HomeMy WebLinkAboutItem 04 Amending the Intergovernmental Agreement (IGA) Between the City and the Springfield Economic Development Agency (SEDA) to Advance and Repay Funds Needed for Urban Renewal Projects AGENDA ITEM SUMMARY Meeting Date: 10/3/2016
Meeting Type: Regular Meeting
Staff Contact/Dept.: Bob Duey/Finance Staff Phone No: 541-726-3740
Estimated Time: Consent Calendar
S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Community and Economic Development
and Revitalization
ITEM TITLE:
AMENDING THE INTERGOVERNMENTAL AGREEMENT (IGA) BETWEEN THE CITY AND THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY
(SEDA) TO ADVANCE AND REPAY FUNDS NEEDED FOR URBAN
RENEWAL PROJECTS
ACTION REQUESTED:
Approve/Not Approve the following resolution: A RESOLUTION OF THE CITY OF SPRINGFIELD, OREGON, APPROVING AMENDMENT OF THE INTERGOVERNMENTAL AGREEMENT TO ADVANCE AND REPAY
FUNDS FOR NEEDED URBAN RENEWAL PROJECTS
ISSUE
STATEMENT:
SEDA and the City have an intergovernmental agreement to advance and repay
funds for needed urban renewal projects. The current agreement has language that makes the City’s claim to tax increment revenues superior to all other pledges or
commitments SEDA makes. This resolution amends the IGA to include language that subordinates the City’s claim to the pledge that secures Senior Lien Borrowings issued under SEDA’s Master Borrowing Declaration expected to be
executed in October, 2016. The SEDA Board approved this change to the IGA by resolution on September 26th.
ATTACHMENTS:
Attachment 1: Resolution Attachment 1 Exhibit A: Intergovernmental Agreement to Advance and Repay
Funds Needed for Urban Renewal Projects
FINANCIAL IMPACT:
At the July 18th, 2016 SEDA Board Meeting, the SEDA Board adopted a resolution that authorized the acquisition of real property and indebtedness for acquiring such property. The resolution for indebtedness recognized the need for the City to
subordinate its claim to tax increment revenues for the borrowing to happen. This resolution approves an amended IGA that includes language that subordinates this
claim to the pledge that secures Senior Lien Borrowings issued under SEDA’s
Master Borrowing Declaration expected to be executed in October, 2016. SEDA currently has no outstanding balance with the City.
ATTACHMENT 1 EXHIBIT A
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, June 20, 2016 and October 3, 2016
Contract #670
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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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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 as further amended October 3, 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 1c 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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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 Tax Increment
Revenues from the Glenwood Urban Renewal Area that secures this
Intergovernmental Agreement is subordinate to the pledge that secures Senior Lien
Borrowings issued under the Agency’s Master Borrowing Declaration expected to be
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executed in October, 2016. Other than as described in the previous sentence, the
pledge of the Tax Increment Revenues that secures this Intergovernmental
Agreement 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.
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.
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IN WITNESS WHEREOF, SEDA and the City have executed this Intergovernmental
Agreement and amendments thereto as of the dates indicated above.
SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY
________________________________
Sean Van Gordon, SEDA Chair
CITY OF SPRINGFIELD, OREGON
________________________________
Gino Grimaldi, City Manager
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