NOTICE of SPECIAL MEETING OF THE CITY COUNCIL AND CITY COUNCIL/
REDEVELOPMENT AGENCY SPECIAL JOINT MEETING
MONDAY, MARCH 7, 2011, 12:00 P.M.
COUNCIL CHAMBER, CITY HALL
100 SANTA ROSA AVENUE, SANTA ROSA
NOTICE IS HEREBY GIVEN that the Council of the City of Santa Rosa will hold a Special Meeting on Monday, March 7, 2011, in the Council Chamber, City Hall, 100 Santa Rosa Avenue, Santa Rosa, California, at 12:00 p.m. Immediately following the City Council Special Meeting the City Council will adjourn to a Special Joint Meeting with the Redevelopment Agency. The purpose of this meeting is to hold a Special City Council Meeting and a Special Joint Meeting with the Redevelopment Agency to consider the following matters:
12:00 p.m.
CITY COUNCIL SPECIAL MEETING AGENDA
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CALL TO ORDER AND ROLL CALL OF CITY COUNCIL MEMBERS
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PUBLIC COMMENTS (PUBLIC COMMENTS WILL BE LIMITED TO TOPIC OF THE SPECIAL MEETING)
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STATEMENTS OF ABSTENTION
4. REPORT ITEM
[This item was originally scheduled for action by the City Council on Tuesday, March 8, 2011]
4.1
BACKGROUND: Governor Brown's Budget Summary, released Monday, January 10, includes a proposal to eliminate all local redevelopment agencies and dismantle tax increment financing as part of an effort to close the State's $25 Billion budget deficit. Urgency legislation may be introduced shortly that may immediately prohibit redevelopment agencies from incurring any further debt or contractual obligations.
On February 7, 2011, the Council and Redevelopment Agency held a joint meeting to approve eleven (11) funding agreements to obligate and preserve funds for specific projects benefitting the local community. The Council and Agency received information regarding available appropriations and reserves for each redevelopment project area and provided direction to staff to prepare funding agreements for the B Street Trunk Sewer Line and the New Railroad Square Project, including assistance with affordable housing and on-site infrastructure improvements. In addition, direction was given to appropriate available reserves in the Southwest Project Area to offset shortfalls in the 20% housing set-aside revenue pledged to pay debt service.
On February 28, 2011, the Redevelopment Agency and the Housing Authority met separately and took action to approve funding agreements consistent with the direction provided by the Council and the Agency on February 7, 2011. These agreements are now being brought forward for Council consideration and action.
RECOMMENDATION: It is recommended by the Department of Economic Development and Housing that the Council, by resolution, (a) approve two (2) funding agreements, in the total amount of $2,900,000, and make benefit findings, and (b) approve a resolution authorizing the appropriation of reserves, in the amount of $1,930,446.
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ADJOURNMENT OF CITY COUNCIL SPECIAL MEETING TO SPECIAL JOINT MEETING OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY.
No other business will be considered by the Council at this Special Meeting.
CITY COUNCIL AND REDEVELOPMENT AGENCY SPECIAL JOINT MEETING AGENDA
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CALL TO ORDER AND ROLL CALL OF CITY COUNCIL MEMBERS/ REDEVELOPMENT
AGENCY MEMBERS
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PUBLIC COMMENTS (Public Comments will be limited to topic of the Special Joint Meeting.)
3.
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STATEMENTS OF ABSTENTION
4. REPORT ITEMS
4.1
BACKGROUND: Governor Brown's Budget Summary, released Monday, January 10, and the bill language released by the Department of Finance released on February 23, 2011, (the DOF Bill), include a proposal to eliminate all local redevelopment agencies and dismantle tax increment financing as part of an effort to close the State's $25 Billion budget deficit.
The DOF Bill includes language that could lead to a potential claim by an entity created by the bill, called an oversight committee, that the loans from the City to the Agency, with a balance of approximately $5.5 million, are not enforceable obligations, rendering them extinguished.
To protect against such a potential claim and to secure the City's right to repayment under the loans made to the Agency, Staff recommends that the Agency make three promissory notes in favor of the City to be secured by a deed of trust recorded against real property currently owned by the Agency, which real property is commonly known as the Former AT&T Building and the Hyatt Vineyard Creek Hotel and Conference Center (the Agency's Properties).
Staff also recommends that the Redevelopment Agency assign its current rights to and interest in rent revenue from the Vineyard Creek Lease to the City in order to fund the Agency's additional obligations under a second amendment to the Hearn Avenue Overcrossing Project Funding Agreement. Additionally, should the Agency's Properties be sold then any proceeds from the sale, after repayment of Agency debt to the City, would be contributed to the Hearn Avenue Overcrossing Project through said second amendment to the Funding Agreement for the Project, and this obligation, a total of $9 million, would be secured by a promissory note and deed of trust recorded against the Agency's Properties.
RECOMMENDATION: It is recommend by the Department of Economic Development and Housing that the Redevelopment Agency (1) authorize the Executive Director to execute three promissory notes and a deed of trust to secure the Agency's obligations under the three City-Agency cooperation agreements, and (2) approve a second amendment to the funding agreement for the Hearn Avenue Overcrossing Project, make benefit findings, and authorize the Executive Director to execute a promissory note and deed of trust securing the obligation set forth in the Second Amendment.
It is further recommended by the Department of Economic Development and Housing that the City Council (1) accept the promissory notes and deeds of trust and addendum made by the Redevelopment Agency in order to secure the Agency's obligations under the three City-Agency cooperation agreements, and (2) approve a second amendment to the funding agreement for the Hearn Avenue Overcrossing Project, make benefit findings, and accept the promissory note and deed of trust securing the obligation set forth in the Second Amendment.
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ADJOURN SPECIAL JOINT MEETING
No other business will be considered by the City Council or the Redevelopment Agency at this Special Joint Meeting.
Dated: March 4, 2011 Gayle Petersen, Acting City Clerk
The City of Santa Rosa does not discriminate on the basis of disability in the admissions or access to, or treatment of or employment in, its programs or activities. Disability-related aids or services, including printed information in alternate formats, to enable persons with disabilities to participate in public meetings are available by contacting the City Clerk's Office at 543-3016 one week prior to the meeting. TDD 543-3063
Meeting information can also be accessed via the internet at http://srcity.org
This information can also be accessed via the internet at:http://www.srcity.org
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