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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 6t" day of April, 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
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
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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.
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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.
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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:
ARCADIA REDEVELOPMENT AGENCY,
a public body, corporate and politic
By:
Donald Penman, Executive Director
ATTEST: -41
By:
Agenv Secretary
CITY:
CITY OF ARCADIA, a California
municipal corporation and charter city
Donald Penman, City Manager
ATTEST:
By:
City ciekk
APPROVED AS TO FORM APPROVED AS TO FORM
By. By. -
Steph n P. Deitsch, Agency Counsel Stephen P. Deitsch, City Attorney
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
Exhibit "A"
$1,630,000