Loading...
2011011805-1 - Desk Item - Town of Los Gatos and Los Gatos Redevelopment Agency Joint Agreement0'HN pF MEETING DATE: 01/18/11 ITEM NO: 5 -1 DESK ITEM !ps GA��S COUNCIL / AGENCY AGENDA REPORT DATE: JANUARY 18, 2011 TO: MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: GREG LARSON, TOWN MANAGER/EXECUTIVE DIRECTOR SUBJECT: TOWN OF LOS GATOS AND LOS GATOS REDEVELOPMENT AGENCY JOINT AGREEMENT RECOMMENDATION 1. Adopt Resolutions by Town of Los Gatos Town Council and by Los Gatos Redevelopment Agency Board of Directors approving the Public Improvements Grant and Cooperation Agreement for the Central Los Gatos Redevelopment Project Area. 2. Authorize Town Manager to execute the Public hnprovements Grant and Cooperation Agreement for the Central Los Gatos Redevelopment Project Area. 3. Authorize Executive Director of the Los Gatos Redevelopment Agency to execute the Public Improvements Grant and Cooperation Agreement for the Central Los Gatos Redevelopment Project Area. 4. Approve budget adjustment not to exceed $7.0 million of capital project funding source reallocations, including reimbursement for eligible past and future project expenditures; related loan receivable /revenue in the Town's GFAR Capital Projects fund; and related loan payable /expenditure accounts in the Town's Redevelopment Agency Debt Service Fund Manager and as provided for under the Cooperation Agreement dated January 22, 1990 and the Public Improvements Agreement approved herein. PREPARED BY : GREG LARSON Reviewed by: Assistant Town Manager /Deputy Director Clerk Administrator /Secretary � Fina Community Development Attorney /General Counsel NA\MGR\AdminWorkFiles\2011 Council Reports \1 -18-1 l TC.Report.RDA TOWN ACT[ON.doc THIS PAGE INTENTIONALLY LEFT BLANK PAGE JANUARY 18, 2011 MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: TOWN OF LOS GATOS AND LOS GATOS REDEVELOPMENT AGENCY JOINT AGREEMENT Through a variety of public documents and public actions, the Los Gatos Town Council and Los Gatos Redevelopment Agency Board of Directors have long planned and committed the use of current Redevelopment Agency funds and reserves, as well as anticipated Redevelopment Agency revenues and resources, for a variety of public improvements needed to fulfill the Agency Plan to eliminate blight and achieve other benefits for the Central Los Gatos Redevelopment Project Area. These prior Council and Agency Board directions and actions include not only the Redevelopment Agency Plan and the Agency Implementation Plan, but also the Capital Improvement Plan and Program, annual Operating and Capital Budgets, the recently updated General Plan, Civic Center Master Plan, Economic Vitality Strategy, Affordable Housing Strategy, Downtown Parking Plan, and the 2010 Council Strategic Goals. The Governor and State Legislature recently announced intentions to eliminate redevelopment funding for local jurisdictions except as required to retire existing debt and obligations, possibly including the prohibition on any further use of redevelopment funds. While the legality of the State's proposed actions are questionable, the intention of this Public Improvements Grant and Cooperation Agreement is to protect funded and committed projects like the new Los Gatos Library and public improvements previously approved by the Town and Agency in the Redevelopment Project Area. ANALYSIS The Los Gatos Redevelopment Agency currently has reserves and anticipated revenues through June 30, 2011, net of existing debt obligations and pass - through agreements, up to $6.4 million. These previously anticipated, planned, budgeted and committed reserves and resources have been obligated by the Town Council and Redevelopment Agency Board of Directors for a variety of redevelopment purposes and plans, including: 1. Increased and improved public parking in the Central Los Gatos Redevelopment Project Area, including the acquisition, development and improvement of new and existing parking lots (e.g., 421 West Main, South Parking Lot, Lot 4, Lot 6), totaling up to $5 million; 2. Street, sidewalk, storm drain and other infrastructure improvements and replacement in the Almond Grove area, the primary residential neighborhood within and serving the Central Redevelopment District, totaling up to $10 million; 3. Highway 9 Improvements from Highway 17 to the western edge of the Central Los Gatos Redevelopment Project Area and the Town's border with the City of Monte Sereno, including intersections and transitions at Highway 17, University Avenue, Santa Cruz Avenue, Bachman, and connections to the Los Gatos Creek Trail, totaling up to $2 million; THIS PAGE INTENTIONALLY LEFT BLANK PAGE JANUARY 18, 2011 MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: TOWN OF LOS GATOS AND LOS GATOS REDEVELOPMENT AGENCY JOINT AGREEMENT 4. Gateway architectural and aesthetic elements at both the southern and northern ends of Downtown Los Gatos as well as other signage, public art and banners in the Central Los Gatos Redevelopment Project Area, totaling up to $1.5 million; 5. Storm drains, retaining walls, streets, sidewalks and other infrastructure improvements within and serving the Central Los Gatos Redevelopment Project Area, totaling up to $3 million; 6. New Los Gatos Library Building located within the Central Redevelopment Project Area was authorized by Town Council in the amount of $18.4 million, including an estimated $14 million from redevelopment agency funding sources, subject to change depending upon market conditions and amended financing plan. The funding for these projects through this agreement is necessitated by declining General Fund and other tax revenues that could otherwise be considered for funding some or all of these projects. These projects total over $20 million and are specified directly or indirectly in the adopted Los Gatos Redevelopment Agency five -Year Implementation Plan (dated November, 2009). Project seeping for both Item 2 (Almond Grove) and Item 4 (Gateways) were included in the Five -Year Implementation Plan Expenditures list and the Five Year Capital Improvement Program, with the estimated full costs outlined above. Items 1 (Parking), 3 (Highway 9), and 5 (Infrastructure) were all included in the Five - Year Redevelopment Program Goals and Objectives and both the Downtown Commercial Revitalization Plan and the Public Improvements, Facilities, and Utilities section. The proposed agreement between the Town of Los Gatos and the Los Gatos Redevelopment Agency, to be approved simultaneously by the Town Council and the Agency Board of Directors, would authorize the Town to proceed with the planned improvements subject to the funding available by the Redevelopment Agency, currently estimated to be over $6 million. The Town, through the Parks and Public Works Department, is the entity that typically oversees and implements Redevelopment Agency improvement projects. The final scope, schedule, and priority of the individual projects will be subject to subsequent CEQA review, staff analysis and preparation, and Council direction as specified in the proposed agreement. CONCLUSION Staff recommends Town Council and Redevelopment Agency adopt the Recommendations set forth above. THIS PAGE INTENTIONALLY LEFT BLANK PAGE 4 JANUARY 18, 2011 MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: TOWN OF LOS GATOS AND LOS GATOS REDEVELOPMENT AGENCY JOINT AGREEMENT ENVIRONMENTAL ASSESSMENT Pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act ( "CEQA "). CEQA shall be completed prior to the commencement of any Public Improvement Project listed in the Improvement Plan contained in Exhibit A. FISCAL IMPACT Sufficient funds are available in the Town's Redevelopment Agency Debt Service fund to repay up to $7.0 million for all planned project reimbursements for prior and future expenditures in the Central Los Gatos Redevelopment Project Area as detailed in the Exhibit A of the Town's Public Improvement Agreement. Attachments: 1. Public Improvements Grant and Cooperation Agreement for the Central Los Gatos Redevelopment Project Area between Town and Agency (with Exhibit A) 2. Redevelopment Agency Resolution approving the Agreement 3. Town of Los Gatos Resolution approving the Agreement THIS PAGE INTENTIONALLY LEFT BLANK ATTACHMENT I PUBLIC IMPROVEMENTS GRANT AND COOPERATION AGREEMENT FOR THE CENTRAL LOS GATOS REDEVELOPMENT PROJECT AREA This Public Improvements Grant and Cooperation Agreement (the "Agreement ") is for purposes of funding acquisition of public land, design and construction of various public improvements owned or to be owned by the Town of Los Gatos (the "Town "), and is entered into as of January 18, 2011 by and between the Town and the Los Gatos Redevelopment Agency of the Town of Los Gatos (the "Agency "), on the basis of the following facts, understandings and intentions of the parties: RECITALS A. Pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "Redevelopment Law "), the Town Council of the Town has adopted and the Agency is responsible for implementing the Redevelopment Plan (the "Redevelopment Plan ") for the Central Los Gatos Project Area (the "Project Area "). B. To assist in implementing the Redevelopment Plan, the Agency has adopted a five (5) -year implementation plan (the "Implementation Plan ") pursuant to Section 33490 of the Redevelopment Law. C. The Agency and Town desire that the Agency will fund and the Town will design and construct various elements of public improvements and facilities owned or to be owned by the Town, as more fully set forth in Exhibit A attached to and incorporated in this Agreement by this reference. Exhibit A in its entirety is referred to in this Agreement as the "Improvement Plan," and the improvements listed in the Improvement Plan are referred to individually as a "Public Improvement Project" and collectively as the "Public Improvement Projects." The Improvement Plan set forth in Exhibit A includes the currently estimated costs of implementing the Public Improvement Projects. D. The Public Improvement Projects are provided for in the Redevelopment Plan, and are consistent with the Implementation Plan. Implementation of the Public Improvement Projects will benefit the Project Area and will assist in the elimination of blight in the Project Area and the provision of affordable housing in the community. The Agency's use of funds as provided in this Agreement is authorized by the Redevelopment Law, and the Agency and Town have made all findings required under the Redevelopment Law for such use. E. Pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act ( "CEQA "), because this Agreement consists of the creation of a governmental funding mechanism for various public improvements, but does not commit funds to any specific public improvement, in that environmental review required by CEQA shall be completed prior to the commencement of any Public Improvement Project listed in the Improvement Plan contained in Exhibit A . NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Town and the Agency agree as follows: ARTICLE 1 AGENCY GRANT Section 1.1 Agency Grant Subject to the terms and conditions of this Agreement, the Agency hereby grants to the Town, and the Town hereby accepts from the Agency, a grant (the "Grant ") in an amount not to exceed the total amount shown for all Public Improvement Projects in the Improvement Plan attached to this Agreement as Exhibit A at the time of execution of this Agreement (the "Maximum Grant Amount "), for use by the Town to complete the Public Improvement Projects as further provided in Article 2. Section 1.2 Grant Source The sources of the Grant from the Agency to the Town consist of: (a) All funds currently held by the Agency (other than in the Agency's Low and Moderate Income Housing Fund) and not previously budgeted or appropriated for other activities, projects, or programs (the "Available Funds "); and (b) All future tax increment revenue allocated to the Agency pursuant to the Redevelopment Plan and the Redevelopment Law and available to the Agency after the Agency: (1) makes all necessary annual payments with respect to then existing debt obligations of the Agency, including, without limitation, bonded indebtedness, pass - through payments owed to affected taxing entities under agreement or Sections 33607.5 or 33607.7 of the Redevelopment Law, written agreements with other persons or entities, deposits to the Agency's Low and Moderate Income Housing Fund pursuant to the Redevelopment Law, and any other statutorily required payment obligations of the Agency; and (2) sets aside a reasonable amount for Agency administration as mutually determined by the Town and the Agency (collectively, the "Pledged Funds "). In no event shall the sum of the Available Funds and the Pledged Funds exceed the Maximum Grant Amount. Section 1.3 Payment Procedure The Agency shall pay the Available Funds to the Town within five (5) days of the date of this Agreement. The Agency shall pay the Pledged Funds to the Town within ten (10) days after receipt of each installment of tax increment revenue in an amount equal to the portion of such tax increment revenue constituting Pledged Funds. Until needed to fund a Public Improvement Project, the Town shall invest all Grant funds received from the Agency in the Local Agency Investment Fund or other comparable investment vehicle, and shall apply all interest earned thereon toward the cost of the Public Improvement Projects. Any Grant funds 2 held by or for the benefit of the Town at the earlier of (a) completion of and payment for all of the Public Improvement Projects or (b) the Plan Effectiveness Deadline (as defined in Section 2.1) shall be promptly reimbursed by the Town to the Agency, and may thereafter be used by the Agency free of any obligation under this Agreement. Section 1.4 Indebtedness of the Agency The obligation of the Agency to pay the Available Funds and the Pledged Funds to the Town shall constitute an indebtedness of the Agency incurred in carrying out the Redevelopment Plan and a pledge of tax increment received by the Agency from the Project Area to repay such indebtedness under the provisions of Article XVI, Section 16 of the Constitution of the State of California, the Redevelopment Law, and the Redevelopment Plan. Section 1.5 Subordination The parties agree that the obligation of the Agency to make payments pursuant to this Agreement is subordinate to: (a) any obligation of the Agency to pay debt service on tax increment bonds, or any other loans or agreements, heretofore or hereafter issued and secured by a pledge of and a lien upon tax increment revenue generated by the Agency in the Project Area; (b) any required deposits or related payments to the Agency's Low and Moderate Income Housing Fund; and (c) any pass- through payment obligation to affected taxing entities. ARTICLE 2 COMPLETION OF PUBLIC IMPROVEMENT PROJECTS Section 2.1 Use of Grant The Town shall use the Grant exclusively for the completion of the Public Improvement Projects in accordance with the terms and conditions of this Agreement. Among other activities, the Town may use the Grant to pay costs of acquisition of public land, demolition, site preparation and remediation, design, and construction of the Public Improvement Projects, and reasonable staff, consultant and other administrative costs in connection therewith. The Town shall undertake the Public Improvement Projects in accordance with all applicable laws and regulations, including without limitation, laws and regulations related to competitive bidding of public works projects, payment of prevailing wages, non - discrimination, and the use of tax - exempt bond proceeds, if and to the extent such tax- exempt bond proceeds constitute a portion of the Grant funds. The Town shall use the Grant funds for completion of the various Public Improvement Projects by not later than the deadline for effectiveness of the Redevelopment Plan (the "Plan Effectiveness Deadline "), as set forth in the Redevelopment Plan. Section 2.2 Consultation: Modification of Improvement Plan The Agency and the Town shall confer periodically to establish priorities and timing for funding and completion of the various Public Improvement Projects, to review the scope and design of each Public Improvement Project, and to determine any mutually acceptable modifications in the cost estimates and budgets for the various Public Improvement Projects. The Town and Agency may modify the Improvement Plan from time to time: to provide for the use of additional federal, state and local funds; to account for unexpected revenues, whether greater or lesser; to modify, add, or delete a Public 3 Improvement Project from the Improvement Plan; to modify the cost estimate for individual Public Improvement Projects; to maintain consistency with the Town's General Plan or the Redevelopment Plan; or to take into consideration unforeseen circumstances, including without limitation circumstances that may come to light as a result of subsequent environmental review required by CEQA, as further described in Section 2.3. The Improvement Plan may be modified by the Town Manager on behalf of the Town and the Executive Director on behalf of the Agency; provided, however, in no event shall the total Grant to be paid by the Agency to the Town exceed the Maximum Grant Amount without a formal amendment of this Agreement approved by the Town Council and the Agency Board; and, provided further, however, that any addition of a Public Improvement Project to the Improvement Plan shall be conditioned upon the making of all required Redevelopment Law findings and CEQA findings by the Town Council and the Agency Board in their policy discretion. Section 2.3 CEQA Review Prior to the approval, use of Grant funds, and commencement of work on any Public Improvement Project listed in the Improvement Plan (other than preliminary feasibility work that is exempt from the requirements of CEQA), all necessary environmental review required by CEQA shall be completed. All Public Improvement Projects to be funded with Grant funds from the Agency pursuant to this Agreement must be consistent with CEQA. This Agreement in no way limits the discretion of the Planning Commission, the Agency, and Town Council in.completing environmental review of the Public Improvement Projects. Section 2.4 Ongoing Town Obligations Following completion, the Town shall be responsible for causing the operation and maintenance of each Public Improvement Project in accordance with Town policies and standards for such improvements then in effect and as amended from time to time. The Agency's grant and the Town's acceptance of the Grant shall not imply any ownership or responsibility for the Public Improvement Projects by the Agency, and the Town shall retain any and all responsibility and liability for them. Section 2.5 Indemnity The Town shall indemnify, defend, and hold the Agency, its officers, agents, and employees, harmless against all claims, demands, damages, losses, costs, expenses, including without limitation, attorneys' fees and costs of litigation, or liabilities made against them which arise out of, or in connection with, the construction or failure of the Public Improvement Projects; provided, however, that this indemnity shall not extend to any claim arising solely from the Agency's negligence or the Agency's negligent failure to perform its obligations under this Agreement. ARTICLE 3 GENERAL PROVISIONS Section 3.1 Non - Liability of Officials No member, official, employee or agent of the Agency shall be personally liable to the Town, or any successor in interest, in the event of any default or breach by the Agency for any amount which may become due to the Town or successor or on any obligation under the terms of this Agreement. No 0 member, official, employee or agent of the Town shall be personally liable to Agency, or any successor in interest, in the event of any default or breach by the Town for any amount which may become due to the Agency or successor or on any obligation under the terms of this Agreement. Section 3.2 Actions of the Parties Except as otherwise provided in this Agreement, whenever this Agreement calls for or permits a party's approval, consent, or waiver, the written approval, consent, or waiver of the Agency's Executive Director and the Town's Manager (or their respective designees) shall constitute the approval, consent, or waiver of the Agency and the Town, respectively, without further authorization required from the governing board of the party; provided, however, that the person vested with such authority may seek such further advice or authorization from the applicable governing board when she /he deems it appropriate. Section 3.3 Nondiscrimination (a) In Performance of Agreement The Town and its contractors, subcontractors, agents, and employees shall not, because of the race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, age, or disability of any person, refuse to hire or employ the person, or refuse to select the person for a training program leading to employment, or bar or discharge the person from employment or from a training program leading to employment, or discriminate against the person in compensation or in terms, conditions or privileges of employment with respect to performance of this Agreement. (b) With Respect to Use of the Public Improvements Projects The Town covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national, origin, ancestry, familial status, source of income, age, or disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Public Improvement Projects. Section 3.4 No Third Party Beneficiaries No person or entity other than the Agency, the Town and their permitted successors and assigns, shall have any right of action under this Agreement. Section 3.5 State Law This Agreement, and the rights and obligations of the parties hereto, shall be construed and enforced in accordance with the laws of the State of California. Section 3.6 Records The Town shall maintain complete and accurate financial accounts, documents and records with respect to the performance of its obligations under this Agreement, and shall make same available to the Agency's authorized agents for copying and auditing upon reasonable prior notice. Such accounts, documents and records shall be retained by the Town for the longer of two (2) years following completion of the applicable Public Improvement Project or whatever retention period the Town has designated for such documents. Section 3.7 Inspection of Documents During the regular office hours and upon reasonable prior notice, the Town and the Agency, by their duly authorized representatives, shall have the right to inspect and make copies of any books, records or reports of the other party pertaining to this Agreement. Section 3.8 Additional Acts The parties each agree to take such other and additional actions and execute and deliver such other and additional documents as may be reasonably requested by the other party for purposes of consummating the transactions contemplated in this Agreement. Section 3.9 Litigation Regarding Agreement Validity In the event litigation is initiated attacking the validity of this Agreement, each party shall in good faith defend and seek to uphold the Agreement. Section 3.10 Validity of Agreement If any provisions of this Agreement, or the application thereof to any person, party, transaction, or circumstance, is held invalid, the remainder of this Agreement, or the application of such provision to other persons, parties, transactions, or circumstances, shall not be affected thereby. Section 3.11 Entire Agreement: Modification and Amendment This Agreement contains all of the agreements and understandings of the parties pertaining to the subject matter contained herein and supersedes all prior or contemporaneous agreements, representations and understandings of the parties. Except as otherwise provided in Section 2.2, this Agreement cannot be amended or modified except by written agreement of the parties. Section 3.12 Defaults and Remedies If either party breaches any other material provision of this Agreement, the other party shall first notify the breaching party in writing of the purported breach or failure, giving the breaching party thirty (30) days from receipt of such notice to cure or, if cure cannot be accomplished within thirty (30) days, to commence to cure such breach, failure, or act. In the event the breaching party does not then so cure within such thirty (30) days, or if the breach or failure is of such a nature that it cannot be cured within thirty (30) days, the breaching party fails to commence to cure within such thirty (30) days and thereafter diligently complete such cure within a reasonable time thereafter but in no event later than one hundred twenty (120) days, then the non - breaching party shall be afforded all of its rights at law or in equity, by taking all or any of the following remedies: (a) terminating in writing this Agreement (provided, however, that the indemnification provisions of this Agreement shall survive such termination); and (b) prosecuting an action for damages or specific performance. Section 3.13 Attorneys' Fees In any action which a party brings to enforce its rights hereunder, the unsuccessful party shall pay all costs incurred by the prevailing party, including reasonable attorneys' fees. Section 3.14 Binding Upon Successors This Agreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest 0 and assigns of each of the parties to this Agreement. Any reference in this Agreement to a specifically named party shall be deemed to apply to any successor, heir, administrator, executor or assign of such party who has acquired an interest in compliance with the terms of this Agreement, or under law. . Section 3.16 Time Of The Essence Time is of the essence in the performance of all duties and obligations under this Agreement. IN WITNESS WHEREOF, this Agreement has been executed as of the date set forth in the opening paragraph of this Agreement. LOS GATOS REDEVELOPMENT AGENCY Approved as to Form Judith J. Propp Agency Counsel Greg Larson Executive Director Approved as to Form Town Attorney Judith J. Propp TOWN OF LOS GATOS Greg Larson, Town Manager 7 EXHIBIT A IMPROVEMENT PLAN The Improvement Plan consists of the acquisition and improvement of land for, design, construction, and related activities to complete the following Public Improvement Projects: Expansion and improvement of current and new Downtown Parking (up to $5 million) Highway 9 Improvements from Highway 17 to Monte Sereno (up to $2 million) Almond Grove Area Street, Sidewalk and Other Improvements (up to $10 million) Downtown Los Gatos Gateways, Signage, Banners and Art (up to $1 million) Storm Drain, Retaining Wall, Street and Other Improvements (up to $3 million) New Los Gatos Library Building (up to $4.4 million) N: \MGRWdminWorkFiles \2011 Council Reports \1 -18 -11 TC Report.Town - Agency Public Improvements AGREEMENT 2011.doc ATTACHMENT2 RESOLUTION NO. 2011- A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING A PUBLIC IMPROVEMENTS GRANT AND COOPERATION AGREEMENT AND MAKING CERTAIN FINDINGS RELATED THERETO The Town Council of the Town of Los Gatos resolves as follows: WHEREAS, the Town Council ( "Council ") of the Town of Los Gatos ( "Town ") has adopted and amended, from time to time, the Los Gatos Redevelopment Agency Redevelopment Plan ( "Redevelopment Plan") for the Central Los Gatos Redevelopment Project Area ( "Project Area"); and WHEREAS, the Los Gatos Redevelopment Agency, Los Gatos, California ( "Agency") is engaged in various activities in its efforts to remove the blighting conditions that still remain in the Project Area; and WHEREAS, in keeping with the goals of the Agency to eliminate blight and reduce physical and economic blight in accordance with the Redevelopment Plan and Agency's current Implementation Plan ("Implementation Plan"), the Town and Agency have been working cooperatively regarding the development of certain public improvements in the Project Area; and WHEREAS, due to the complexity of the projects and the varying funding sources, the Agency and the Town mutually desire to enter into a Public Improvements Grant and Cooperation Agreement (the "Agreement "), a copy of which is on file with the Town Clerk and Agency Secretary through which the Agency shall pay for designated portions of, and the Town shall conduct, public improvement projects to alleviate blighting conditions in the Project Area as set fortli in the proposed Agreement; and WHEREAS, implementation of the Agreement will assist the Agency to accomplish the stated goals in the Redevelopment Plan and its current Implementation Plan as described in the staff report accompanying this Resolution (the "Staff Report"); and WHEREAS, under the California Redevelopment Law (Health and Safety code Section 33100 et seq.; the "Law "), before the Agency can expend money for public improvements, the Agency and the Town must make specified findings pursuant to Health and Safety Code Section 33445; and WHEREAS, pursuant to the Law, the Agency is authorized, with the consent of the Town to pay for part, or all, of the costs of public improvements that are of benefit to the Project Area; and WHEREAS, no other reasonable means of financing the estimated cost of the public improvements are available to the Town or the community; and Page 1 of 3 WHEREAS, pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act ( "CEQA "), because the Agreement consists of the creation of a governmental funding mechanism for various public improvements, but does not commit funds to any specific public improvement, in that environmental review required by CEQA shall be completed prior to the commencement of any public improvement listed in the Agreement; and WHEREAS, the Staff Report, the Redevelopment Plan, the report to Town Council accompanying the Redevelopment Plan, and the Implementation Plan provide additional information upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE BE IT RESOLVED by the Town Council of the Town of Los Gatos as follows: Section 1 All the Recitals above are true and correct and incorporated herein. Section 2 in compliance with Section 33445 of the Law, the Town hereby finds that: (a) the acquisition of public land or the installation or construction of the public improvements listed in the Agreement that are publicly owned are of benefit to the Project Area by helping to eliminate blight within the Project Area or providing housing for low- or moderate - income persons; (b) no other reasonable means of financing the acquisition of public land or installation or construction of the public improvements listed in the Agreement that are publicly owned are available to the community, and (c) the appropriation and payment of funds by the Agency for the acquisition of public land or the cost of the public improvements listed in the Agreement that are publicly owned is consistent with the Agency's current Implementation Plan. These findings are based on the facts and analysis in the Staff Report incorporated in this Resolution. Section 3 The Town consents to the Agency expenditures as called for in the Agreement for the public improvement projects listed in the Agreement, subject to completion of any environmental review required by CEQA prior to the commencement of any improvement listed in the Agreement. Section 4 The Town hereby approves the Agreement and authorizes the Town Manager to enter into and execute the Agreement on behalf of the Town for the funding and completion of the projects listed in the Agreement, substantially in the form on file with the Agency Secretary and the Town Clerk, with such revisions as are reasonably determined necessary by the Town Manager, such determination to be conclusively deemed to have been made by the execution of the Agreement by the Town Manager. The Town Manager is authorized to implement the Agreement and take all further actions and execute all other documents which are necessary or appropriate to carry out the Agreement. Page 2 of 3 Section 5 The Town Manager is hereby authorized and directed to file Notices of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA. Section 6 The Town Manager is hereby authorized to take such further actions as may be necessary or appropriate to carry out the Town's obligations pursuant to this Resolution and the Agreement. Section 7 The Town Clerk shall certify to the adoption of this Resolution. Section 8 This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED by the Town Council of the Town of Los Gatos at a regular meeting on the 18 day of January, 2011 by the following vote: COMMISSION MEMBERS: AYES: NAYS: ABSENT ABSTAIN: SIGNED: JOE PIRZYNSKI MAYOR OF THE TOWN OF LOS GATOS, CALIFORNIA ATTEST Jackie Rose CLERK ADMINISTRATOR LOS GATOS, CALIFORNIA Page 3 of 3 THIS PAGE INTENTIONALLY LEFT BLANK ATTACHMENT3 RESOLUTION NO. 2011- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LOS GATOS REDEVELOPMENT AGENCY APPROVING A PUBLIC IMPROVEMENTS GRANT AND COOPERATION AGREEMENT AND MAKING CERTAIN FINDINGS RELATED THERETO The Redevelopment Agency of the Town of Los Gatos resolves as follows: WHEREAS, the Town Council ( "Council ") of the Town of Los Gatos( "Town ") has adopted and amended, from time to time, the Los Gatos Redevelopment Agency Plan ( "Redevelopment Plan") for the Central Los Gatos Redevelopment Project Area ("Project Area"); and WHEREAS, the Los Gatos Redevelopment Agency of the Town of Los Gatos ("Agency") is engaged in various activities in its efforts to remove the blighting conditions that still remain in the Project Area; and WHEREAS, in keeping with the goals of the Agency to eliminate blight and reduce physical and economic blight in accordance with the Redevelopment Plan and Agency's current Implementation Plan ("Implementation Plan"), the Town and Agency have been working cooperatively regarding the development of certain public improvements in the Project Area; and WHEREAS, due to the complexity of the projects and the varying funding sources, the Agency and the Town mutually desire to enter into a Public Improvements Grant and Cooperation Agreement (the "Agreement ") through which the Agency shall pay for designated portions of, and the Town shall conduct, public improvement projects to alleviate blighting conditions in the Project Area as set forth in the proposed Agreement; and WHEREAS, implementation of the Agreement will assist the Agency to accomplish the stated goals in the Redevelopment Plan and its current Implementation Plan as described in the staff report accompanying this Resolution (the "Staff Report"); and WHEREAS, under the California Redevelopment Law (Health and Safety code Section 33100 et SeMC .; the "Law "), before the Agency can expend money for public improvements, the Agency and the Town must make specified findings pursuant to Health and Safety Code Section 33445; and WHEREAS, pursuant to the Law, the Agency is authorized, with the consent of the Town Council to pay for part, or all, of the costs of public improvements that are of benefit to the Project Area; and WHEREAS, no other reasonable means of financing the estimated cost of the public improvements are available to the Town or the community; and WHEREAS, pursuant to State CEQA Guidelines Section 15378(b)(4), approval of the Agreement is not a project subject to the California Environmental Quality Act ( "CEQA "), because the Agreement consists of the creation of a governmental funding mechanism for Pagel of 3 various public improvements, but does not commit funds to any specific public improvement, in that environmental review required by CEQA shall be completed prior to the commencement of any public improvement listed in the Agreement; and WHEREAS, the Staff Report, the Redevelopment Plan, the report to Town Council accompanying the Redevelopment Plan, and the Implementation "Plan provide additional information upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE BE IT RESOLVED by the Redevelopment Agency of the Town of Los Gatos as follows: Section 1 All the Recitals above are hue and correct and incorporated herein. Section 2 In compliance with Section 33445 of the Law, the Agency hereby finds that: (a) the acquisition of public land or the installation or construction of the public improvements listed in the Agreement that are publicly owned are of benefit to the Project Area by helping to eliminate blight within the Project Area or providing housing for low- or moderate - income persons; (b) no other reasonable means of financing the acquisition of public land or the installation or construction of the public improvements listed in the Agreement that are publicly owned are available to the community; and (c) the appropriation and payment of funds by the Agency for the acquisition of public land or cost of the public improvements listed in the Agreement that are publicly owned is consistent with the Agency's current Implementation Plan. These findings are based on the facts and analysis in the Staff Report incorporated in this Resolution. Section 3 The Agency agrees to make the expenditures as called for in the Agreement for the public improvement projects listed in the Agreement, subject to corpletion of any environmental review required by CEQA prior to the commencement of any improvement listed in the Agreement. Section 4 . The Agency hereby approves the Agreement and authorizes the Agency Executive Director to enter into and execute the Agreement on behalf of the Agency for the funding and completion of the projects listed in the Agreement, substantially in the form on file with the Agency Secretary and the Town Clerk, with such revisions as are reasonably detennined necessary by the Agency Executive Director, such determination to be conclusively deemed to have been made by the execution of the Agreement by the Agency Executive Director. The Agency Executive Director is authorized to implement the Agreement and take all further actions and execute all other documents which are necessary or appropriate to carry out the Agreement. Section 5 The Agency hereby approves and appropriates (to the extent not already appropriated) the amounts necessary to fund the Agency's obligations under the Agreement as a lawful expenditure of Agency funds under the Law. The Agency's current fiscal year budget is hereby amended to the extent necessary to implement the foregoing appropriation. Page 2 of 3 Section 6 The Agency Executive Director is hereby authorized and directed to file Notices of Exemption with respect to the Agreement in accordance with the applicable provisions of CEQA. SectionT The Agency Executive Director is hereby authorized to take such further actions as may be necessary or appropriate to carry out the Agency's obligations pursuant to this Resolution and the Agreement. Section 8 The Agency Secretary shall certify to the adoption of this Resolution. Section 9 This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Los Gatos Redevelopment Agency, California held on the 18 day of January, 2011, by the following vote: DIRECTORS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: JOE PIRZYNSKI CHAIR OF THE BOARD OF DIRECTORS OF THE LOS GATOS REDEVELOPMENT AGENCY LOS GATOS, CALIFORNIA ATTEST: SECRETARY ADMINISTRATOR OF THE BOARD OF THE LOS GATOS REDEVELOPMENT AGENCY LOS GATOS, CALIFORNIA Page 3 of 3