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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