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HomeMy WebLinkAboutReso RDA 21-1981 RESOLUTION NO. RESOLUTION AUTHORIZING THE EXECUTION OF A REIMBURSEMENT AGREEMENT BY AND BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO RESOLVED, by the Members of the Redevelopment Agency of the City of South San Francisco, that WHEREAS, in furtherance of the objectives of the Community Redevelopment Law, the Agency has undertaken a program for the clearance and reconstruction or rehabilitation of slum and blighted areas in the City, and in this connection is engaged in carrying out a redevelopment project known as The Gateway Redevelopment Project (hereinafter referred to as "Project"), in an area (hereinafter referred to as "Project Area"), located in the City pursuant to the GATEWAY REDEVELOPMENT PLAN adopted by City Ordinance NO. 867-81 on June 17, 1981; WHEREAS, in furtherance of the implementation of the Project the Agency has undertaken various redevelopment activities and contemplates further redevelopment activities; and WHEREAS, the Community Redevelopment Law of the State of California provides, inter alia, that the Agency may accept financial assistance from any public and private source for the Agency's activities, powers and duties and may expend any funds so received to accomplish the aforesaid; and WHEREAS, Article XVI, Section 16 of the Constitution of the State of California and Article 6, Chapter 6 of the Community Redevelopment Law, Division 24 of the California Health and Safety Code (commencing with Section 33670) provides a method of financing redevelopment activities through the utilization by the Agency of increased tax revenues, if any, for repayment of loans, advances and indebtedness referred to as "tax increment financing"; and WHEREAS, the provisions of Article XVI, Section 16 of the Constitution of the State of California and Article 6, Chapter 6 of the Community Redevelopment Law, Division 24 of the California Health and Safety Code are incorporated in the aforesaid redevelopment plan; and WHEREAS, the City is agreeable to provide certain financial assistance to the Agency with respect to the Project activities within the aforesaid Gateway Redevelopment Project, as initially adopted or thereafter amended, by making an advance of certain monies to be utilized for the funding of Agency activities in the implementation of the aforesaid Gateway Redevelopment Project, as initially adopted or there- after amended, which would be repaid once tax increment revenues are received by the Agency. NOW, THEREFORE, IT IS FOUND, DETERMINED AND ORDERED as follows: 1. That the Executive Director is authorized to enter into a Reimbursement Agreement in the general form attached hereto with the City of South San Francisco to provide for an advance of funds to be utilized for the funding of Agency redevelopment activities for the Gateway Redevelopment Project to be repaid from tax increment revenues as received by the Agency. ADOPTED, SIGNED AND APPROVED this 2d day of September, 1981. Chairman,Redevelopment Agency City of South San Francisco ATTEST: -2- REIMBURSEMENT AGREEMENT AGREE~.~NT, made on or as of' the 2d day of September ,19.8], by and between THE CITY OF SOUTH SAN FRANCISCO, a Municipal corporation (City) and THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, a public body, corporate and politic, (which, together with any successor public body or officer hereafter designated by or pursuant to law, is hereinafter referred to as "Agency"), established pursuant to Part I (commencing with Section 33000) of Division 24 of the Health and Safety Code of the State of California (hereinafter called "Community Redevelopment Law"), WITNESSETH: WHEREAS, in furtherance of the objectives of the Community RedeVelopment Law, the Agency has undertaken a program for the clearance and reconstructiOn or rehabilitation of slum and blighted areas in the City, and in this connection is engaged in carrying out a redevelopment project known as The Gateway Redevelopment Project (hereinafter referred to as "Project"), in an area (hereinafter refered to as "Pro~ect Area"),'located in the City pursuant to the GATEWAY REDEVELOPMENT PIJ~N adopted by City Ordinance No. 867-81 on.June 17, 1981; and WHEREAS, th e Agency has no independent source of funding other than by and in accordance with the statutory provisions of the Community Redevelopment Law which provides, inter alia, that the Agency may accept financial assistance from any public and private source for the Agency's activities, powers and duties and may expend any funds so received to accomplish the aforesaid; and WHEREAS, Article XVI, Section 16 of the Constitution. of the State of California and Article 6, Chapter 6 of the Community Redevelopment Law, Division 24 of the California Health .and Safety Code (commencing with Section 33670) provides a method of financing redevelopment activities through the utilization by the Agency of increased tax revenues, if any, for repayment of loans, advances and indebtedness referred to as "tax increment financing"~ and WHEREAS, the provisions of Article XVI, Section 16 of the Constitution~of the State of California and Article 6, Chapter 6 of the Community Redevelopment Law, Division 24 of the California Health and Safety Code are incorporated in the aforesaid redevelopment plan; and WHEREAS, the City is agreeable to provide certain financial assistance to the Agency with respect to the Project activities within the aforesaid Gateway Redevelopment Project~ as adopted or thereafter amended, by making an advance of certain mon~es, to be utilized for the funding of Agency activities in the implementation of the aforesaid Gateway Redevelopment Project, as adopted or thereafter amended, which would be repaid only if tax iScrement revenues are received by the Agency. NOW THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. City will advance to Agency certain sums of monies not to exceed the sum of $125,000 from time to time on an annual basis with this Agreement to be renewed each year. 2. The Agency hereby agrees to repay to the City after obligations to satisfy any tax allocation bonds which from time to time may be outstanding, the sums advanced pursuant to this Agreement together with interest thereon from tax increment revenues if and as said revenues become available from property taxes which are to be collected and allocated in accordance with the pro- visions of the aforesaid redevelopment plan. Said payments -2- shall be made each year out of tax increment revenues received by the Agency and shall Continue until the total of all indebtedness under this Agreement has been paid in full. 3. The parties further agree that any other authorized expenditures falling under the purview of the aforesaid Article XVI, Section 16 of the Constitution of the State of California and Article 6, Chapter 6 of the Community Redevelopment Law, Division 24 of the California Health and Safety Code' shall be paid out of the same tax increment revenues. 4. The repayment obligations, if any, of the Agency pursuant to this Agreement to the City shall commence within one year after the receipt of tax increment revenues, if any, received by the Agency in accordance with the Health and Safety Code and said repayment shall be in amounts as agreed to by and between the parties taking into consideration any bond repayment obligation of the Agency as set forth above. IN WITNESS WHEREOF, The City and the Agency have executed this Agreement as of the date first above written. CITY OF SOUTH SAN FRANCISCO, a municipal corporation ATTEST~ Mayor '~ ~· CITY OF SOUTH SAN FRANCISCO a public agency ~ ~\~ ATTEST: By:~~__~~~ 'ChAirman Secretary ~De~ Rogers, City Attorney Herman H. Fitzge~-A~ncy Counsel --3--