2011/01/25 City Council Resolution 2011-11RESOLUTION NO. 2011 -11
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
APPROVING AND AUTHORIZING EXECUTION OF A PUBLIC IMPROVEMENTS
AND AFFORDABLE HOUSING REIMBURSEMENT AGREEMENT BETWEEN THE
CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
ROHNERT PARK
WHEREAS, the Community Development Commission of the City of Rohnert Park
( "CDC ") is carrying out the Redevelopment Plan ( "Redevelopment Plan ") for the Rohnert Park
Redevelopment Project ("Redevelopment Project "); and
WHEREAS, under the Redevelopment Plan, the City of Rohnert Park ( "City ") shall aid
and cooperate with the CDC in carrying out the Redevelopment Project and shall take actions
necessary to ensure the fulfillment of the purposes of the Redevelopment Plan and prevent the
recurrence or spread of conditions causing blight within the area of the Redevelopment Project
( "Project Area "); and
WHEREAS, pursuant to Section 33320 of the California Community Redevelopment
Law (Health. and Safety Code Section 33000, et seq.) (the "CRL "), for the purposes of aiding and
cooperating in the planning, undertaking, construction or operation of redevelopment projects
within the Project Area, the City may, among other things,. exercise the following powers: sell or
lease any of its property to the CDC; cause public improvements to be furnished in connection
with redevelopment projects; plan or replan and zone or rezone any part of a redevelopment
project; and enter into agreements with the CDC respecting actions to be taken pursuant to any
such powers; and
WHEREAS, in keeping with the goals and objectives'of the Redevelopment Plan and the
CDC's current Implementation Plan for the Redevelopment Project to eliminate physical and
economic blight and increase, improve and preserve housing affordable for low- and moderate -
income persons, the City and CDC have been working cooperatively to provide public
improvements, and carry out affordable housing programs of benefit to the Project Area; and
WHEREAS, pursuant to Section 33445(a) of the CRL, the CDC may, with the consent of
the City Council of the City of Rohnert Park ( "City Council'), pay all or part of the value of the
land for and the cost of the installation and construction of any buildings, facilities, structures or
other improvements which are publicly owned and located inside or contiguous to a project area
upon a determination by the City Council that such building, facilities, structures or other
improvements are of benefit to the project area by helping to eliminate blight within the project
area, that no other reasonable means of financing the acquisition of the land or installation or
construction of such buildings, facilities, structures or other improvements that are publicly
owned are available to the community, that the payment of funds for the acquisition of the land
or installation or construction of the building, facilities, structure or other improvements that are
publicly owned is consistent with the implementation plan adopted by the CDC pursuant to
Section 33490 of the CRL; and
WHEREAS, pursuant to Section 33445(c) of the CRL, when the value of the land or the
cost of installation and construction of a building, facility, structure, or other improvement that is
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publicly owned, or both, has been, or will be, paid or provided for initially by the City, the CDC
may enter into a contract with the City under which the CDC agrees to reimburse the City for all
or part of the value of the land or all or a part of the cost of the building, facility, structure or
other improvement that is publicly owned, or both, by periodic payments over a period of years;
and
WHEREAS, the CDC and City Council have prepared and wish to. enter into a Public
Improvements and Affordable Housing Reimbursement Agreement ( "Agreement ") to provide
for City's development and construction of certain public improvements ( "Public
Improvements ") and affordable housing projects ( "Affordable Housing Projects ") within the
Project Area and CDC's reimbursement of City for the costs of the Public Improvements and
Affordable Housing Projects; and
WHEREAS, a program Final Environmental Impact Report was prepared and certified on
the Redevelopment Plan ( "Final EIRs ") in accordance with the California Environmental
Quality Act ( "CEQA "), which included analysis of the Public Improvements and Affordable
Housing Projects on a programmatic level; and
WHEREAS, at this time there are no preliminary drawings, plans or other sufficient
information to enable a meaningful environmental assessment of the specific Public
Improvements and Affordable Housing Projects, and therefore, the Agreement provides that the
commitment of funds to and commencement of the specific Public Improvements and Affordable
Housing Projects set forth therein shall be subject to completion of additional environmental
review and analysis, as required by CEQA;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
DOES HEREBY RESOLVE AS FOLLOWS:
1. The City Council hereby finds and determines that the provision of the proposed
Public Improvements are of benefit to the Project Area as they. will help to eliminate blight
within the Project Area, that no other reasonable means of financing the Public Improvements are
available to the community; and that the payment of funds for the Public Improvements is
consistent with the CDC's Implementation Plan for the Redevelopment Project adopted pursuant
to Section 33490 of the CRL. These findings and determinations are based upon the following
facts:
a. All the Public Improvements are either located_ within or contiguous to the
Project Area and will assist in eliminating the following blight conditions:
inadequate public improvements, depreciated property values and impaired
investments, and inadequate public signage in the Project Area.
b. Although the City is able to aid and assist the CDC by undertaking the
Public Improvements and initially providing the funds necessary for the
acquisition of land or the construction or installation of the Public
Improvements, the City lacks the resources necessary to permanently fund
the Public Improvements from the General Fund, and other potential sources
of funds are no longer available or are inadequate. The City's General Fund
continues to be eroded by increased insurance and liability costs and State
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mandated programs which are not fully funded by the State. Further there
has been a marked decline in tax. revenues and the availability of State and
federal grants over the past several years.
c. The Implementation Plan for the Rohnert Park Redevelopment Project
contains the specific goals and objectives of the CDC for the Project Area,
the specific programs, including potential projects, and estimated
expenditures proposed to be made during the next five years, and an
explanation of how the goals and objectives, programs, and expenditures
will eliminate blight within the Project Area and implement, the housing
requirements set forth in the Community Redevelopment Law. The Public
Improvements are consistent with the Implementation Plan, as the goals and
programs provide for the elimination of inadequate public improvements
and the provision of public infrastructure of benefit to the Project Area
consistent with the Public Improvements set forth in the Agreement.
2. The City Council hereby approves the Public Improvements and Affordable
Housing Reimbursement Agreement and hereby authorizes and directs the Mayor to execute the
Agreement on behalf of the City, substantially in the form on file with the CDC Secretary and
City Clerk, with such revisions as are reasonably determined necessary by the City signatory,
such determination to be conclusively deemed to have been made by the execution of the
Agreement by the City signatory. The City Council hereby further authorizes and directs the City
Manager to take all actions and execute all documents as necessary to carry out the Agreement.
3. This resolution shall take effect immediately upon adoption.
DULY AND REGULARLY ADOPTED this 25"' day of January, 2011.
CITY OF ROHNERT PARK
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PUBLIC IMPROVEMENTS AND AFFORDABLE HOUSING
REIMBURSEMENT AGREEMENT
THIS PUBLIC IMPROVEMENTS AND AFFORDABLE HOUSING
REIMBURSEMENT AGREEMENT (the "Agreement") is entered .into this 25th day of January,
2011, by and between the CITY OF ROHNERT PARK (the "City ") and the COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK (the "CDC "), with
reference to the following facts:
A. The CDC has prepared a Redevelopment Plan ( "Redevelopment Plan ") for the
Rohnert Park Redevelopment Project Area (the "Project Area "), which results in the allocation of
..property taxes from the Project Area to the CDC ( "Tax Increment ") pursuant to Section 33670(b)
of the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.)
( "CRL ") for purposes of redevelopment.
B. The intent of the Redevelopment Plan is, in part, to provide for the construction
and installation of necessary public infrastructure and facilities and to facilitate the repair,
restoration and/or replacement of existing public facilities and to perform specific actions
necessary to promote the redevelopment and the economic revitalization of the Project Area; and
to increase, improve and preserve the community's supply of low and moderate income housing;
and to take all other necessary actions to implement the redevelopment plan for the Project Area
and to expend Tax Increment to accomplish the goals and objectives of the redevelopment
project.
C. The CDC has adopted its Five -Year Implementation Plan for the Project Area
( "Implementation Plan ") establishing goals for the elimination of blight, affordable housing,
economic development and community and commercial revitalization. To implement the
programs and activities associated with each goal, the CDC has committed redevelopment funds
from the Project Area based on estimated available Tax Increment revenue and debt financing
structures.. The Redevelopment Plan and the Implementation Plan and all official records of the
CDC, as amended from time to time, are incorporated herein by reference.
D. Pursuant to Section 33220 of the CRL, certain public bodies, including the City
may aid and cooperate in the planning, undertaking, construction, or operation of redevelopment
projects. The CDC desires the assistance and cooperation of the City to carry out the Projects.
listed in, the attached Exhibit 1, which are incorporated herein by this reference ( "Projects "). The
programs and activities associated with the Projects include but are not limited to acquisition of
property, development of design criteria, design, planning, preparation of construction bid
documents, financial analysis, financing, project administration and new construction or
rehabilitation as applicable.
E. The City is willing to aid and cooperate with the CDC to expeditiously implement
the Projects in accordance with the Redevelopment Plan and the Implementation Plan on the
condition that the CDC pledge Net Available Tax Increment, as defined in Recital F below, to
finance the Projects in this current fiscal year and forthcoming fiscal years.
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F. For purposes of this Agreement; "Net Available Tax Increment" means any and
all Tax Increment revenues, including (1) any and all funds currently held by the CDC, which are
not budgeted or appropriated for payment of other indebtedness or obligations of the CDC;
(2) any and all proceeds of bonded indebtedness currently or hereafter held by the CDC or any
lawful successor of the CDC (except to the extent otherwise determined by the City Manager on
behalf of the City and the CDC Executive Director on behalf of the CDC); and (3) all future
property Tax Increment revenues allocated to the CDC, or any lawful successor of the CDC,
pursuant to the Redevelopment Plan and the CRL or other applicable law, to pay indebtedness of
the CDC after the CDC or its successor has made all necessary annual payments with respect to
other outstanding debt obligations of the CDC, including without limitation bonded
indebtedness, pass - through payments owed to affected taxing entities under written agreement or
Sections 33607.5 or 33607.7 of the CRL, written agreements with other persons or entities, and
any other statutorily required payment obligations of the CDC; provided, however, with respect
to those Projects that are not related to affordable housing, the CDC's pledge of Net Available
Tax Increment shall only include those Tax Increment revenues which CDC is not required
pursuant to Section 33334.3 of the CRL to deposit into the CDC's Low and Moderate Income
Housing Fund.
G. The City Council (the "Council ") and the CDC by resolution have each found that
the use of CDC's Net Available Tax Increment for the publicly -owned improvements described
in Exhibit 1 is in accordance with Section 33445 of the CRL and other applicable law. Said
Council and.CDC resolutions are each based on the authority of the CDC, with the consent of the
Council, to pay all or part of the cost of the land for and the installation and construction of any
facility, structure, or other improvements which are publicly owned either inside or contiguous to
a project area, if the Council makes certain determinations.
H. By approving and entering into this Agreement, the. CDC has approved the pledge
of Net Available Tax Increment from the Project Area to pay for the Projects.
I. The obligations of the CDC under this Agreement shall constitute an indebtedness
of the CDC for the purpose of carrying out the Redevelopment Plan for the Project Area and a
pledge of Net Available Tax Increment received by the CDC from the Project Area to pay such
indebtedness under the provisions of Article XVI, Section 16 of the Constitution of the State of
California, the CRL and the Redevelopment Plan.
J. This Agreement is in addition to, and does not supersede any other cooperative,
repayment or reimbursement agreements entered into between the CDC and the City.
NOW, THEREFORE; the parties hereto do mutually agree as follows:
L INTRODUCTORY PROVISIONS
1.1 The recitals above are an integral part of this Agreement and set forth the
intentions of the parties and the premises on which the parties have decided to enter into this
Agreement and are incorporated into the terms and conditions of this Agreement.
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2. CDC'S OBLIGATIONS
2.1 The CDC agrees to pay to the City the amounts set forth in Exhibit 2; or such
lesser amounts to the extent the costs to the City to carry out the Projects are less than the
budgeted amounts set forth in the Payment Schedule attached hereto as Exhibit 2 and
incorporated herein by this reference, to reimburse the City for all costs incurred by the City in
connection with the Projects, including without limitation all costs of planning, land acquisition,
financing, development, permitting, design, site testing, bidding, project administration,
construction and construction management of the Projects. The CDC's obligations under this
Agreement, including without limitation the CDC's obligation to make the payments to the City
required hereunder, shall constitute an indebtedness of the CDC for the purpose of carrying out
the redevelopment of the Project Area and are obligations to make payments authorized and
incurred pursuant to Section 33445 and other applicable statutes. The obligations of the CDC set
forth in this Agreement are contractual obligations. that, if breached, will subject the CDC to
damages and other liabilities or remedies.
2.2 The obligations of CDC under this Agreement shall be payable out of Net
Available Tax Increment, as defined in Recital F above, allocated to the CDC and/or any lawful
successor. entity of the CDC to carry out the Redevelopment Plan and/or pay indebtedness of the
CDC pursuant to Section 33670, et seq., of the CRL and Article XVI, Section 16 of the
Constitution of the State of California, and any other applicable constitutional provision, statute
or other provision of law now existing or adopted in the future, in amounts not less than those set
forth in Exhibit 2.
2.3 The indebtedness of CDC under this Agreement shall be subordinate to the rights
of the.holder or holders of any existing bonds, notes or other instruments of indebtedness (all
referred to herein as "indebtedness ") of the CDC incurred or issued to finance redevelopment of
the Project Area, including without limitation any pledge of Net Available Tax Increment
revenues from the Project Area to pay any portion of the principal and. interest (and otherwise
comply with the obligations and covenants) of any bond or bonds issued or sold by the CDC
with respect to the Project Area.
2.4 All payments due to be made by the CDC to the City under this Agreement shall
be made by the CDC in accordance with the schedule set forth in Exhibit 2, and as otherwise
necessary to reimburse the City for the cost to the City of performing its obligations hereunder.
The City shall provide the CDC with a report from time to time as requested by the CDC
accompanied by evidence reasonably satisfactory to the CDC's Executive Director that the City
has progressed in the development and construction of the Project for which payment is made by
the CDC commensurate with such payments and has incurred costs or obligations to make
payments equal to or greater than such amount.
3. CITY'S OBLIGATIONS
3.1 The City shall accept and devote any and all funds offered by the CDC pursuant
to this Agreement solely to completion of the Projects by (i) reimbursing the City or using such
funds to make City expenditures to perform the work required to carry out and complete the
Projects; (ii) utilizing such funds to pay debt service on bonds or other indebtedness or
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OAK 44846 - 6529 -3832 v
obligations that the City has or will incur for such purposes; and/or (iii) paying such funds into a
special fund of the City to be held and expended only for the purpose of satisfying the
obligations_ of the City hereunder.
3.2 It is the responsibility of City to pay all development and construction costs in
connection with the Projects from funds paid to the City by the CDC under this Agreement.
3.3 Prior to commencement. of work on any of the listed Projects, all necessary
environmental review required by CEQA shall be completed. This Agreement in no way limits
the discretion of the Planning Commission, the CDC Board or the City Council in completing
environmental review of the Projects.
3.4 The City shall perform its obligations hereunder in accordance with the applicable
provisions of federal, state and local laws, and shall timely complete the work required for each
Project in accordance with the time schedule set forth in Exhibit 2.
4. LIABILITY AND INDEMNIFICATION
In contemplation of the provisions of California Government Code Section 895.2 imposing
certain tort liability jointly upon public entities solely by reason of such entities being parties to
an agreement as defined by Government Code Section 895, the parties hereto, as between
themselves, pursuant to the authorization contained in Government Code Sections 895.4 and
895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or
employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the
performance of this Agreement to the same extent that such liability would be imposed in the .
absence of Government Code Section 895.2. To achieve the above - stated purpose; each party
indemnifies, defends and holds harmless the other party for any liability, losses, costs or
expenses that may be incurred by such other party solely by reason of Government Code Section
895.2.
5. DEFAULT
If either party fails to perform an obligation required by this Agreement within thirty (30)
calendar days of receiving written notice from the non - defaulting party, the party failing to
perform shall be in default hereunder. In the event of default, the non - defaulting party will have
all the rights and remedies available to it at law or in equity to enforce the provisions of this
Agreement, including without limitation the right to sue for damages for breach of contract. The
rights and remedies of the non- defaulting party enumerated in this section are cumulative and
shall not limit the non - defaulting party's rights under any other provision of this Agreement, or
otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the
Agreement or hereinafter enacted or established, that maybe available to the non- defaulting
party against the defaulting party. All notices of defaults shall clearly indicate a notice of default
under this Agreement.
6. MODIFICATION OF PROJECTS
The City and CDC may modify the list of Projects contained in Exhibit 1 and the schedule set
forth in Exhibit 2 from time to time to provide for the use of additional federal, state and local
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OAK #4846 - 6529 - 3832 v1
funds; to account for unexpected changes in available revenues, to modify or delete a particular
project, to modify the cost estimate for individual projects, to maintain consistency with the
City's General Plan or the Redevelopment Plan, or to take into consideration unforeseen
circumstances including circumstances that may come to light as a result of subsequent CEQA
review: Any such modifications shall be in writing and subject to approval by the City Council
and CDC Board.
7. TERMINATION OF AGREEMENT
This. Agreement and the obligations of the City and the CDC hereunder shall terminate upon the
earlier of completion of the Projects by the City and CDC's reimbursement of the City's costs
incurred in connection therewith or December 31, 2015.
8. MISCELLANEOUS
8.1 This Agreement may be executed in multiple originals, each of which is deemed
to be an original.
8.2 This Agreement integrates all of the terms and conditions mentioned herein or
incidental hereto, and supersedes all negotiations or previous agreements between the parties
with respect to the subject matter of this Agreement.
8.3 This Agreement is intended solely for the benefit of the City and the CDC.
Notwithstanding any reference in' this Agreement to persons or entities other than the City and
the CDC, there shall be no third party beneficiaries under this Agreement.
8.4. All waivers of the provisions of this Agreement and all amendments to this
Agreement must be in writing and signed by the authorized representatives of the parties.
8.5 If any term, provisions, covenant or condition of this Agreement is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions
shall continue in full force and effect.
8.6 This Agreement shall be binding on and shall inure to the benefit of all successors
and assigns of the parties, whether by agreement or operation of law.
[Signatures on following page]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth
above.
CITY OF ROHNERT PARK
By:
Gina Belforte
Mayor
Attest:
Judy Hauff
City Clerk.
Approved As To Form:
By
Michelle Marchetta Kenyon
City Attorney
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COMMUNITY DEVELOPMENT
COMMISSION OF
THE CITY OF ROHNERT PARK
By:
Gina Belforte
CDC Chair
Attest:
Judy Hauff
Secretary
Approved As To Form:
By:
Michelle Marchetta Kenyon
CDC General Counsel
Exhibit 1
List of Projects
Project # Project
1 Rohnert Park Community Center Improvements
Various improvements to Community Center Campus as recommended by the Community Center
Master Plan including redesign of the center plaza area, development of adjacent vacant lot and
other phased projects.
2 Recreational and Community Facilities Improvements
Improve recreational and community facilities serving the Project Area. Several projects have
been identified including an aquatics facility, water /spray parks and all- weather sports fields.
3 Commercial Building Improvement Program
Program will provide low interest loans for fagade improvements and commercial rehabilitation
of commercial properties within the Project Area.
4 Temporary Fire Station Facility
Modification of an existing City -owned building to utilize. it as a temporary fire station to service
portions of the Project Area. Facility will provide service until such time as funding is available for
a permanent facility.
5 Limited Community Sign Program
Based on Corridor Plan, develop functional signage for major streets and major attractions.
6 Neighborhood Beautification Program
Program provides assistance to residential property owners for improvements such as painting,
landscaping and other improvements.
7. Avram Development /Former City Hall Reuse
Redevelop former City Hall site and two contiguous parcels (6230 Commerce Blvd, 100 and 120
Avram Avenue) based on findings made in feasibility study for highest and best use.
8 Southwest Fire Station Reuse
Redevelop property with 17 very-low income housing units or an alternative use focused on
creating a public assistance site.
9 Rohnert Park Housing Rehabilitation Loan Program
Provide rehabilitation loans to low and very-low income households.
10 Assistance to Community Based Organizations_
Provide financial assistance for health and safety repairs to homes occupied by low- income
families with children, seniors and disabled individuals. Provide one -time rental assistance to
eligible. residents experiencing financial difficulty.
11 Southwest Boulevard Shopping Center Site
Housing Element identifies this site for redevelopment of mixed -use housing with 12 affordable
housing units; 4 very-low income and 8 low - income units.
12 Acquisition of Affordability Covenants
Purchase affordability covenants to restrict occupancy of Rohnert Park rental units for 55 years to
low and very-low income households.
13 Subsidies for Non - Profit Development
Provide subsidies to qualified non = profit housing developers to increase affordable housing
opportunities within Project Area and City.
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Exhibit 2
Payment Schedule
[The cost of each Project on the list includes all activities needed to carry out implementation of
the Project (e.g., acquisition ofproperty, planning and design, administrative costs, etc.]
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CDC
Project #
Project
Payments
Fiscal Years
1
Rohnert Park Community Center Improvements
2,463,824
2010 /11 thru 2012/13
Recreational and Community Facilities
2
Improvements
3,210,000
2010/11 thru 2012/13
3
Commercial Building Improvement Program
1,605,000
2010/11 thru 2013/14
4
Temporary Fire Station Facility
267,500
2011/12
5
Community Sign Program
377,571
2011/12 thru 2013/14
6
Neighborhood Beautification Program
30,000
2011/12 thru 2013/14
7
Avram Development /Former City Hall Reuse
4,731,540
2010/11 thru 2012/13
8
Southwest Fire Station Reuse
2,140,000
2011/12 thru 2012/13
Rohnert Park Housing Rehabilitation Loan
9
Program
535,000
2011/12 thru 2013/14
10
Assistance to Community Based Organizations
843,000
2011/12 thru 2013/14
11
Southwest Boulevard Shopping Center Site
1,840,400
2012/13 thru 2013/14
12
Acquisition of Affordability Covenants
1,161,610
2012/13 thru 2013/14
13
Subsidies for Non- Profit Development
3,300,000
2011/12 thru 2013/14
[The cost of each Project on the list includes all activities needed to carry out implementation of
the Project (e.g., acquisition ofproperty, planning and design, administrative costs, etc.]
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