutional, illegal or invalid, such finding shall affect only such provision, sentence, clause, section or part, and shall not affect or impair any of the remaining parts. Page 5 of 6 64 PASSED AND ADOPTED by the Board Members of the Petaluma Community Development Commission on the 31't day of January, 2011 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Executive Director ATTEST: Agency Secretary 1579561.2 Page 6 of 6 1;h CONTRACT NO. COOPERATIVE AGREEMENT BETWEEN THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION AND THE CITY OF PETALUMA This Cooperative Agreement (this "Agreement") is- entered into effective as of January 31, 2011 ("Effective Date") by and. between the Petaluma Community Development Commission, a public body, corporate and politic ("Agency") and the City of Petaluma,,a municipal corporation ("City"). The Agency and the City are hereinafter collectively referred to as the "Parties." RECITALS A. Pursuant to authority granted under Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.) ("CRL"), the Agency has responsibility to implement the redevelopment plan for the Central Business District Project Area and the. Petaluma Community, Development Project Area (the "Project Areas") established by the Redevelopment Plan adopted for the Project Area pursuant to Ordinance No. 1221, adopted on. September 27,.1976; Ordinance No. 1725, adopted on June 13, 1988; and Ordinance No. 2116, adopted on July 18, 2001 (as subsequently amended, hereafter the "Redevelopment Plan"). B. Pursuant to Section 33220 of the CRL, any public body is authorized to enter into an agreement with the Agency for the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of redevelopment projects located within the jurisdiction in which such public body is authorized to act, upon the terms and with or without consideration as such public body determines. C. Pursuant to Section 33126(b) of the CRL, the Agency may enter into a contract with any other public agency pursuant to which such public agency furnishes necessary staff services associated with or required by redevelopment. D. Pursuant to Section 33445 of the CRL, the Agency may, with the consent of the City„ pay for,,alll or a portion of the cost of the land for, and the cost of construction of, any building, facility, structure, or other improvements that are publicly owned and located within or contiguous to the Project Areas if the City Council finds that: (1) The acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned are of benefit to the Project Areas by helping to eliminate blight within the Project Areas or providing housing for low- or moderate -income persons; (2) No other reasonable means of financing the acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned, are available to the community; and l�� CONTRACT NO. (4) 'The payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements that are publicly owned is consistent with the implementation plan adopted pursuant to CRL Section 33490. E-. On the basis of the information and evidence presented to the City Council and the governing board of the Agency and provided in the staff report and other materials accompanying the resolutions approving this Agreement, the City Council and the .governing board of the Agency have adopted the findings described in Recital D with respect to the public improvements to be funded by the Agency pursuant to this Agreement. F. The, Parties desire toenter into this Agreement to set forth activities, services, and facilities that the City will undertake or make available to the Agency in furtherance of the redevelopment of the Project Areas, and to provide that the Agency will pay for or reimburse the City for actions undertaken and costs and expenses incurred for and on behalf of the Agency or otherwise in furtherance of the redevelopment of the Project Areas. NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises herein contained, the Parties hereby agree as follows. 1'. Term. The term of this Agreement shall commence on the Effective Date, and shall continue in effect until the expiration date of the Redevelopment Plan as in effect on -the Effective Date of this Agreement. Notwithstanding the foregoing, the Parties agree that if and to the extent any payment obligation incurred by the Agency pursuant to this Agreement may extend beyond the term during which the Agency is authorized to undertake activities pursuant to state law, such obligations shall be paid from any resources available to Agency or its successor in interest (subject to Section 6 below), including without limitation, tax increment revenue available to the Agency or its successor pursuant to Article XVI, Section 16 of the California Constitution and CRL Section 33670, the proceeds of bonds or other indebtedness heretofore or hereafter issued by the Agency (subject to applicable limitations imposed by federal law and the applicable, bond indenture and related documents), reserve funds (to the extent not otherwise legally obligated), lease revenues, interest, and proceeds from the sale of land or other assets. 2. Agencv to Pav for Public Improvements. The Agency agrees to pay to the 'City the amounts set forth in Exhibit A for the cost of construction of the public improvements therein identified and in accordance with the schedule set forth therein, from all available sources, including bond proceeds on hand or to be received by the Agency in the future. In the event that the Agency is unable to issue bonds, the City agrees to enter into financing agreements as necessary to complete the projects identified in Exhibit A on behalf of the Agency, to be repaid by the Agency pursuant to Section 5 herein. 3. Aqencv to Provide Funds for Low and Moderate -Income Housinq. The Agency agrees to pay to the City the amounts set forth in .Exhibit B in accordance with the 2 1 l CONTRACT NO. schedule set forth therein for the purpose of increasing, improving and preserving the supply of low- and moderate -income housing within the City. The Agency agrees to pay to the City all funds within its Low and Moderate Income Housing Fund not previously obligated. by Agency pursuant to the Community Redevelopment Law or otherwise, for the purpose of increasing, improving and preserving the supply of low -and moderate -income housing within the City, to be utilized for all the costs associated with the affordable housing program, including salaries of housing :staff working to produce Low and Moderate Income Housing. 4. Citv to Provide Services.. In support of the redevelopment of the Project Areas, the City agrees to provide the staffing and other services described .in the attached Exhibit C. - Agency agrees to pay City for the cost of such staffing and other services in the amounts and in accordance with the schedule described in the attached Exhibit C. 5. Indebtedness. The obligations of the Agency to make payment to City pursuant to this Agreement shall constitute an indebtedness of the Agency within the meaning of Article XVI, Section 16 of the California Constitution and CRL Section 33670, and .shall be payable from tax increment paid to the Agency pursuant to Article XVI, Section 16 of the California Constitution and CRL Section 33670 or from any other source legally available to the Agency for such payment, and shall constitute an indebtedness of the Agency until paid in full. The Agency shall include its obligations to the City under this Agreement as an indebtedness on the Agency's statement of indebtedness filed with the County Auditor pursuant to CRL Section 33675. 6. Subordination. The obligations of the Agency to make payments to City pursuant to this, Agreement shall be subordinate to any obligation of the Agency to pay debt service on bonds heretofore or hereafter issued by the Agency and to pay any other contractual indebtedness of the Agency incurred prior to the date of this Agreement. 7. Time for Aqencv Pavment. The Agency shall use its available funds to make all payments to the City required by this Agreement, not later than ten (10) days after the Effective Date. 8. Proiect Approvals; Environmental Review. This Agreement is not intended to limit in anyi manner the fdiscretion of City of the agency, as applicable, in connection with the issuance of approvals and entitlements for the projects described in this Agreement, including without limitation, the undertaking and completion of any required environmental review pursuant to CEQA and NEPA, as applicable, and the review and approval of plans and specifications. Prior to approving any of the projects described herein, the City acting as lead agency or co -lead agency, shall complete any environmental review required under CEQA or NEPA. 9. Severabilitv. If any term, provision, covenant, or condition set forth in this Agreement, including without limitation the exhibits hereto, is held by the final judgment 3 U CONTRACT NO. 'of a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions, covenants, and conditions shall continue in full force and effect to the extent that the basic intent of the Parties as expressed herein can be accomplished. In addition, the Parties shall cooperate in good faith in an effort to amend or modify this Agreement in a manner such that the purpose of any invalidated or voided provision, covenant, or condition can be accomplished to the maximum extent legally permissible. 10. No Third-Partv Beneficiaries; Assignments. Nothing in this Agreement is intended to create any third -party beneficiaries to the Agreement, and no person or entity other than the Agency and the City, and the permitted successors and assigns of either of them, shall be authorized to enforce the provisions of this Agreement. 11. Further Assurances. Each Party agrees to execute, acknowledge and deliver all additional documents and instruments, and to take such other actions as may be reasonably necessary to carry out the intent of the transactions contemplated by this Agreement. 12. Governinq Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 13. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. 14. Amendments. This Agreement may be modified or amended, in whole or in part, only by an instrument in writing, executed by the Parties. 15. Recitals. The Recitals set forth above are hereby incorporated into this Agreement as though fully set herein. 16. Exhibits. Exhibits A, B and C attached hereto are hereby incorporated into this Agreement by reference. CONTRACT NO. IN WITNESS' WHEREOF, the Parties have' executed this Agreement as of the date first written above. CITY: CITY OF PETALUMA, a municipal corporation By:; - David Glass, Mayor ATTEST: By: Claire Cooper, CMC', City Clerk APPROVED AS TO FORM: By: Eric banly, City Attorney 5 AGENCY: PETALUMA COMMUNITY DEVELOPMENT COMMISSION, a public body., corporate and politic By:, John C. Brown, Executive Director ATTEST: Claire Cooper, CMC, Agency Secretary APPROVED AS TO FORM: Eric Danly, Agency Counsel CONTRACT NO. CONTRACT NO. EXHIBIT A '1., Old Redwood Hi2hwav Interchange Proiect Location— Highway 101 and Old Redwood Highway Project Description — This project upgrades the Old Redwood Highway 101 interchange :to meet current standards, and,, future traffic requirements.. The proposed interchange includes ramp widening and reconfiguration,' traffic operations system improvements, over -crossing structure widening to six lanes, including bicycle lanes and enhanced signalization.improvements at the intersections. It is to be constructed independently of the Central B portion of the proposed future widening on US' 101, and will provide both safety and congestion,relief enhancements: The project has $1.0M Measure M funds allocation, with the City/local funds paying for the remaining $20.885M costs. Anticipated PCDC Project Cost: $ 899,000 20,10-2011 $14,101,000 2011-2012 2.. Auto Center Drive Extension Proiect Location — Auto Center -Drive Project Description — This.project extends Auto Center Drive from its current dead end to create a connection to?.etaluma Boulevard North; near the Highway 10 interchange. Utility mains will be installed along with new roadway on existing right of way. Anticipated PCDC Project Cost: $1,172,000 2010-2011 3. 101/East Washington Interchange Proiect Location — East Washington. Street and Highway 101 Project Description — This project improves the East Washington Street Interchange with Highway .101 by adding a new northbound on-ramp and realigning the existing southbound- on-ramp. Currently, project funding consists of SAFTLU $13.5M, demonstration funds '$1M, Measure M $2.9M, and the City $4M local funds toward project right -of --way .acquisitions and construction of the East Washington Interchange, for total available funding of $21.4M. The estimated cost to design the MSN -C is $6.5M, for a total project cost of $28M. Anticipated, PCDC Project Cost: $2,732,000 2010-2011/2011-2012 4. Caulfield Railroad Crossing Proiect Location —Caulfield Lane and Hopper Street Project Description — Completion of a railroad crossing, the intersection improvements, and the closing of the existing railroad crossing at Hopper Street /Jefferson Street. Due to future expected rail use, the new location will improve safety and promote future development in the area. Anticipated PCDC Project Cost: $300,000 2010-2011 7 CONTRACT NO. Rainier Avenue Cross-town Connector/Interchange Project Location — Rainier Avenue Project Description — This project provides a new interchange and cross-town roadway under -crossing of US 101. SCTA has agreed to incorporate the under -crossing structure as partof the US 101 MSN C-2 widening project, which is currently in design. To ensure inclusion of the under -crossing structure into the MSN C-2 schedule, the interchange component and the under -crossing component are being studied as two separate, independent projects. As part of the work effort for the cross-town connector roadway portion of the project, a project study report/project report and environmentaldocument must be completed. Anticipated PCDC Project Cost: $1,356,000 2010-2011 $ 116,000 2011-2012 $7,000,000 2012-2013 6. River Trail — Washington to Lakeville Project Location — various locations in PCD project area Project Description — This project implements a portion of the Petaluma River Access and Enhancement Plan from Lynch Creek (Near Lakeville Street) to Washington Street. The project will construct a multimodal path along the project limits and construct a pedestrian bridge over the Petaluma River to close a gap in this important pedestrian route. Anticipated PCDC Project Cost: $1,374,000 2011-2012 $ 626,000 2013-2014 7. Brownfields Program Location — with entire PCD and CBD project areas Project Description — The City has committed to a $200,000 match to a $1 Million Environment Protection Agency Revolving Loan Fund (RLF) Grant. The RLF works in conjunction with several EPA funded assessment.grants to provide financial and technical assistance to property owners for assessment and clean-up of Brownfields within the redevelopment area. Anticipated PCDC Project Cost: $200,000 2010-2016 8. Economic Development/Site Development Location: Throughout PCD and CBD project areas Project Description: The goal of economic development activities is to develop and promote incentives that address the specific needs of existing businesses and enhance the City's ability to attract new businesses and visitors. Anticipated PCDC Project Cost: $6,000,000 2010-2016 8 �3 CONTRACT NO. EXHIBIT B Affordable Housing Projects: 1. Vintage Chateau II Senior Apartments Location: 325 North McDowell Blvd., Petaluma A.P.N. #007-350-013 Project Description: Construction of 68 affordable rental units for seniors to be built on approximately 1.67 acres by a nonprofit developer in the Petaluma Community Development Project Area of Petaluma's redevelopment agency. This project will be funded using the California Tax Credit Allocation program. Project Cost: Total project cost is $15,900,000. $4,500,000 has been committed .by the Petaluma Community Development Commission of which $2,500,000 of the Agency.funds has been spent onsite acquisition. Documentation: This project has all its land use approvals and is applying for 4% tax credit bonds in March of 2011. Construction to begin in July of 2011. Future Anticipated P.CDC Project Cost: $2,000,000 2010-2011 2. Logan Place Apartments Location: 1200 Petaluma Blvd. North, Petaluma A. P. N.,#019-202-013 Project Description: Construction of 66 affordable multifamily rental units on approximately 2.61 acres by a nonprofit developer in the Petaluma Community Development Project Area of Petaluma's redevelopment agency. This project has been approved for HOME and MHP funds of approximately $10,000,000. Project Cost: Total project cost is $25,600,000. $5,150,000 has been committed by Petaluma's Redevelopment Agency in support of this development. Approximately $3,450,000 of Agency funds has been spent on site acquisition and pre -development costs. The balance of $1,700,000 will be spent over the next two years during construction. Documentation: This project has all its land use approvals and is applying for 4% tax credit bonds in June of 2011. Construction to begin in September of 2011. Future Anticipated PCDC Project Cost: $ 400,000 2011-2012 $ 1,300,000 2012-2013 Ai CONTRACT �NO. EXHIBIT C Staffing and Administrative'Expenses In. support.of the redevelopment Petaluma's, projects areas, the City agrees to provide the staffing, and other services by which the Agency agrees to pay City for the cost of such staffing and other services as listed below. Table 1 will be delivered by the City Manager's Office, Public Works, and Finance. Department staff persons for project management, construction management, environmental review, survey, financial accounting and project reporting. The expenses of administering the Agency Programs and Projects are payable to the City on an annual basis. Table 1 — Agency Administration Annual Costs 2011-2016 2011-20;12 201.2-2013 2013=2014 2014-2015 2015-2016 1,1985:500 ' 1,198,500 11,150;000 1,150,000 11,150,000 Affoi-d'a6TeHousing. Programs and Projects Administrative Expenses City staff will provide administration, fiscal reporting, project management, marketing and grant administration- services for a wide range of affordable housing programs and projects. The expenses of administering the Affordable Housing Programs and Projects are payable to the City on an annual basis. Table 2 — Affordable Housing program Administration Annual Costs 2011-2016 2011-20122012-2013 2013-2014 20'14-2015 2015-2016 375,000 375,000 375,000 375,000 1375,000 15 80600.1 10 0 ATTACHMENT 2 CITY OF PETALUMA RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA AUTHORIZING THE EXPENDITURE OF TAX INCREMENT FUNDS FOR SPECIFIED PUBLIC IMPROVEMENT AND REDEVELOPMENT ACTIVITIES, ADOPTING FINDINGS REQUIRED BY HEALTH AND SAFETY CODE SECTION 33445, AND AUTHORIZING THE EXECUTION OF A COOPERATIVE AGREEMENT BETWEEN THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION AND THE CITY OF PETALUMA WHEREAS, the Petaluma Community Development Commission ("Agency") is a redevelopment agency formed, existing and exercising its powers pursuant to California Community Redevelopment Law, Health and Safety Code Section 33000 et seq. ("CRL"); and WHEREAS, pursuant to authority granted under the CRL, the City Council ("City Council") of the City of Petaluma ("City") has adopted and amended, from time to time, the Redevelopment Plan (the ".Redevelopment Plan"). The Agency has responsibility to, implement the Redevelopment Plan for the Central Business District Project Area and the Petaluma Community Development Project Area (the "Project Areas"); and WHEREAS, in keeping with the goals of the Agency to eliminate blight in the Project Areas in accordance with the Redevelopment Plan and Agency's current Implementation Plan ("Implementation Plan"), the City and Agency have been working cooperatively regarding the development of certain public improvements in the Project Areas; and WHEREAS, the City and Agency have determined that it would be mutually beneficial to enter into a Cooperative Agreement (the "Agreement") a copy of which is on file with the City Clerk and Agency Secretary, pursuant to which the Agency would agree to pay for certain public improvements and other activities to be undertaken by the City in the furtherance of the redevelopment of the Project Areas; WHEREAS, pursuant to Section 33445 of the CRL, the Agency may, with the consent of the City, pay for all or a portion of the cost of the land for, and the cost of construction of, any building, facility, structure, or other improvements that are publicly owned and located within or contiguous to the Project Areas if the City Council finds based upon evidence. in the record, including, in particular and without limitation the evidence provided in the Staff' Report dated January 31, 2011, that: (1) The acquisition of the land or the installation or construction .of the buildings, facilities, structures, or other improvements that are publicly owned are of benefit to the Project Areas, by helping to eliminate blight within the Project Areas or providing housing for low- or moderate -income persons; (2) No other reasonable means of financing the acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned, are available to the community; and Page 1 of 5 (3) The payment of=funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements that are publicly owned is consistent with the implementation plan adopted pursuant to CRL Section 33490. 1N:HEREAs. the action approved by this Resolution, entering, into a cooperative funding agreement for paymentof'costs associated with future activities, including the Auto Center Drive, the Brownfields Program, the'Economic Development Program and the cross-town connector portion ofthe. Rainier Avenue Cross -Town Connector/Interchange Project described in Exhibit kattached to the Agreement and incorporated herein by reference, the. Vintage Chateau 11" Senior Apartment Project described in Exhibit B attached to the Agreement and in herein by reference, and the Staffing' and Administrative Expenses described in Exhibit C attached to,the, Agreement:and incorporated herein by reference, has no potential for physical effects on the environment and does not approve individual entitlements for any of the Projects described herein, and this action is therefore exempt from review pursuant to the California Environmental :Quality Act (CEQA), 14 California Code of Regulations (CEQA Guidelines).Section 15061(b)(3); and WHEREAS, the AutoCenter Drive Project, as described in Exhibit A to the Agreement, is also categorically exempt -from review pursuant to CEQA Guidelines, Sections 15303(d) and/or 15304(b) and/or 15304(h); and WHEREAS, the environmental effects of the Old Redwood Highway Interchange Project described in Exhibit A to the Agreement were evaluated, in the EIR for the Highway 101 HOV Lane' Widening and Improvemerits'Project, Old Redwood "Highway to Rohnert Park Expressway, SCH #2003062100, forwhich an EIR was,approved ,on October 23, 2007 and a Caltrans/,NEPA Notice'.of Determination issued on October 29, 2007, :and require no, further environmental review, because no substantial changes are. proposed for -this Project and no substantial changes have occurred in the circumstances under which this Project is being undertaken since the EIR was approved, and there is no ,new information which was not known and could not ihave been known relating to this Project at the time the EIR was approved. A copy of the EIR'is available at www.dot.ca.gov/dist4/bnvdocs.htm, and WHEREAS, the environmental effects of the 101/East Washington Interchange Project descr'ibed'in Exhibit A to. the Agreement were previously reviewed in full in the Mitigated Negative Declaration, U.S. Route 10.1 /East Washington Street nterchange, SCH #200711.2073, for which a Caltrans/NEPA Determination was made on March 10, 2008. The Project requires no further; environmental review because' no substantial changes, are proposed for this Project and;no;substa_"ntial changes have occurred in the circumstances under which this Project is being undertaken since.,the Mitigated Negative Declaration was adopted, and there its no new information which`was: not known and could not have been known relating to this Project at the time the. Mitigated Negative Declaration was adopted. A copy of the EIR is available at www dot.ca.goV/dist.4/envdocs.htm; and WHEREAS,,, the environmental effects of the Caulfield Railroad, Crossing Project ;described .in Exhibit.,A1o,Jhe Agreement were previously reviewed in.the Environmental Impact Report for the Cenfral :Petaluma Specific Plan (CPSP) SCH #2002112039, which was approved prior to adoption of the CPSP, and for which a notice of determination was issued by the City on June 30, 2003, The Project :requires no further environmental review because no substantial change's are proposed for this Project and no substantial changes have occurred in the circumstances under which this Project is being undertaken since the EIR was certified was adopted, and there is no new information which was not known and could not have been known Page 2 of 5 n relating..to this Project. at,the time the EIR was certified. A copy of the EIR' is available at the City of Petaluma, Planning Department, 11 English Street, Petaluma, CA; and WHEREAS, the environmental effects of the interchange portion of the Rainier Avenue Cross-town Connector/Interchange ("Rainier") Project described in Exhibit A to the Agreement were previously reviewed'in full in the EIR/EIS for the U.S. 'Highway 101 MSN C-2 Widening 'Project, SCH #200104211.5, for which a Caltrans Notice of Determination issued on July 27, 2009, and a Record of Decision for NEPA was filed on October 29, 2010. The interchange portion of the Project requires no further environmental review because no substantial changes are ,proposed for the interchange portion of the Project and no substantial changes have occurred_,in the circumstances under which the interchange portion of the Project is being undertaken since the EIR/EIS was approved, and there 'is no new information which was not known and could not have been known relating to the interchange portion of the Project at the time the EIR/EIS was approved. A copy of the EIR is available at www.dot.ca.gov/dist4/envdocs.htm; and WHEREAS, the environmental, effects of the River Trail — Washington to Lakeville Project described in Exhibit,A to'the Agreement were evaluated in a Mitigated Negative Declaration approved by the 'City for which a Notice of Determination was issued on May 16, 2005 and require no further environmental review, because no substantial changes are proposed for this Proje.ct'and no substantial changes have occurred in the circumstances under which this Project is being ,undertaken since the Mitigated Negative Declaration was approved and there is no new information which was not known and could not have been known relating to this Project at the; time the Mitigated Negative Declaration was approved. A copy of the. Mitigated Negative Declaration 'is available at the City of Petaluma, Department of Public Works, 11E nglish Street, Petaluma, CA; and WHEREAS, the environmental effects of the Logan Place Senior Apartment Project, APN # 019=202-013, described in Exhibit B to the Agreement were previously reviewed in a Mitigated Negative Declaration adopted by the City on May 18', 2009. The Project requires no further environmental review because no substantial changes are proposed for this Project and no substantial changes have occurred in'the circumstances under which this Project is being undertaken since the Mitigated Negative Declaration was adopted; and there is no new information which was not, known and could not have been known relating to this Project at the time the Mitigated Negative'D'eclarat ion was adopted. A copy of the Mitigated Negative Declaration. is available at the City of'Petaluma, Planning Department, 11 English Street, Petaluma, CA; and WHEREAS, the Staff Report accompanying this Resolution,' the Agreement, the Redevelopment Plan,, and the `'Implementation Plan provide additional information upon which thefindings and actions set forth in this Resolution are based; WHEREAS, the expenditure of tax increment funds for the publicly owned improvements identified in the Agreement will be of benefit to the Project Areas, by helping to eliminate blight within the Project Areas or providing housing to low -or moderate -income persons; WHEREAS, the expenditure of tax increment funds for the publicly -owned improvements is consistent with the Implementation Plan adopted by the Agency pursuant to Health and Safety Code Section 33490, in that it will further the goals and objectives of the Redevelopment Plan, improve the appearance of the Project Areas, eliminate blight, improve access to businesses in the Project. Areas, and support economic development; Page 3 of 5 p, WHEREAS, the activities and improvements -proposed to be funded pursuant to the Agreement are provided for in the Redevelopment Plan, and the expenditure of 'tax increment funds for such improvements is consistent with the Implementation Plan adopted by the Agency pursuant to Health and' Safety Code Section 33490; WHEREAS, the publicly -owned improvements proposed to be funded pursuant to the Agreement will not generate cash flow, to the City or Agency, and therefore cannot support debt service; the City has no unrestricted genera_I fund revenue available for such purposes without a reduction in vital community services; and the City does not' have and cannot reasonably obtain revenue available for such purposes, and therefore no other reasonable means of financing the activities and improvements exists. NOW; THEREFORE, ;BE. IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PETALUMA that it hereby: 1. Finds based upon the foregoing recitals and the evidence in the record, including, in particular and without limitation the evidence provided in the Staff Report accompanying this Resolution, dated January 31, 2011, that:: (i) the expenditure of tax increment funds for the publicly -owned improvements identified in the Agreement will be of benefit to the Project Areas by helping to eliminate blight within the Project Areas or providing housing for low- or moderate -income persons, (ii) no other reasonable means of financing such improvements is reasonably available, and (iii) payment for such improvements is consistent with the Implementation Plan adopted in connection with the Redevelopment Plan. 2. Approves the Agency's expenditure' of tax increment funds 'in the amounts and for the purposes specified in the Agreement. 3. Approves the actions to be undertaken and the services to be provided by the City as specified in the Agreement. 4. Authorizes the Mayor to execute the Agreement on behalf of the City substantially in the form of the Cooperative Agreement attached hereto and to undertake such actions and to execute such additional instruments as may be necessary or desirable in order to carry out the intent of this Resolution. 5. Declares that if any provision, sentence, clause,, .section or part of this Resolution is found to, be unconstitutional, illegal or invalid, such finding. shall affect only such provision, sentence, clausei section or part, and shall not affect or impair any of the remaining parts. Page 4 of 5 a �a PASSED AND ADOPTED by the City Council of the City of Petaluma on the day of ,. January, 2011 by the-follow,ing vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City. Clerk 1579525.3 Page 5 of 5 CONTRACT NO. COOPERATIVE AGREEMENT BETWEEN THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION AND THE CITY OF PETALUMA This Cooperative Agreement (this "Agreement") is entered into effective as of January 31, 2Q1.1 ("Effective Date") by and between the Petaluma Community Development Commission, a public body, corporate and politic ("Agency") and the City of Petaluma; a municipal corporation ("City"). The Agency and the City are hereinafter collectively referred to as the "Parties." RECITALS A. Pursuant to authority granted under Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.) ("CRL"), the Agency has responsibility to implement the redevelopment plan for the Central Business District Project Area and the Petaluma Community''Development Project Area (the "Project Areas") established by .the Redevelopment Plan adopted for the Project Area pursuant to Ordinance No. 1221, adopted on September 27, 1976; Ordinance No. 1725, adopted on June 13, 1988; and OrdinanceNo. '21'16, adopted on July 18, 2001 (as subsequently amended, hereafter the "Redevelopment Plan"). B. Pursuant to Section 33220 of the CRL, any public body is authorized to enter into an 'agreement with the Agency for the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of redevelopment projects located within the jurisdiction 'in which such public body is authorized to act, upon the terms and with or without consideration as such public body determines. C. Pursuant to Section 33126(b) of the CRL, the Agency may enter into a contract with any other public agency pursuant to which such public agency furnishes necessary staff services associated. with or required by redevelopment. D. I Pursuant to. Section 33445 of the CRL, the Agency may, with the consent of the City, pay for.,all,:or a portion of the cost of the land for, and the costof construction, of, .,,any building, facility, structure, or other improvements that are publicly owned sand located witli'in or contiguous to the Project Areas if the City.Council finds that: (1) The acquisition of the land or the installation or construction of the 'buildings., facilities, structures, or other improvements that are publicly owned are of benefit to the Project Areas by helping to eliminate blight within the Project Areas or providing housing for low- or moderate -income persons; (2) No other reasonable means of financing the .acquisition of the land or the installation, or construction of the buildings, facilities, structures, or other improvements that are publicly owned, are available to the community; and CONTRACT NO. (4) The payment'of funds for the acquisition of land or the cost of buildings, ,. facilities, structures, or other improvements that are publicly owned is consistent with "the implementation plan adopted pursuant to CRL'Section 33490. E., On the basis of the information and, evidence presented to the City Council and the 'governing board of the Agency and provided .in th& staff report and other materials accompanying the resolutions approving this Agreement, the City Council and the governing board of the Agency -'have adopted the findings described in Recital D with respect to ;the .public" 'improvements to be funded by the Agency pursuant to this Agreement. F. , The Parties desire to enter into this Agreement to 'set forth activities, services, and facilities that the City will undertake or make available to the Agency in furtherance of the redevelopment of the Project Areas, and -to provide that the Agency will pay for or reimburse the City for actions undertaken and costs and, expenses incurred for and on -behalf of the Agency or otherwise in furtherance of the redevelopment of the Project Areas. NOW, THEREFORE, in consideration of the mutual, covenants, conditions and promises herein contained, the Parties hereby agree as follows. 1. Term. The term of this Agreement shall commence on 't_he Effective Date, and shall continue in effect .until the expiration date of the Redevelopment Plan as in effect on the Effective Date, of this, Agreement. Notwithstanding the .foregoing, the Parties agree that if and to the extent, any payment obligation incurred by.the Agency pursuant to this Agreement may extend' beyond the term during- which the Agency is authorized to undertake activities pursuant to state law, such obligations shall be paid from any resources available toAgency or its successor in interest (subject to Section 6 below), including without limitation, tax increment revenue available to the Agency or its successor pursuant to Article XVI, Section 16 of the California Constitution and CRL Section: 33670, the proceeds of bonds or other indebtedness heretofore or hereafter issued by°thee Agency (subject to applicable limitations imposed by federal law and the p able bond index tu're'and related documents), reserve funds (fo t t p all obli ated , lease revenues, interest, .and proceeds from extent no a _ lic ° otherwise. leg, m the sale of land' or .other assets. 2. ,Agencv to Pav for Public Improvements: The Agency agrees to pay to the City the amq.unts,°s.et forth 'in Exhibit.A for the cost of construction of the public improvements therein identified and in accordance with the schedule set forth therein, from all availa. ble sources, including bond proceeds on hand or to be received by the Agency in the future. In the _event that .the Agency is unable to issue bonds, the City agrees .to enter into :financing agreements as necessary to complete the projects identified in Exhibit A on behalf of the Agency, to be repaid by the Agency pursuant to Section 5 herein. 3. Agencv to Provide Funds for Low and Moderate -Income Housina. The Agency agrees to pay to the City the amounts set forth in Exhibit B` in accordance with the 2 �� M CONTRACT NO. schedule set forth therein for the purpose of increasing, improving and preserving the supply of low- and 'moderate.=income housing within the City. The Agency agrees to pay to the City all funds within its Low and Moderate Income Housing Fund not previously obligated by Agency pursuant to the Community Redevelopment Law or otherwise, for the purpose of increasing, improving and preserving the supply of low -and mod erate-income'housing within the City, to be utilized for ,all the costs associated with the affordable housing program, including salaries of housing staff working to produce Low and Moderate Income Housing. 4. 'City to Provide Services. In support of the redevelopment of the Project Areas, the City agrees to provide the staffing and other services described in the attached Exhibit C. I Agency agrees to pay City for the cost of such staffing and other services in the amounts and in accordance with the schedule described in, the attached Exhibit C. 5. ; Indebtedness. The obligations of the Agency to' make payment to City pursuant to this' Agreement shall constitute an indebtedness of the Agency within the meaning of Article XVI, Section 16 of the California Constitution and CRL Section 33670, and shall be payable from tax increment paid to the Agency pursuant to Article XVI, Section 16 of 'the California Constitution and CRL Section 33670 or from any other source legally available to the Agency for such payment, and shall constitute an indebtedness of the Agency until paid in full. The Agency shall include ,its obligations to the City under this Agreement as an indebtedness, on the Agency's statement of indebtedness filed with the'County Auditor pursuant to CRL Section 33675. 6. Subordination. The obligations of the Agency to.make payments to City pursuant to this Agreement shall be :subordinate to any obligation of the Agency to pay debt service on bonds heretofore .or hereafter issued by the Agency and to pay, any other contractual indebtedness of the Agency incurred prior to the date of this Agreement. 7. Time for Aqencv Pavment. The Agency shall use its available funds to make all payments to ,the City required by this Agreement, ,not later than ten (10) days after the Effective. Date: 8., ProiedApgroVals;Environmental Review. ThisAgreement'is not intended to limit in any manner the'discretion of City of the agency, as applicable, in connection with the issuance oft approvals„ and entitlements for the projects described in this Agreement, including without, limitation, the undertaking and completion, of any required environmental' review pursuant to CEQA and NEPA, as applicable, and the review and approval of plans and specifications. Prior to approving any of the projects described herein, the City acting as lead agency or co -lead agency, shall complete any environmental review required under CEQA or NEPA. 9. Severability. If any term, provision, covenant, or condition set forth in this Agreement, including without limitation the exhibits hereto, is held by the final judgment 3 �� , a CONTRACT NO. of a court of competent jurisdiction .to be invalid', void, or unenforceable, the remaining provisions, covenants,- and conditions shall continue in full force and effect to the extent that the basic intent of the" Parties as expressed herein can be accomplished. In addition, the Parties shall cooperate' in, good faith in aneffort to amend or modify this Agreement ,in, a, manner such that'the purpose of any invalidated, or voided provision, covenant', or condition can be accomplished to the maximum extent legally permissible. 10. No Third -Party Beneficiaries; Assignments. Nothing in this Agreement is intended to create. any third -party beneficiaries to the Agr,.eement, and no person or entity other than the Agency and the City, and the permitted successors and assigns of either of them, shall be. authorized -to enforce the provisions of this Agreement. 11.1 Further Assurances: Each 'Party agrees to execute, acknowledge and deliver all additional documents and instruments, and to take such other actions as may be reasonably necessary to carry out the intent of the transactions contemplated by this Agreement. 12., Governinq Law. This Agreement shall be governed 'by and construed in accordance with the laws of the State of California. 13. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. 14. Amendments. This Agreement may be modified or amended, in whole or in part, only by an instrument in writing, executed by the Parties. 15. Recitals. The Recitals set forth above are hereby incorporated into this Agreement as though fully set herein. 16. Exhibits, Exhibits .A, B and C attached hereto are hereby incorporated into this Agreement by reference. " CONTRACT NO. IN WITNESS, WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY: CITY OF PETALUMA', a municipal corporation By:' David Glass, Mayor ATTEST: By: Claire Cooper, CMC, City Clerk APPROVED AS TO FORM: By: Eric Danly, City Attorney AGENCY: PETALUMA COMMUNITY DEVELOPMENT COMMISSION, a public body, corporate and politic By: John C. Brown, Executive Director ATTEST: By: Claire Cooper, CMC, Agency Secretary APPROVED AS TO FORM: By: Eric D'anly, Agency Counsel 0 CONTRACT NO. EXHIBIT A CONTRACT NO. 1. Old Redwood Highwav'Interchan�e Project Location — Highway 101 and Old Redwood Highway Project Description —This project upgrades the Old Redwood Highway 101 interchange to meet current standards and future traffic requirements. The proposed interchange includes ramp- widening and reconfiguration, traffic operations system improvements, over -crossing structure widening to six lanes, including bicycle lanes and enhanced signalization improvements at .the intersections. It is to be constructed independently of the Central B portion of the,proposed future widening on US ;101, and will provide both safety and congestion relief enhancements. The project has $ l OM Measure M funds allocation, with the City/local funds paying for the remaining $20:8'85M costs. Anticipated PCDC Project Cost: $ .899,000 2010-2011 $14,101,000 2011-2012 2. Auto Center Drive Extension Project Location — Auto Center Drive Project Description — Thisprbject extends Auto Center Drive from its current dead end to create a connection to Petaluma Boulevard North, near the Highway 101 interchange. Utility mains will be installed along with new roadway on existing right of way. Anticipated PCDC Project Cost: $1,172,000 2010-2011 3. 101/East Washington Interchaniae Project Location — East Washington Street.and Highway 101 Project Description — This project improves the East Washington Street Interchange with Highway 101 by adding a new northbound on-ramp and realigning the existing southbound on-ramp. iCurrently, project funding consists of SAFTLU $13.5M, demonstration funds $'1M, Measure M $2.9M, and the City $4M local funds toward project right-of-way acquisitions and construction of the East Washington Interchange, for total available funding of $21.4M. The' estimated cost to design the MSN -C is $6.5M, -for a total project cost of $28M. Anticipated PCDC Project Cost: $2,732,000 2010-2011/2011-2012 4. Caulfield Railroad.Crossin.s4 Project Location -Caulfield Lane and Hopper Street Project Description — Completion of a railroad crossing, the intersection improvements, and the closing of the existing railroad crossing at Hopper Street /Jefferson Street. Due to future expected rail use, the new location will improve safety and promote future development in the area. Anticipated PCDC Project Cost: $300,000 2010-2011 7 CONTRACT NO. 5. -Rainier Avenue,Cross-town Connector/Interchange Proieci Location — Rainier Avenue Project Description — This project provides a. new interchange and cross-town roadway under-,crossing'of US 101. SCTA has agreed to incorporate the under -crossing structure as part of the US 10f MSN C-2 widening project, which is currently in design. To ensure inclusion of the under -crossing structure into the MSN C-2 schedule, the interchange component and the, under -crossing component are being studied as two separate, independent projects' As part of.the work effort for the,cross4own connector roadway portion of the project, a project study report/project report and,"environmental document must be' completed: ' Anticipated PCDC'Project Cost: $1,356,000 20.10-2011 $ 11, 61000 2011-2012 $7,000,0.00 2012-2013 6. River Trail — Washington to Lakeville Proiect Location — various locations in PCD. prof ect. area Project Description - This project implements a portion of the Petaluma River Access and Enhancement Plan from Lynch Creek (Near Lakeville Street) 'to Washington Street. The project will construct a multimodal path along the project limits and construct a, pedestrian bridge over the Petaluma.River to close a gap'in this important pedestrian route. ,u. Anticipated PCDC Project Cost: $1,374,000 2011-2012 $ 626,000 2013-2014 4 7. Brownfiel'ds'',Prouam Location - with entire PCD and CBD project areas Project Description -The City has committed to a $200,000 match to a $1 Million Environment Protection. Agency Revolving Loan Fund (RLF) Grant. The RLF works in conjunction with several EPA funded assessment grants to provide financial and technical ass istance'to property owners for assessment and clean-up of Brownfields within the redevelopment area.. Anticipated.PCDC Project Cost: $200,000 2010=2016 8. Economic 'Devel'op.'ment/Site Development! Location: f Thr' ghout PCD and CBD project areas Project Description:'The goal of economic development activities is to develop and promote incentives that- address the specific needs of existing businesses and enhance the City's ability to. attract new businesses and visitors. u Anticipated' PCDC Project Cost: $6,000,000 2010-2.016 � ,.1 8 ��