HomeMy WebLinkAboutResolution 2016-20 06/20/2016 RESOLUTION NO. 2016-20
A RESOLUTION APPROVING EXTENSION OF AN INTERGOVERNMENTAL AGREEMENT
TO ADVANCE $1.5 MILLION TO THE SPRINGFIELD ECONOMIC DEVELOPMENT
AGENCY (SEDA) FOR COSTS OF URBAN RENEWAL PROJECTS
WHEREAS, the City of Springfield voters approved formation of the Glenwood Urban
Renewal District on November 29, 2005; and
WHEREAS, on November 6, 2007, the citizens of Springfield approved the formation
of the Downtown Urban Renewal District; and
WHEREAS, the City of Springfield is a municipal corporation of the State of Oregon
and authorized by Oregon Revised Statutes Chapter 190 to enter into
intergovernmental agreements; and
WHEREAS, the Springfield Economic Development Agency (SEDA) is authorized by
Oregon Revised Statutes Chapter 457 to incur indebtedness to carry out its Glenwood
and Downtown Urban Renewal Plans and by Oregon Revised Statutes Chapter 190 to
enter into intergovernmental agreements; and
WHEREAS, the Projects listed in the Downtown and Glenwood Urban Renewal Plans
include Public Improvements; Redevelopment Through New Construction;
Preservation, Rehabilitation, Development and Redevelopment; Property Acquisition
and Disposition; and Plan Technical Studies and Administration; and
WHEREAS, the City of Springfield has pledged its cooperation to assist the two urban
renewal districts in the development of Projects located in the urban renewal areas
and listed in the two urban renewal plans through a Cooperation and Services
Agreement initially approved on November 29, 2005, amended on July 21, 2008 to
incorporate the Downtown Urban Renewal District, further amended on November 21,
2011 and as amended on June 20, 2016; and
WHEREAS, the City of Springfield has pledged its assistance to extend a line of credit
and authority to accept repayment in the amount of $1.5 million; and
WHEREAS, the current three-year agreement expired on June 30, 2014; and
WHEREAS, the City of Springfield wishes to continue to extend the line of credit and
authority to accept repayment.
NOW THEREFORE, BE IT RESOLVED as follows:
1. The City Manager is authorized to execute an Intergovernmental Agreement in
substantially similar form as attached hereto and incorporated by this reference,
which extends the line of credit and authority to accept repayment in the amount
of $1.5 million from July 1, 2014, until the agreement is terminated.
2. This Resolution shall take effect upon the date of adoption by the Council and
Approval by the Mayor.
Adopted by the Common Council of the City of Springfield at a regular meeting held
on June 20, 2016 by the following votes:
AYES: 5
NAYS: 0 (1 abs - Pishioneri)
Mayor
Attest:
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RESOLUTION NO. 2016-20
INTERGOVERNMENTAL AGREEMENT
TO ADVANCE AND REPAY FUNDS NEEDED FOR
URBAN RENEWAL PROJECTS
By and between the
Springfield Economic Development Agency, Oregon
And the
City of Springfield, Oregon
Dated as of November 29, 2005
And as amended on July 21, 2008,
November 12, 2011, and June 20, 2016
Contract #670
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RESOLUTION NO. 2016-20
Table of Contents
1. DEFINITIONS AND RECITALS 1
1.1 DEFINITIONS 1
1.2 RECITALS 1
2. THE REPAYMENTS 2
2.1 ADVANCES 2
2.2 INTEREST 2
2.3 REPAYMENT 2
2.4 SECURITY FOR THE OBLIGATION OF SEDA 2
TO PAY THE REPAYMENTS
3. MISCELLANEOUS 2
3.1 BINDING EFFECT 2
3.2 SEVERABILITY 2
3.3 AMENDMENTS 2
3.4 EXECUTION IN COUNTERPARTS 3
3.5 APPLICABLE LAW 3
3.6 RULES OF CONSTRUCTION 3
3.7 HEADINGS 3
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RESOLUTION NO. 2016-20
INTERGOVERNMENTAL AGREEMENT
This Intergovernmental Agreement to advance and repay funds needed for Urban
Renewal Projects is dated as of November 25, 2005, as further amended on July 21,
2008, as further amended on November 21„ 2011, as further amended on June 20,
2016 and is entered into by and between the Springfield Economic Development
Agency, ("SEDA") and the City of Springfield, Oregon (the "City"). The parties hereby
agree as follows:
1. Definitions and Recitals.
1.1 Definitions.
Unless the context clearly requires otherwise, capitalized terms used in this
Intergovernmental Agreement shall have the following meanings unless the context
clearly requires otherwise:
"Intergovernmental Agreement" means this Intergovernmental Agreement between
the City and SEDA.
"Outstanding Balance" means the sum of all advances to SEDA by the City under
Section 2.1 of this Intergovernmental Agreement, less all Repayments of principal
that have been made by SEDA.
"Repayments" means the payments SEDA is required to make to the City under
Section 2.3 of this Intergovernmental Agreement.
"Projects" means urban renewal projects that are properly described in SEDA's urban
renewal plan for the Glenwood and Downtown Urban Renewal Area, and any other
costs for which the Tax Increment Revenues may be spent under Oregon law.
However, "Projects" shall not include any loans to third parties unless the loans
receive the prior written approval of the City.
"Tax Increment Revenues" means all revenues which SEDA collects from the
Glenwood and Downtown Urban Renewal Area under the provisions of Article IX,
Section lc of the Oregon Constitution and ORS Chapter 457.
1.2 Recitals.
A. The City and SEDA have developed a cooperative services agreement between
the two agencies for the City to provide administrative and other services to
SEDA.
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RESOLUTION NO. 2016-20
B. The cooperative and services agreement between SEDA and the City also states
that SEDA may borrow funds from time to time at terms and conditions
agreeable to City and SEDA.
C. The City and SEDA enter into this Intergovernmental Agreement to permit SEDA
to borrow up to 1/5 million from the City for costs of Projects or Project-related
administrative expenses as authorized by law.
2. The Repayments
2.1 Advances.
The City agrees to advance up to a maximum of $1,500,000 at any point in time to
SEDA upon receipt of written requests from SEDA. SEDA agrees not to request
advances more than 30 days prior to the time SEDA expects to spend the amount
that is advanced. Before funding any advance the City may require reasonable
supporting documentation in addition to the written request. In addition, the City
may bill SEDA quarterly for administrative expenses incurred by the City for the
benefit of SEDA. If SEDA fails to make timely payments of those invoices, the City
will treat the amount that is not paid as an additional advance to SEDA under this
Intergovernmental Agreement. The City shall notify SEDA if it so treats any unpaid
invoice.
2.2 Interest.
The Outstanding Balance shall bear interest at the rate paid to depositors by the
Oregon Short Term Fund (also known as the "Local Government Investment Pool"),
accrued monthly.
2.3 Repayment.
In the event an advance is made pursuant to this agreement, SEDA shall transfer all
Tax Increment Revenues it receives necessary to repay the advance and accrued
interest to the City within 15 days after those tax increment revenues are received.
Tax Increment Revenues paid by SEDA to the City shall be applied first, to pay
accrued interest, and second to reduce the Outstanding Balance.
2.4 Security for the Obligations of SEDA to Pay the Repayments.
SEDA hereby pledges its Tax Increment Revenues to pay the amounts described in
Section 2.1 of this Intergovernmental Agreement, and this Intergovernmental
Agreement shall constitute an indebtedness of SEDA. The pledge of the Tax
Increment Revenues shall be superior to all other pledges or commitments of Tax
Increment Revenues that SEDA makes, unless the City agrees in writing to
subordinate its claim against the Tax Increment Revenues.
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RESOLUTION NO.2016-20
3. Miscellaneous.
3.1 Termination.
The parties may jointly agree to terminate this Agreement at any time by written
agreement. However, such termination shall not extinguish or prejudice either party's
right to enforce this agreement with respect to any breach or default in performance
which has not been cured.
3.2 Binding Effect.
This Intergovernmental Agreement shall inure to the benefit of and shall be binding
upon SEDA and the City and their respective successors and assigns.
3.3 Severability.
In the event any provisions of this Intergovernmental Agreement shall be held invalid
or unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or ender unenforceable any other provisions thereof.
3.4 Amendments.
This Intergovernmental Agreement may be amended only by a written agreement
signed by both parties.
3.5 Execution in Counterparts.
This Intergovernmental Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute the
same instrument.
3.6 Headings.
The headings, titles and table of contents in this Intergovernmental Agreement are
provided for convenience and shall not affect the meaning, construction or effect of
this Intergovernmental Agreement.
IN WITNESS WHEREOF, SEDA and the City have executed this Intergovernmental
Agreement and amendments thereto as of the dates indicated above.
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RESOLUTION NO.2016-20
SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY
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Sean Van Gordon, SEDA Chair
CITY 0 PRING. LD, OREGON
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Gino Grimaldi, City Manager
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RESOLUTION NO.2016-20