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104-Loan and Repayment Agreement.pdf
LOANANDREPAYMENTAGREEMENT ThefollowingisaLoanandRepaymentAgreement, datedFebruary 15, 2011,byand betweentheCity ofCupertino(the"City")andtheCityofCupertinoRedevelopmentAgency (the"Agency"). WI T N E SS E T H A.WHEREAS,theCityandtheAgencycausedtheadoption oftheRedevelopmentPlanfor theCupertinoVallcoRedevelopmentProject(the"RedevelopmentPlan");and B.WHEREAS,theAgencyis vestedwiththeresponsibilityforformulatingandcarrying out necessaryredevelopment projectswithintheCityandimplementingthe RedevelopmentPlan;and C.WHEREAS,the parties desiretocontractfortheCityto provide staff servicestothe Agencyandtoconstructimprovements of benefittotheredevelopmentprogram under specifiedcircumstances,subjecttoreimbursementbytheAgencyas providedinthis Agreement;and D.WHEREAS,theCityandtheAgencyareeachreadyandwillingtoassumethe relationship describedherein. NOW, THEREFORE,BEITRESOLVEDthattheCityandtheAgency,forandin consideration ofthemutual promisesandagreements hereincontained doagreeasfollows: 1.PURPOSES The purposes ofthisAgreementare: a.Toestablishamechanismforreimbursementof specifiedfutureadministrativecosts incurredbytheCityinfurtherance oftheredevelopment programfortheCupertinoVallco RedevelopmentProjectArea(the"ProjectArea"),asmorefully setforthinSection 3. b.To provideamechanismforreimbursement of specifiedfuture publicworks improvementcosts or othercostsrelatedtoimplementingtheRedevelopmentPlanincurredby theCityinfurtherance oftheredevelopment programfortheProjectAreaorrelatedtotaxroll actionsbytheCounty,asmorefullysetforthinSection 4. 2.TERMOFAGREEMENT ThisAgreement shall beinfullforceandeffectfora periodbeginningas ofthe datefirst abovewrittenandcontinuing untilallrepaymentandreimbursement obligations oftheAgency totheCityaresatisfiedinfullinaccordancewiththeterms ofthisAgreement. 1 c:\\docume~1\\graces\\locals~1\\temp\\loanandrepayment agreement.docx 3.REIMBURSEMENTOFCITYADMINISTRATIVECOSTS TheAgencyagreestoreimbursetheCityforalladministrativecostsincurredbytheCity infurtherance oftheredevelopment programfortheProjectArea(the"AdministrativeCosts"). SuchAdministrativeCostsmayinclude, butarenotlimitedto,coststotheCityforconsulting services,legal services,City stafftimeand otherrelatedadministrativeexpenses. TheCityand Agency shall,attheendofeachfiscalyear, setforthina scheduleto beattachedtothis Agreementas Exhibit A theamount of suchAdministrativeCostsincurred bytheCityforthe applicablefiscalyear.TheAgency shallthereupon becomeindebtedtoreimbursetheCityfor suchAdministrativeCosts. This debtshall bearnointerest,andshall berepayableasprovidedin Section 5. 4.REIMBURSEMENT TOCITYFORPUBLICIMPROVEMENTSANDOTHERCOSTS TheCitymayincurcostsfor publicimprovementsintheProjectArea on behalf ofthe Agency.Inaddition,theCitymayincurcostsforotheractivitiesrelatedtoimplementation of theRedevelopmentPlanorrelatedtotaxrollactionsbytheCounty. Thesecosts shall becomea debt oftheAgencyandshall be setforthinan Exhibit B,which shall beattachedtothis Agreementandmadeapart hereofasiffully setforth herein. Thesecostsshall bear no interest, and shall berepayableas providedinSection 5.Such Exhibit B shall specifythedatefrom whichtheAgency'sreimbursement obligationtotheCity shall beginto bearinterest. 5.REPAYMENT TERMS;SUBORDINATION Eachrepayment orreimbursement obligation oftheAgency pursuanttothisAgreement shall berepayable solelyfromtaxincrementfunds,ifany,generatedwithintheProjectArea.It is understoodthatiftaxincrementfundsfromtheProjectAreafailtoyieldsufficientrevenueto paytherepayment orreimbursement obligationsoftheAgencyunderthisAgreement,the Agencyis under no obligationtomake suchrepayment orreimbursementtotheextenttax incrementfundsareinsufficient. Itisagreedbytheparties heretothatallrepaymentsandreimbursementstotheCity pursuanttothisAgreementare hereby subordinatedtoanyandall payments necessaryto satisfy existing debt oftheAgencyandtoanyandall payments necessaryto satisfytheAgency's obligationsinconnectionwithanyexisting orfuture bondedindebtednessor obligationwhich maybeincurredbytheAgencyforthe benefit oftheredevelopment program ortotheextent necessaryforany bondedindebtednessforwhichtheAgencyhas pledgedasa security or source ofrepaymenttaxincrement generatedwithintheProjectArea. 6.VALIDITYOFAGREEMENT Ifany provisions ofthisAgreement,ortheapplicationthereoftoanyperson, party, transaction, orcircumstance,is heldinvalid,theremainder ofthisAgreement, ortheapplication of such provisionto other persons, parties,transactions orcircumstances,shall not beaffected thereby. 2 c:\\docume~1\\graces\\locals~1\\temp\\loanandrepayment agreement.docx CITYOFCUPERTINOCITYOFCUPERTINO REDEVELOPMENTAGENCY By:____________________________By:______________________________ ChairpersonCityManager CityofCupertinoCityofCupertino RedevelopmentAgency Approvedastoform: By:______________________________ CityAttorney 3 c:\\docume~1\\graces\\locals~1\\temp\\loanandrepayment agreement.docx EXHIBITA TOLOANANDREPAYMENTAGREEMENT BETWEENCITYOFCUPERTINOAND CITYOFCUPERTINOREDEVELOPMENTAGENCY: LOANFORADMINISTRATIVECOSTS Fiscal YearLoanProceedsInterestDuePaymentsMadeLoanBalance 2010/11252,000--252,000 EXHIBITB TOLOANANDREPAYMENTAGREEMENT BETWEENCITYOFCUPERTINOAND CITYOFCUPERTINOREDEVELOPMENTAGENCY: LOANFORPUBLICIMPROVEMENTSANDOTHERCOSTS Purpose Fiscal YearLoanProceedsInterestDuePaymentsMadeLoanBalance Public 2010/11650,000Improvements--650,000 Taxroll 2010/11350,000reassessment350,000 4 c:\\docume~1\\graces\\locals~1\\temp\\loanandrepayment agreement.docx