HomeMy WebLinkAbout03. CDC NSP Verizon Housing Proj
AGENDA MEMO
DATE:
April 27, 2010
TO:
Chairman and Members of the Community Development Commission
FROM:
Office of the Executive Director
By: Brian Saeki, Director of Community Development
SUBJECT: COOPERATION AGREEMENT BETWEEN THE DOWNEY COMMUNITY
DEVELOPMENT COMMISSION AND THE CITY OF DOWNEY TO
nd
SECURE NSP FUNDS FOR THE REDEVELOPMENT OF 8314 2
STREET (FORMER VERIZON PROPERTY)
RECOMMENDATION
Staff recommends that the Downey Community Development Commission approve a
cooperation agreement to secure federal NSP funds to be used for the Verizon Housing
Project.
BACKGROUND/DISCUSSION
In July 2008, Congress passed the Housing and Economic Recovery Act (HERA) of
2008, which established the Neighborhood Stabilization Program (NSP). The City of
Downey (City) was one of twenty-six Los Angeles County cities which had to apply
directly through the State of California for the NSP funds. On June 9, 2009, the City
Council authorized City staff to join with the cities of Bellflower, Lakewood and
Paramount in a joint application to the State for NSP funding. The lead agency on this
application was the City of Paramount.
Effective February 25, 2010, the NSP funds were awarded by the State and became
available to the City of Downey. One of staff’s first objectives is to obligate the NSP
funds by May 1, 2010. This will be accomplished using a cooperation agreement (Coop
Agreement) between the City and the Community Development Commission (CDC).
The Coop Agreement not only secures and obligates the NSP funds, but transfers them
from the City to the CDC. The redevelopment of the Verizon property, which the NSP
funds will be used for, is owned by the CDC. Staff members intend to use the NSP
funds to provide gap financing for the Verizon Project; specifically the NSP funds will be
used for demolition. Demolition and redevelopment of the Verizon Project will
commence only after the CDC has reviewed and approved a disposition and
development agreement for the project.
The Coop Agreement is an interagency contract which provides the CDC with funds for
the Verizon project and a time schedule to complete the building demolition per the NSP
application. The Coop Agreement provides the Commission $661,034 in NSP funding to
be used for the Verizon Project and requires that the Commission complete the scope
of demolition activity and expend the NSP funds by December 31, 2010
CITY OF DOWNEY, CALIFORNIA
FISCAL IMPACT
Approval of this item would secure $661,034 in federal funds for the CDC budget and
would not negatively impact the City’s general fund.
ATTACHMENT
CITY OF DOWNEY AND DOWNEY COMMUNITY DEVELOPMENT COMMISSION
NEIGHBORHOOD STABILIZATION PROGRAM
REDEVELOPMENT COOPERATION AGREEMENT
THIS NEIGHBORHOOD STABILIZATION PROGRAM REDEVELOPMENT
Agreement
COOPERATION AGREEMENT (this “”) is entered into as of April 27. 2010, by
City
and between the CITY OF DOWNEY, a municipal corporation and charter city (“”), and the
DOWNEY COMMUNITY DEVELOPMENT COMMISSION, a California public body,
CDC
corporate and politic (“”).
RECITALS:
NSP1
A.City has received an allocation of Neighborhood Stabilization Program (“”)
funds authorized under the Housing and Economic Recovery Act of 2008, pursuant to Title III of
Division B; and
B.City has entered into that certain Subrecipient Agreement dated June 9, 2009 and
that certain Joint Use Agreement dated June 10, 2009 with the City of Paramount. The City of
Paramount, on behalf of City and as the lead agency, submitted the required application to the
State of California Department of Housing and Community Development to obtain $695,825 in
NSP1 Funds
NSP1 funds (“”); and
C.City is to receive $661,034 of the NSP1 Funds;
D.The State of California approved City’s use of the City’s portion of the NSP1
Funds for the demolition of blighted and vacant buildings; and
E.CDC is pursuing redevelopment of certain areas of the City pursuant to and as
Project Area
specified in the “Firestone Redevelopment Plan” adopted by the City (“”) ;
F.CDC owns that certain real property located in the Project Area at 8314 2nd
Site
Street, Downey, California (“”). The Site is improved with a building that is in blighted
condition and vacant. CDC desires to demolish the building and substructure in furtherance of
Demolition Work
the future redevelopment of the Site as affordable housing (“”); and
G.City desires to obligate and commit the City’s portion of the NSP1 Funds to CDC
to pay the costs of the Demolition Work; and
H.CDC desires to receive and expend the City’s portion of the NSP1 Funds to pay
the costs of the Demolition Work.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS AND
OTHER GOOD AND VALUABLE CONSIDERATION, CITY AND CDC AGREE AS
FOLLOWS
Section 1.City Commitment of NSP1 Funds to CDC
Subject to the provisions of this Agreement, City irrevocably agrees to provide $661,034
Demolition Funds
of the NSP1 Funds provided to City (“”) to CDC for the purpose of paying the
costs of the Demolition Work. City will deliver all of the Demolition Funds to the CDC upon
the earlier of: (a) CDC’s request; or (b) CDC’s award of a contract for performance of the
Demolition Work.
Section 2.CDC Expenditure of Demolition Funds
CDC agrees to expend the Demolition Funds received pursuant to Section 2 for the
purpose of paying the costs of the Demolition Work. City and CDC agree that the scope of the
Demolition Work will include the abatement and disposal of environmentally hazardous
materials and the disposal of demolished building materials resulting in complete clearance of
the Site, the incorporation of a waste management component in compliance with City materials
diversion and reuse requirements, and Site stabilization, as necessary, until such time as
redevelopment of the Site occurs. CDC agrees to expend the Demolition Funds by December
31, 2010 to pay the costs of the Demolition Work. After December 31, 2010, this Agreement is
subject to termination pursuant to Section 10.
Section 3.CDC Maintenance and Availability of Records
CDC agrees to establish and maintain separate project files and accounting records
regarding the Demolition Work and expenditure of the Demolition Funds and shall retain such
records for at least five (5) years after the date of completion of the Demolition Work.
Section 4.CDC Compliance with Applicable Federal and State Laws and
Regulations
CDC agrees to comply with applicable federal, state, and local laws, ordinances,
regulations, and directives as they pertain to the performance of the Demolition Work or the
expenditure of the Demolition Funds. CDC acknowledges that the Demolition Funds allocated
to CDC under this Agreement are considered federal Community Development Block Grant
CDBG
Program (“”) funds disbursed by the State of California Department of Housing and
Community Development and the expenditure of the Demolition Funds is subject to specific
requirements set forth in various federal or State of California regulations and agreements
between City, the City of Paramount and the State of California, including applicable provisions
of Title 24 Code of Federal Regulations Sections 570, et. seq., Title 25 California Code of
Regulations Sections 7050, et seq., and some or all of the following laws or regulations:
4.1Uniform Administrative Requirements
Applicable uniform administrative requirements described in 24 C.F.R. Part
570.502 including the regulations, policies, guidelines, and requirements of OMB
Circular Numbers A-87, A-122, and 24 CFR Part 85, where appropriate, the
Housing and Economic Recovery Act of 2008 (HERA) regulations, and the State
of California CDBG regulations
4.2Environmental Standards
The National Environmental Policy Act of 1969 and the Clean Air Act as
amended, 42 USC 1857 etc. seq., the Federal Water Pollution Control Act as
amended, 33 USC 1251 et. seq. and EPA regulations in 40 C.F.R. Part 40, as
amended.
4.3Affirmative Action
The following laws regarding nondiscrimination:
(a)Title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing
Act (42 USC 3601-3619), and implementing regulations.
(b)Title VIII of the Civil Rights Act of 1968 (Public Law 90-284) as
amended; and will administer ITS activities related to housing and
community development in a manner affirmatively furthering fair housing.
(c)Section 109 of the Housing and Community Development Act of 1974, as
amended.
(d)Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701u), and implementing regulations at 24 CFR part 135.
(e)Executive Order 11246, as amended by Executive Orders 11375 and
12086.
(f)Executive Order 11063, as amended by Executive Order 12259.
(g)Section 504 of the Rehabilitation Act of 1973 (Public Law 93-112), as
amended, and implementing regulations.
(h)The Age Discrimination Act of 1975 (Public Law 94-135).
4.4Drug Free Workplace
Pursuant to 24 C.F.R. 84.48 and Appendix A to Part 84, CDC shall certify that it
will provide a drug free-workplace, as required by 42 U.S.C. 701.
4.5Labor Standards.
The following laws regarding labor standards:
(a)Section 110 of the Housing and Community Development Act of 1974, as
amended.
(b)Section 1720, et seq., of the California Labor Code regarding public works
labor standards.
(c)Davis-Bacon Act as amended (40 U.S.C. 276a) regarding prevailing wage
rates.
(d)Contract Work Hours and Safety Standards Act (40 USC 327-333)
regarding overtime compensation
(e)Anti-Kickback Act of 1934 (18 USC 874) prohibiting "kickbacks" of
wages in federally assisted construction activities.
4.6Architectural Barriers Act
The Architectural Barriers Act of 1968 (42 USC 4151) and implementing
regulations (24 CFR Part 40-41).
4.7Lead-Based Paint
Lead-Based Paint Regulations under 24 CFR Part 5
4.8Limitations on Political Activities
The Hatch Act (5 USC 1501, et seq.) regarding political activity of employees.
4.9Anti-lobbying
Restrictions on lobbying required by 24 CFR Part 87, together with disclosure
forms, if required by such regulations.
4.10Federal Debarment and Suspension
The Federal Debarment and Suspension regulations at 24 CFR Part 5. Any and
all persons, contractors, consultants, businesses, sub-recipients, etc., conducting
business with the CDC regarding the Demolition Work shall not be presently
debarred, proposed for debarment, suspended, declared ineligible, or voluntarily
excluded from participation in the Demolition Work in any proposal submitted in
connection with the Demolition Work.
Section 5.Public Improvements Assessments
CDC will not attempt to recover any capital costs of public improvements assisted in
whole or in part with Demolition Funds. including any fee charged or assessment made as a
condition of obtaining access to such public improvements.
Section 6.Conflict of Interest
CDC will enforce standards of conduct that govern the performance of its officers,
employees and agents engaged in the administration of contracts funded in whole or in part with
the Demolition Funds (Title 25 California Code of Regulations Section 7126).
Section 7.Access to CDC Records
CDC will give the United States Department of Housing and Urban Development
HUD
(“”), the United States Comptroller General, the Office of Inspector General of the United
States, the State of California Department of Housing and Community Development, or any of
their authorized representatives access to and the right to examine all records, books, papers, or
documents related to the Demolition Work and expenditure of the Demolition Funds by CDC.
Section 8.Additional Actions
CDC and City agree to take all appropriate steps and execute any documents that may be
or become necessary or convenient to implement this Agreement.
Section 9.Assignment
CDC shall not assign any interest in this Agreement and shall not otherwise transfer any
interest in this Agreement, without the prior written consent of City. City shall not assign any
interest in this Agreement and shall not otherwise transfer any interest in this Agreement,
without the prior written consent of CDC.
Section 10.Term; Termination
This Agreement shall remain in effect until December 31, 2010, after which date either
City or CDC may terminate this Agreement with or without cause upon thirty (30) days prior
written notice to the other. Following termination of this Agreement for any reason prior to
completion of the Demolition Work, CDC shall return to City all unexpended Demolition Funds.
Section 11.Invalidity; Severability
If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable
by a court of competent jurisdiction, the remaining provisions shall continue in full force and
effect.
Section 12.Amendments and Variations
This writing, with any attachments or exhibits, embodies the whole of the Agreement
between City and CDC regarding use of the Demolition Funds to pay the costs of the Demolition
Work. Amendment or variation of the terms of this Agreement shall not be valid unless made in
the form of a written amendment to this Agreement formally approved by the governing bodies
of both City and CDC and signed by the duly authorized representatives of both City and CDC.
[Signatures on following page]
IN WITNESS WHEREOF, City and CDC have signed and entered into this Agreement
on the date first herein above written.
DOWNEY COMMUNITY DEVELOPMENT
COMMISSION, a public body, corporate and politic
By:
, Executive Director
ATTEST:
By:______________________________
, Secretary
APPROVED AS TO FORM:
By:
, General Counsel