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Home My WebLink About04. CDC SalesTax Revenues AGENDA MEMO DATE: June 22, 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 FOR SPECIFIC USE OF SALES TAX REVENUES BETWEEN THE DOWNEY COMMUNITY DEVELOPMENT COMMISSION AND THE CITY OF DOWNEY RECOMMENDATION Staff recommends that the Community Development Commission (“Commission”) approve and authorize the Executive Director to execute a Cooperation Agreement with the City of Downey (“City”) for specific use of sales tax revenues. BACKGROUND On June 8, 2010, the Community Development Commission approved an Owner Participation Agreement (“OPA” or “Participation Agreement”) with Champion Dodge, LLC, located at 9655 Firestone Boulevard in Downey to secure a new car dealership point (Chrysler/Jeep) within the city. As a requirement to the OPA, a Cooperation Agreement (“Agreement”) is necessary between the Commission and the City in order to address the OPA’s specific use of sales tax revenues. The Cooperation Agreement will be made between the Downey Community Development Commission and the City of Downey. The following requirements are necessary in order for the Community Development Commission to meet the obligations of the OPA with Champion Dodge. The requirements are summarized as follow: 1. The City shall withhold and retain from sales tax revenues received by the City which are attributable to the Property (as defined in the Participation Agreement) in accordance with the provisions of Section 4.5.2 of the Participation Agreement. 2. As required under the Participation Agreement, the City shall release to the Commission said sales tax revenues as provided in Section 1 above, to fund the Commission’s obligation to make its payments thereunder. 3. No member, official or employee of the Commission or City shall have any personal interest, direct or indirect, in this Agreement nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly, interested. CITY OF DOWNEY, CALIFORNIA 4. The Executive Director of the Commission and the Mayor of the City, or their respective designee, are hereby authorized to execute all reasonably necessary documents to carry out and implement the terms of this Agreement. FISCAL IMPACT There is no financial impact associated with this cooperation agreement at this time. Attachments – Exhibit A: Cooperation Agreement Exhibit B: Owner Participation Agreement H:\ECONDEV\AGENDAS\Agenda10\062210\CDC Coop Agreement.doc 6/17/2010 3:52:55 PM Exhibit A Cooperation Agreement [ following this page ] COOPERATION AGREEMENT This Cooperation Agreement (“Agreement”) is made and entered into by and between the DOWNEY COMMUNITY DEVELOPMENT COMMISSION (the “Commission”), a public body, corporate and politic, and the CITY OF DOWNEY (the “City”), a municipal corporation. RECITALS WHEREAS, The City has approved and adopted a Redevelopment Plan, as amended ("Amended Redevelopment Plan"), for a redevelopment project known as the Downey Redevelopment Project ("Project Area") by its adoption of Ordinance No. 553 on August 18, 1987, as amended; and WHEREAS, the Redevelopment Plan, in accordance with Section 33220 ofthe California Redevelopment Law (Health and Safety Code Section 33000 et seq.) provides for the cooperation ofthe Commission and City to carry out the Redevelopment Plan; and WHEREAS, the Commission has entered into that certain Owner Participation Agreement by and between the Commission and Downey Dodge, dated June __, 2010 (the “Participation Agreement”); and WHEREAS, for purposes of effectuating the Redevelopment Plan, and for providing for the creation of new jobs in the City and increasing the tax revenue base of the City, the City wishes to assist the Commission by funding the Commission’s obligations under that Participation Agreement. NOW, THEREFORE, in consideration of the foregoing, and in cooperation for the implementation of the Redevelopment Plan, the Commission and City hereby agree as follows: 1. The City shall withhold and retain from sales tax revenues received by the City which are attributable to the Property (as defined in the Participation Agreement) in accordance with the provisions of Section 4.5.2 of the Participation Agreement. 2. As required under the Participation Agreement, the City shall release to the Commission said sales tax revenues as provided in Section 1 above, to fund the Commission’s obligation to make its payments thereunder. 3. No member, official or employee of the Commission or City shall have any personal interest, direct or indirect, in this Agreement nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly, interested. 4. The Executive Director of the Commission and the Mayor of the City, or their respective designee, are hereby authorized to execute all reasonably necessary documents to carry out and implement the terms of this Agreement. IN WITNESS WHEREOF, the parties have executed this Cooperation Agreement effective the ___day of June of 2010. “Commission” DOWNEY COMMUNITY DEVELOPMENT COMMISSION By: ____________________________ Executive Director Attest: Secretary By: ________________ Approved as to Form: Commission General Counsel BY: _________________ “City” CITY OF DOWNEY By: _________________________________ Mayor Attest: City Clerk By: ___________________ Approved as to Form: City Attorney By: ___________________ Exhibit B Owner Participation Agreement [ following this page ]