04-0615_COMMUNITY REDEVELOPMENT AGENCY, SJC_Cooperation and Repayment Agr0
COOPERATION AND REPAYMENT AGREEMENT
THIS AGREEMENT is entered into as of the 15"' day of June, 2004 by and
between the CITY OF SAN JUAN CAPISTRANO, a municipal corporation (herein
the "City") and the SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT
AGENCY, a public body (herein the "Agency").
WITNESSETH:
WHEREAS, the City Council of the City, acting pursuant to the provisions of
the Community Redevelopment Law (Health & Safety Code Section 33000, et
seq.) has activated the Agency and has declared itself to constitute the Agency, by
Ordinance No. 488 adopted on July 12, 1983.
WHEREAS, pursuant to the Community Redevelopment Law, the Agency is
performing a public function of the City and may have access to services and
facilities of the City; and
WHEREAS, Section 33600 et. seq. of the California Community
Redevelopment Law authorizes the Agency to borrow money or accept financial or
other assistance from the City; and
WHEREAS, the City will appropriate money in the City's Fiscal Year budget
in an amount deemed appropriate each year by the Administrative Services
Director to the Agency for the purpose of carrying out redevelopment activities;
and
WHEREAS, funds so appropriated may be used to find time, expenses,
overhead costs, consultants contract costs, use of City facilities and staff and other
expenses incurred on behalf of redevelopment efforts; and
WHEREAS, funds so appropriated may be used in connection with the
preparation and implementation of redevelopment plans pursuant to the
Community Redevelopment Law; which costs include, but shall not be limited to:
the costs of surveys, planning, studies, and environmental assessments for the
adoption of a redevelopment plan; the costs of acquisition of properties acquired,
building and site preparation; public improvements; relocation assistance to
displaced residential and nonresidential occupants as required by law; financial
assistance provided to developers; and, other costs incurred by the Agency in
increasing, improving and preserving the City's supply of low and moderate
income housing availability at affordable housing costs both inside and outside
redevelopment project areas, in accordance with Health and Safety Code Section
33334.2 et seq.
WHEREAS, the City will loan the funds to the Agency in the anticipation that
such costs will be repaid by the Agency out of tax increment funds generated
within the redevelopment project area and possible amended redevelopment
project areas.
NOW, THEREFORE, Agency and City for and in consideration of the mutual
promises and agreements herein contained do agree as follows:
1. PURPOSE
The purpose of this Agreement is to provide for the repayment to the City
by the Agency in an amount deemed appropriate by the Administrative Services
Director. Loan proceeds are to be used in connection with the preparation and
implementation of redevelopment plans, administrative costs and expenses,
including consultant costs, incurred by the Agency, which are incurred on behalf of
the redevelopment efforts in the Central Redevelopment Project Area.
2. TERM OF AGREEMENT
This Agreement shall be in full force and effect for a period beginning as of
the date first written and continuing until all loans hereunder are repaid and no
further City loans are required.
3. REPAYMENT TERMS
The Agency agrees to repay the City in full together with accrued interest
calculated at a variable rate based upon the annual average rate of return earned
on the City's investment portfolio as determined by the City's Treasurer,
compounded annually. The City shall calculate interest annually for the Agency.
The loan together with accrued interest shall be repaid from future tax increment
funds generated within the redevelopment project area starting on July 1, 2023 or
earlier, if future tax increment is deemed available by the Finance Officer of the
Agency. It is understood that in the event no project area is established or
amended or tax increment revenues fail to yield enough revenue to repay this
obligation, the Agency is under no obligation to the City to make such repayment
from any further funds or resources it may acquire.
Record Keeping
As accurately as possible the Agency will track charges against this loan by
redevelopment project area. In the event one or more project areas are amended,
the costs incurred for the benefit of that project area(s) will become a debt of that
project area(s).
In the event that the City authorizes by appropriate resolution any future
loans(s), such loan(s) shall become a debt of the Agency and shall be reflected as
Attachment 1 (et seq.), which shall be attached to the Agreement, made a part
hereof and subject to the terms set forth herein.
4. REPAYMENT SUBORDINATION
It is agreed by the parties hereto that the repayment to the City pursuant to
this Agreement is hereby subordinated to any and all payments necessary to
satisfy the Agency's obligations in connection with any existing or future bonded
indebtedness or obligation which may be incurred by the Agency for the benefit of
the redevelopment plans, or to the extent necessary for any bonded indebtedness
for which Agency has pledged as a security or source of repayment tax increment
generated within the project areas.
5. VALIDITY OF AGREEMENT
If any provisions of this Agreement, or the application hereof to any person,
party, transaction, or circumstance, are held invalid, the remainder of this
Agreement, or the application of such provision to the other persons, parties,
transactions or circumstances, shall not be affected thereby.
IN WITNESS THEREOF, the parties have executed this agreement as of
the date first above written.
ATTEST:
A
ATTEST:
M rga t R. Monahan
S6 re ry
APPROVED AS TO FORM:
John S aw
City Att rney
II;?.ION
COMMUNITY DEVELOPMENT AGENCY
1- 7
Diane Bathgate
Chairperson