RES-10311 Cooperation & Reimbursement Agreement Portion of Street Lighting Costs in Old Towne Neighborhoods and Grijalva Gymnasium ConstructionRESOLUTION NO. 10311
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING AND
AUTHORIZING THE EXECUTION OF A
COOPERATION AND REIMBURSEMENT
AGREEMENT WITH THE ORANGE
REDEVELOPMENT AGENCY RELATING TO
REIMBURSEMENT BY THE ORANGE
REDEVELOPMENT AGENCY OF A PORTION OF
THE COST OF CERTAIN STREET LIGHTING IN
OLD TOWNE NEIGHBORHOODS AND THE
CONSTRUCTION OF THE GYMNASIUM/SPORTS
CENTER AT GRIJAL VA PARK.
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, 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, pursuant to the Redevelopment Law;
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 City and the Agency wish to undertake the construction of
certain facilities and improvements as set forth in Exhibit A hereto, together with related
and appurtenant facilities (collectively referred to herein as the Project), which will be
of substantial benefit to the Redevelopment Project Area;
and WHEREAS, one of the Projects described on Exhibit A hereto, the
proposed Gymnasium/Sports Center at Grijalva Park, is not located within the boundaries of
the Redevelopment Project Area but is located in close proximity thereto and will
provide community and recreational facilities and a place to gather socially for residents in
the Redevelopment Project Area;
WHEREAS, Section 33445 of the Redevelopment Law authorizes the Agency, with
the consent of the City Council, to pay all or a part of the value of the land for and the cost of the
installation and construction of any building, facility, structure or other improvements (herein
referred to collectively as capital projects) which are publicly owned within or outside the
boundaries of the Redevelopment Project Area, upon a determination by the Agency and the
City Council that (a) such capital projects are of benefit to the Redevelopment Project Area;
b) no other reasonable means of financing such capital projects are available to the City; (c)
the payment of funds for such buildings, facilities, structures or other improvements will assist
in the elimination of one or more blighting conditions inside the Redevelopment Project Area;
and (d) such capital projects are consistent with the Agency's adopted Implementation Plan;
and
WHEREAS, by the adoption of its Resolution No. ORA-0476 on February 26,
2008,the Board of Directors of the Agency (the Agency Board) authorized the issuance of
its Orange Merged and Amended Redevelopment Project Area 2008 Tax Allocation
Bonds,Series A (the 2008A Bonds) to finance the costs of certain capital projects of benefit to
the Redevelopment Project Area, including the Project;
and WHEREAS, before the Agency Board adopted Resolution No. ORA-
0476, the Agency made available for public inspection a summary report (the Summary
Report), which included all of the following: (i) an estimate of the amount of tax
increment revenues allocated to the Agency which the Agency proposed to use to pay for all or part of the
cost of the capital projects described in the Summary Report; (ii) the facts
supporting the determinations required to be made by the Agency pursuant to Section 33445
of the Redevelopment Law; and (iii) the redevelopment purpose for which such
tax increment revenues would be used to pay for said capital
projects; and WHEREAS, before it adopted Resolution No. ORA-0476,
the Agency Board,pursuant to Section 33679 of the Redevelopment Law, held a public hearing
with the City Council with respect to use of tax increment revenues for the capital
projects then proposed to be financed by the issuance of the 2008A Bonds and received
evidence concerning the public
benefits therefrom; and WHEREAS, by the adoption of Resolution No. ORA-
0476 and Resolution No.10257, the Agency Board and the City Council, respectively, have
determined that there were sufficient facts supporting the determinations required to be made by
the Agency and the City Council pursuant to Section 33445 of the Redevelopment Law
for the capital projects described in the Summary Report, including the Project; to wit, that (
i) said capital projects are of benefit to the Redevelopment Project Area; (ii) said capital projects
will assist in the elimination of one or more blighting conditions inside the
Redevelopment Project Area and are consistent with the Agency's adopted Implementation
Plan for the Redevelopment Project Area; and (iii) for that portion of said capital projects to be funded
by the Agency, no other reasonable source of financing said portion of the capital projects
is available
to
WHEREAS, in furtherance of the Redevelopment Plan for the Redevelopment Project
Area and the public purposes of both the Agency and the City, the Agency and the City desire to
enter into that certain Cooperation and Reimbursement Agreement in the form presented at the
meeting at which this Resolution is adopted (the Agreement), pursuant to which Agreement the
City will cause the Project to be installed and constructed and thereafter maintained, and the
Agency will payor reimburse the City for the Agency's portion of the costs of such Project in
the amount not to exceed One Million Eight Hundred Thousand and No/lOO Dollars
1,800,000.00), as more particularly set forth in the Agreement; and
WHEREAS, Section 33678 of the Redevelopment Law authorizes the Agency to pay
for a portion of the cost of City-owned capital improvements of general community
benefit so long as the funds are used for defined "redevelopment activities" and said
capital improvements "primarily benefit" the Redevelopment Project Area;
and WHEREAS, this City Council has considered the facts set forth in the agenda
report presented to it at the meeting at which this matter was considered and finds that the use of
the Agency's tax increment revenues for the Project described on Exhibit A hereto meets
the definition and purpose of redevelopment as prescribed in Sections 33020 and 33021 of
the Redevelopment Law;
and WHEREAS, this City Council finds that the share of Agency tax increment
revenues to be used for construction of the Project does not constitute a disproportionate share of
the total cost of construction thereof and, accordingly, primarily benefits" the
Redevelopment Project Area in accordance with Section 33678 of Redevelopment
Law.WHEREAS, this City Council has duly considered all of the terms and conditions
of the proposed Agreement and believes that the Agreement is in the best interests of
the Agency and the City and the health, safety, morals and welfare of its residents, and in
accord with the public purposes and provisions of applicable State and local law and
requirements.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 Project is of benefit to the Redevelopment Project Area; there are
no other reasonable means available to the City for funding the proposed Agency's portion of
the costs of the construction of the Project other than the funds provided by the Agency;
the payment of funds for the Project will assist in the elimination of one or more
blighting conditions inside the Redevelopment Project Area; and the Project is consistent with
the Agency's adopted Implementation
Plan.Section 3. The use of the Agency's tax increment revenues for the
Project described on Exhibit A hereto meets the definition and purpose of redevelopment
as prescribed in Sections 33020 and 33021 of the Redevelopment
Law.
Section 4. The share of Agency tax increment revenues to be used for
construction of the Project does not constitute a disproportionate share of the total cost of
construction thereof and, accordingly, primarily benefits the Redevelopment Project Area in
accordance with Section 33678 of Redevelopment Law.
Section 5. The Agreement between the Agency and the City, a copy of which is on
file with the City Clerk, is hereby approved, and the Mayor is authorized and directed to
execute, and the City Clerk to attest, said Agreement on behalf of the City.
Section 6. The officers and employees of the City are authorized and directed,
jointly and severally, to do any and all things necessary or advisable in order to effectuate the
purposes of this resolution and to administer the City's obligations, responsibilities and duties to
be performed hereunder, and all actions previously taken by such officers and employees in
connection with the Agreement are ratified and approved.
ADOPTED this 22nd day of, 2008.
ATTEST:
Mary E.
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby
certify 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 22nd day of July, 2008, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS: Smith, Murphy, Cavecche, Dumitru, Bilodeau
COUNCILMEMBERS: None
COUNCILMEMBERS: None
COUNCILMEMBERS: None
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