HomeMy WebLinkAboutResolution 05-59 11/28/2005
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Resolution No. 05 - ~
A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT TO
ADVANCE $1.5 MaLlON TO THE SPRINGFIELD ECONOMIC DEVELOPMENT
AGENCY FOR COSTS OF URBAN RENEWAL PROJECTS.
WHEREAS, the City of Springfield (the "City") is authorized by Oregon Revised Statues
. Chapter 190 to enter into intergovernmental agreements; and,
WHEREAS, the City and the Springfield Economic Development Agency ("SEDA")
have developed a cooperative agreement between the two agencies for the City to provide
. administrative and other services to SEDA; and
WHEREAS, the cooperative 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;
and,
WHEREAS, the City and SEDA desire to enter into an Intergovernmental Agreement to
permit SEDA to borrow up to $1.5 million from the City for costs of Projects or Project-related
administrative expenses authorized by law; now, therefore, it is hereby
RESOLVED AS FOLLOWS:
Section 1. Financing Agreement Authorized.
The City is hereby authorized to enter into an intergovernmental agreement with SEDA
that authorized the City to advance, and authorizes SEDA to borrow, up to $1.5 million during
fiscal year 2005-06 to [mance urban renewal projects and project-related administration expenses
authorized by law. The City Manager or the City Finance Director (a "City Official") are hereby
authorized, on behalf of the City and without further action by the City Council to:
(1) Negotiate the final terms ofthe intergovernmental agreement and execute the
intergovernmental agreement on behalf of the City. The intergovernmental agreement
shall be in substantially the form attached to this resolution as Exhibit A, but with such
changes the Agency Official may approve.
(2) Execute and deliver any other certificates or documents, and take any other actions which
the City Official determines are desirable to carry out this resolution.
DATED this 28th day of November, 2005.
Adopted by the Common Council
and approved by the Mayor of the
City of Springfield, Oregon by a vote
of 5 in favor and 0 against (1 absent)
Attest:
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EXHIBIT A TO RESOLUTION
INTERGOVERNMENT AL AGREEMENT
TO ADVANCE AND REPAY FUNDS NEEDED FOR
URBAN RENEWAL PROJECT
by and between the
Springfield Economic Development Agency, Oregon
and the
City of Springfield, Oregon
Dated as of 1I/Z.Gj, 2005
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Table of Contents
Page
1. DEFINITIONS AND RECITALS. .................. .... ................. ................................ ....... ........ ....... ...................... 1
1.1 DEFINITIONS. .... ......... ........... .................. ............................. ........... ....... .......... ....................... ...... ... ... ... ..... ]
1.2 RECITALS................................................................................................................................. ................... 1
2. THE REP A yMENTS........................................................................................................................................ 2
2.1 ADVANCES. ................................................................................................................................. ............... 2
2.2 INTEREST. ............................................................................................................................... .................... 2
2.3 REPAYMENT. ....................................................................... ,...................................................................... 2
2.4 SECURITY FOR THE OBLIGATION OF SEDA TO PAY THE REPAYMENTS. ......................................................2
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
Exhibit A to Resolution
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INTERGOVERNMENT AL AGREEMENT
TO MAKE REPAYMENTS
This Intergovernmental Agreement to Make Repayments is dated as of IljZq, 2005, and is
entered into by and between the Springfield Economic Development Agency, the urban renewal
agency of the City of Springfield, Oregon, ("SED A") 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 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 Urban
Renewal Area under the provisions of Article IX, Section I c of the Oregon Constitution and
ORS Chapter 457.
1.2 Recitals.
A. The City and SEDA have developed a cooperative agreement between the two
agencies for the City to provide administrative and other services to SEDA.
B. The cooperative 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.
Page I of 5, Exhibit A to Resolution
J:ICITIESISPRINGFIELDlURA-CITY LOAN\CITY. SEDA LOAN lGA 101805.DOC
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2.
The Repayments.
2.1 Advances.
The City agrees to advance up to $1,500,000 to SEDA during fiscal year 2005-2006, 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 payment 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.
SEDA shall transfer all Tax Increment Revenues it receives 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 Obligation 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.
3. Miscellaneous
3.1 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.
3.2 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 render
unenforceable any other provisions hereof.
Page 2 of 5, Exhibit A to Resolution
J:\CITIES\SPRlNGFJELDlURA-CITY LOANICITY - SEDA LOAN IGA tOIBOS.DOC
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3.3
Amendments.
This Intergovernmental Agreement may be amended only by a writing signed by both parties. .
3.4 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.
3.5 Applicable Law.
. This Intergovermnental Agreement shall be governed by and construed in accordance with the
laws of the State of Oregon. Any action regarding this Intergovernmental Agreement or the
transactions contemplated hereby shall be brought in an appropriate court of the State of Oregon
in Lane County, Oregon.
3.6 Rules of Construction.
References to section numbers in documents which do not specify the document in which the
section is located shall be construed as references to section numbers in this Intergovernmental
Agreement.
3.7 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
as of the date indicated above.
Springfield Economic Development Agency
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City of Springfield, Oregon
Page 3 of 5, Exhibit A to Resolution
J:ICITIESISPRINGFIELDIURA-CITY LOANlCITY - SEDA LOAN IGA IOt805.DOC
t 1/29/05 11:51 AM