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ADOPT: Resolution of the City Council of the City of San Leandro Acting in Its Capacity as the Successor Agency to the Redevelopment Agency of the City of San Leandro Authorizing the Execution of an Amended and Restated Cooperation Agreement with the Successor Agency to the Redevelopment Agency of the City of San Leandro Regarding the Construction and Funding of Eden Road Improvements and Hays Street Improvements (reaffirms validity of funding pledges for $3.5 million by the former Redevelopment Agency for capital projects)
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WHEREAS, pursuant to Resolution 2012-001, adopted by the City Council of the City of San Leandro on January 9, 2012, the City of San Leandro agreed to serve as the Successor Agency to the Redevelopment Agency of the City of San Leandro ("Redevelopment Agency") commencing upon dissolution of the Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill x1 26 ("AB 26");
WHEREAS, Health and Safety Code Section 33220 authorized any public body to enter into an agreement with a redevelopment agency for the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of redevelopment projects located within the jurisdiction in which such public body is authorized to act, upon the terms and with or without consideration as such public body determines; and
WHEREAS, Health and Safety Code Section 33126(b) authorized redevelopment agencies to enter into contracts with any other public agency pursuant to which the public agency would agree to furnish necessary staff services associated with or required by redevelopment.
WHEREAS, the governing board of the Redevelopment Agency and the San Leandro City Council ("City Council") each adopted the findings required by Health and Safety Code Section 33445 with respect to the public improvements described in Exhibit A attached hereto, consisting of the Eden Road Improvements and the Hays Street Improvements (collectively, the "Public Improvements"), by resolutions adopted on January 17, 2011;
WHEREAS, the City of San Leandro ("City") and the Redevelopment Agency entered into that certain Cooperative Agreement dated as of January 17, 2011 (the "Original Cooperative Agreement"), pursuant to which the City agreed to undertake the construction and installation of the Public Improvements and certain other public improvements, and the Redevelopment Agency agreed to provide funding for such work;
WHEREAS, in accordance with AB 26, the City, acting in its capacity as Successor Agency, prepared a Recognized Obligation Payment Schedule ("ROPS") setting forth the schedule of existing Redevelopment Agency obligations, including among others, the Original Cooperative Agreement;
WHEREAS, an oversight board for the Successor Agency was established pursuant to AB 26 (the "Oversight Board");
WHEREAS, the Oversight Board approved the ROPS on April 6, 2012;
WHEREAS, the State Department of Finance reviewed the ROPS, but by letter dated April 11, 2012, indicated that it objected to the Original Cooperative Agreement;
WHEREAS, Health and Safety Code Section 34178(a) provides that, with specified exceptions, commencing upon February 1, 2012, agreements, contracts and arrangements between a redevelopment agency and the city that formed the redevelopment agency are invalid; provided however, a successor agency that wishes to reenter into agreements with the city that formed the agency may do so upon obtaining approval of the oversight board;
WHEREAS, the City has made a significant investment in the Public Improvements, including the purchase of right-of-way and completion of project design for the Eden Road Improvements, and the establishment of procedures for the formation of an assessment district to secure additional funds required for the Eden Road Improvements;
WHEREAS, the City's Transit Oriented Development Strategy identified the Town Hall Square location as a key opportunity site for future development, and the City has determined that development of this site would be severely hindered without reconfiguration of Hays Street;
WHEREAS, completion of the Public Improvements will be of benefit to all taxing entities that share in the property tax revenue generated by property located within the redevelopment project areas because such improvements will remove impediments to development, eliminate adverse conditions in the project areas, improve vehicular circulation, provide safer routes for pedestrians, and catalyze private development, thus resulting in an increase in assessed valuation and property tax revenue;
WHEREAS, the City and the Successor Agency desire to enter into an Amended and Restated Cooperative Agreement (the "Agreement") to set forth the construction activities and services that the City will undertake or make available in furtherance of the completion of the Public Improvements, and to provide that the Successor Agency will pay for or reimburse the City for actions undertaken and costs and expenses incurred in connection with such work;
WHEREAS, the Parties intend the Agreement to amend and restate the Original Cooperative Agreement;
WHEREAS, the execution of the Agreement was approved by the City Council by resolution adopted on May __, 2012; and
WHEREAS, the Agreement will be presented to the Oversight Board for consideration.
NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of San Leandro acting in its capacity as Successor Agency to the Redevelopment Agency of the City of San Leandro that it hereby:
1. Subject to approval of the Oversight Board, authorizes the Executive Director to execute and deliver the Agreement substantially in the form attached hereto.
2. Authorizes the Executive Director or designee to execute such other documents and to take such other actions as necessary to carry out the intent of this Resolution, including without limitation, listing the Agreement on an updated ROPS for the Successor Agency.