City of Culver City, California
Agenda Item Report
Meeting Date: 01/15/2011 Item Number: J-1
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD AGENDA ITEM:
Adoption of City Council and Redevelopment Agency Board Resolutions
Approving a Cooperation Agreement between the City of Culver City and the Culver
City Redevelopment Agency Relating to the Funding of Public Infrastructure
Improvements and Affordable Housing Projects.
Contact Person/Dept.:
Sol Blumenfeld/Community Development
Todd Tipton/Community Development
Phone Number:
(310) 253-5700
(310) 253-5760
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Meetings and Agendas – City Council (01/13/11); Meetings and
Agendas – Redevelopment Agency (01/13/11); Interested Media (01/13/11)
Department Approval:
Sol Blumenfeld: (01/13/11)
City Attorney Approval:
Carol Schwab: (by H. Baker) (01/13/11)
Agency General Counsel Approval:
Murray Kane: (01/13/11)
Chief Financial Officer Approval
Jeff Muir:
City Manager/Executive Director Approval:
John M. Nachbar:
RECOMMENDATION:
Staff recommends that both the City Council and the Redevelopment Agency Board
adopt respective Resolutions approving a Cooperation Agreement between the City
of Culver City (the “City”) and the Culver City Redevelopment Agency (the “Agency”)
relating to the funding of specified public infrastructure improvements and Affordable
Housing Projects.
BACKGROUND:
Section 33445 of the California Health and Safety Code permits Redevelopment
Agencies to use tax increment revenue to pay the cost of public improvements
constructed by other entities, provided the City Council makes certain findings.
From time to time, the City and Agency have entered into Cooperation Agreements
for the mutual benefit of the two parties and the public.
There is an opportunity for the Agency to secure for the City additional funding, to
pay for a variety of future public infrastructure needs which can assist in the Culver
City Redevelopment Project.
City of Culver City, California
Agenda Item Report
By adopting the Cooperation Agreement the City and the Agency will be establishing
the authority, framework and funding source to pursue vitally needed Improvements.
DISCUSSION:
The Agency and City may want to fund public parking facilities, infrastructure
improvements, redevelopment related studies and plans and other specified public
improvements identified in Attachment No. 1 The list of proposed plans and public
infrastructure Improvements (the “Improvements”) which will be funded by the
Redevelopment Agency either all or in part includes:
§ Washington Boulevard Street Improvements
§ Downtown, Hayden Tract and West Washington Boulevard Public Parking
Facilities
§ Town Plaza Expansion
§ Citywide Improvements to Medians
§ Washington National Infrastructure and Streetscape Improvements
§ Washington National Aerial Station Cooperation Funding
§ On-going Maintenance of Agency Assets
§ Industrial Area Improvements (Smiley- Blackwelder)
§ West Adams Improvements
§ Seismic Rehabilitation Improvements – Art’s District and Hayden Tract
§ Redevelopment Related General Plan Preparation and Implementation Plans
§ Citywide Affordable Housing Projects consistent with the approved Housing
Strategy
The Cooperation Agreement (Attachment No. 1) contains a more detailed
description of the Improvements proposed to be funded. The Cooperation
Agreement is proposed at this time because funding large capital projects in the
near future will exacerbate the financial strain on the City. Further, there are actions
being contemplated by the State of California that will, in some cases, make it more
difficult for Redevelopment Agencies to fund public improvements and planning
studies. Further, the expiration of the Redevelopment Project in Component Areas 1
and 2 in 2014 will limit the Agency’s tax increment revenue stream to that needed to
repay existing debts which will help enable the Agency to protect its investment and
ongoing efforts within the Project Area in general.
The findings supporting approval of the Cooperation Agreement are :
1. The specified public infrastructure improvements are of benefit to the Culver City
Redevelopment Project and the immediate neighborhood in which the Project
Area is located;
2. The City Council and Agency finds and determines that the affordable housing
projects identified in the Cooperation Agreement are of benefit to the Culver City
Redevelopment Project. City of Culver City, California
Agenda Item Report
3. No other reasonable means of financing the specified public infrastructure
improvements are available to the community;
4. The specified public infrastructure improvements will assist in the elimination of
one or more blighting conditions inside the Project Area; and,
5. The specified public infrastructure improvements are consistent with the
Implementation Plan for the Project Area adopted pursuant to Section 33490 of
the California Redevelopment law.
FISCAL ANALYSIS:
The cost to the Agency is detailed on Exhibit 1 of Attachment No. 1. Exhibit 1
indicates approximate costs to the Agency for each Improvement or plan. Exhibit 2
includes schedule of Agency payments and Exhibit 3 provides the timing to complete
the improvements. All costs generally include hard and soft costs and land
acquisition where applicable. The sum of these costs is $118,750, 000 with all costs
estimated in current year dollars.
ATTACHMENTS:
1. Proposed Cooperation Agreement
2. Proposed City Council Resolution
3. Proposed Redevelopment Agency Resolution
MOTION:
That the City Council:
1. Adopt a Resolution that makes findings and determinations pursuant to
Health and Safety Code Section 33445 and 33334.2 and approves the
Cooperation Agreement between the City of Culver City and the Culver City
Redevelopment Agency to provide for funding of specified public
infrastructure improvements and Affordable Housing Projects; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the Mayor to execute such documents on behalf of the City.
That the Redevelopment Agency Board:
1. Adopt a Resolution that makes findings and determinations pursuant to
Health and Safety Code Section 33445 and 33334.2 and approves the
Cooperation Agreement between the City of Culver City and the Culver City
Redevelopment Agency to provide for funding of specified public
infrastructure improvements and Affordable Housing Projects; and,
City of Culver City, California
Agenda Item Report
2. Authorize the Agency General Counsel to review/prepare the necessary
documents; and,
3. Authorize the Executive Director to execute such documents on behalf of the
Agency.
MEETING DATE: 01.15.11
AGENDA ITEM: JOINT CITY COUNCIL/REDEVELOPMENT AGENCY
BOARD AGENDA ITEM: Adoption of City Council and
Redevelopment Agency Board Resolutions Approving a
Cooperation Agreement between the City of Culver City
and the Culver City Redevelopment Agency Relating to
the Funding of Public Infrastructure Improvements and
Affordable Housing Projects.
ATTACHMENTS
Pages
1. Proposed Cooperation Agreement 1-9
2. Proposed City Council Resolution 10-14
3. Proposed Redevelopment Agency Resolution 15-19
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RESOLUTION NO. 2011-A
A RESOLUTION OF THE CULVER CITY
REDEVELOPMENT AGENCY APPROVING A
COOPERATION AGREEMENT AND MAKING CERTAIN
DETERMINATIONS AND FINDINGS PURSUANT TO
HEALTH AND SAFETY CODE SECTION 33445.
WHEREAS, the Culver City Redevelopment Agency (the “Agency”) has
prepared a Redevelopment Plan (the “Redevelopment Plan”) for the Culver City
Redevelopment Project (the “Project”); and
WHEREAS, the Agency and the City of Culver City (the “City”) wish to
cooperate with one another to bring about the redevelopment of the Project and accomplish
various tasks set forth in the Redevelopment Plan; and
WHEREAS, pursuant to Section 33220 of the California Community
Redevelopment Law (Health & Safety Code Section 33000 et seq.) (the “CRL”), for the
purposes of aiding and cooperating in the planning, undertaking, construction or operation
of the redevelopment projects in the Project, the City may, among other things, exercise the
following powers: sell any of its property to the Agency; cause public improvements to be
furnished in connection with redevelopment; plan or replan and zone or rezone any part of
such area and make any legal exceptions from building regulations and ordinances; and
enter into agreements with the Agency respecting action to be taken to any of the foregoing
powers; and
WHEREAS, the City has engaged in such redevelopment activities pursuant
to Section 33220 of the CRL that have aided and assisted in implementing the
Redevelopment Plan and intends to engage in further redevelopment activities; and
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WHEREAS, pursuant to Section 33445(a) of the CRL, the Agency may, with
the consent of the City Council of Culver City (the “City Council”), pay all or part of the
value of the land for and the cost of the installation and construction of any building, facility,
structure, or other improvements which is publicly owned either within or outside a project
area, if the City Council makes certain determinations; and
WHEREAS, pursuant to Section 33445(c) of the CRL, when the value of the
land or the cost of the installation and construction of the building, facility, structure or other
improvement, or both, has been, or will be, paid or provided for initially by the City, the
Agency may enter into a contract with the City under which the Agency agrees to reimburse
the City for all or part of the value of the land or all or a part of the cost of the building,
facility, structure, or other improvement, or both; and
WHEREAS, the Agency and the City have prepared a Cooperation
Agreement (the “Cooperation Agreement”) to provide for development and construction of
public infrastructure improvements and other redevelopment activities within the Project
(the “Public Improvements”) as more particularly identified and described in the List of
Public Improvements attached as Exhibit No. 1 to the Cooperation Agreement, and to make
payments by the Agency to the City of certain costs related to such development and
construction and other redevelopment activities (the “Public Improvement Costs” therein
and herein), subject to all of the terms and conditions of the Cooperation Agreement; and
WHEREAS, pursuant to Sections 33445 of the CRL, the Agency’s Board and
City Council held a joint public meeting on the proposed Cooperation Agreement; having
duly noticed such public meeting, and made copies of the Cooperation Agreement available
for public inspection and comment; and
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WHEREAS, pursuant to the CRL, the Agency has considered the information
regarding: (1) the benefit of the Public Improvements to the Project and its immediate
neighborhood; (2) the availability of other reasonable means of financing the Public
Improvements available to the community; (3) the assistance that will be given to the
elimination of one or more blighting conditions inside the Project by the Public
Improvements; and (4) the consistency of the Public Improvements with the Implementation
Plan for the Project pursuant to Section 33490 of the CRL; and
WHEREAS, the Agency has reviewed and duly considered the staff report,
documents and other written evidence presented during the duly noticed Special Meeting of
the City Council (“Documentary Evidence”) and all terms and conditions of the proposed
Cooperation Agreement, and believes the payments by the Agency of the Public
Improvement Costs are in the best interests of 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; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW, THEREFORE, the Culver City Redevelopment Agency Board DOES
HEREBY RESOLVE, as follows:
1. The Redevelopment Agency Board has received and heard all oral and
written objections to the proposed payments by the Agency of the Public Improvement
Costs as described in the Cooperation Agreement, and to other matters pertaining to this
transaction, and all such oral and written objections are hereby overruled.
2. Based upon the testimony and Documentary Evidence presented at
the public meeting, the Redevelopment Agency Board hereby finds and determines:
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(a) The foregoing recitals are true and correct.
(b) The Public Improvement Costs for which the Agency proposes
to pay under the Cooperation Agreement is of benefit to the Project and the
immediate neighborhood in which the Project is located;
(c) No other reasonable means of financing the Public
Improvements are available to the community;
(d) The payment of funds for the Public Improvements will assist in
the elimination of one or more blighting conditions inside the Project;
(e) The payment of funds for the Public Improvements is consistent with
the Implementation Plan for the Project pursuant to Section 33490 of the
CRL.
3. The Redevelopment Agency Board hereby consents to the payment to
the City by Agency of the Public Improvement Costs as described above and in the
Cooperation Agreement.
4. The Cooperation Agreement in substantially the form presented to the
Redevelopment Agency Board is hereby approved, a copy of which is on file with the
Secretary of the Agency.
5. The Agency Executive Director, or designee, is hereby authorized to
execute the Cooperation Agreement on behalf of the Agency, together with such non-
substantive changes and amendments as may be approved by the Agency Executive
Director and Agency General Counsel.
6. The Agency Executive Director, or designee, is hereby authorized, on
behalf of the Agency, to sign all documents necessary and appropriate to carry out and
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implement the Cooperation Agreement, and to administer the Agency’s obligations,
responsibilities and duties to be performed under the Cooperation Agreement.
7. In the event the Agency desires to issue bonds, notes, or other
instruments of indebtedness of the Agency to carry out redevelopment projects, then any
indebtedness of the Agency to the City, including any interest accrued thereon, shall be
deemed not to be a first pledge of tax increment allocations received by the Agency
pursuant to Section 33670 of the CRL; and any indebtedness of the Agency to the City,
including any interest accrued thereon, shall be subordinate to any pledge of tax
increments to bondholders or the holders of other such instruments of indebtedness.
APPROVED AND ADOPTED, this day of , 2011.
MICHEÁL O' LEARY, CHAIR
Culver City Redevelopment Agency
ATTEST: APPROVED AS TO FORM:
ALICE PRASAD, Secretary MURRAY KANE, Agency General Counsel
A11-00027
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