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HomeMy WebLinkAbout6762 RESOLUTION NO. 6762 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, APPROVING THAT CERTAIN COOPERATIVE AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA REGARDING THE USE OF PROPERTY TAX INCREMENT FUNDS FOR THE FINANCING OF CERTAIN PUBLIC IMPROVEMENTS AND MAKING CERTAIN RELATED FINDINGS AND TAKING CERTAIN ACTION PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTIONS 33445 AND 33679 AND APPROPRIATING FUNDS THEREFOR (PUBLIC SAFETY TRAINING FACILITY AND OVERFLOW PARKING LOT/ IMPROVEMENTS AT LIVE OAK AVENUE) WHEREAS, the City Council ( "City Council ") of the City of Arcadia ( "City ") approved and adopted a redevelopment plan ( "Redevelopment Plan ") for a redevelopment project area known as the Downtown Arcadia Central Redevelopment Project Area ( "Project Area ") on December 26, 1973; and WHEREAS, the Arcadia Redevelopment Agency ( "Agency ") is engaged in activities to execute and implement the Redevelopment Plan for the Project Area pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ( "CRL "); and WHEREAS, the City proposes to fund the following public improvement projects on or pertaining to real property located within the Project Area: construction of a public safety training facility for the Police, Fire and Public Works Services Departments ( "Training Facility "), and a public parking lot improvement project included as part of an earlier Project Area action ( "Public Parking Lot Facility "); and WHEREAS, under CRL Section 33445, with the City Council's consent, the Agency is authorized to use the Agency's property tax increment funds, which it receives pursuant to CRL Section 33670, to pay all or part of the value of the installation 1 or construction of public improvements; and WHEREAS, in accordance with CRL Section 33445, the Agency proposes to contribute property tax increment funds for the purpose of paying all or part of the cost of the Training Facility and Public Parking Lot Facility; and WHEREAS, the City Council is required to make certain findings set forth in CRL Section 33445 with respect to the Agency's use of property tax increment funds to pay for the costs of the Training Facility and Public Parking Lot Facility; and WHEREAS, the City Council makes such findings with regard to the Training Facility and Public Parking Lot Facility as set forth in this Resolution below; and WHEREAS, under CRL Section 33679, before the Agency commits to using property tax increment funds for the purpose of paying all or part of the cost of the installation and construction of a publicly owned building, the City Council must hold a public hearing with regard to such installation and construction of a publicly owned building; and WHEREAS, notice of the time and place of the public hearing was published in Arcadia Weekly, a newspaper of general circulation in the City in accordance with CRL Section 33679; and WHEREAS, a summary report, attached hereto as Exhibit "A ", was prepared by Agency staff and made available to the public on March 24, 2011, including the following in accordance with CRL Section 33679: (i) estimate of the amount of taxes proposed to be used to pay for the Training Facility, including interest payments; (ii) facts supporting the determinations required to be made by the City Council pursuant to CRL Section 33445; and (iii) the redevelopment purpose for which the taxes are being 2 used to pay for the land and construction of the Training Facility; and WHEREAS, a public hearing was held by the City Council with regard to the use of Agency property tax increment funds for the Training Facility on April 5, 2011; and WHEREAS, the City and the Agency desire to enter into that certain cooperative agreement ( "Cooperative Agreement ") wherein the Agency shall provide Agency tax increment funds to the City and the City shall solely use such funds for the purpose of constructing the Training Facility and Public Parking Lot Facility, attached hereto as Exhibit "B "; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The facts set forth in the recitals above are true and correct and are hereby incorporated into the City Council's findings and determinations. SECTION 2. The City Council hereby finds, based on the information made available in the staff report accompanying this Resolution and any oral presentation of staff or other written and oral evidence as presented to the City Council, with regard to the Training Facility and Public Parking Lot Facility, that for the Training Facility, the primary element will be a training tower with an enclosed stairwell, exterior balconies, accessible rooftops, water standpipe and sprinkler systems, etc. The training tower will enable fire and police personnel to practice multiple disciplines within their area of expertise. The training props provided will enable fire, police, and public works personnel to practice the rescue of persons and stay current in all mandated training 3 programs without leaving the City of Arcadia. With regard to the Public Parking Lot Facility, the project will construct a new asphalt parking lot and ancillary improvements for joint use adjacent to the public property at the Par 3 Golf Course at 630 East Live Oak Avenue. This parking lot is part of the Agency's obligation as part of the purchase of 21 Morlan Place from the Church in Arcadia within the Project Area. (a) The Agency's provision of tax increment funds to be used to fund the construction of the Training Facility and Public Parking Lot Facility is of benefit to the Project Area because: (1) the Training Facility will improve public health, safety and welfare within the Project Area because police, fire and public works officers and employees will be better equipped to handle criminal, health and safety issues within the Project Area; (2) long -term economic and property development will be encouraged as a result of the improved health, safety and public infrastructure and public services within the Project Area, and (3) the construction of the parking lot adjacent to the Church in Arcadia site on Live Oak Avenue is a benefit to the project area because it enables the Church to vacate its existing facility and allow that facility to be demolished and incorporated into a beneficial redevelopment project. (b) There are no other reasonable means of financing the Training Facility or Public Parking Lot Facility available to the City because: (1) the City's general fund moneys are fully committed to other programs, projects and financial obligations and may not be used to fund the construction of the Training Facility; (2) the City's reserve funds must remain in reserve and may not be used toward the construction of the Training Facility or Public Parking Lot Facility; (3) there are no other funds available to be used toward the construction of the Training Facility or Public Parking Lot Facility; 4 (4) there are no revenues from City taxes available for use in constructing the Training Facility or Public Parking Lot Facility. (c) The Training Facility will assist in the elimination of one or more blighting conditions in the Project Area by: (1) improving crime prevention and public health and safety as a result of improved training for police, fire and public works officers and employees; and (2) encouraging new development throughout the Project Area as a result of improved health, safety and public infrastructure and public services within Project Area. The Public Parking Lot Facility will assist in the elimination of one or more blighting conditions in the Project Area by facilitating the removal of a blighted building from the Project Area that will now be rebuilt in a suitable location. (d) The payment of funds for constructing the Training Facility is consistent with the Implementation Plan adopted pursuant to CRL Section 33490. SECTION 3. The City Council hereby approves the Agency's use of tax increment funds for purposes of the Training Facility and the Public Parking Lot Facility, and authorizes and directs the City Manager, with the concurrence of the City Attorney, to execute and take any other action as may be necessary to enter into that certain Cooperative Agreement on behalf of the City. SECTION 4. The City Council hereby finds that the Agency's financing of the Training Facility and Public Parking Lot Facility is exempt from the requirements of the California Environmental Quality Act (codified as Public Resources Code Section 21000, et seq.) ( "CEQA ") pursuant to State CEQA Guidelines Section 15378(b), because such approval constitutes the creation of government funding mechanisms or other government funding activities which do not involve any commitment to any 5 specific project which may result in a potentially significant physical impact on the environment. The Project is also exempt per CEQA Guidelines Sections 15301 (Existing Facilities) and 15303 (New Construction or Conversion of Small Structures). SECTION 5. The City Council hereby authorizes and directs City staff to file a Notice of Exemption with the Clerk of the Board of Supervisors of the County of Los Angeles, California, within five (5) working days following the date of adoption of this Resolution. SECTION 6. The Mayor shall sign this Resolution and the City Clerk shall certify the adoption thereof. SECTION 7. This Resolution shall take effect immediately upon its adoption. Passed, approved and adopted this 5th day of April , 2011. f_ "i2 of the City of Arcadia ATTEST: ty Clerk APPROVED AS TO FORM: O /).-eA,./ Steph - n P. Deitsch City Attorney 6 Exhibit "A" CRL Section 33679 Summary Report [See attached behind this cover page] 7 EXHIBIT A SUMMARY REPORT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445 AND 33679 ARCADIA REDEVELOPMENT AGENCY PUBLIC BUILDING /FACILITY PROJECTS Introduction This Summary Report has been prepared by the Arcadia Redevelopment Agency ( "Agency ") consistent with Health and Safety Code Section 33445 and 33679 and serves to describe several proposed public improvement projects in and near the Project Area. The Summary Report has been prepared in order to explain to the public why Agency tax increment funds are to be used to pay for these public improvements. The 2010 -2015 Agency Five Year Implementation Plan was adopted on December 1, 2009. The projects listed below are included in the Implementation Plan. Included for each project below is a project description and the findings required pursuant to Section 33445. Public Facilities /Buildings 1) Public Safety Training Facility $1,500,000 The primary element of the Joint Training Facility will be a training tower with an enclosed stairwell, exterior balconies, accessible rooftops, water standpipe and sprinkler systems, smoke generating system, anchor points for repelling, and a burn room for live fire training. This training tower will enable fire and police personnel to practice multiple disciplines within their area of expertise. Training props will also be constructed within the Joint Training Facility to simulate trench rescue, confined space rescue and building collapse scenarios. These training props will enable fire, police and public works personnel to practice the rescue of persons injured or trapped during this type of incident and provide a suitable site for public works and fire personnel to stay current in Occupational Safety and Health Administration (OSHA) mandated training. Findings for the Public Safety Training Facility The Agency's provision of tax increment funds to be used for the construction of the Public Safety Training Facility are of benefit to the Project Area because: (1) the improvements will improve public safety by providing a joint training facility in close proximity to the Arcadia Police and Fire Stations. Currently, staff needs to leave town during mandatory training activities, exposing the City to risk if an emergency were to occur. With mandatory training becoming more and more prevalent, this training facility is critical in the long range planning for the Fire Department and • Police Department as well as the Public Works Services Department; (2) the appearance, viability, safety and quality of life within the Project Area will be enhanced; (3) and long -term economic and property development will be encouraged as a result of the improved public safety and retention of safety staff within the City in the event of an emergency. There are no other reasonable means of financing the improvements available to the City because: (1) the City's general fund moneys are fully committed to other programs, projects and financial obligations and may not be used to complete the improvements; (2) the City's reserve funds must remain in reserve and may not be used toward the completion of the improvements; (3) there are no other funds available to be used to complete the improvements; (4) there are no revenues from City taxes available for use in completing the improvements. The improvements will assist in the elimination of one or more blighting conditions in the Project Area by: (1) improving public safety within the Project Area; (2) encouraging development of an underutilized parcel within the Project Area for a use that will benefit the Project Area. The payment of funds for constructing the improvements is consistent with the Implementation Plan adopted pursuant to CRL Section 33490 and the R Redevelopment Plan. 2) Overflow Parking Lot/Improvements on Live Oak Avenue $130,000 This project will construct a new asphalt parking lot and ancillary improvements for joint use adjacent to public property at the Par 3 Golf Course at 630 East Live Oak Avenue. This parking lot is part of the Agency's obligation as part of the purchase of 21 Morlan Place from the Church in Arcadia and relocation to its new building on Live Oak. This purchase has facilitated the use of the former Church property on Morlan Place for a Redevelopment project with Rusnak Mercedes Benz. Findings for the Overflow Parking Lot/Improvements on Live Oak Avenue The Agency's provision of tax increment funds to be used for the construction of the Huntington Drive project improvements are of benefit to the Project Area because: (1) the improvements will improve public safety and travel within the Project Area through improved circulation and access, (2) the appearance, viability, safety and quality of life within the Project Area will be enhanced; (3) and long -term economic and property development will be encouraged as a result of the improved access and circulation to and through the Downtown area. There are no other reasonable means of financing the improvements available to the City because: (1) the City's general fund moneys are fully committed to other programs, projects and financial obligations and may not be used to complete the improvements; (2) the City's reserve funds must remain in reserve and may not be used toward the completion of the improvements; (3) there are no other funds available to be used to complete the improvements; (4) there are no revenues from City taxes available for use in completing the improvements. The improvements will assist in the elimination of one or more blighting conditions in the Project Area by: (1) improving travel and public safety within the Project Area; (2) encouraging new development near in the Downtown area in particular as well as throughout the Project Area as a result of improved access and circulation patterns to and through the project area. The payment of funds for constructing the improvements is consistent with the Implementation Plan adopted pursuant to CRL Section 33490 and the Redevelopment Plan. Total Tax Increment to be utilized for Public Facilities /Buildings $1,630,000 Exhibit "B" Cooperative Agreement [See attached behind this cover page] 8 COOPERATIVE AGREEMENT (TRAINING FACILITY AND PUBLIC PARKING LOT FACILITY) BY AND BETWEEN ARCADIA REDEVELOPMENT AGENCY AND CITY OF ARCADIA This Cooperative Agreement (Training Facility and Public Parking Lot Facility) is entered into this day of , 2011 by and between the Arcadia Redevelopment Agency, a public body, corporate and politic ( "Agency ") and the City of Arcadia, a California municipal corporation and charter city ( "City "). The Agency and the City each may be referred to as "Party" or collectively as the "Parties" in this Agreement. RECITALS WHEREAS, the City Council ( "City Council ") of the City of Arcadia ( "City ") approved and adopted a redevelopment plan ( "Redevelopment Plan ") for a redevelopment project area known as the Downtown Arcadia Central Redevelopment Project Area ( "Project Area ") on December 26, 1973; and WHEREAS, the Agency is engaged in activities to execute and implement the Redevelopment Plan pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ( "CRL "); and WHEREAS, the Agency desires to transfer that certain amount of redevelopment tax increment funds ( "Agency Funds "), set forth in Exhibit "A" attached hereto and incorporated herein by reference, to the City, and the City desires to accept such funds for the City to conduct the following public improvement within the Project Area as further described in Exhibit "A" attached hereto: construction of a public safety training facility for the Police, Fire and Public Works Services Departments ( "Training Facility "); and a public parking lot improvement project included as part of an earlier Project Area action ( "Public Parking Lot Facility "); and WHEREAS, CRL Section 33445 provides that the Agency may use tax increment funds, received pursuant to CRL Section 33670 ( "Tax Increment Funds "), to pay all or a part of the value of the cost of the installation and construction of public improvements located inside or contiguous to the Project Area if the City Council makes certain findings; and WHEREAS, in City Council Resolution No. 6762, on April 5, 2011, the City Council has made the following necessary findings pursuant to CRL Section 33445 with regard to the Training Facility and Public Parking Lot Facility that for the Training Facility, the primary element will be a training tower with an enclosed stairwell, exterior balconies, accessible rooftops, water standpipe and sprinkler systems, etc. The training tower will enable fire and police personnel to practice multiple disciplines within their area of expertise. The training props provided will enable fire, police, and public works 1 personnel to practice the rescue of persons and stay current in all mandated training programs without leaving the City of Arcadia. With regard to the Public Parking Lot Facility, the project will construct a new asphalt parking lot and ancillary improvements for joint use adjacent to the public property at the Par 3 Golf Course at 630 East Live Oak Avenue. This parking lot is part of the Agency's obligation as part of the purchase of 21 Morlan Place from the Church in Arcadia within the Redevelopment Area. (a) The Agency's provision of tax increment funds to be used to fund the construction of the Training Facility and Public Parking Lot Facility is of benefit to the Project Area because: (1) the Training Facility will improve public health, safety and welfare within the Project Area because police, fire and public works officers and employees will be better equipped to handle criminal, health and safety issues within the Project Area; (2) long -term economic and property development will be encouraged as a result of the improved health, safety and public infrastructure and public services within the Project Area, and 3) the construction of the parking lot adjacent to the Church in Arcadia site on Live Oak Avenue in a benefit to the project area because it enable the Church to vacate their existing facility and allow that facility to be demolished and incorporated into a beneficial Redevelopment project. (b) There are no other reasonable means of financing the Training Facility or the Public Parking Lot Facility available to the City because: (1) the City's general fund moneys are fully committed to other programs, projects and financial obligations and may not be used to fund the construction of the Training Facility or the Public Parking Lot Facility; (2) the City's reserve funds must remain in reserve and may not be used toward the construction of the Training Facility or the Public Parking Lot Facility; (3) there are no other funds available to be used toward the construction of the Training Facility or the Public Parking Lot Facility; (4) there are no revenues from City taxes available for use in constructing the Training Facility or the Public Parking Lot Facility; (c) The Training Facility will assist in the elimination of one or more blighting conditions in the Project Area by: (1) improving crime prevention and public health and safety as a result of improved training for police, fire and public works officers and employees; and (2) encouraging new development throughout the Project Area as a result of improved health, safety and public infrastructure and public services within Project Area. The Public Parking Lot Facility will assist in the elimination of one or more blighting conditions in the Project Area by facilitation the removal of a blighted building from the Project Area that will now be rebuilt in a suitable location. (d) The payment of funds for constructing the Training Facility and Public Parking Lot Facility is consistent with the Implementation Plan adopted pursuant to CRL Section 33490; and WHEREAS, under CRL Section 33679, before the Agency commits to using property tax increment funds for the purpose of paying all or part of the cost of the installation and construction of a publicly owned building, the City Council must hold a public hearing; and 2 WHEREAS, notice of the time and place of the public hearing was published in Arcadia Weekly, a newspaper of general circulation in the City on March 24, 2011 and March 28, 2011 in accordance with CRL Section 33679; and WHEREAS, a summary report was prepared by Agency staff and made available to the public on March 24, 2011, including the following in accordance with CRL Section 33679: (i) estimate of the amount of taxes proposed to be used to pay for the Training Facility, including interest payments; (ii) facts supporting the determinations required to be made by the City Council pursuant to CRL Section 33445; and (iii) the redevelopment purpose for which the taxes are being used to pay for the land and construction of the Training Facility; and WHEREAS, a public hearing was held by the City Council with regard to the use of Agency property tax increment funds for the Training Facility on April 5, 2011. AGREEMENT NOW, THEREFORE, in consideration of the promises contained below and other good and sufficient consideration, the Agency and the City agree as follows: 1. Recitals. The Recitals set forth above are incorporated into this Agreement by this reference. 2. Agency's Obligations. 2.1 The Agency agrees to pay Tax Increment Funds to the City to provide the City with funds to construct the Training Facility and Public Parking Lot Facility. To the extent the Agency does not have Tax Increment Funds available on the date of this Agreement, the Agency shall pay to the City the first of any and all existing or future funds due to or received by the Agency including, without limitation, Tax Increment Funds, for the purpose of acquiring land or constructing the Training Facility or Public Parking Lot Facility. 3. Indebtedness. 3.1 The Agency's obligations under this Agreement, including without limitation the Agency's obligation to make the payments to the City required by this Agreement, shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment of the Project Areas and are obligations to make payments authorized and incurred pursuant to CRL and other applicable statutes including, but not limited to, Section 33445 of the CRL. The obligations of the Agency set forth in this Agreement are contractual obligations that, if breached, will subject the Agency to damages and other liabilities or remedies. 3.2 Notwithstanding the provisions of Section 3.1, the obligations of the Agency under this Agreement shall be subordinate to the rights of the holder or holders of any existing bonds, notes or other instruments of indebtedness of the Agency incurred or issued to finance the Project Area. 3 4. City's Obligations. 4.1 The City shall undertake the construction of the Training Facility and Public Parking Lot Facility upon receipt of Agency Funds, or as soon thereafter as reasonably practicable. 4.2 The City shall use Agency Funds solely for the purpose of constructing the Training Facility and Public Parking Lot Facility associated with such Agency Funds as set forth in Exhibit "A ". 5. General Terms. 5.1 Modification and Amendments. This Agreement may be modified or amended only by a written instrument signed by both Parties to this Agreement. 5.2 Default. If either Party fails to perform or adequately perform an obligation required by this Agreement within thirty (30) calendar days of receiving written notice from the non - defaulting Party, the Party failing to perform shall be in default hereunder. In the event of default, the non - defaulting Party will have all the rights and remedies available to it at law or in equity to enforce the provisions of this contract, including without limitation the right to sue for damages for breach of contract. The rights and remedies of the non - defaulting Party enumerated in this paragraph are cumulative and shall not limit the non - defaulting Party's rights under any other provision of this Agreement, or otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the Agreement or hereinafter enacted or established, that may be available to the non - defaulting Party against the defaulting Party. 5.3 Binding on Successors. This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the Parties, whether by agreement or operation of law. 5.4 Severability. If any term, provision, or section of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, the Agency and the City agree that the invalid term, portion or section may be severed from this Agreement and the remainder of this Agreement may be enforced in its entirety and the remaining provisions of the Agreement shall not in any way be affected or impaired thereby. 5.5 Waiver. No waiver by either Party of any breach of or default under this Agreement shall be deemed to be a waiver of any other or subsequent breach hereunder. 5.6 No Third Party Beneficiary. This Agreement is intended solely for the benefit of the City and the Agency. Notwithstanding any reference in this Agreement to persons or entities other than the City and the Agency, there shall be no third party beneficiaries under this Agreement. 4 5.7 Section Headings. The section headings used in this Agreement are for the purposes of convenience only and shall not in any way alter or amend the express terms of each section. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first hereinabove written. AGENCY: CITY: ARCADIA REDEVELOPMENT AGENCY, CITY OF ARCADIA, a California a public body, corporate and politic municipal corporation and charter city By: By: Donald Penman, Executive Director Donald Penman, City Manager ATTEST: ATTEST: By: By: Agency Secretary City Clerk APPROVED AS TO FORM APPROVED AS TO FORM By: By: Stephen P. Deitsch, Agency Counsel Stephen P. Deitsch, City Attorney 5 EXHIBIT "A" Description and Cost of Public Improvements Arcadia Redevelopment Agency Public Buildings /Facilities — HSC Section 33445 Public Safety Training Facility $1,500,000 Overflow Parking Lot/Improvements at Live Oak Avenue $130,000 Total Costs of Projects $1,630,000 6 Exhibit "A" STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF ARCADIA ) I, JAMES H. BARROWS, City Clerk of the City of Arcadia, hereby certifies that the foregoing Resolution No. 6762 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 5th day of April, 2011 and that said Resolution was adopted by the following vote, to wit: AYES: Council Members Chandler, Harbicht, Kovacic and Amundson NOES: None ABSENT: Council Member Segal eft i y r erk of the City of Arcadia 9