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HomeMy WebLinkAboutMINUTES - 10152002 - C.64 TO: BOARD OF SUPERVISORS/REDEVELOPMENT AGENCY FROM: Dennis M. Barry, AICP Community Development Director DATE: October 15, 2002 SUBJECT: Amended and Restated.Financial Agreement,North Richmond Redevelopment Project Area SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS As the Governing Board of the Contra Costa County Redevelopment Agency, APPROVE and AUTHORIZE the Redevelopment Director to execute an Amended and Restated Financial Agreement, relating to financing of the Wildcat-San Pablo Creek. Flood Control Project, North Richmond, with Public 'Works. APPROVE and AUTHORIZE the Director of Public Works as the Chief Engineer of the Flood Control .District, or his designee, to execute said Agreement, with the Contra Costa County Redevelopment Agency, on behalf of the Contra Costa County Flood Control and Water Conservation District. FISCAL IMPACT No General Fund money will be used on this project. The commitment of Agency revenues permitted the Flood Control District to meet a local match requirement necessary to secure approximately$6,000,000 in Federal Corps of Engineers funding to complete the W' dcat-San Pablo Creek Flood Control Project. el CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTOR/E UTNE DIR TOR RECOMMENDATION OF BOARDIAGENCY COMMITTEEI APPROVE OTHER i 1 SIGNATURE(S): ACTION OF BOARD OF SUPERVISORS/REDEVELOPMENT AGENCY ON october 15. 2002 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS/COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT None TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: __ MINUTES OF THE BOARD OF SUPERVISORSIREDEVELOPMENT AGENCY ON THE DATE SHOWN. Source: Beth Lee 335-1256 cc: County Administrator ATTESTED October 15, 2002 Redevelopment Agency JOHN SWEETEN, CLERK OF Community Development THE BOARD OF SUPERVISORS/ Public Works AGENCY SECRETARY County Counsel Via Redevelopment North Richmond MAC BY F: '"° 4 , DEPUTY BACKGROUND/REASONS FOR RECOMMENDATIONS A major goal of the North Richmond Redevelopment Plan is to facilitate economic development and stimulate and attract private investment in the Project Area. On January 24, 1995, the Board of Supervisors and Redevelopment Agency approved the execution of a Financial Agreement related to the Wildcat-San Pablo Creek Flood Control Project. The Agreement established the terms and conditions for the Redevelopment Agency to financially participate in this project. The North Richmond Municipal Advisory Council reviewed and approved the Agency's financial participation. The executed Agreement's term has lapsed and there are several modifications necessary to define the obligations of both parties. The Amended and Restated Financial Agreement extends the term, and clarifies the implementation process related to the Agency's financial obligation.A copy of the Amended and Restated Financial Agreement is attached. FIRST AMENDED AND RESTATED FINANCIAL AGREEMENT BETWEEN THE CONTRA COSTA COUNTY REDEVELOPMENT AGENCY AND THE CONTRA COSTA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT RELATING TO THE WILDCAT—SAN P'ABLO CREED. FLOOD CONTROL PROJECT This First Amended and Restated Financial Agreement(the "Agreement") is entered into as of this Lith day of hpr , 2002 by and between the Contra Costa County Redevelopment Agency, a public body, corporate and politic (the"Agency") and the Contra Costa County Flood Control and Water Conservation District, a political subdivision of the State of California(the"District")pursuant to the joint exercise of powers provisions of California Governmental Code Sections 6500-6522, and Health and Safety Code Section 33445. RECITALS WHEREAS: I. On July 14, 1987,by Ordinance No. 87-50, the Agency adopted the North Richmond Redevelopment Plan(the"Plan"). The Plan calls for public improvements in the North Richmond Redevelopment Project Area(the"Project Area") that will eliminate blight and result in overall benefit to the Project Area residents. 2. The District completed construction improvements to the Wildcat-San Pablo Creek Project(the "Flood Control Project"). The Flood Control Project consisted of channel improvements in the lower reaches of the two streams. The Agency funding participation was applied to the completion of the channel improvements from the Union Pacific Railroad right-of-way to the Burlington Northern Santa Fe Railroad right-of-way("Contract 3 and 3A"). 3. The Agency and District entered into a Financial Participation Agreement dated January 10, 1995 (the"Original Participation Agreement"),pursuant to which the Agency agreed to up to a maximum of Two Hundred Thousand Dollars ($200,000) for the Flood Control Project. As of the date hereof, the Agency has not disbursed any of the Original Participation Agreement funds to the District. 4. It is the determination of the Agency that the improvements constructed as part of the Flood Control Project are of benefit to the Project Area because it will remove a significant amount of land in the Project Area from the 100-year Floodplain, as designated by the National Flood Insurance Program; that the District has sought every reasonable source of financing for the required local match, including the District reducing Districtwide planning costs to the maximum prudent level, and that no other reasonable means of financing the final $200,000 gap exists; and the funding of the Flood Control Project addresses blighting conditions identified in the Plan, including the lack of adequate infrastructure, that has contributed to a level of disinvestment in the Project Area that inhibits the generation of employment-related development which would, in turn, assist in addressing blight characterized as social and economic maladjustment, and manifested as very low income levels, high unemployment, and a significant criminal justice problem. 5. The Agency and the District wish to amend the Original Participation Agreement to accomplish the following: (i)extend the term of the agreement; (ii) amend the cost reduction provisions; and(iii)make certain other revisions to reflect changes in the Agreement. 6. Pursuant to this Agreement, the Agency agrees to provide for a portion of the funding, up to $200,000, for the installation and construction cost of the Flood Control Project between the Union Pacific Railroad and the Burlington Northern Santa Fe Railroad rights-of-way. 7. This Agreement shall constitute an indebtedness of the Agency for the purposes .of carrying out the Redevelopment Project for the Project Area, which indebtedness may be made payable out of taxes levied in the Project Area and allocated to the Agency under Subdivision(b)of Health and Safety Code Section 33670, or out of any other available funds of the Agency. AGREEMENT Agency and District hereby agree as follows: I. IMPROVEMENTS The Flood Control Project to be funded under this agreement is the Contract 3 and Contract 3A channel improvements from the Union Pacific Railroad right-of-way to the Burlington Northern Santa Fe Railroad right-of-way(the "Improvements"). The District shall be responsible for removing a significant amount of land in the Project Area from the 100-year Floodplain as shown on the Federal Emergency Management Agency("FEMA") Flood Insurance Study(FIS) and National Flood Insurance Program (NFIP) Maps to reflect the 100-year flood control improvements. 2 II. METHOD The Agency's participation shall be limited to the payment of a portion of the Flood Control Project costs as set forth in Section III of this Agreement. III. COST A. The approximate total of the Flood Control Project to be funded pursuant to this Agreement is $5,000,000. The Agency's contribution to the costs of the Flood Control Project shall be limited to a maximum total sum of$200,000, plus simple interest accruing on the final total amount of the Agency's contribution from January 1, 1996, until paid in full, as further described in Subsection B hereof B. (1) The Agency's obligation to make payment pursuant to this Section III shall be in accordance with the following terms and conditions: On the later of: (i) five (5) years from the effective date of this Agreement; (ii) the date of sale of the District's parcels 408-201-017, 408-202-003, 409-311- 001(the "Parcel") referenced in this Section III, Paragraph B.(4) below; or (iii) the removal of the area from the FEMA Flood Zone Map, Agency shall pay to the District a maximum principal sum of $200,000, plus any accrued interest, in full satisfaction of its obligations under this Agreement. No interest shall accrue on said sum prior to January 1, 1996. Any amount of principal that is not paid on or before January 1, 1996 shall bear simple interest from January 1, 1996 until paid in full at a rate of interest equal to the rate of interest paid by the District on the borrowed funds (5.3%). (2) The Agency Obligation can be reduced as described in (4)(i) below. If Agency Obligation is reduced, the outstanding interest accrued will be proportionately reduced to reflect the Agency's new lesser financial obligation. (3) If the term of this Agreement is extended in accordance with Section V below, the Agency will be required to pay the accumulated interest to the date agreed upon in the extension. (4) The Agency obligation described in Paragraph III.B.(1) may be reduced as follows: 3 (i) District commits to the sale of any, or all, of the Parcels (APN 408-201-017, 408-202-003 and 409-311-001). The District must demonstrate a good faith effort to sell, such as list and aggressively market, the Parcels during the term of this Agreement. If the District fails to demonstrate a good faith effort to sell the properties, this Agreement will be automatically extended, in writing by the Flood Control District, for another two (2) year term and all conditions herein will remain in full force and effect. If the District sells any, or all, of the Parcels, the allocation of all revenues, less reasonable sales expenses, in excess of $500,000 ($3.64/sq.ft.) shall be distributed in the following manner: (i)(a) District will receive the first 25% of said incremental increase (i)(b) Agency shall receive credit for any excess revenue above the first 25% of said incremental increase. Said incremental credit will reduce the Agency's Obligation, and associated interest, dollar-for-dollar up to the maximum $200,000 Agency contribution in this Agreement. (i)(c) If the Agency's Obligation is fully satisfied in accordance with Section III B(l) above, the District will receive all additional funds. The District shall consult with the Agency prior to committing to any sale of the above parcels. (ii) The Agency will pay for archeology reports of the Parcels (APN 408-201-017, 408-202-003 and 409-311- 001) to best prepare them for sale. The cost of the archeology reports will be credited dollar-for-dollar either: (a) towards the purchase price if the Agency acquires any of the Parcels; or (b) towards the interest owed by the Agency on the obligation in this Agreement. IV. ACCOUNTABILITY District shall be strictly accountable for all funds under its control. Upon request, District shall report all receipts and disbursements to the Agency and 4 shall provide the Agency with any documentation deemed necessary by the Agency to verify said expenditures. V. TERM This Agreement shall remain in effect until all final payments required herein have been made. The terms and conditions for this Agreement as specified in Section III, Paragraph B.(l) above may be amended administratively by mutual agreement of the District and Agency. VI. NO THIRD PARTY BENEFICIARIES Nothing in this Agreement is intended or shall be construed to create rights in any third person not a party to this Agreement. CONTRA COSTA COUNTY:FLOOD CONTRA COSTA COUNTY CONTROL AND WATER REDEVELOPMENT AGENCY CONSERVATION DISTRICT By: - By: Maurice Shiu Jim Kennedy Chief Engineer/Public Works Director Deputy Director-Redevelopment 5