HomeMy WebLinkAboutStaff Report 4.F & 4.G 06/18/2012 Ag ItennJ#4. FF.r 4.Q
40
110-.
DATE: June I8, 2012
TO: Honorable Mayor and Members of the City Council Through the City Manager
Honorable`Mayorand Members of the City Council Acting as the Successor
Agency For the Former Petaluma Community Development Commission
FROM: Bonne Gaebler, I-lousing Administrator\S
Ingrid Alverde, Economic Development Manage
SUBJECT: (1) Resolution Of The City Council Of The City Of Petaluma Authorizing The
Execution Of An Amended And Restated Cooperative Agreement With The
Successor Agency For The Former Petaluma Community Development
Commission
(2) Resolution of the City Council Acting in its capacity as the Successor Agency
For the Former Petaluma Community Development Commission Authorizing The
Execution Of An Amended And Restated Cooperative Agreement With The City
of Petaluma
RECOMMENDATION
It is recommended that the"City Council adopt a Resolution (Attachment#I) Of The City
Council Of The City Of Petaluma Authorizing The Execution Of An Amended And Restated
Cooperative Agreement With 'The Successor Agency For The Former Petaluma Community
Development Commission; and
It is recommended that the City Council Acting in its capacity as°the Successor Agency For the
Former Petaluma Community Development Commission adopt a Resolution (Attachment#2)
Authorizing The Execution Of An Amended And Restated Cooperative Agreement With The
City of Petaluma
BACKGROUND
The former Petaluma Community Development;Commission entered into numerous agreements,
contracts, and arrangements to implement the Redevelopment Plans for the Central Business
District and the Petaluma Community Development Project Areas, including agreements for
development of affordable housing, construction of public infrastructure and redevelopment of
property to remove blight.
Agenda Review:
City Attorney Finance Director City Maml er
In January 2011, the City and PCDC entered into a•Cooperative Agreement (Original
Cooperative Agreement) whereby PCDC pledged •fundsto support•specilied projects and
activities'to be undertaken:by the:City.
On December 29, 2011, the California Supreme Court upheld the constitutionality ofABxl 26
which,;among other things, dissolved redevelopment agencies statewide as of February 1, 2012.
ABxI 26 added Section 34178(a) tothe Health and Safety Code, providing that, with certain
limited exceptions; contracts between a redevelopment agency city that created it were
invalid and not binding onthe successor agency to the redeyelopment,agency. Section 34178(a)
further provided, however, that a.successor agency wishing.toenteror reenter into agreements
with the city that formed,the redevelopment agency could do so:upon obtaining the approval of
its oversight board.
DISCUSSION
Following consideration and public comment at its April 25, 2012 meeting, the Oversight Board
for the Successor Agency to PCDC authorized:and directed that theOriginal Cooperative
Agreement and/or theprograms thereunder shall continue-and that the Successor Agency shall
take any and all steps as maybe necessary to effectuate the intent orate Original Cooperative
Agreement and the obligations and programs thereunder. (Resolution No..2012-03)
The proposed .Amended and Restated Cooperative Agreement(Attachment#3),if approved by
the parties and the Oversight Board, would be listed as an enforceable obligation on the
Recognized,Obligation Payment Schedules (ROPS) prepared by the Successor Agency, and
would authorize ongoing funding for:
• Old Redwood Highway Interchange $15,500,000
• 101/East•Washington Interchange $ 2,732,000
• Rainier Ave. Crosstown Connector $ 8.476,000
• River Trail Project $ 1,620,000
• Brownstields Program $ 200,000
• Economic Dev/Site Dev $ 6,000,000
• Nonprofit-Programs 8z/Services $ 2,629,200
FINANCIAL IMPACTS
With authorization of the Amended and Restated Cooperative Agreement, the City could realize
revenues,as shown in the discussion above. Without this agreement, there will be no additional
revenues to support vital housing services, capital improvement projects that have been long-
supported by the community, and implenientation of the economic development strategy-that
was approved by the City Council in November 012010.
ATTACHMENTS
1,- Resolution Of The City Council Of The City Of Petaluma Authorizing The Execution Of An
Amended And Restated Cooperative Agreement With The Successor Agency For The Former
Petaluma Community Development Commission
2
•
2. - Resolution of the City Council Acting in its capacity.the Successor Agency For the Former
Petaluia Community Development Commission Authorizing The Execution Of An Amended
And Restated Cooperative Agreement With The City of Petaluma
3. Amended And Restated Cooperative Agreement Between The City Of Petaluma And The
Successor Agency For The Former Petaluma Community Development Commission
3
ATTACHMENT #1
CITY OF PETALUMA
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PETALUMA AUTHORIZING THE EXECUTION OF AN AMENDED
AND RESTATED COOPERATIVE,AGREEMENT WITH THE.SUCCESSOR AGENCY
FOR THE FORMER PETALUMA COMMUNITY DEVELOPMENT COMMISSION
WHEREAS, pursuant to authority granted under Community Redevelopment
Law (California Health and Safety Code Section 33000 et seq.) ("CRL"), the Petaluma
Community Development Commission, a redevelopment agency ("PCDC" or "former
PCDC") had responsibility to implement the Redevelopment Plans for the Central
Business District Project Area and the Petaluma Community Development Project Area
(collectively, the "Project Area"); and
WHEREAS, Section :33220 of the CRL authorized any public body to enter into
an agreement with a redevelopment 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; and
WHEREAS, Section 33126(b) of the CRL authorized redevelopment agencies to
enter into contracts with any other public agency pursuant to which the public agency
would agree to furnish necessary staff services associated with or required by
redevelopment; and
WHEREAS, Section 33205 of the CRL authorized redevelopment agencies to
delegate to the jurisdiction that formed the agency any of the powers or functions of the
redevelopment agency with respect to the undertaking of a redevelopment project, and
authorized such jurisdiction to carry out and perform such powers and functions; and
WHEREAS, Section 33445 of the CRL authorized redevelopment agencies, with
the consent of the legislative body of the community, to 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 the redevelopment
project area if the legislative body adopts findings based upon substantial evidence 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 area;
4
(2) The acquisition of the land or the installation or construction of the
buildings; facilities, structures, or other improvements that are publicly owned benefits
the project area by helping to eliminate blight within the Project Area, or will directly
assist in the provision of housing for low- or moderate-income persons;
(3) 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
(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; and
WHEREAS, the governing board of the former PCDC and the City Council of the
City of Petaluma each adopted the findings described in the foregoing Recital with
respect to the public improvements (the "Public Improvements") and other programs
described in that certain Original Cooperative Agreement further described herein, by
Resolutions adopted on January 31, 2011; and
WHEREAS, the City and the former PCDC have executed agreements with other
public agencies, including without limitation, the Sonoma County Transportation
Authority and California Department of Transportation, which address the development
of public improvements and facilities within the Project Area, including the Public
Improvements; and
WHEREAS, as a condition to the receipt of certain grants awarded by regional,
state and federal agencies,,the City and/or Successor Agency are obligated to pay for,
undertake, or ensure that certain improvements are constructed, including without
limitation, the development of public improvements and infrastructure within the Project
Area; and
WHEREAS, the Redevelopment Agency issued tax-exempt Subordinate Lien
Tax Allocation Bonds, Series 2011 in the aggregate principal amount of'$11,369,000
(the "Bonds"); and
WHEREAS, in connection with the issuance of the Bonds, the former PCDC and
US Bank National Association (the "Trustee") executed an Indenture dated as of March
1, 2011 (the "Indenture") which, among other things, describes procedures applicable to
the payment of principal and interest on the Bonds, redemption of the Bonds and the
use of the proceeds of the Bonds; and
5
WHEREAS, Section 12.04 of the Indenture provides that the Bonds may not be
redeemed prior to May'1 201.8; and
WHEREAS, the Indenture provides that the proceeds of the Bonds may be used
only for costs of the project as defined in and more particularly described in the
Indenture (the "Project"); and
WHEREAS, the Project includes the Public Improvements [and the other items
described in Exhibit A & B attached hereto]; and
WHEREAS, the City and the PCDC entered into that certain Cooperative
Agreement dated as of January 31, 2011 (the "Original Cooperative Agreement"),
pursuant to which, among other things, the City agreed to undertake the construction
and installation of the Public Improvements and certain other public improvements, and
the PCDC agreed to provide funding for such work; and
WHEREAS, pursuant to Resolution 201.2-007 N.C.S., adopted by the City
Council on January 9, 2012, the City agreed to serve as the Successor Agency
commencing upon dissolution of the PCDC on February 1, 2012 pursuant to Assembly
Bill x1 26 ("AB 26"), and thereby assumed the rights and obligations of the PCDC as
stated therein; and
WHEREAS, in accordance with ABx1 26, the Successor Agency prepared a
Recognized Obligation Payment Schedule ("ROPS") setting forth the schedule of
existing former PCDC obligations, including among others, the obligation to provide
funding for the Public Improvements [and the other items described in Exhibit A & B
attached hereto]; and
WHEREAS, an oversight board for the Successor Agency was established
pursuant to ABx1 26 (the "Oversight Board"); and
WHEREAS, the Oversight Board approved the ROPS by Resolution No. 2012-3
adopted on April 25, 2012; and
WHEREAS, Health and Safety Code Section 34178(a) provides that, with
specified exceptions, commencing upon February 1, 2012, agreements, contracts and
arrangements between a redevelopment agency and the city that formed the
redevelopment agency are invalid; provided however, a successor agency that wishes
to reenter into agreements with the city that formed the agency may do so upon
obtaining approval of the oversight board; and
6
WHEREAS, following consideration of a Successor Agency staff presentation
and public comment at its April 25, 2012 meeting, by Resolution No. 2012-3 the
Oversight Board authorized and directed that the Original Cooperative Agreement
and/or the programs thereunder shall continue, and that the Successor Agency shall
take any and all steps as may be necessary to effectuate the intent of the Original
Cooperative Agreement and the obligations and programs thereunder; and
WHEREAS, the City and the Successor Agency desire to enter into an Amended
and Restated Cooperative Agreement (the "Agreement") to set forth the construction
activities and services that the City will undertake or make available in furtherance of
the completion of the Public Improvements and the other programs and services set
forth in the Agreement, and to provide that the Successor Agency will pay for or
reimburse the City for actions undertaken and costs and expenses incurred in
connection with such work, programs and services; and
WHEREAS, the Agreement is intended to amend and restate the Original
Cooperative Agreement;
WHEREAS, the execution of the Agreement was approved by the governing
board of the Successor Agency by resolution adopted on June 18, 2012; and
WHEREAS, the Oversight Board will consider the Agreement at its meeting on
, 2012.
NOW THEREFORE, BE !THEREBY RESOLVED by the City Council of the City
of Petaluma that it hereby:
1. Affirms and ratifies the findings set forth in the foregoing Recitals.
2. Subject to approval of the Oversight Board, authorizes the.City Manager or
designee to execute and deliver the Agreement substantially in the form attached
hereto.
3. Authorizes the City Manager or designee to execute such other documents and
to take such other actions as necessary to carry out the intent of this Resolution.
PASSED AND ADOPTED....
7
ATTACHMENT #2
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA,
ACTING IN ITS CAPACITY AS THE SUCCESSOR AGENCY FOR THE FORMER
PETALUMA COMMUNITY DEVELOPMENT COMMISSION, AUTHORIZING THE
EXECUTION OF AN AMENDED AND RESTATED COOPERATIVE AGREEMENT
WITH THE CITY OF PETALUMA
WHEREAS, pursuant to authority granted under Community Redevelopment
Law,(California Health and Safety Code Section 33000 et seq.) (the "CRL"), the
Petaluma Community Development Commission, a redevelopment agency ("PCDC" or
"former PCDC"), had responsibility to implement the Redevelopment Plans for the
Central Business District Project Area and the Petaluma Community Development
Project Area (collectively, the "Project Area"); and
WHEREAS, pursuant to Resolution 2012-007 N.C.S., adopted by the City
Council of the City of Petaluma on January 9, 2012, the City of Petaluma agreed to
serve as the Successor Agency to the PCDC commencing upon dissolution of the
PCDC on February 1, 2012 pursuant to Assembly Bill x1 26 ("ABx1 26"); and
WHEREAS, Health and Safety Code Section 33220 authorized any public body
to enter into an agreement with a. redevelopment 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 withoutconsideration as such public body determines; and
WHEREAS, Health and Safety Code Section 33126(b) authorized
redevelopment agencies to enter into contracts with any other public agency pursuant to
which the public agency would agree to furnish necessary staff services associated with
or required by redevelopment; and
WHEREAS, Health and Safety Code Section 33205 authorized redevelopment
agencies to delegate to the jurisdiction that formed the agency any of the powers or
functions of the redevelopment agency with respect to the undertaking of a
redevelopment project, and authorized such jurisdiction to carry out and perform such
powers and functions; and
8
WHEREAS, the governing board of the formerPCDC and the City Council of the
City of Petaluma ("City Council") each adopted the findings required by Health and
Safety Code, Section 33445 with respect to the public improvements (the "Public
Improvements") and other programs described in that certain Original Cooperative
Agreement further described herein, by Resolutions adopted on January 31, 2011; and
WHEREAS, the Redevelopment Agency issued tax-exempt Subordinate Lien
Tax Allocation Bonds, Series 2011 in the aggregate principal amount of $11,369,000
(the "Bonds"); and
WHEREAS, in connection with the issuance of the Bonds, the former PCDC and
US Bank National Association (the "Trustee") executed an Indenture dated as of March
1, 2011 (the "Indenture") which, among other things, describes procedures applicable to
the payment of principal and interest on the Bonds, redemption of the Bonds and the
use of the proceeds of the Bonds; and
WHEREAS, Section 12.04 of the Indenture provides that the Bonds may not be
redeemed prior to May 1 2018; and
WHEREAS, the Indenture provides that the proceeds of the Bonds may be used
only for costs of the Project as defined in and more particularly described in the
Indenture (the "Project"); and
WHEREAS, the Project includes the Public Improvements [and the other items
described in Exhibit A & B attached hereto]; and
WHEREAS, the City and the PCDC entered into that certain Cooperative
Agreement dated as of January 31., 2011 (the "Original Cooperative Agreement"),
pursuant to which, among other things, the City agreed to undertake the construction
and installation of the Public Improvements and certain other public improvements, and
the PCDC agreed to provide funding for such work; and
WHEREAS, in accordance with ABx1 26, the Successor Agency prepared a
Recognized Obligation Payment Schedule ("ROPS") setting forth the schedule of
existing former PCDC obligations, including among others, the obligation to provide
funding for the Projects and Programs described in Exhibit.B attached hereto; and
WHEREAS, an oversight board for the Successor Agency was established
pursuant to ABx1 26 (the "Oversight Board"); and
9
WHEREAS, the Oversight Board approved the ROPS by Resolution No. 2012-03
adopted on April 25, 2012; and
WHEREAS, Health and Safety Code Section 34178(a) provides that, with
specified exceptions, commencing upon February 1, 2012,. agreements, contracts and
arrangements between a redevelopment agency and the city that formed the
redevelopment agency are invalid; provided however, a successor agency that wishes
to reenter into agreements with the city that formed the agency may do so upon
obtaining approval of the oversight board; and
WHEREAS, following consideration of a Successor Agency staff presentation
and public comment at its April 25, 2012 meeting, by Resolution No. 2012-03 the
•
Oversight Board authorized and directed that the Original Cooperative Agreement
and/or the programs thereunder shall continue, and that the Successor Agency shall
take any and all steps as may be necessary to effectuate the intent of the Original
Cooperative Agreement and the obligations and programs thereunder; and
WHEREAS, the City and the Successor Agency desire to enter into an Amended
and Restated Cooperative Agreement (the "Agreement") to set forth the construction
activities and services that the City will undertake or make available in furtherance of
the completion of the Public Improvements, and the other programs and services set
forth in the Agreement, and to provide that the Successor Agency will pay for or
reimburse the City for actions undertaken and costs and expenses incurred in
connection with such work; and
WHEREAS, the Agreement is intended to amend and restate the Original
Cooperative Agreement;
WHEREAS, the execution of the Agreement was approved by the City Council
by resolution adopted on June•18, 2012; and
WHEREAS, the Oversight Board will consider the Agreement at its meeting on
, 2012.
NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City
of Petaluma, acting in.its capacity as Successor Agency to the former PCDC, that it
hereby:
1. Affirms and ratifies the findings set forth in the foregoing Recitals.
10
2. Subject to approval of the Oversight Board, authorizes the Executive Director of
the Successor Agency or designee to execute and deliver the Agreement substantially
in the form attached hereto.
3. Authorizes the Executive Director of the Successor Agency to execute such other
documents and to take such other actions as necessary to carry out the intent of this
Resolution.
PASSED AND ADOPTED....
11
•
ATTACHMENT #3
AMENDED AND RESTATED COOPERATIVE AGREEMENT BETWEEN THE CITY
OF PETALUMA AND THE SUCCESSOR AGENCY FOR THE FORMER PETALUMA
COMMUNITY DEVELOPMENT COMMISSION
This Amended and Restated Cooperative Agreement (this "Agreement") is
entered into effective as of , 2012 ("Effective Date") by and
between the City of Petaluma, a municipal corporation ("City") and the Successor
Agency for the former Petaluma Community Development Commission ("Successor
Agency"). The City and the Successor Agency 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 Petaluma Community
Development Commission ("Redevelopment Agency" or "PC DC") had responsibility to
implement the redevelopment plan for the Central Business District Project Area and
the Petaluma Community Development Project Area (collectively, the "Project Area")
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, hereinafter the "Redevelopment Plan").
B. Section 33220 of the CRL authorized any public body to enter into an agreement
with a redevelopment 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. Section 33126(b) of the CRL authorized redevelopment agencies to enter into a
contract with any other public agency pursuantt to which such public agency would
agree to furnish necessary staff services associated with or required by redevelopment.
D. Section 33205 of the CRL authorized redevelopment agencies to delegate to the
jurisdiction that formed the agency any of the powers or functions of the redevelopment
agency with respect to the undertaking of a redevelopment project, and authorized such
jurisdiction to carry out and perform such powers and functions.
12
E. Section 33445 of the CRL authorized redevelopment agencies, with the consent
of the legislative body of the community, to pay forall 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
redevelopment project area upon the legislative body's adoption of findings 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 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 implementation plan adopted pursuant to CRL Section 33490.
The Parties reaffirm that the facts as set forth in the Section 33445 findings made
pursuant to the CRL remain accurate.
On January 31, 2011, by Resolutions the governing board of the Redevelopment
Agency and the City Council of the City of Petaluma each adopted the findings
described in the foregoing Recital with respect to the public improvements described in
Exhibit A (the "Public Improvements") attached hereto.
The Redevelopment Agency issued. tax-exempt Subordinate Lien Tax Allocation
Bonds, Series 2011 in the aggregate principal amount of$11,369,000 (the "Bonds").
J. In connection with the issuance of the Bonds, the former PCDC and US Bank
National Association (the "Trustee") executed an Indenture dated as of March 1, 2011
(the "Indenture") which, among other things, describes procedures applicable to the
payment of principal and interest on the Bonds, redemption of the Bonds and the use of
the proceeds of the Bonds.
K. Section 12.04 of the Indenture provides that the Bonds may not be redeemed
prior to May 1 2018.
L. The Indenture provides that the proceeds of the Bonds. may be used only for
costs of the project,as defined in and more particularly described in the Indenture (the
"Project").
13
M. The City and the Redevelopment. Agency entered into that certain Cooperative
Agreement dated as of January 31, 2011 (the "Original Cooperative Agreement"),
pursuant to which, among other things, the. City agreed to undertake the construction
and installation of the Public Improvements and to undertake certain other programs
and services, and the Redevelopment Agency agreed to provide funding for such work,
programs and services...
N. Pursuant to Resolution No. 2012-007 N.C.S., adopted by the City Council on
January 9, 2012, the City elected to serve as the Successor Agency to the
Redevelopment Agency commencing upon dissolution of the Redevelopment Agency
on February 1, 2012, pursuant to Assembly Bill x1 26 ("ABx1 26"), and thereby
assumed the rights and obligations of the Redevelopment Agency.
O. Pursuant to Resolution No. 2012-009 N.C.S. adopted by the City Council on
January 23, 2012, the City .elected to retain the housing functions and assets of the
Redevelopment Agency as of February 1, 2012 and to serve as Housing Successor to
the Redevelopment Agency.
P. In accordance with ABx1 26, the Successor Agency prepared a Recognized
Obligation Payment Schedule (CROPS") setting forth the schedule of existing former
PCDC obligations, including,. among others, the obligations to provide funding for the
Public Improvements and the other programs and services described in Exhibits A and
B attached hereto.
Q. An oversight board.for the Successor Agency was established pursuant to ABx1
26 (the "Oversight Board").
R. The Oversight Board approved the ROPS by Resolution No. 2012-03 on April 25,
2012.
S. Health and Safety Code Section 34178(a) provides that, with specified
exceptions, commencing on February 1, 2012, agreements, contracts and
arrangements between a redevelopment agency and the city that formed the
redevelopment agency are invalid; provided however, that a successor agency that
wishes to reenter into agreements with the city that formed the redevelopment agency
may do so upon obtaining approval of the oversight,board. This Agreement is entered
into pursuant to the express authority of Health and Safety Code Section 34178(a).
T. Following consideration of a Successor Agency staff presentation and public
comment at its April.25, 2012 meeting, by Resolution No. 2012-03 the Oversight Board
authorized and directed that the Original Cooperative Agreement and/or the programs
thereunder shall continue, and that the Successor Agency shall take any and all steps
as may be necessary to effectuate the intent of the Original Cooperative Agreement and
the obligations and programs thereunder.
14
U. 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.Area, and to provide-that the Successor Agency will
pay for or reimburse the City for actions undertaken and costs and expenses incurred in
connection with such work.
V. The Parties intend this Agreement to amend and restate the Original Cooperative
Agreement.
W. The execution of this Agreement was approved by the City Council by Resolution
No. , on and by the:governing board of the Successor Agency by Resolution No.
, each adopted on June 18, 2012. •
X. The execution of this Agreement was approved by the Oversight Board by
Resolution No. adopted on July 11, 2012.
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 earlier of the date that the Public Improvements are
completed, orthe date by which the City has received all property tax revenue payable
to the City pursuant to this Agreement.
2. City to Construct Public Improvements and Pay for Programs and Services. The
City agrees to undertake or otherwise cause to be performed the construction and
installation of the Public Improvements and to undertake the programs and services
described in the attached Exhibits A and B.
3. Successor Agency to Pay for Public Improvements. The Successor Agency agrees
to.provide\to the City the amounts set forth in Exhibit A for the cost of construction of the
Public Improvements and the amounts set forth in Exhibit B for the cost of the programs.
and services therein identified, and in accordance with the schedule set forth therein.
The Successor Agency agrees to take all actions reasonably necessary to make such
funds available to City, including without limitation, the listing of this Agreement on the
Successor Agency's Recognized Obligation Payment Schedule.
4. Source of Funds. The Parties acknowledge that the sole source of funds
available to the Successor Agency to make The payments to City required pursuant to
this Agreement are the proceeds of the Bonds (defined above) and the allocation of
15
property tax revenue by the Sonoma County Auditor-Controller to the Successor
Agency from the Redevelopment Property Tax Trust Fund established by the Sonoma
County Auditor-Controller for the Successor Agency pursuant to Health and Safety
Code Section 34170.5.
5. Subordination. The obligation of the Successor Agency to make payments to
City pursuant to this Agreement shall be subordinate to any obligation of the Successor
Agency to pay debt service on bonds heretofore issued by the former PCDC.
6. Project Approvals; Environmental Review. This Agreement is not intended to
limit in any manner the discretion of City 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 the California Environmental Quality Act ("CEQA") and the National
Environmental Policy Act ("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.
7. 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
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.
8. No Third-Party 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 Successor Agency and the City, and the permitted successors and
assigns of either of them, shall be authorized to enforce the provisions of this
Agreement.
9. 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.
16
10. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
11. 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.
12. Amendments. This Agreement may be modified or amended, in whole or in part,
only by an instrument in writing, executed by the Parties.
13. Recitals. The Recitals set forth above are hereby incorporated into this
Agreement as though fully set herein.
14. Exhibits. Exhibits A & B attached hereto are hereby incorporated into this
Agreement by reference.
[SIGNATURES ON FOLLOWING PAGE.]
17
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 W. Danly, City Attorney
18
SUCCESSOR AGENCY:
CITY OF PETALUMA ACTING IN ITS CAPACITY AS SUCCESSOR AGENCY FOR THE
FORMER PETALUMA COMMUNITY DEVELOPMENT COMMISSION,
a public body, corporate and politic
By:
John C. Brown, Executive.Director
ATTEST:
By:
Claire Cooper, CMC, Successor Agency Secretary
APPROVED AS TO FORM:.
By:
Eric W. Danly, Successor Agency Counsel
19
EXHIBIT A
I.
Old Redwood Highway Interchange 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 improvementsat the intersections. Itis to be constructed independently of
the Central B portion of.dieproposed future widening-on US 101, and will provide both
safety andcongestion relief enhancements. The;projecthas $10M Measure M funds
allocation, with the.City/local funds paying for`the remaining$20.885M costs.
Facts:. Completion of the public.improvements.atOld Redwood Highway will help to
eliminate blighting conditions in the project area becausethe infrastructure upgrades and
circulation improvements will address roadwayand transportation belated deficiencies; as
well as improving impediments to circulation.and.access that revitalization in the
area.
Section 33445 Findings:
I. This project-will benefit-the project area by helping eliminate blight. The
undeveloped site will have access from the new railroad crossing. A development
project in thearea will promote investment and be a catalyst for development in the
area.
2. No other reasonable means of financing are available. This project.would not be
feasible without the use of redevelopment funds..
3. 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 Project Cost: $1,433,000 2012-2013
$ 12,638,000 '2013-2014
$ 747,000 2014-2015
$ 511,000 2015-2016
2. 101/East.Washington Interchange Project
Location —
Project Description —This project improves the East Washington Street Interchange with
Highway MI by adding a new northbound on-ranip 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,
20
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.
'Facts: Completion of the public improvements at 101 Interchange will, to eliminate
blighting conditions in the 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.
Section 33445 Findings
1. This project will benefit the project area by helping eliminate blight. The
undeveloped site will have access from the'new railroad crossing. A development
project in the area will promote investment and be a catalyst for development in the
area.
2. No other reasonable means of financing are available. This.project would not be
feasible without the use of redevelopment funds.
3. 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 Project Cost: $ 749,000 2012-2013
$ 777,000 2013-2014
4. 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 part of the US 1.01 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.
Facts: Completion of the public improvements at Rainier Avenue including a Cross-town
connector will help to eliminate blighting conditions in the.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 deterrevitalization in the area.
21
Section 33445 Findings:
I. This project will benefit the,project area by helping eliminateiblight. The
undevelopedsite,will have,access,from the new railroad crossing. A development
project in the area will promote investment and be a catalyst for development in the
area.
2. No other reasonable means of financing are available. This project would not be
feasible without the use of redevelopment funds.
3. 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 Project Cost: $1,322,000 2012-2013
$7,150,000 2014-2015
5. 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.
Facts: The project is necessary to rehabilitate and reconstructa pathway which will
promote multimodal access and connect to the downtown SMART station.
Section 33445 Findings:
1. This project will benefit the project area by helping eliminate blight. The
undeveloped site will have access from the new railroad crossing. A
development project in the area will promote investment and be a catalyst for
development in the area.
2. No other reasonable means of financing are available. This project would not be
feasible without the:use of redevelopment funds.
3. The payment offunds for the cost of the improvements that are publicly owned is
consistent with the Implementation Plan adopted by PCDC on June 18, 2007.
Anticipated Project Cost: $1,472,00,0 2012-2013
6. :Browntields,Program
Location—with entire PCD area -
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
22
technical assistance'to property owners for assessment and clean-up of Brownfields
within the redevelopment area.
Anticipated Project Cost: $200,000 2012-2016
7. Economic Development/Site Development
(John: We would need some potential site addresses or APNs for this description. Right
now we do not.have this information)
Anticipated Project Cost: $6,000,000 2012-2016
23
EXHIBIT B
1. Affordable 1-lousing Programs
Redevelopment Funds can be used for the purpose of increasing, improving and
preserving the supply of low-and moderate-income housing within the City and for all the
costs associated with the affordable housing program. These programs are listed below
along with the nonprofifagency that partners with the City of Petaluma.
1. Rental Assistance Program— Petaluma-People Services
2. Transitional Housing Program —Salvation Army
3. Transitional'I-lousing.Program—Committee on the Shelterless
4. Family Transitional,Housing - Committee on the Shelterless
5. Fair Flouring—Landlord and Tenant Mediations— Petaluma People Services
Center
6: Mobile I-tome Rent Control —City of Petaluma
7. Rehab of Low-Income Families and Seniors— Rebuilding Together
Anticipated Project Cost for 2012-2015 $2,629,200
1896689.1
24