City of Culver City, California
Agenda Item Report
Page 1 of 3
Meeting Date: 2/22/2011 Item Number: JPH-1_
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD AGENDA ITEM:
PUBLIC HEARING - 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 for Funding of Proposed Public
Infrastructure Improvements Relating to Public Safety Headquarters and Veterans
Memorial Building.
Contact Person/Dept.: Sol Blumenfeld
Todd Tipton
Phone Number: (310) 253-5700
(310) 253-5760
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [X] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification:
Published in the Los Angeles Times February 8, 2011 and February 14, 2011.
Meetings and Agendas – City Council (02/18/11); Meetings and Agendas –
Redevelopment Agency (02/18/11); Interested Media (02/18/11)
Department Approval:
Sol Blumenfeld: (02/16/11)
City Attorney Approval:
Carol Schwab (by H. Baker) (02/18/11)
Agency General Counsel Approval:
Murray O. Kane: (02/16/11)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (02/18/11)
City Manager/Executive Director Approval:
John Nachbar (02/18/11)
RECOMMENDATION:
Staff recommends the City Council and the Redevelopment Agency Board (Agency
Board) adopt respective resolutions which approve a Cooperation Agreement
between the City of Culver City (City) and the Culver City Redevelopment Agency
(Agency) for funding of proposed public infrastructure improvements relating to
Public Safety Headquarters and Veterans Memorial Building (Public Buildings
Agreement).
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 legislative body (in Culver City’s case, 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 eliminating
blight and in implementing the goals of the Culver City Redevelopment Project.
City of Culver City, California
Agenda Item Report
Page 2 of 3
By adopting the proposed resolutions, the City and the Agency will be establishing
the authority, framework and funding source to pursue vitally needed improvements.
DISCUSSION:
The City and the Agency may want to fund a new public safety headquarters facility,
the location of which is to be determined and improvements to Veterans Memorial
Complex, located in Component Area No. 3, of the Culver City Redevelopment
Project through a Cooperation Agreement (Attachment No. 1) between the two
parties.
The proposed Public Buildings Agreement and the Summary Pertaining to the
Funding of Proposed Public Infrastructure Improvements (the, “Summary Report”)
(Attachment No. 2) contain more detailed descriptions of the Improvements
proposed to be funded. The Public Buildings 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 increases uncertainty and will, in some cases, make it more difficult
for Redevelopment Agencies to fund public improvements. 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.
Because this window of opportunity will be closing, the Agency Board can seize the
opportunity now to secure an income stream needed to accomplish additional
redevelopment activities by entering into the proposed contractual obligation with the
City.
The proposed findings, as documented in the Summary Report, supporting approval
of the Public Buildings Agreement are:
1. The proposed public infrastructure improvements are of benefit to the Culver City
Redevelopment Project and the immediate neighborhood in which the Project
Area is located;
2. No other reasonable means of financing the proposed public infrastructure
improvements are available to the community;
3. The specified public infrastructure improvements will assist in the elimination of
one or more blighting conditions inside the Project Area; and,
4. 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.
5. The redevelopment purpose for which Agency funds are being used.
City of Culver City, California
Agenda Item Report
Page 3 of 3
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 and provides the
timing to complete the improvements. Exhibit 2 includes the schedule of Agency
payments. All costs generally include hard and soft costs and land acquisition
where applicable. The sum of these costs is $120,000,000 with all costs estimated
in current year dollars.
ATTACHMENTS:
1. Proposed Cooperation Agreement
2. Summary Pertaining to the Funding of Proposed Public Infrastructure
Improvements (Pursuant to Section 33679 of the Health and Safety Code)
3. Proof of Publication for the Public Hearing Notice
4. Proposed City Council Resolution
5. Proposed Redevelopment Agency Board Resolution
MOTION:
That the City Council:
1. Adopt a Resolution that makes findings and determinations pursuant to
Health and Safety Code Section- 33445 and approves the Public Buildings
Agreement between the City of Culver City and the Culver City
Redevelopment Agency to provide for funding of proposed public
infrastructure improvements relating to Public Safety Headquarters and
Veterans Memorial Building; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.
That the Agency Board:
1. Adopt a Resolution that makes findings and determinations pursuant to
Health and Safety Code Section 33445 and approves the Public Buildings
Agreement between the City of Culver City and the Culver City
Redevelopment Agency to provide for funding of proposed public
infrastructure improvements relating to Public Safety Headquarters and
Veterans Memorial Building,
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: 02.22.10
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.
ATTACHMENTS
Pages
1. Proposed Cooperation Agreement 1-8
2. Summary Pertaining To the Funding Of Proposed
Public Infrastructure Improvements (Pursuant to
Section 33679 of the Health and Safety Code) 9-16
3. Proof of Publication for Public Hearing Notice 17-18
4. Proposed City Council Resolution 19-26
5. Proposed Redevelopment Agency Resolution 27-34 City Contract No. 2011-
Page 1 of 6
COOPERATION AGREEMENT
FOR PAYMENT OF COSTS ASSOCIATED WITH CERTAIN REDEVELOPMENT
AGENCY FUNDED PROJECTS
THIS COOPERATION AGREEMENT (this “Agreement”) is entered into this
_______ day of February, 2011, by and between the CITY OF CULVER CITY (the
“City”) and the CULVER CITY REDEVELOPMENT AGENCY(the “Agency”), with
reference to the following facts:
A. The Agency has prepared Redevelopment Plans for the Culver City
Redevelopment Projects (collectively, the “Project Areas”), which results in the
allocation of taxes from the Project Areas to the Agency for purposes of redevelopment.
B. The intent of the Redevelopment Plans is, in part, to provide for the construction
and installation of necessary public infrastructure and facilities and to facilitate the
repair, restoration and/or replacement of existing public facilities and to perform specific
actions necessary to promote the redevelopment and the economic revitalization of the
Project Areas; to increase, improve and preserve the community’s supply of low and
moderate income housing, some of which may be located or implemented outside the
Project Areas; and to take all other necessary actions to implement the Redevelopment
Plans and to expend tax increment to accomplish these goals and objectives.
C. The Agency has adopted its Five-Year Implementation Plans for the Project
Areas, as amended from time to time (collectively, the “Implementation Plans”) with
established goals to support affordable housing, economic development, community
revitalization, commercial revitalization, and institutional revitalization. To implement the
programs and activities associated with each goal, the Agency has made
redevelopment fund commitments and budget allocations based on estimated available
tax increment revenue and debt financing structures.
D. Pursuant to Section 33220 of the California Community Redevelopment Law
(Health and Safety Code Section 33000 et seq.) (the “CRL”), certain public bodies,
including the City may aid and cooperate in the planning, undertaking, construction, or
operation of redevelopment projects. Collectively, the projects associated with this
Agreement are listed in the attached Exhibit 1 and is incorporated herein (the
“Projects”). To carry out the Projects in accordance with the objectives and purposes
of the Redevelopment Plans for the Project Areas and the Implementation Plans, the
Agency desires assistance and cooperation in the implementation and completion of the
Projects. The City agrees to aid the Agency and cooperate with the Agency to
expeditiously implement the Projects in accordance with the Redevelopment Plans for
the Project Areas and the Implementation Plans and undertake and complete all actions
necessary or appropriate to ensure that the objectives of the Redevelopment Plans for
the Project Areas and the Implementation Plans are fulfilled within the time
effectiveness of the Project Areas.
ATTACHMENT 1
1 City Contract No. 2011-
Page 2 of 6
E. In considering the Agency’s desire to ensure timely implementation and
completion of the Projects, the Agency wishes to enter into this Agreement with the City
for the pledge of net available tax increment to finance the Projects. The purpose of this
Agreement is to facilitate the implementation of the Projects and to provide funding
necessary to effectuate the completion of the Projects with net available tax increment
in this current fiscal year and forthcoming fiscal years.
F. Wherever used in the Cooperation Agreement the term “net available tax
increments” shall mean and include tax increment as defined or provided for in any
applicable constitutional provision, statute or other provision of law now existing or
adopted in the future, and allocated to (i) the Agency and/or (ii) any lawful successor
entity of the Agency and/or (iii) any entity established by law to carry out the
redevelopment plan for the Project Area and/or (iv) any entity established by law to
expend tax increment and/or (v) any entity established by law to pay indebtedness of
the Agency to be repaid in whole or in part with tax increment, pursuant to Section
33670, et seq., of the California Community Redevelopment Law or any applicable
constitutional provision, statute or other provision of law now existing or adopted in the
future.
G. The City Council (the “Council”) and the Agency by resolution have each found
that the use of Agency redevelopment funding for the publicly owned improvements
included in the Projects is in accordance with Section 33445 of the CRL and other
applicable law. The said City Council and Agency resolutions are each based on the
authority of the Agency, with the consent of the City Council, to pay all or part of the
cost of the installation and construction of any building, facility, structure, or other
improvements which is publicly owned within a Project Area, if the City Council makes
certain determinations.
H. By approving and entering into this Agreement, the Agency has approved certain
obligations, including the pledge of net available tax increment to pay for the Projects.
I. The obligations of the Agency under this Agreement shall constitute an
indebtedness of the Agency for the purpose of carrying out the Redevelopment Plans
for the Project Areas.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
I. INTRODUCTORY PROVISIONS
The recitals above are an integral part of this Agreement and set forth the
intentions of the parties and the premises on which the parties have decided to enter
into this Agreement.
ATTACHMENT 1
2 City Contract No. 2011-
Page 3 of 6
II. AGENCY’S OBLIGATIONS
1. The Projects are those projects which are listed on the attached Exhibit 1.
The Agency agrees to pay to the City an amount equal to the cost to the City to carry
out the Projects, including without limitation all costs incurred by the City for the
planning, acquisition and disposition, financing, development, permitting, design, site
testing, bidding, construction and construction management of the Projects. 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 Sections 33445 of the CRL and other applicable statutes. 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.
2. The obligations of Agency under this Agreement shall be payable out of
net available tax increment, as defined in the above recitals and/or as defined or
provided for in any applicable constitutional provision, statute or other provision of law
now existing or adopted in the future, levied by or for the benefit of taxing agencies in
the Project Areas, and allocated to the Agency and/or any lawful successor entity of the
Agency and/or any entity established by law to carry out any of the redevelopment plans
for the Project Areas and/or expend tax increment or pay indebtedness of the Agency to
be repaid with tax increment, pursuant to Section 33670 of the CRL or any applicable
constitutional provision, statute or other provision of law now existing or adopted in the
future, in amounts not less than those set forth in the schedule attached hereto as
Exhibit 1. In the event that additional funds are required in order to make the Agency
payments to the City required by this Agreement, the Agency shall make such
payments from income received by the Agency from its projects and programs or any
other additional funds available to it.
3. The indebtedness of 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 (all referred to herein as “indebtedness”) of the Agency incurred or issued
to finance the Project Areas, including without limitation any pledge of tax increment
revenues from the Project Areas to pay any portion of the principal (and otherwise
comply with the obligations and covenants) of any bond or bonds issued or sold by
Agency with respect to the Project Areas.
4. All payments due to be made by the Agency to the City under this
Agreement shall be made by the Agency as set forth in the schedule attached hereto as
Exhibit 2 and as otherwise necessary to reimburse the City for the cost to the City of
performing its obligations hereunder.
III. CITY’S OBLIGATIONS
ATTACHMENT 1
3 City Contract No. 2011-
Page 4 of 6
1. The City shall accept any funds offered by the Agency pursuant to this
Agreement and shall devote those funds to completion of the Projects by (i) reimbursing
itself or using such funds to make City expenditures to perform the work required to
carry out and complete the Projects; (ii) utilizing such funds to pay debt service on
bonds or other indebtedness or obligations that the City has or will incur for such
purposes; and/or (iii) paying such funds into a special fund of the City to be held and
expended only for the purpose of satisfying the obligations of the City hereunder.
2. The City shall provide Agency with a quarterly report accompanied by
evidence reasonably satisfactory to the Agency’s Executive Director that the City has
progressed in the development and construction of the Project for which payment is
made by the Agency commensurate with such payments and has incurred costs or
obligations to make payments equal to or greater than such amount.
3. It is the responsibility of City to pay all development and construction costs
in connection with the Projects from funds paid to the City by the Agency under this
Agreement.
4. The City shall perform its obligations hereunder in accordance with the
applicable provisions of federal, state and local laws, including the obligation to comply
with environmental laws such as CEQA before undertaking each Project, and shall
timely complete the work required for each Project in accordance with the schedule as
set forth in Exhibit 1.
IV. LIABILITY AND INDEMNIFICATION
In contemplation of the provisions of California Government Code section 895.2
imposing certain tort liability jointly upon public entities solely by reason of such entities
being parties to an agreement as defined by Government Code section 895, the parties
hereto, as between themselves, pursuant to the authorization contained in Government
Code sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or
any of its officers, agents or employees, by law for injury caused by negligent or
wrongful acts or omissions occurring in the performance of this Agreement to the same
extent that such liability would be imposed in the absence of Government Code section
895.2. To achieve the above-stated purpose, each party indemnifies, defends and
holds harmless the other party for any liability, losses, cost or expenses that may be
incurred by such other party solely by reason of Government Code section 895.2.
V. ENTIRE AGREEMENT; WAIVERS; AND AMENDMENTS
1. This Agreement shall be executed in triplicate originals, each of which is
deemed to be an original. This Agreement consists of six (6) pages and two (2)
Exhibits, which constitute the entire understanding and agreement of the parties.
ATTACHMENT 1
4 City Contract No. 2011-
Page 5 of 6
2. This Agreement integrates all of the terms and conditions mentioned
herein or incidental hereto, and supersedes all negotiations or previous agreements
between the parties with respect to the subject matter of this Agreement.
3. 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. All waivers of the provisions of this Agreement and all amendments to this
Agreement must be in writing and signed by the authorized representatives of the
parties.
VI. SEVERABILITY
If any term, provisions, covenant or condition of this Agreement is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of the
provisions shall continue in full force and effect unless the rights and obligations of the
parties have been materially altered or abridged by such invalidation, voiding or
unenforceability.
VII. 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. All notices of defaults shall clearly indicate a notice of
default under this Agreement.
VIII. 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.
[Signatures begin on next page]
ATTACHMENT 1
5 City Contract No. 2011-
Page 6 of 6
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first set forth above.
Dated: CITY OF CULVER CITY
By:
Christopher Armenta, Mayor
Dated: CULVER CITY REDEVELOPMENT AGENCY
By:
John Nachbar, Executive Director
APPROVED AS TO FORM:
CAROL SCHWAB, City Attorney
KANE BALLMER & BERKMAN
MURRAY O. KANE, Agency General Counsel
ATTACHMENT 1
6
EXHIBIT NO. 1
LIST OF PROJECTS
ITEM DESCRIPTION AMOUNT|1010|COMPLETION
DATE|1010|
1 Improvements to Veterans Memorial
Complex
$60,000,000 2013-14
2 New Public Safety Headquarters and
Training Facility
$60,000,000 2016-17
TOTAL
$120,000,000
|1010|Does not include interest cost
2
Completion dates may be subject to extension by the mutual written agreement of City
and Redevelopment Agency.
ATTACHMENT 1
7 City Contract No. 2011-
EXHIBIT NO. 2
SCHEDULE OF AGENCY PAYMENTS
YEAR PAYMENT
2010-11 12,000,000
2011-12 15,000,000
2012-13 18,000,000
2013-14 18,000,000
2014-15 20,000,000
2015-16 20,000,000
2016-17 17,000,000
ATTACHMENT 1
8
CULVER CITY REDEVELOPMENT PROJECT
CULVER CITY, CALIFORNIA
SUMMARY PERTAINING TO THE FUNDING OF PROPOSED PUBLIC
INFRASTRUCTURE IMPROVEMENTS
(California Community Redevelopment Law Section 33679)
PURSUANT TO A PROPOSED COOPERATION AGREEMENT BY AND
BETWEEN THE CULVER CITY REDEVELOPMENT AGENCY AND THE
CITY OF CULVER CITY
Culver City Redevelopment Agency
February 7, 2011
ATTACHMENT 2
9TABLE OF CONTENTS
Page
I Introduction 2
II Cost Of The Cooperation Agreement To The Agency 2
III The Facts Supporting A Determination That The
Proposed Public Infrastructure Improvements Are Of
Benefit To The Project Area
3
IV The Facts Supporting A Determination That No Other
Reasonable Means of Financing The Proposed Public
Infrastructure Improvements Are Available To The
Community
4
V The Facts Supporting A Determination That The
Construction Of The Proposed Public Infrastructure
Improvements Will Assist In Eliminating One Or More
Blighting Conditions
5
VI The Facts Supporting A Determination That The
Proposed Public Infrastructure Improvements Are
Consistent With The Implementation Plan For The
Project Area
6
VII The Redevelopment Purpose For Which Additional
Agency Funds Are Being Used
7
ATTACHMENT 2
102
Introduction
The Culver City Redevelopment Agency (the “Agency”), is considering financing
proposed public infrastructure improvements within the community that are of benefit to
the Culver City Redevelopment Project, pursuant to a Cooperation Agreement between
the Agency and the City of Culver City, California (the “City”.)
This Summary was prepared in accordance with Section 33679 of the California
Community Redevelopment Law in order to inform the Agency and the public about the
transactions. This summary describes and specifies:
A. The costs and tax increment funds to be paid by the Agency under the
proposed Cooperation Agreement.
B. The facts supporting determinations that:
1. The proposed public infrastructure improvements are of benefit to the
Culver City Redevelopment Project, and the immediate neighborhood
in which the Project Area is located;
2. No other reasonable means of financing the proposed public
infrastructure improvements are available to the community;
3. The proposed public infrastructure improvements will assist in the
elimination of one or more blighting conditions inside the Project Area;
and,
4. The proposed public infrastructure improvements are consistent with
the Implementation Plan for the Project Area adopted pursuant to
Section 33490 of the California Redevelopment Law.
C. The redevelopment purpose for which additional Agency funds are being
used to pay for the proposed public infrastructure improvements.
II. The Cost of the Cooperation Agreement to the Agency
The estimated costs (and tax increment funds) to be paid by the Agency for the
proposed public infrastructure improvements in the proposed Cooperation Agreement
are listed on the following page:
ATTACHMENT 2
113
Proposed Public Infrastructure Improvement
Estimated Cost to Agency
New Public Safety Facility
$60,000,000
Improvements to Veterans Memorial Complex $60,000,000
TOTAL $120,000,000
III The Facts Supporting A Determination That The Proposed Public
Infrastructure Improvements Are Of Benefit To The Project Area
New Public Safety Headquarters and Training Facilities:
Expansion, relocation and merging of the headquarters facilities for the Culver
City Police and Fire Departments will streamline efficiencies within the two
departments and provide better, more comprehensive and timely service delivery
to the project area. Both facilities are located within Component Area No. 3 of
the Project Area. The Police Headquarters serves all of the Project area and the
rest of Culver City and Fire Station No. 1, serves an area largely comprised of
Component Area No. 3 of the Project Area. The current Police Station is
inefficiently organized due to the odd parcel shape it sits on. Fire Station No. 1
inhibits the full economic use of a prime parcel of real estate in Culver City’s
downtown. At its present location, emergency vehicles responding to calls must
enter the street system at a particularly congested downtown intersection. A
relocated facility will remove this traffic hazard and expedite response time.
Consolidation of Fire Department training facility with the Fire Station will improve
efficiencies within the department.
The location of this facility is yet to be determined.
Improvements to Veterans Memorial Complex
Veterans Memorial Complex is located within Component Area No. 3 of the
Project area and is the only facility of its kind, locally. As such, it provides unique
services, meeting and event space available to Project area residents. The
primary building was constructed in the 1940s and is in need of rehabilitation as
many components have reached the end of their functional or economic life.
ATTACHMENT 2
124
Without this vital facility, Project area residents would have to leave the City to
find a comparable venue. Other facilities within the complex are in various states
of disrepair and suffer from deferred maintenance
IV The Facts Supporting A Determination That No Other Reasonable Means of
Financing The Proposed Public Infrastructure Improvements Are Available
To The Community
The City of Culver City General Fund
The City has already adopted mid-year budget amendments to reduce current year
revenues by more than two million dollars and the City’s Chief Financial Officer projects
an approximately eight million dollar shortfall in revenues for the Fiscal Year 2010-2011
budget. Moreover, without new revenues or significantly reduced expenditures,
projected shortfalls in upcoming years will erode away the City’s Reserve Fund until it
has been depleted by 2015. New and existing capital projects are severely impacted by
this economic reality. Responsible budgeting by the City will be reduced to
maintenance of effort only and will require a reduction in some services. New programs
and infrastructure projects will not be economically feasible in the near future.
As stated in the City Council staff reports on February 9, 2009 and March 30, 2009, the
City of Culver City has a structural deficit which one-time, quick fixes cannot address
over the long term. Limited financial resources have caused needed capital projects to
be deferred.
Moreover, Propositions 13 and 218 make raising revenue through higher taxes a
difficult challenge as voter approval would be necessary
An alternative to raising taxes and fees would be issuing bonds. The cost of many of
the proposed public infrastructure improvements is at such a level that issuing bonds is
a more realistic manner to fund the improvements. But just as with raising taxes, voter
approval of the bond issuance would be necessary since the bond payments become a
legal obligation and could result in the need to raise taxes.
Due to the circumstances described above, the City does not currently have the
resources to fund the proposed public infrastructure improvements.
The Culver City Redevelopment Agency Tax Increment Revenue
ATTACHMENT 2
135
The absence of any significant new revenues to address the multitude of shortfalls the
City expects to face in confronting a structural deficit leaves the tax increment revenue
stream which flows to the Redevelopment Agency as the only reasonable means of
financing the proposed public infrastructure improvements. The tax increment revenue
is derived from the increase in assessed value of property within the Project Area. This
source of revenue is generally more stable than many of the City’s sources (e.g. sales
tax, business tax, and development related taxes and fees) which can fluctuate with
much more volatility. As well, the utilization of tax increment to achieve these projects
represents a redistribution of existing property taxes and requires no new or additional
taxes or increase in existing taxes.
Also, unlike the City, the Redevelopment Agency can issue bonds without requiring
voter approval. This is possible because the Agency can dedicate its future stream of
tax increment revenues towards making the bond payments. As stated above, tax
increment revenue is revenue derived from existing tax payments. Redevelopment
Agencies cannot impose new taxes on property owners within the Redevelopment
Project Area.
V The Facts Supporting A Determination That Construction Of The Proposed
Public Infrastructure Improvements Will Assist In Eliminating One Or More
Blighting Conditions
In addition to the facts stated in Section III of this report, the proposed public
infrastructure improvements will: provide needed services and facilities to the Project
Area residents and businesses where they are now lacking; spur new private economic
investment within the Project Area; reduce physical deterioration of many proposed
public facilities; and shift to a more sustainable way of life.
New Public Safety Headquarters Facility:
Crime is a blighting condition which can be reduced with better police facilities.
As well, reducing response time to the Project Area and improving investigative
efficiency for police can reduce blight and enhance public safety.
Emergency response services are integral to the City and Project area,
supporting the health, safety and welfare of the general public. Providing these
services at adequate levels is critical to maintaining the health, safety and
welfare of the downtown neighborhoods, as well as protecting sound
maintenance of downtown properties. Increased densities in downtown, and
ATTACHMENT 2
146
traffic circulation challenges, create a need for improving and maintaining
adequate emergency response service levels and response times through the re-
positioning of fire-rescue facilities.
Improvements to Veterans Memorial Complex
Safety improvements and modernization of the Veterans Memorial Complex will
eliminate blight by replacing and upgrading aging facilities. The improvements
will ensure that the complex will continue to provide a vital resource for decades
to come. Investing in the rehabilitation and adaptive re-use of an existing facility
is more economic than building new, and is less land intensive.
VI The Facts Supporting A Determination That The Proposed Public
Infrastructure Improvements Are Consistent With The Implementation Plan
For The Project Area
New Public Safety Headquarters Facilities:
The proposed relocation of Fire Station No. 1 is consistent with achieving Goal
No. 1.0, Objective No. 1.4.1: “Utilize Agency authority to acquire and assemble
appropriate downtown development sites for disposition and redevelopment.”
The proposed New Public Safety Headquarters Facilities is consistent with
achieving Goal No. 3.0, Objective No. 3.1.12: “Rehabilitate or replace outdated
public facilities to improve public safety and enhance the quality of life.”
Improvements to Veterans Memorial Complex
The Improvements to Veterans Memorial Complex is consistent with:
addressing Blighting Condition No. 2.3: “Community open space, recreational
and public facility space is substandard in Component Area No. 2.; and
with achieving Goal No. 3.0, Objective No. 3.1.12: “Rehabilitate or replace
outdated public facilities to improve public safety and enhance the quality of life.”
ATTACHMENT 2
157
VII The Redevelopment Purpose For Which Agency Funding Is Being Used
Collectively, the Agency funding proposed for the proposed public infrastructure
improvements provide needed infrastructure to attract private investment and thereby
assists in the elimination of blighting influences. The proposed improvements will:
improve economic use of nearby properties; improve access for persons with
disabilities; improve recreational opportunities for Project Area residents; and, improve
public safety by providing modern, spacious and efficient facilities for the Police and Fire
Departments to operate in. In their entirety, the proposed expenditure of Agency funds
for the proposed public infrastructure projects signals to the private market that the
Culver City Redevelopment Agency is investing in its community. This gives Culver City
a competitive advantage over more moribund districts where similar public investment is
lacking.
Furthermore, the proposed public infrastructure improvements protect and promote the
sound development and redevelopment of blighted areas and the general welfare of the
inhabitants of the community in which they exist by remedying such injurious conditions
through the employment of all appropriate means.
Furthermore, the continuation of blighting elements restricts employment opportunities,
and the resulting lack of employment opportunity creates despair and frustration which
may create destabilizing forces within the community and be at odds with the mission of
the Redevelopment Agency.
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2. The City Council hereby finds and determines that the foregoing
recitals are true and correct.
3. Based upon the testimony and Documentary Evidence presented at
the public hearing, the City Council hereby finds and determines, with respect to the
Projects that are publicly owned and are located inside or contiguous to the respective
project area, that:
(a) Said Projects and the programs and activities associated
therewith are of benefit to the Project Area by helping to eliminate blight within the Project
Area; and
(b) No other reasonable means of financing said Projects and the
programs and activities associated therewith are available to the community; and
(c) The payment of funds by the Agency for the costs related to
said Projects and the programs and activities associated therewith is consistent with the
respective Implementation Plan adopted pursuant to Section 33490 of the CRL.
4. The Agreement in substantially the form presented to the City Council
is hereby approved, a copy of which is on file with the Secretary of the Agency.
5. The City Manager, or designee, is hereby authorized to execute the
Agreement on behalf of the City, together with such non-substantive changes and
amendments as may be approved by the City Manager and City Attorney.
6. The City Manager, or designee, is hereby authorized, on behalf of the
City, to sign all documents necessary and appropriate to carry out and implement the
Agreement, including without limitation, any security instruments to be recorded against
Agency assets to secure the Agency’s obligations under the Agreement, and to administer
the City’s obligations, responsibilities and duties to be performed under the Agreement.
ATTACHMENT 4
23ATTACHMENT 4
24Exhibit No. 1 to Resolution No. 2011-A_____
EXHIBIT NO. 1
LIST OF PROJECTS
ITEM DESCRIPTION AMOUNT|1010|COMPLETION
DATE|1010|
1 Improvements to Veterans Memorial
Complex
$60,000,000 2013-14
2 New Public Safety Headquarters and
Training Facility
$60,000,000 2016-17
TOTAL
$120,000,000
|1010|Does not include interest cost
2
Completion dates may be subject to extension by the mutual written agreement of City
and Redevelopment Agency.
ATTACHMENT 4
25Exhibit No. 2 to Resolution No. 2011-A_____
EXHIBIT NO. 2
SCHEDULE OF AGENCY PAYMENTS
YEAR PAYMENT
2010-11 12,000,000
2011-12 15,000,000
2012-13 18,000,000
2013-14 18,000,000
2014-15 20,000,000
2015-16 20,000,000
2016-17 17,000,000
ATTACHMENT 4
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RESOLUTION NO. 2011-A
A RESOLUTION OF THE CULVER CITY REDEVELOPMENT
AGENCY APPROVING A COOPERATION AGREEMENT FOR
FUNDING OF PROPOSED PUBLIC INFRASTRUCTURE
IMPROVEMENTS RELATING TO PUBLIC SAFETY
HEADQUARTERS AND VETERANS MEMORIAL BUILDING
AND MAKING CERTAIN DETERMINATIONS AND FINDINGS
PURSUANT TO HEALTH AND SAFETY CODE SECTION
33445.
WHEREAS, the City Council of the City of Culver City (the “City Council”)
adopted Redevelopment Plans for the Culver City Redevelopment Projects (collectively,
the “Project Areas”), which results in the allocation of taxes from the Project Areas to the
Redevelopment Agency for the City of Culver City (the “Agency”) for purposes of
redevelopment; and
WHEREAS, the intent of the Redevelopment Plans is, in part, to provide for
the construction and installation of necessary public infrastructure and facilities and to
facilitate the repair, restoration and/or replacement of existing public facilities and to
perform specific actions necessary to promote the redevelopment and the economic
revitalization of the Project Areas; and to increase, improve and preserve the community’s
supply of low and moderate income housing, some of which may be located or
implemented outside the Redevelopment Project Areas; and to take all other necessary
actions to implement the Redevelopment Plans for the respective Project Areas and to
expend tax increment to accomplish these goals and objectives; and
WHEREAS, the Agency has adopted its Five-Year Implementation Plans for
the Project Areas, as amended from time to time (the “Implementation Plans”) with
established goals to support affordable housing, economic development, community
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revitalization, commercial revitalization, and institutional revitalization. To implement the
programs and activities associated with each goal, the Agency has made redevelopment
fund commitments and budget allocations based on estimated available tax increment
revenue and debt financing structures; 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 Areas and
accomplish various tasks set forth in the Redevelopment Plans and the Implementation
Plans; and
WHEREAS, pursuant to Section 33220 of the California Community
Redevelopment Law (Health and Safety Code Section 33000 et seq.) (the “CRL”) certain
public bodies, including the City may aid and cooperate in the planning, undertaking,
construction, or operation of redevelopment projects; and
WHEREAS, pursuant to Section 33679 of the CRL, the Agency may commit
tax increment revenues to pay all or a portion of the costs relating to land acquisition for,
installation of, and construction of any publicly owned building, other than parking facilities,
subject to a public hearing by the City Council; and
WHEREAS, the Agency and the City have prepared a Cooperation
Agreement (the “Agreement”) to provide for implementation of certain projects relating to a
public safety headquarters and improvements to Veterans Memorial Building as set forth in
the schedule attached thereto as Exhibit 1 (the “Projects”), and to make payments by the
Agency to the City in accordance with the schedule attached thereto as Exhibit 2 and as
otherwise necessary to reimburse the City for the cost to the City of performing its
obligations thereunder in accordance with the schedule as set forth in said Exhibit 1,
subject to all of the terms and conditions of the Agreement; and
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WHEREAS, the programs and activities associated with the Projects include,
but are not limited to, acquisition and disposition of property, development of design
criteria, design, planning, preparation of construction bid documents, financial analysis,
financing and new construction or rehabilitation.
WHEREAS, the obligations of the Agency under the Agreement shall
constitute an indebtedness of the Agency for the purpose of carrying out the
Redevelopment Plans for the Project Areas; and
WHEREAS, it is in the best interests of the City and for the common benefit of
residents, employees, business tenants and property owners within the Project Areas and
the City as a whole for the Projects to be developed and constructed; and
WHEREAS, pursuant to Sections 33445 and 33679 of the CRL, the Agency’s
Board and City Council held a joint public hearing on February 22, 2011 on the proposed
Agreement; having duly published notice of such public hearing, and made copies of the
Agreement and the Summary Pertaining to the Funding of Specified Public Infrastructure
Improvements (the “Summary”) available for public inspection and comment; and
WHEREAS, pursuant to the CRL, the Agency has considered the information
regarding: (1) the benefit of the Projects that are publicly owned and are located inside or
contiguous to the respective project area, including the information contained in Section III
of the Summary; (2) the availability to the community of other reasonable means of
financing said Projects and the programs and activities associated therewith, including the
information contained in Section IV of the Summary; (3) the Projects will assist in the
elimination of one or more blighting conditions, including the information contained in
Section V of the Summary Report; and (4) the payment of funds for said Projects and the
program and activities associated therewith is consistent with the respective
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Implementation Plan adopted pursuant to Section 33490 of the CRL, including the
information contained in Section VI of the Summary; and
WHEREAS, the Agency has reviewed and duly considered the staff report,
Summary, documents and other written evidence presented at the hearing (the
“Documentary Evidence”) and all terms and conditions of the proposed Agreement, and
believes the payments by the Agency to the City in accordance with the Agreement 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, the Agreement shall require the City to comply with Public
Resources Code sections 21000 et seq. (“CEQA”) before undertaking each Project and,
pursuant to CEQA Guideline Section 15378(b)(4), approval of the Agreement is not a
project subject to the California Environmental Quality Act (“CEQA”), because the
Agreement consists of the creation of a governmental funding mechanism for various public
improvements, but does not commit funds to any specific public improvement, in that
environmental review required by CEQA shall be completed prior to the commencement of
any public improvement listed in the Agreement; 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 Agreement, and to other matters pertaining to this transaction, and
all such oral and written objections are hereby overruled.
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2. The Redevelopment Agency Board hereby finds and determines that
the foregoing recitals are true and correct.
3. Based upon the testimony and Documentary Evidence presented at
the public hearing, the Redevelopment Agency Board hereby finds and determines, with
respect to the Projects that are publicly owned and are located inside or contiguous to the
respective project area, that:
(a) Said Projects and the programs and activities associated
therewith are of benefit to the Project Area by helping to eliminate blight within the Project
Area; and
(b) No other reasonable means of financing said Projects and the
programs and activities associated therewith are available to the community; and
(c) The payment of funds by the Agency for the costs related to
said Projects and the programs and activities associated therewith is consistent with the
respective Implementation Plan adopted pursuant to Section 33490 of the CRL.
4. The 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 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
implement the Agreement, including without limitation, any security instruments to be
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recorded against Agency assets to secure the Agency’s obligations under the Agreement,
and to administer the Agency’s obligations, responsibilities and duties to be performed
under the Agreement.
7. This Resolution shall take effect immediately upon its adoption.
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
A11-00072
ATTACHMENT 5
32Exhibit No. 1 to Resolution No. 2011-A_____
EXHIBIT NO. 1
LIST OF PROJECTS
ITEM DESCRIPTION AMOUNT|1010|COMPLETION
DATE|1010|
1 Improvements to Veterans Memorial
Complex
$60,000,000 2013-14
2 New Public Safety Headquarters and
Training Facility
$60,000,000 2016-17
TOTAL
$120,000,000
|1010|Does not include interest cost
2
Completion dates may be subject to extension by the mutual written agreement of City
and Redevelopment Agency.
ATTACHMENT 5
33Exhibit No. 2 to Resolution No. 2011-A_____
EXHIBIT NO. 2
SCHEDULE OF AGENCY PAYMENTS
YEAR PAYMENT
2010-11 12,000,000
2011-12 15,000,000
2012-13 18,000,000
2013-14 18,000,000
2014-15 20,000,000
2015-16 20,000,000
2016-17 17,000,000
ATTACHMENT 5
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