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HomeMy WebLinkAbout06-09 RDA Resolution I I I RESOLUTION NO. RDA 06-09 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING THE FINANCING OF CERTAIN PUBLIC IMPROVEMENTS IN THE OLD TOWN AREA BY THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, MAKING FINDINGS THEREON AND APPROVING A COOPERATIVE AGREEMENT WITH THE CITY OF TEMECULA TO IMPLEMENT THE PUBLIC IMPROVEMENTS THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Temecula ("Agency") is authorized by the Community Redevelopment Law, specifically Health & Safety Code Section 33445, and Section 355 of the Temecula Redevelopment Plan for Redevelopment Project No.1 1988 ("Plan") to construct public improvements of benefit to the Project Area. A. The City of Temecula ("City") and the Agency proposed to design and construct the following public improvements in the Old Town Area of the City: (1) Old Town Parking Structure consisting of a multi-level parking structure that will accommodate a maximum of 480 vehicles and approximately 12,000 square feet of office space on the southerly end of an approximately 6.75 acre parcel at Mercedes Street and Main Street; (2) a Civic Plaza on not more than one acre at Mercedes Street and Main Street; and (3) street improvements on both sides of approximately 1,800 feet of Mercedes Street including intersections, undergrounding of utilities, and streetscape (the "Public Improvements)." As required by Health and Safety Code Section 33445, the Public Improvements do not include any improvements for the construction or rehabilitation of a building which is or will be used as a city hall or county administration building. B. The preliminary plans and scope of the Public Improvements were approved by the City Council on June 27, 2006. At that time, the Council also approved and certified a Mitigated Negative Declaration for the Public Improvements, which Negative Declaration was posted with the County of Riverside on June 28, 2006 as required by law. C. Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et sea.), and in particular Section 33445 thereof and Section 355 of the Plan, the Agency proposes to pay for the cost of the construction of the Public Improvements. R:/RDA Resas 2006/RDA 06-09 I I I D. The construction of the Public Improvements is authorized by the Plan, including Sections 200, 304, 305, and 344 of the Plan and Appendix C of the Plan. E. The estimated costs to construct the Public Improvements are $24,665,301.00. Of this amount, approximately $2,000,000.00 will be provided for the undergrounding of utilities by Southern California Edison Rule 20 funds. Additionally, approximately $950,000.00 of Development Impact Fees collected pursuant to T emecula Municipal Code Chapter 15.06 for police facilities will be used for a portion of the Old Town Parking Structure. The remaining costs of the Public Improvements will be paid for with the proceeds of a bond issue by the Agency with tax increment funds providing the debt service. The estimated tax increment required for debt service on the proposed bond issue is approximately $54,311 ,415.00. F. On September 26, 2006, the City Council and Agency Board held a duly noticed joint public hearing on the proposed financing of the Public Improvements by the Agency pursuant to the requirements of Health and Safety Code Sections 33445 and 33679 On the first day of the publication of the Notice of Public Hearing as required by Health and Safety Code Section 33679, the City and Agency made available copies of the summary report to the Council and Agency in accordance with Health and Safety Code Section 33679, the resolutions of the City Council and Agency Board, and a copy of the Cooperative Agreement for public review. At said hearing, all persons who desired to speak to the proposed financing and the findings set forth in this Resolution were given the opportunity to do so. Following the public hearing the Council carefully considered the written reports presented by the Staff and the comments of the public prior to adopting this Resolution. G. The Public Improvements are of benefit to the Project Area. Construction and installation of the Public Improvements will benefit the Project Area in that the Public Improvements would: (1) Provide for publiC service infrastructure, specifically, as identified in the proceedings and the Plan; (2) promote the preservation and enhancement of the Old Town Area in accordance with the goals and objectives of the Plan and the Old Town Specific Plan; (3) promote the expansion of the Project Area's commercial base and local employment opportunities within the Old Town Area; (4) assist in the continued development of the Old Town Area as a tourist destination and enhancement of the tourist industry as a major force within the Community; (5) encourage and provide for development of vacant properties in accordance with the Plan and the Old Town Specific Plan; (6) assist in storm water flow protection for businesses in the Old Town Area; (7) provide open space and parks for residents of the Old Town Area and the community; and (8) provide for a substantial increase in the number of public parking spaces available in Old Town particularly for its peak hours on evenings and weekends. H. Construction and installation of the Public Improvements will assist in the elimination of blight in the Project Area as identified in the proceedings establishing the Project Area and the Implementation Plan for the Project Area adopted in December 2004 pursuant to Health and Safety Code Section 33490 in that the Public Improvements would: (1) Provide for public service infrastructure, specifically, as identified in the proceedings and the Plan; (2) promote the preservation and enhancement of the Old Town Area in accordance with the goals and objectives of the Plan and the Old Town Specific Plan; (3) promote the expansion of the Project Area's R:/RDA Resos 2006lRDA 06-09 2 I I I commercial base and local employment opportunities within the Old Town Area; (4) assist in the continued development of the Old Town Area as a tourist destination and enhancement of the tourist industry as a major force within the Community; (5) encourage and provide for development of vacant properties in accordance with the Plan and the Old Town Specific Plan; (6) assist in storm water flow protection for businesses in the Old Town Area; (7) provide open space and parks for residents of the Old Town Area and the community; and (8) provide for a substantial increase in the number of public parking spaces available in Old Town particularly for its peak hours on evenings and weekends. I. Pursuant to Resolution No. 06-85, the City Council of the City of Temecula has found that no other reasonable means of financing the Public Improvements are available to the City. The prudent budget constraints of the City prevent the City from financing the proposed Public Improvements by any means. Except for the Development Impact Fee funds paying for a portion of the Old Town Parking Structure, and the Southern California Edison Rule 20 funds paying for the undergrounding of utilities, no moneys of the City are available to pay for the cost of the improvements. The City has allocated undesignated funds in its reserves for other necessary public improvements, including high priority traffic and public improvement projects which cannot be funded with Agency funds or other special funds. Traditional methods of financing the Public Improvements, such as the issuance of general obligation bonds, are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing or special tax financing of the Public Improvements could overburden benefiting properties with assessments or special taxes and, in addition, special taxes and assessments require a two-thirds vote. J. The Public Improvements are consistent with the Agency's Implementation Plan adopted in December 2004 pursuant to Health and Safety Code Section 33490 for the reasons cited in this Section. K. The Cooperative Agreement pertains to and affects the ability of the Agency to finance its statutory obligations and for all parties to finance and carry out the purposes of this Agreement and the goals of the Plan and is intended to be a contract within the meaning of Government Code Section 53511. L. All legal prerequisites to the adoption of this Resolution have occurred. Section 2. Approval of Agency Financing of Public Improvements. The Board of Directors hereby approves payment by the Agency for the cost of the construction of the Public Improvements as described in this Resolution. In accordance with Health and Safety Code Section 33445, no portion of the Agency funds provided for the construction of the Public Improvements shall be used for the construction or rehabilitation of a building which is or will be used as a city hall or county administration building. R:/RDA Resos 2006/RDA 06-09 3 I I I Section 3. Approval of Cooperative Agreement. The Board of Directors hereby approves the Cooperative Agreement between the City of Temecula and the Redevelopment Agency of the City of Temecula for the Construction of the Old Town Public Improvements" dated as of September 26, 2006 and authorizes the Chairman of the Agency to execute said Agreement in substantially the form attached hereto as Exhibit A. Section 4. Certification. The Secretary of the Agency shall certify to the Adoption of this Resolution. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Redevelopment Agency of the City of T emecula this 26th day of September, 2006. ATTEST: R:/RDA Resos 2006/RDA 06-09 ~ ~~~~ Michael S. Naggar,Chairperson 4 I I I STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk/Board Secretary of the Temecula Redevelopment Agency of the City of Temecula, do hereby certify that the foregoing Resolution No. RDA 06-09 was duly and regularly adopted by the Board of Directors of the Temecula Redevelopment Agency of the City of Temecula at a meeting thereof held on the 26th day of September, 2006, by the following vote: AYES: 5 BOARD MEMBERS: NOES: 0 BOARD MEMBERS: BOARD MEMBERS: BOARD MEMBERS: ABSENT: 0 ABSTAIN: 0 R:/RDA Resos 2006lRDA 06-09 Comerchero, Edwards, Roberts, Washington, Naggar None None None . Jones, MMC oard Secretary 5 I I I COOPERATIVE AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA FOR THE OLD TOWN PUBLIC IMPROVEMENTS THIS COOPERATIVE AGREEMENT made and effective as of September 26, 2006, by and between the City of Temecula, a municipal corporation ("City") and the Redevelopment Agency of the City of Temecula, a public body, corporate and politic ("Agency"). In consideration of the mutual covenants and obligations set forth herein, the parties agree as follows: 1. Recitals. This Agreement is made with respect to the following facts and purposes, which each party finds and determines to be true and correct: A. The Community Redevelopment Law at Health and Safety Code Section 33220 authorizes and encourages cities and redevelopment agencies to aid each other and to cooperate in the planning, undertaking, construction, and operations of redevelopment projects. Sections 33220 (b) and (c) specifically authorize such cooperative agreements between a city and a redevelopment agency to assist each other in the construction of parking lots on the south side of Old Town. B. The City ofTemecula ("City") and the Agency proposed to design and construct the following public improvements in the Old Town Area of the City: (1) Old Town Parking Structure consisting of a multi-level parking structure that will accommodate a maximum of 480 vehicles and approximately 12,000 square feet of office space on the southerly end of an approximately 6.75 acre parcel at Mercedes Street and Main Street; (2) a Civic Plaza on not more than one acre at Mercedes Street and Main Street; and (3) street improvements on both sides of approximately 1,800 feet of Mercedes Street including intersections, undergrounding of utilities, and streetscape (the "Public Improvements)." As required by Health and Safety Code Section 33445, the Public Improvements do not include any improvements for the construction or rehabilitation of a building which is or will be used as a city hall or county administration building. C. Through the adoption of City Council Resolution No. 06-_ and Agency Resolution No. 06-_ the City and Agency approved the Agency's funding of the Public Improvements pursuant to Health and Safety Code Section 33445 each finding that construction of the Public Improvements will benefit the Project Area and that no other reasonable means of financing the Public Improvements is available to the City. Said resolutions are incorporated herein by this reference as though set forth in full. 2. Cooperation. The City and the Agency agree to cooperate and share responsibility for the design and construction of the Public Improvements in accordance with the terms of this Agreement. I I I 3. City Responsibilities. The City shall undertake the following responsibilities with respect to the Public Improvements: a. prepare the necessary engineering and environmental studies for the Public Improvements; b. design the Public Improvements, except for such design work as has been already completed by the Agency; c. acquire necessary rights-of-way for the Public Improvements; d. prepare necessary plans, specifications and bid documents for the Public Improvements; e. obtain all necessary permits and entitlements from the applicable public agencies; f. solicit bids and award construction contracts for the Public Improvements; and, g. administer the construction contracts for the Public Improvements. 4. Agency Payment of Costs and Conveyance of Property. The Agency shall pay for all costs of the Public Improvements except for such costs as may be paid in part by City Development Impact Fees or Southern California Edison Rule 20A funds. In accordance with Health and Safety Code Section 33445, no portion of the Agency funds provided for the construction of the Public Improvements shall be used for the construction or rehabilitation of a building which is or will be used as a city hall or county administration building. A. Agency shall convey to the City such property it owns which may be required for the Public Improvments. 5. Title to Public Improvements Vests in City. Upon completion of the Public Improvements, title to the Public Improvements shall vest, and remain in the City of Temecula. 6. Allocation of Costs. The City Manager, upon the recommendation of the Director of Finance, shall determine the allocation of costs between the City and Agency pursuant to this Agreement and his or her determination shall be final. 2 I I I IN WITNESS WHEREOF the parties hereto have executed this Agreement as ofthe date first written above. CITY OF TEMECULA, a California municipal corporation Ron Roberts Mayor ATTEST: Susan W. Jones, MMC City Clerk APPROVED AS TO FORM: Peter M. Thorson City Attorney 3 I REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, a public body, corporate and politic Chuck Washington Chairman ATTEST: Susan W. Jones, MMC Secretary/City Clerk APPROVED AS TO FORM: I Peter M. Thorson Agency Attorney I 4