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HomeMy WebLinkAbout97-052 CC ResolutionRESOL~ION NO. 9%52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMF_,CULA APPROVING AN OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE CITY OF TEMECULA AND AMSCAN INC., A NEW YORK CORPORATION THE CITY COUNCIL OF THE CITY OF TEMECULA DOES IqERERY DETERMINE, RESOLVE, AND ORDER AS FOLLOWS: Section 1. Findings. The City Council of the City of Temecula hereby makes the following findings: its existing decorations Amscan (Participan0 has proposed to construct a additional 110,000 square feet to building to be used for the manufacturing of wholesale paper party goods and B. The total cost of the building and equipment for the new facility should not be less than 3.5 million. C. Participant presently employs eighty (80) full-time employees at the Rancho California component of the Site. Participant proposes to employ thirty four (34) new full-time employees within (3) three years from the date of the initiation of business activities at the new Facility The average annual salary will be $20,800 per year beginning in 1995. D. Permit fees for the expansion are estimated at $100,000, including water and sewer. E. In order to induce Owner to locate the Facility in Temecula and expand by adding thirty (34) new employees, the following steps will be taken: 1. The Redevelopment Agency of the City of Temecula will pay Amscan ten thousand ($10,000) to assist in paying for permit fees. 2. Participant will agree not to relocate Facility from the City of Temecula for five (5) years from the date of the Agreement. 3. Participant will agree to expand business activities in the City of Temecula by adding a minimum of thirty four (34) new employees with average salaries of $20,800 per year within two (2) years of the date of this Agreement. F. Pursuant to § 33444.6 of the California Community Redevelopment Law, the Re~os\97-52 I Redevelopment Agency finds that the proposed financial assistance is necessary for the economic feasibility of the relocation of Amscan to the City of Temecula; and that the relocation assistance could not be obtained on economically feasible terms from the private market and will assist in eliminating flight in the Project Area G. This project is exempt from the provisions of the California Environmental Quality Act on the grounds that the impacts of an Agency action such as this were part of the EIR for Plan approval pursuant to CEQA buildings § 15180. The Council finds that no facts exist to justify a subsequent or supplemental EIR under CEQA Guidelines §15162 and 15163. Section 2. Based upon the above findings, the City Council of the City of Temecula hereby consents to the approval of the Owner participation Agreement by and between the Redevelopment Agency of the City of Temecula, the City of Temecula and Amscan, Inc. a California Corporation in substantially the form attached hereto as Exhibit A. PASSED, APPROVEB AND ADOPTED, by the City Council of the City of Temecula at a regular meeting on the 27th day of May, 1997. Patricia H. Birdsall, Mayor ATTEST: Ju CMC/AAE City C~rk Resos\97-52 2 STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) CITY OF TEMECULA) $$ I, June S. Greek, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 97-52 was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 27th day of May, 1997, by the following vote: AYES: 5 AGENCYMEMBERS: Ford, Lindemans, Roberts, Stone, Birdsall NOES: 0 AGENCYMEMBERS: None ABSENT: 0 AGENCYMEMBERS: None e S. Greek, CMC/AAE City Clerk R¢~os\97-52 3 EXHIBIT A OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THF. R~DEV~JOPMENT AGENCY OF THF~ CITY OF TEMECULA AND AMSCAN, INC. THI~ OWNER PARTICIPATION AGI~~ (the 'Agreement') is entered into and effective as of , 1997 (the 'Effective Date"), by and between the I~DEVELOP1V~NT AGENCY OF THE CITY OF TEMECULA, a public body corporate and politic (the "Agency") and AMSCAN INC., a California Corporation (the "Participant"). In consideration of the mutual covenants and agreements contained herein, the Agency and the Participant hereby agree as follows: Section 1. Recitals The parties enter into this Agreement on the basis of the following facts, understandings and intentions: a. The purpose of this Agreement is to effectuate the Redevelopment Plan (the "Plan") for the Temecula Redevelopment Project Area 1988-1 (the "Project Area") by providing for the elimination of blight in the Project Area and for economic revitalization within the Project Area through the stimulation of new and expanded business activity and the creation of employment opportunities. b. Participant is prepared to expand its business at the Site which will enhance the goals of the Agency in eliminating blight by creating additional employment opportunities in the Project Area, prevent the under utilization of industrial buildings in the Project Area by allowing for expansion of business operations, and contribute to the development of manufacturing and commercial businesses in the Project Area. The development of the Site is consistent with the Agency's Implementation Plan for the Project Area. c. Participant will construct on the Rancho California component of the Site an additional 1 i0,000 square feet (the "Facility"), to be used to produce and distribute wholesale paper party goods and decorations. Participant presenfiy employs eighty (80) full-time employees at the Rancho California component of the Site. Participant proposes to employ thirty four (34) new full-time employees within three (3) years from the date of the initiation of business activities at the new Facility. d. This Agreement is entered into for the purpose of inducing the Participant to relocate and expand its business within the City of Tcmecula and to remain in business at the Site and not for speculation in land holding. LAX2:130878.2 September 5, 1995 e. This 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 § 53511. Section 2. T!~e Redevelollment Plan The Redevelopment Plan for the Project Area was approved by Ordinance No. 658 of the Board of Supervisors of Riverside County on luly 12, 1988, prior to the incorporation of the City of Temeod:a. Pursuant to City Ordinance No. 91-11, which became effective May 9, 1991, and City Ordinance No. 91-15, which became effective April 9, 1991, the City approved the Plan. Said Ordinances had the effect of adopting the Plan and transferring jurisdiction over said Plan to the Agency, as of July 1, 1991. Pursuant to Ordinance No. 93-04 and 94-03, Ordinance No. 91-11 was codified at § 8.04.010 of the Temecula Municipal Code. The Plan was amended by Ordinance No. 94-33, adopted on December 20, 1994. Section 3. The Site The Site is located at 28401 Rancho California Road, City of Temecula which is within the Project Area. Section 4. Parties to the A~eement a. The Agency is a public body, corporate and politic, exercising governmental functions and powers and is organized and existing under the Community Redevelopment law of the State of California (§ 33000, et rtgtl., Health and Safety Code; the "Act'). The principal office and mailing address of the Agency is 43200 Business Park Drive, Temecula, California 92590. All references to approvals by the Agency shall mean the Agency Board, unless another Agency Officer is slaecifically designated in this Agreement. b. The Participant is a New York corporation duly organized and existing under the laws of the State of New York. The principal office and mailing address of the Participant is: Amscan Inc., 2 Macy Road, Harrison, NY, 10528. Participant is the record owner of the Site and therefore qualifies as an 'Owner Participant' within the meaning of the Redevelopment Plan and the California Community Redevelopment Law (Health & Safety Code § 33000, et Sial.). Section 5. A~encj and Pnrticil~nnt Oh!~.ptiong a. In order to reduce Participant to expand its operations on the Site and to remain in business at the Facility, the Agency agrees to reimburse the Participant a total of ten thousand dollars ($10,000) for the purposes of reimbursing a portion of the permit fees for the expansion. LAX2:130878.2 September 5, 1995 -2- O) Participant shall operate the Facility to produce and distribute wholesale paper party goods for a minimum of five (5) years from the date of the initiation of business activities at the Facility; and Paxticipant shall continuously employ not less than eighty (80) full- time employees and shall add not less than thirty four (34) new employees to the business within the City of Temecula within three (3) years from the date of initiation of business activities at the Facility. The parties hereto agree that the "date of im--Uation of business activities at the Facility' as used in this Agreement is January, 1997. b. Participant warrants and represents that any information it has supplied to the Agency pertaining to the relocation of Participant is true, correct and complete in all m~t_~ial respects. Participant represents that any projection, including but not limited to information concerning the projected job creation resulting from the Facility contained at Section 1, is true, correct and complete in all material respects accord~g to the best available information. c. In the event the Participant fails to comply with the conditions set forth in this section, the Agency may demand that Participant repay the $10,000 reimbursement payment to the Agency within thirty (30) days of the Agency's demand for such payment, subject to the default provisions of this Agreement. d. With respect to the Agency's assistance for the Public Improvements as described in the Agreement, the Agency hereby finds determines and declares that: (1) Providing for such Public Improvements is necessary to effectuate the purposes of the Redevelopment Plan for the reasons set forth in Section 1.b. and for the reasons set forth in the Plan and accompanying reports, which specifically contemplate the construction of such Public Improvements, as well as the findings made by the Board of Supervisors in adopting the Redevelopment Plan and subsequently validated in a court challenge. (2) The Public Improvements are of direct benefit to the Project Area and the immediate area in which the Project is located for the reasons set forth in Section 1.b. and for the reasons set forth in the Plan and accompanying reports, which specifically contemplate the construction of such Public Improvements, as well as the f'mdings made by the Board of Supervisors in adopting the Redevelopment Plan and subsequently validated in a court challenge. LAX2:130078.2 September 5, 1995 -3- (3) No other reasonable means of financing the Public Improvements are available to the community to finance the Public Improvements based upon the reasons set forth in the Redevelopment Plan and accompanying reports, which specifically contemplate the construction of such Public Improvements, as well as the findings made by the Board of Supervisors in adoptrig the Redevelopment Plan and subsequently validated in a court challenge. (4) The payment of funds for the Public Improvements will assist in the elimination of one or more of the blighting conditions inside the Project Area and is consistent with the Implementation Plan adopted for the Project Area for the reasons set forth in Section 1.b. and for the reasons set forth in the Plan and accompanying reports, which specifically contemphte the construction of such Public Improvements, as well as the findings made by the Board of Supervisors in adopting the Redevelopment Plan and subsequently validated in a court challenge. Section 6. Anti-Di~rimination Ohli~tion~ The Participant agrees by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall the Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site. Section 7. Notices, Bemnnd% and Comm. nivntions Among the Parties Written notices, demands and communications between the Agency and the Participant, shall be sufficiently given by personal service or dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of the Agency or the Participant described in Section 4. Such written notices, demands and communications may be sent in the same manner to such other addresses as either party may from time to time designate by mail as provided in this Section. Notwithstanding anything to the contrary contained herein, notice personally served shall be deemed to have been received as of the date of such service. LAX2:130878.2 September 5, 1995 -4- Section 8. Enforced Del~ty; Extengion of Tim~ of Performance a. In addition to specific provisions of this Agreement, performance by any party hereunder shall not be deemed to be in default, and all performance and other dates ~ed in this Agreement shall be extended, where the party seeking the extension has ac~ diligently and delays or defaults are due to events beyond the reasonable control of the party such as but not limited to: war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes, intergalactic invasion, lack of transportation, litigation, unusually severe weather, or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. b. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. writing by Participant. Times of performance under this Agreement may also be extended in the mutual agreement of the Executive Director of the Agency and the Section 9. · In.e~leetion of Rookn and Record~ v:ach party has the fight to inspect, at reasonable times, the books and records of the other parties pertaining to the Site as pertinent to the purposes of the Agreement. Section 10. Indemnification The Participant shall defend, indemnify, assume all responsibility for and hold the Agency, and its respective elected and appointed officers and employees, harmless from all costs (including attorney's fees and costs), claims, demands or liabilities judgments for injury or damage to property and injuries to persons, including death, which may be caused by any of the Participant's activities under this Agreement and on the Site, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by the Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. This indemnity includes, but is not limited to, any repair, cleanup, remediation, detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous wastes including petroleum and its fractions as deftned in the Comprehensive Environmental Response, Compensation and Liability Act [*CERCLA'; 42 U.S.C. Section 9601, et r~I.], the Resource Conservation and Recovery Act ['RCRA'; 42 U.S.C. Section 6901 et gal.] and California Health and Safety Code Section Code Section 25280 LAX2:130878.2 September 5, 1995 -5- et if, O,. at any place where Participant owns or has control of real property pursuant to any of Participant's activities under this Agreement. The foregoing indemnity is intended to operate as an agreement pursuant to Section 107 (e) of CERCLA and California Health and Safety Code Section 25364 to assure, protect, hold harmless and indemnify Agency from liability. Section 11. Defa.lt~ - General a. The failure or delay by either ~ to perform any term or provision of this Agreement constitutes a default under this Agreement. A party claiming a default (claiman0 shall give written notice of default to the other party, specifying the default complained of. The defaulting party shall have thirty (30) days within which to cure the default. b. In the event the Participant fails to cure the default, the Agency may terminate this Agreement upon two (2) business days notice to Participant. In the event the Agreement is terminated pursuant to this Section, the Participant shall repay to the Agency all funds paid by the Agency to Participant pursuant to this Agreement within thirty (30) days of the demand for such funds. Section 12. Lefnl Aetiong a. In the event a default is not cured as provided in this Agreement, the non- defaulting party may exercise all rights and remedies available to it by law. b. In the event such litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as determined by the Court's judgment, shall be entitled to reasonable attorney fees and litigation expenses for the relief granted. c. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. d. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. e. Any failures or delays by any party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive any such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. LAX2:130878.2 September 5, 1995 Section 13. Conxplianee With All l~!ys and Ret. dation.~ The Participant shall carry out the provisions of this Agreement in conformity with all applicable local, state and federal laws and regulations, including, without limitation, such laws and regulations pertaining to the payment of prevailing wages which might be applicable to its obligations. Section 14. Entire Agreemento Waivers ,e, General a. This Agreement is executed in duplicate originals, each of which is deemed to be an original. This Agreement includes pages 1 through 7, which constitutes the entire understanding and agreement of the parties. b. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. c. All amendments hereto must be in writing executed by the appropriate authorities of the Agency and the Participant. IN WITNESS WFnvRF~F, the parties hereto have executed this Agreement as of the Effective Date. I~F~DEVF~OPMENT AGENCY OF THE CITY OF TF. aMF_~ULA By: Steve Ford Chairperson LAX2:130878.2 September 5, 1995 -7- ATTEST: JUNE S. GReeK Agency Secretary APPROVED AS TO FORM: PETER M. THORSON General Counsel AMSCAN, INC. a New York Corporation President LAX2:130870.2 September 5, 1995 -8-