HomeMy WebLinkAboutItem 15 Extending the IGA Between City and SEDA to Advance and Repay Funds Needed for Urban Renewal Projects AGENDA ITEM SUMMARY Meeting Date: 11/21/2011
Meeting Type:Regular Meeting
Staff Contact/Dept.: John Tamulonis, CMO
Bill Van Vactor, CAO
Staff Phone No: 541-726-3656
Estimated Time: 10 Minutes
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: EXTENDING THE INTERGOVERNMENTAL AGREEMENT (IGA)
BETWEEN 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 APPROVING
EXTENSION OF AN INTERGOVERNMENTAL AGREEMENT TO ADVANCE
$1.5 MILLION TO THE SPRINGFIELD ECONOMIC DEVELOPMENT
AGENCY (SEDA) FOR COSTS OF URBAN RENEWAL PROJECTS, AND
APPROVING THE ACQUISITION OF REAL PROPERTY
ISSUE
STATEMENT:
This is essentially a housekeeping action. SEDA and the City have had two
previous three-year IGAs to advance and repay funds and to cooperate on urban
renewal plans for Glenwood and Downtown plan areas. The existing IGA was
effective through FY2011. If approved by Council the IGA will next go to SEDA
for consideration at its November 21, 2011 meeting. The funding agreement
provides for both the Glenwood and Downtown Urban Renewal Plans. In addition,
both the Glenwood and Downtown Plan require the City Council to approve
property acquisitions and this is the first step in the process for potential
acquisitions of the specific properties in Glenwood by SEDA. However, SEDA
would still need to approve any property purchases.
ATTACHMENTS: 1. Intergovernmental Agreement to Advance and Repay Funds Needed for Urban
Renewal Projects
2. Resolution
DISCUSSION/
FINANCIAL
IMPACT:
The IGA covers possible SEDA requests for up to $1.5 million in funding for
projects and the subsequent repayments. The IGA extends the time of the existing
agreement by three years (through June 30, 2014) and maintains the current
operational status quo between SEDA and the City. The time extension is
consistent with the Urban Renewal Plans for both Urban Renewal Districts. Any
property acquisitions by SEDA would be subject to the terms of the IGA for needed
funding and SEDA’s deciding to actually make a specific property purchase after
considering price, conditions, environmental and title reports, etc.
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 11/29/2005
And as amended on July 21, 2008, and
November _____, 2011
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
INTERGOVERNMENTAL AGREEMENT
This Intergovernmental Agreement to advance and repay funds needed for Urban
Renewal Projects is dated as of 11/29/2005, as further amended on July 21, 2008, as
further amended on November _____, 2011, 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.
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 $1,500,000 to SEDA during fiscal year 2011-2012
through 2013-2014, 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.
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 ender unenforceable any other provisions thereof.
3.3 Amendments.
This Intergovernmental Agreement may be amended only by a written agreement
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.
3.6 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.
SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY
________________________________
Dave Ralston, Chair
CITY OF SPRINGFIELD, OREGON
________________________________
Gino Grimaldi, City Manager
RESOLUTION NO. ________
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, AND APPROVING THE
ACQUISITION OF REAL PROPERTY
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 has pledged its cooperation to assist the two urban
renewal districts in the development of projects and the two urban renewal districts
through a Cooperation and Services Agreement initially approved on November 29,
2005, and amended on July 21, 2008, to incorporate the Downtown Urban Renewal
District; 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 in three year
increments.
WHEREAS, the current three year agreement expired on June 30, 2011; and
WHEREAS, the City of Springfield wishes to extend the line of credit and authority to
accept repayment for an additional three years; and
WHEREAS, the Glenwood Urban Renewal Plan authorizes the acquisition of real
property for many reasons, including, but not limited to, rights-of-way, storm water,
sanitary sewage, utilities, visual appearance, safety improvements for pedestrian
environments, landscaping, parking, as well as to assist in private development; and
WHEREAS, 4095 and 4251 Franklin Blvd are being considered for acquisition for these
purposes; and
WHEREAS, under Sections 700 and 800 of the Glenwood Urban Renewal Plan, the
City Council must approve all real property acquisitions;
NOW THEREFORE, be it resolved that the City Manager is authorized to execute an
Intergovernmental Agreement in substantially similar form to the attached which
extends the line of credit and authority to accept repayment in the amount of $1.5
million from July 1, 2011, through June 30, 2014; and
BE IT FURTHER RESOLVED, that pursuant to Section 700 & 900 of the Glenwood
Urban renewal plan, that City Council hereby approves the Springfield Economic
Development Agenda acquisition of 4095 and 4251 Franklin Blvd.
____________________________
Mayor
Attest:
______________________________
Amy Sowa, City Recorder