CC Resolution 9693
RESOLUTION NO. 9693 and 2000-8
A JOINT RESOLUTION OF THE CITY OF CAMPBELL
REDEVELOPMENT AGENCY BOARD AND CITY OF CAMPBELL CITY COUNCIL
AUTHORIZING EXECUTION OF A LOAN AND REPAYMENT AGREEMENT FOR
FUNDS ADVANCED FROM THE CITY TO THE AGENCY FOR IMPLEMENTATION
OF THE CAMPBELL A VENUE MASTER DEVELOPMENT SITE
WHEREAS, the City of Campbell (the "City") has established a General Fund
designation of $2 million for advancement to the City of Campbell Redevelopment Agency (the
"Agency") for financing and implementation of the Central Campbell Redevelopment Project;
and
WHEREAS, on April 18, 2000 the Agency approved the Campbell Avenue Master
Developer Site for the development of a downtown parking structure and commercial mixed
use project (the "Project"); and
WHEREAS, the City will need to loan proceeds to the Agency to execute and
facilitate build out of the Project.
NOW, THEREFORE, BE IT RESOLVED, that the City and Agency jointly approve
and authorize execution of a Loan and Repayment Agreement in substantially the form of the
lttached Exhibit A in which the City agrees to loan the Agency up to $2 million for completion
of the Campbell Avenue Master Developer Site.
PASSED AND ADOPTED, this 20th day of June, 2000 by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council/Boardmembers
CouncillBoardmembers
Council/Boardmembers
Council/Boardmembers
Dougherty, Watson, Dean, Kennedy
None
None
Furtado
ATTEST: a~~
Anile Bybee, City Clerk
LOAN AND REPAYMENT AGREEMENT BY AND BETWEEN
THE CITY OF CAMPBELL
AND THE CITY OF CAMPBELL REDEVELOPMENT AGENCY FOR
THE CAMPBELL AVENUE MASTER DEVELOPER SITE
WHEREAS, this Loan and Repayment Agreement ("Agreement") is entered into
this 20th day of June, 2000, by and between the City of Campbell ("City") and the City
of Campbell Redevelopment Agency ("Agency") with reference to the following facts,
intentions, and purposes, and according to the following terms.
RECITALS
WHEREAS, on June, 20 2000, the City and the Agency entered into an
Agreement pertaining to the City advancing funds to the Agency for financing the
Campbell A venue Master Developer Site (the "Project") in accordance with the 1999-
2004 City of Campbell Redevelopment Agency Implementation (the "Plan"); and
WHEREAS, the City has established a General Fund designation of $2 million for
advances to the Agency for implementation of the Central Campbell Redevelopment
Plan; and
WHEREAS, on April 18, 2000, the Agency approved the Campbell Avenue
Master Developer Site to pursue development of a downtown parking structure and
commercial development within the Central Campbell Redevelopment Project Area; and
WHEREAS, a source of financing anticipated in the FY2000/01 CIP for this
Project is loan proceeds from the City for land acquisition and related activities for
completion of the Master Developer Site.
AGREEMENT
NOW, THEREFORE, pursuant to the California Health and Safety Code and in
consideration of the benefits which will accrue to the City, the community and the
citizens thereof from the Project, and the mutual promises set forth below, the city and
Agency agree as follows:
Section 1. PRINCIPAL SUM.
The City agrees to loan and the Agency agrees to repay to the City, with interest
as defined in Section 2, the Principal Sum of up to two million dollars ($2,000,000), for
implementation of the Campbell Avenue Master Developer Site as adopted by the
Agency on April 18, 2000.
Section 2. PAYMENT OBLIGA nONS.
(a) Principal Sum Payments. Subject to the provisions of Section 2, the Agency
shall make payments to the City of principal and interest on the Principal
Sum as follows:
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(i) Commencing on June 20, 2000, the Principal Sum in existence
from time to time shall bear simple interest calculated on a
quarterly calendar basis equal to the weighted average investment
earnings for the City's pooled investments for the four preceding
calendar quarters, not to exceed the maximum interest permitted by
law. On June 30, 2000, and each June 30th thereafter, the Agency
shall pay to the City from any of its funds the amount of interest
that has accrued on the unpaid balance of the Principal Sum during
the Fiscal Year then ending.
(ii) In addition to making interest payments on the unpaid balance of
the Principal Sum as described in subparagraph (a)(i) above, the
Agency shall pay in full to the City the unpaid balance of the
Principal Sum, and any accrued interest thereon, within 30 days of
completion of the Project subject to prepayment as permitted in
Section 2(a)(iv) below.
(iii) Payments of principal and interest shall be made by the Agency in
accordance with subparagraphs a(i) and (ii) above until the full
amount of the Principal Sum plus accrued interest is repaid.
(iv) In addition to the payments against principal to be made in
accordance with subparagraph a(ii) above, the Agency may at any
time and from any of its funds, and at its sole discretion, make
additional payments in any amount to the City for credit against
the unpaid balance of the Principal Sum.
Section 3. SUBORDINATION OF PAYMENT OBLIGATIONS.
It is expressly agreed and understood that any and all rights and claims by the
City of repayment of amounts due under this Agreement (including any interest thereon)
from tax increment revenues are subordinate to the making of debt service or other
payments on any bonds, notes or other indebtedness of the Agency including, without
limitation, indebtedness which is secured in whole or in part, directly or indirectly, by tax
increment revenues allocated from the Project Area pursuant to Section 33670 of the
Health and Safety Code. The Agency shall be required to make the payments set forth in
this Agreement only to the extent that Project tax increment revenues have been received
by the Agency and are available for that purpose.
If, as a result of the subordination provided for in this Section 3, payments
to the City pursuant to this Agreement are reduced below the amount otherwise payable
to the City pursuant to this Agreement, such reductions shall be treated as an additional
advance by the City and shall earn interest as set forth under Section 2(a)(i) above. Such
advances and accrued interest shall be repaid as promptly as possible, and in any event,
Agency shall use all tax increment revenue available to it, after payment of the principal
and interest on the indebtedness to which the subordination applies and payment of any
other obligations which are superior to Agency's obligations, such as Agency's housing
set-aside obligation under Health and Safety Code Section 33334.2, to repay such
advances and accrued interest.
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Section 4. INDEBTEDNESS.
The obligations of the Agency under this Agreement shall constitute an
indebtedness of the Agency within the meaning of Section 33670 et seq. of the Health
and Safety Code.
Section 5. SEVERABILITY.
If any provision of this Agreement is held invalid, the remainder of this
Agreement shall not be affected thereby if such remainder would then continue to
conform to the terms and requirements of the Health and Safety Code of the State of
California or any other applicable State of Federal law.
Section 6. EXECUTION.
This Agreement shall be executed in four counterparts, each of which shall be
deemed to be an original, and such counterparts shall constitute one and the same
instrument.
Section 7. TERM OF AGREEMENT
(a) This Agreement shall be in full force and effect on and from the date of its
execution until it is rescinded by the parties hereto.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly
executed in its behalf and its seal to be hereunto affixed and attested, and the
Agency has caused the same to be duly executed in its behalf and its seal to
be hereunto affixed and attested, all as of the date first above written.
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Acf~_~
Anile Bybee, City Clerk
A~~
Anne Bybee, Secretary
6/8/00
#B0211B10301
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