RES-10550 Cooperation Agreement ApprovalRESOLUTION NO. 10550
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING A COOPERATION
AGREEMENT WITH THE ORANGE
REDEVELOPMENT AGENCY AND MAKING
CERTAIN DETERMINATIONS AND FINDINGS
RELATED THERETO.
WHEREAS, the Orange Redevelopment Agency, a public body, corporate and politic
the "Agency "), has been duly created, established and authorized to transact business and
exercise its powers under and pursuant to the Community Redevelopment Law (commencing
with Section 33000 of the Health and Safety Code of the State of California and herein referred
to as the "Redevelopment Law "); and
WHEREAS, the City of Orange (the "City ") is a municipal corporation, which
exercises governmental functions and powers and is organized and existing under the laws of
the State of California; and
WHEREAS, pursuant to the Redevelopment Law, the Amended and Restated
Redevelopment Plan (the "Redevelopment Plan ") for the Orange Merged and Amended
Redevelopment Project Area (the "Redevelopment Project Area ") was duly approved by the
City Council on November 27, 2001 by Ordinance No. 21 -01, which results in the allocation
of taxes from the Redevelopment Project Area to the Agency for purposes of redevelopment;
and
WHEREAS, pursuant to the Redevelopment Law, the Agency is engaged in
activities necessary to carry out and implement the Redevelopment Plan for the
Redevelopment Project Area; and
WHEREAS, 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
Redevelopment Project Area; and to increase, improve and preserve the community's supply
of low- and moderate - income housing, some of which may be located or implemented
outside the Redevelopment Project Area; and to take all other necessary actions to implement
the Redevelopment Plan for the Redevelopment Project Area and to expend tax increment
revenue allocated from the Redevelopment Project Area to accomplish the goals and
objectives of the Redevelopment Plan for the Redevelopment Project Area; and
WHEREAS, the Agency has adopted its Five -Year Implementation Plan for the
Redevelopment Project Area, as amended from time to time (the "Implementation Plan "),
with established goals to support affordable housing, economic development, community
revitalization, commercial revitalization, and institutional revitalization. To implement the
programs and activities associated with each goal, the Agency has made redevelopment fund
commitments based on estimated available tax increment revenue and debt financing
structures; and
WHEREAS, the Agency and the City wish to cooperate with one another to bring
about the redevelopment of the Redevelopment Project Area and accomplish various tasks
set forth in the Redevelopment Plan and the Implementation Plan; and
WHEREAS, pursuant to Section 33220 of the Redevelopment Law, certain public
bodies, including the City, may aid and cooperate in the planning, undertaking, construction,
or operation of redevelopment projects; and
WHEREAS, the Agency and the City have prepared a Cooperation Agreement, in the
form presented at the meeting at which this Resolution is adopted (the "Agreement "), to
provide for implementation of certain projects set forth in the Schedule of Projects attached
thereto as Exhibit 1 (the "Projects "), and to make payments by the Agency to the City as
necessary to reimburse the City for the cost to the City of performing its obligations
thereunder, subject to all of the terms and conditions of the Agreement; and
WHEREAS, the programs and activities associated with the Projects include, but are
not limited to, acquisition and disposition of property, development of design criteria, design,
planning, preparation of construction bid documents, financial analysis, financing and new
construction or rehabilitation. To carry out the Projects in accordance with the objectives
and purposes of the Redevelopment Plan for the Redevelopment Project Area and the
Implementation Plan, the Agency desires assistance and cooperation in the implementation
and completion of the Projects. The City wishes to enter into the Agreement with the
Agency to aid the Agency and cooperate with the Agency to expeditiously implement the
Projects in accordance with the Redevelopment Plan for the Redevelopment Project Area and
the Implementation Plan and undertake and complete all actions necessary or appropriate to
ensure that the objectives of the Redevelopment Plan for the Redevelopment Project Area
and the Implementation Plan are fulfilled within the time effectiveness of the Redevelopment
Project Area; and
WHEREAS, in considering the Agency's desire to ensure timely implementation and
completion of the Projects, the Agency wishes to enter into the Agreement with the City for
the pledge of net available tax increment to finance the Projects. The purpose of the
Agreement is to facilitate the implementation of the Projects and to provide funding
necessary to effectuate the completion of the Projects with net available tax increment in this
current fiscal year; and
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WHEREAS, "net available tax increment" is defined as any unencumbered tax
increment or unreserved fund balances of the Agency as of the Effective Date of the
Agreement. The pledge of net available tax increment will constitute obligations to make
payments authorized and incurred pursuant to Sections 33445 and 33445.1 of the
Redevelopment Law and other applicable statutes. The obligations set forth in the
Agreement will be contractual obligations that, if breached, will subject the Agency to
damages and other liabilities or remedies; and
WHEREAS, by approving and entering into the Agreement, the Agency will approve
the pledge of net available tax increment from the Redevelopment Project Area to pay for the
Projects; and
WHEREAS, the obligations of the Agency under the Agreement shall constitute an
indebtedness of the Agency for the purpose of carrying out the Redevelopment Plan for the
Redevelopment Project Area; and
WHEREAS, it is in the best interests of the City and for the common benefit of
residents, employees, business tenants and property owners within the Redevelopment
Project Area and the City as a whole for the Projects to be developed and constructed; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, the City Council of the City of Orange resolves, finds and
determines on the basis of the facts set forth in the agenda report presented to it and any
testimony received at the meeting at which this matter was considered, as follows:
Section 1 . The foregoing recitals are true and correct.
Section 2 . The City Council has received and heard all oral and written
objections (if any) to the proposed payments by the Agency to the City for the Projects as
described in the Agreement, and to other matters pertaining to this transaction, and all such
oral and written objections are hereby overruled.
Section 3 . Based on the evidence in the record, the City Council hereby finds and
determines, with respect to the Projects that are located inside or contiguous to the
Redevelopment Project Area, as identified in Exhibit 1 attached to the Agreement, that:
a) Said Projects are of benefit to the Redevelopment Project Area by
helping to eliminate blight within the Redevelopment Project Area; and
b) No other reasonable means of financing said Projects are available to
the community; and
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c) The payment of funds by the Agency for the costs related to said
Projects is consistent with the Implementation Plan adopted pursuant to Section 33490 of the
Redevelopment Law.
Section 4 . Furthermore, and based on substantial evidence in the record, the City
Council hereby finds and determines, with respect to the Projects that are located outside and
not contiguous to the Redevelopment Project Area but are located within the community,
that:
a) Said Projects are of primary benefit to the Redevelopment Project Area;
b) Said Projects benefit the Redevelopment Project Area by helping to
eliminate blight within the Redevelopment Project Area;
c) No other reasonable means of financing the Projects are available to the
community, including, but not limited to, general obligation bonds, revenue bonds, special
assessment bonds, or bonds issued pursuant to the Mello -Roos Community Facilities Act of
1982 [Chapter 2.5 (commencing with Section 53311 of Part 1 of Division 2 of title 5 of the
California Government Code];
d) The payment of funds for said Projects is consistent with the
Implementation Plan adopted pursuant to Section 33490 of the Redevelopment Law; and
e) Said Projects are provided for in the Redevelopment Plan.
Section 5 . The City Council hereby consents to the payments by the Agency to
the City.
Section 6 . The Agreement, in substantially the form presented to the City
Council, a copy of which is on file with the City Clerk, is hereby approved.
Section 7 . The Mayor is authorized and directed to execute, and the City Clerk to
attest, the Agreement on behalf of the Agency, together with such non - substantive changes and
amendments as may be approved by the City Manager and the City Attorney (or his
designee).
Section 8 . The City Manager is hereby authorized, on behalf of the Agency, to
sign all documents necessary and appropriate to carry out and implement the Agreement, and
to administer the City's obligations, responsibilities and duties to be performed under the
Agreement.
Section 9 . This Resolution shall take effect immediately upon its adoption.
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ADOPTED this 26 day of April, 2011
ATTEST:
Mary E. urphy, City , City o ge
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby
cer' >,i`v that the foregoing Resolution was duly and regularly adopted by the City Council of
the City of Orange at a regular meeting thereof held on the 26 day of April, 2011, by the
following vote:
AYES: COUNCILMEMBERS: Whitaker, Smith, Cavecche
NOES: COUNCILMEMBERS: Dumitru, Bilodeau
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
Mary E. M hy, City erk, City o ge