HomeMy WebLinkAbout06 COOP AG NO. 2 04-03-00DATE:
APRIL 3, 2000
lqO. 6
04-03-00
inter_Com
TO:
FROM:
SUBJECT:
WILLIAM HUSTON, CITY MANAGER
CHRISTINE SHINGLETON, ASSISTANT CITY MANAGER
COOPERATION AGREEMENT NO. 2
IsUmmarY ApProval is requested to'enter intoa new RedeveloPment Cooperation Agreement
With the City~0f z~ine' for redevelopment of portions` Of MCAS~ Tustin. within the'city of ]:wine.
Recommendation
It is recommended that:
,
The Mayor be authorized to execute Redevelopment Cooperation Agreement No. 2
among the City of Irvine, City of Tustin, and Tustin Community Redevelopment
Agency.
2. The Chair of the Tustin Community Redevelopment Agency be authorized to execute
Redevelopment Cooperation Agreement No. 2.
Fiscal Impact
No fiscal impacts at this time.
Background
On February 13, 1996, the cities of Irvine and Tustin entered into a Redevelopment Cooperation
Agreement. In addition to approving the Agreement, the Irvine City Council also approved an
ordinance authorizing the Tustin Community Redevelopment Agency to exercise redevelopment
powers on the 94 +/- acre portion of MCAS, Tustin located in Irvine. After a number of
extensions caused by reuse planning and the base closUre process, the Agreement expired in
February 1999. Recent discussions between staffs of the two cities concluded that it would be
advantageous for a new agreement to be signed, essentially the same as the original one. The
Tustin City Council is being requested to consider and approve the new agreement.
The proposed Agreement gives the City of Irvine control over property tax increment benefits
derived from the Irvine portion of the base, including certain obligations related to affordable
housing, as provided for in state redevelopment law. Irvine also retains full police power over
Irvine-Tustin Redevelopment Coop. A~, ee.
Page 2
the property within their jurisdiction, including implementation of its planning and regulatory
standards and the processing of entitlements and permits. Pursuant to the Agreement, such
activity would be coordinated through the Tustin Community Redevelopment Agency.
The land area subject to the Agreement is a 94+/- acre parcel of MCAS, Tustin located in Irvine
bounded by Barranca Parkway, Harvard Avenue, Peters Canyon Wash, and just north of
Warner Avenue. The 'site contains 552 former military housing units, typically characterized as
multiple family units built during the late 1970's, 1980's and early 1990's. Fourteen of the units
have been designated for use by Families Forward's transitional housing program.
Approximately 28 acres of the site at Harvard and Barranca are presently vacant, but have been
identified for use as an Irvine Unified School District site and a small Irvine park.
There are several advantages' for entering into a new agreement, without any' significant
disadvantages.
Development of the property by Irvine, outside of the process defined by the two cities
when the MCAS, Tustin reuse plan was approved, may result in the Navy selling the
property directly through a competitive sale and selecting the developer, without input
from Irvine or Tustin.
The agreement will allow the two cities to cooperate in the redevelopment of this and
adjacent base properties.
Christine Shingleton
Assistant City Manager~''
Mcas Staff Report Irvine-Tustin Redevelopment Coop Agree
REDEVELOPMENT COOPERATION AGREEMENT NO. 2
THIS REDEVELOPMENT COOPERATION AGREEMENT NO. 2 (" Agreement '
No. 2 ") is made' and entered into this day of ., 2000 ("Effective
Date"), by and among the CITY OF TUSTIN, a general law city ("Tustin"), the TUSTIN
COMMUNITY REDEVELOPMENT AGENCY, a community redevelopment agency organized
and existing pursuant to Health and Safety Code Section 33000 et seq. ("Agency"), and the
CITY OF IRVINE, a charter city (-"lrvine").
RECITALS
A. in anticipation of the adoption of the MCAS Tustin Redevelopment Plan,
the parties herein entered into a certain Redevelopment Cooperation Agreement, dated
February 14, 1996, which was subsequently amended on November 13, 1997, by Amendment
No.1. The parties anticipate a delay in preparation of the MCAS Tustin Redevelopment Plan
and collectively desire to enter into a new redevelopment cooperation agreement, that will
supercede in its entirety the Redevelopment Cooperation Agreement, dated February 14,
1996, as amended.
B. Marine Corps Air Station Tustin ("MCAS Tustin") was closed on July 2,
1999, and the Department of the Navy is in the process of carrying out the Congressional
directive to dispose of the property in accordance with applicable laws and regulations.
C. Approximately one thousand five hundred and seven (1507) acres of
MCAS Tustin are located within the territorial jurisdictional boundaries of Tustin ("Tustin
Portion"), while approximately ninety four (94) acres of MCAS are located within the territorial
jurisdictional boundaries of irvine ("lrvine Portion"). The Irvine Portion is contiguous to the
Tustin Portion. Tustin has been designated as the lead agency for purposes of planning for
civilian reuse at MCAS Tustin. Tustin and Irvine, along with other cities and public agencies,.
have been cooperating in an effort to develop a comprehensive reuse plan for MCAS Tustin.
_ .
D. Agency, Tustin, and Irvine desire to continue to cooperate in planning
and implementing a redevelopment plan for MCAS Tustin and have determined that it would
be in the public interest for the Agency to act as the redevelopment agency for all of MCAS,
Tustin including the Irvine Portion.
E. Agency is in the process of preparing a redevelopment plan for MCAS
Tustin (the "MCAS Tustin Redevelopment Plan") in accordance with the California
Community Redevelopment Law (Health & Safety Code {}33000 et seq.) (the "CRL").
F. The CRL, at Health and Safety Code Section 33213, provides that a
community may authorize the redevelopment of area within its territorial limits by another
community if such area is contiguous to such other community.
G. Irvine adopted Ordinance No. 96-05 on February 27, 1996, in
accordance with Health and Safety Code Section 33213, designating Agency as the
redevelopment agency for the Irvine Portion and authorizing Agency to undertake
redevelopment of such area in accordance with the Redevelopment Cooperation Agreement
Revised Redevelopment Cooperation Agreement
among Tustin, Agency, and Irvine, dated July 14, 1996, and it is the parties intent that said
ordinance 'now apply to this Agreement No. 2.
H. Agency, Tustin, and Irvine desire to enter into this Agreement No. 1
pursuant to Health and Safety Code Section 33213, to permit Agency to act as the
redevelopment agency within the Irvine Portion, subject to the terms and conditions set forth
herein.
NOW, THEREFORE, in consideration of the foregoing recitals and the
promises and covenants hereinafter contained, and for good and valuable consideration, the
sufficiency and receipt of which is hereby acknowledged, the parties hereto agree as follows:
AGREEMENT
1. Recitals Incorporated. The foregoing recitals are incorporated herein and made a
part hereof.
2. Previous Aqreements. The Redevelopment Cooperation Agreement dated
February 14, 1996 and Amendment No. 1 (Amendment) dated November 13, 1997, are
hereby superceded in their entirety by this Agreement No. 2. As this Agreement No. 2 is in
all material respects identical to the Redevelopment Cooperation Agreement dated February
14,-1996, it is intended by irvine that Ordinance No. 96-05 of Irvine apply to this Agreement
No. 2. '
3. Conditions to Effectiveness.
a. This agreement shall be void and of no force or effect unless, no later than
February 28, 2001, Tustin and Irvine have both approved, by ordinance, the proposed MCAS
Tustin Redevelopment Plan The City Managers of Tustin and'lrvine and Executive Director of
Agency shall have the right, on behalf of their respective entities, to mutually agree by letter
agreement signed by all of them, to extend the foregoing deadline date by a period of time
not to exceed a cumulative total of one hundred eighty (180) days.
b. Either before or, if permitted by applicable law, no later than six months after
Tustin and Irvine adopt ordinances approving the Redevelopment Plan, Tustin and Irvine will
each proceed with the General Plan amendments covering each City's territory within the
MCAS-Tustin Redevelopment Project Area consistent with the respective General Plan
Amendments for Tustin and Irvine described in the Final Environmental Impact
Statement/Environmental Impact Report for the disposal and reuse of MCAS Tustin. Once
General Plan Amendments are adopted, the Tustin and Irvine Planning Commissions shall
each report and recommend to their respective City Council as .to the Redevelopment Plan's
conformity with each respective City's General Plan.
4. Costs to Prepar~ MCAS Tustin Redevelopment Plan. The parties hereto
acknowledge that Agency has commenced preparation of the MCAS Tustin Redevelopment
Plan and that Agency will incur certain costs to modify the Redevelopment Plan to include the
lrvine' Portion, including modifications to the legal description, boundary map, and preliminary
report. Those costs are currently estimated to be $1,595. The parties agree that Irvine shall
be responsible for such incremental costs incurred by Agency to include the Irvine Portion in
Revised Redevelopment Cooperation Agreement
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the proposed MCAS Tustin Redevelopment Plan. In addition, the parties agree as follows: (i)
Agency sh'all pay ninety-five (95) percent (%) and irvine shall pay five (5) percent (%) of the
total costs of preparing the proposed MCAS Tustin Redevelopment Plan, including the
preparation of environmental documents, which total costs are currently estimated to be
$94,075; (ii) Agency shall pay 95% and Irvine shall pay five (5) percent (%) of the costs for
any required change orders necessary in preparing and completing the Redevelopment Plan;
(iii) Irvine shall pay for any additional environmental documentation that may be required for
the Irvine Portion; (iv) Agency shall pay for any additional environmental documentation that
may be required for the Tustin Portion; and (v) Agency shall pay 95% and Irvine shall pay 5%
of any additional environmental documentation costs that cannot be equitably apportioned
between the Irvine Portion and the Tustin Portion. Tustin shall invoice Irvine for the amounts
due, which invoice(s) shall be due and payable within 30 days.
5..MCAS Tustin Redevelopment plan Provisions. The MCAS Tustin Redevelopment
Plan shall include provisions consistent with the following concepts:
a. Cooperative Effort. The parties shall cooperate in the implementation of the
MCAS Tustin Redevelopment Plan. Without limiting the foregoing, the parties acknowledge
that portions of the Irvine Portion are only accessible through the Tustin Portion and that the
parties intend to cooperate with respect to circulation and other aspects of redevelopment of
MCAS.
b. Irvine's Retention of Police Powers. irvi.ne shall retain its police powers,
including land use authority, over the Irvine Portion, and shall be entitled to exercise its
discretionary and ministerial approval authority over public and private development projects
proposed to be Undertaken within the irvine Portion, including requiring compliance with
Irvine codes and planning, engineering, and public works standards. Irvine agrees that it shall
have the duty and responsibility to assure land use compliance with Health and Safety Code
Section 33413 in the Irvine Portion. Upon request of Irvine, Agency shall implement Irvine's
compliance actions that are within Agency's .authority in this Agreement. Irvine shall'
implement compliance actions that are within Irvine's authority in this Agreement.
c. Identification of Irvine Portion. The MCAS Tustin Redevelopment Plan .shall
separately identify the Tustin Portion and Irvine Portion by legal description so that the
County Auditor Controller can identify the funds to be paid to the Agency pursuant to Health
and Safety Code Section 33670(b) ("Tax Increment") that are derived from the Tustin Portion
("Tustin Tax Increment") and from the Irvine Portion ("lrvine Tax Increment"). Agency shall
maintain a separate account for the Irvine Tax Increment ("lrvine Tax Increment Account"). In
the event .the County Auditor Controller fails to separately identify the Irvine Tax Increment,
Agency shall make such division after consulting with Irvine to insure that the proper amount
of irvine Tax Increment is deposited into the irvine Tax Increment Account. At Irvine's option,
Agency shall invest the funds in the Irvine Tax Increment Account in one or more
interest-bearing accounts at the direction of Irvine.
d. Housing Fund. The parties acknowledge that Agency is required to set
aside the percentage of tax increment it receives, as set forth in Health and Safety Code
Section 33334.2, in a separate account of the Agency for the purpose of increasing,
improving, and preserving the community's supply of Iow and moderate income housing. The
parties acknowledge that the current percentage identified in Health and Safety Code Section
Rcviscd Rcdcvclopmcnt Cooperation Agreement
33334.2 is twenty percent (20%). The parties further acknowledge that under current law the
set aside calculation must be made on "gross tax increments," i.e., the tax increment received
before the required statutory pass through payments are made to affected taxing entities
pursuant to Health and Safety Code Section 33607.5. Agency shall separately calculate the
housing set aside for the Tustin Tax Increment. and the Irvine Tax Increment. Provisions of
Health and Safety Code Section 33492.106 allow for a 50% deferral of Housing Fund
deposits for up to 10 years for the MCAS Tustin Redevelopment project. Tustin shall have the
full authority to elect to defer Housing Funds from the Tustin portion of the project and Irvine
shall direct the Agency to either defer or not defer the Irvine portion of the Housing Funds as
determined by Irvine.
Agency shall establish a separate account, referred to herein as the "lrvine Portion Housing
Account," and shall set aside the required percentage bf Irvine Tax increment into the Irvine
Portion Housing Account. In accordance with, and to the extent permitted by applicable law,
Irvine may use the monies in the Irvine Portion Housing Account outside the Irvine Portion
upon Agency adoption of the resolution(s) referenced in Health and Safety Code Section
33334.2(g) or successor statute. Irvine shall expend or encumber funds in the Irvine Portion
Housing Account to insure that all excess surplus funds in the Irvine Portion Housing Account
are expended within one year from the date the monies become excess surplus. At Irvine's
option, Agency shall invest the funds in the Irvine Portion Housing Account in one or more
interest-bearing accounts at the direction of Irvine.
e. Payment of Statutory Pa§s Through Amounts To Affected Taxing Entities
Under Section 33607 5. The parties acknowledge that a portion of the Irvine Tax Increment
must be paid to affect taxing entities.pursuant to Health and Safety Code Section 33607.5.
Commencing with the first fiscal year in which Agency is required to make such payments to
affected .taxing entities, Agency shall be permitted to deduct from the amount deposited into
the Irvine Tax Increment Account for such fiscal year the required percentage of tax
increment identified in Health and Safety Code Section 33607.5; provided, however, that no
such deduction shall occur if the County Auditor-Controller makes such deduction prior to
payment of Irvine Tax Ipcrement to the Agency.
.
f. Treatment of Irvine Under SectiOn 33607.5. Irvine shall not be deemed an
"affected taxing entity" under Health and Safety Code Section 33607.5 with respect to the
irvine Portion. Rather, irvine shall be deemed the "community" under Health and Safety Code
Section 33607.5 with respect to the Irvine Portion. Irvine, therefore, at its annual option, shall
be permitted, after required deductions for housing set aside and payments to affected taxing
entities, to receive from the Irvine Tax Increment Account, for general fund use, all or a
portion of the amount set forth in Health and Safety Code Section 33607.5(b), or successor
statute, that would be authorized to be paid to Irvine as the "community" with respect to the
Irvine portion based on Irvine's property tax rate. The parties acknowledge that the current
percentage set forth in Health and Safety Code Section 33607.5 (b) is twenty-five percent
(25%). If Irvine elects in writing to receive all or a portion of the aforementioned percentage
amount, Agency, Shall pay to Irvine the amount equal to the percentage elected by Irvine, up
to the maximum applicable percentage as may be set forth in Health and Safety Code
Section 33607.5 ("General Fund Payment"). Irvine shall be permitted to use the General
Fund Payment for any purpose in its sole discretion. Notwithstanding anything in this
paragraph to the contrary, it is the current intent of lrvine to devote the General Fund
Rcviscd Redevelopment Cooperation Agrccmcnt
Payment to directly benefit the Irvine Portion until the Irvine Portion is substantially
rehabilitated.
g. Control of Irvine Tax Increment Account and Irvine Portion Housinq Account.
Agency shall administer the Irvine Tax Increment Account and Irvine Portion Housing
Account at the direction of Irvine. Except for deductions or payments authorized by this
Agreement and where appropriations have been authorized by Irvine's approval of the
Agency's budgets pursuant to Section 5c herein, no funds shall be disbursed from either
account without the prior wdtten approval of the Irvine City Manager. On a quarterly basis,
Agency shall provide an accounting of the disbursement of funds from both accounts to
Irvine's Manager of Fiscal Services and City Manager. Irvine agrees that Agency will have no
obligation to commit funds other than the Irvine Tax Increment and Irvine Housing Funds to
projects or activities within the Irvine Portion.
h. Development Proiect Negotiation and Development Application Review
Process. The parties shall cooperate in good faith with respect to public or private
development projects, including housing projects that may be proposed for the Irvine Portion,
including projects to be funded from the "lrvine Portion Housing Account" (as described
below), and also such public or private projects that materially affect the Irvine Portion. With
respect to such projects within the Irvine Portion, Agency and Irvine shall each notify the
other when a developer or project applicant, or any of the parties hereto, proposes a specific
development for the irvine Portion. All planning and design review for such projects in the
Irvine Portion shall be controlled by irvlne. The parties acknowledge that the precise
arrangements with respect to a particular development application for the Irvine Portion will
be dependent on the nature of the development application. However, irvine shall make
every effort to complete its review of development applications in the Irvine Portion in a timely
manner. In general, the parties contemplate that disposition and development agreements
may need to be entered into by and betWeen the Agency, and the developer, and possibly to
include Irvine. NotWithstanding the foregoing, no disposition and development agreement or
development project in or for the Irvine Portion shall be approved by Agency unless first or
concurrently approved by Irvine. Agency shall not unreasonably withhold approval of any
proposed development project for the Irvine Portion that has been .approved by !rvine.
Agency and Tustin on one hand, and Irvine on the other, shall notify the other when
proposing public and/or private projects on a parcel(s), or portion of any parcel(s), that are
contiguous to the border betWeen Tustin and Irvine. The party in whose territory the project is
proposed shall notify the other party as early in the project planning process as reasonably
practicable in order to give such other party an opportunity to provide input on the proposed
project.
i. Amendments to MCAS Tustin Redevelopment Plan. No amendment to the
MCAS Tustin Redevelopment Plan shall be effective unless first approved by ordinances of
Tustin and Irvine. If Irvine and the lrvine Redevelopment Agency desires to amend the MCAS
Tustin Redevelopment Plan to delete the entire Irvine Portion and to adopt Irvine's own
redevelopment project area covering the Irvine Portion,. said proposed amendment shall not
adversely impact the MCAS Tustin Redevelopment Plan, its financial terms, legal and
statutory obligations and general status under the then-existing CRL or any other applicable
law. If an amendment to the MCAS Tustin Redevelopment Plan to delete the entire Irvine
Portion is approved by both Tustin and Irvine, this Agreement shall be terminated. If only part
of the irvine Portion is deleted, Irvine's obligation to share a percentage of General
Reviscd Rcdcv¢lopmcnt CoopcraQon Agrecmcnt
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Administrative Costs under this Agreement shall be proportionately reduced based on the
acreage d~leted from the MCAS Tustin Redevelopment Plan.
j. Information on Outside Funding. With respect to the Tustin Portion, Tustin or
Agency, as applicable shall notify Irvine, and with respect to the Irvine Portion, Irvine shall
notify Agency, of the availability of outside funding sources that each becomes aware of to
assist the parties in the redevelopment of the base.
6. Agency General Administrative and Project Costs.
a. Apportionment of Aqency's General Administrative Costs. Irvine
acknowledges that Agency will incur direct and indirect costs in administering the MCAS
Tustin Redevelopment Plan for both the Tustin Portion and Irvine Portion, including
administration of the various fund accounts, reimbursements to the County of Orange
pursuant to Health and Safety Code Section 33607, preparation of the Agency's annual
budget pursuant to Health and Safety Code Section 33606, preparation of the Agency's
annual report pursuant to Health and Safety Code Section 33080 and 33080.1, preparation of
implementation plans 'pursuant to Health and Safety Code Section 33490, and other
administrative documents required by the CRL ("General Administrative Costs"). The parties
acknowledge that AgencY's General Administrative Costs with respect to the MCAS
Redevelopment Plan are primarily due to the Tustin Portion, but that a percentage of such
General Administrative Costs should be apportioned to Irvine in light of the Irvine Portion. The
parties agree that' Agency's General Administrative Costs shall be apportioned based on
relative acreage of the Tustin Portion and Irvine Portion. Therefore, Agency shall pay
ninety-five (95%) of Agency's General Administrative Costs and Irvine shall pay five percent
(5%) of Agency's General Administrative Costs.
b. Apportionment of Aqency's Proiect Costs. All Agency direct and indirect
project costs incurred to plan and implement projects in the Irvine Portion, including Iow and
moderate income housing projects shall be borne solely by Irvine Tax Increment. In addition
to any site-specific costs, the parties acknowledge that fair share contributions by Irvine and
Tustin towards the design and construction of public backbone infrastructure and certain
environmental mitigation costs may be a condition of approval for development applications
within the Irvine Portion and Tustin Portion. The parties agree that lrvine Tax Increment may
be used for such obligations within the Irvine Portion and Tustin Tax Increment may be used
for such obligations within the Tustin portion. All Agency direct and indirect project costs
incurred to plan and implement projects in' the Tustin Portion, including Iow and moderate
income housing projects, shall be borne solely by Agency or Tustin Tax Increment.
c. Budget Approval. Not later than sixty (60) days prior to the commencement
of each fiscal year during which the MCAS Tustin Redevelopment Plan is effective as to the
Irvine Portion, Agency shall prepare and deliver to Irvine proposed line item budgets for
General Administrative Costs, and Project Costs for the Irvine Portion to be incurred by
Agency for the ensuing fiscal year ("Annual Budgets"). Prior to adoption by Agency of the
budgets for the Irvine Portion, Irvine shall review and approve the proposed budgets, or such
budgets as may be revised after consultation with Agency. Any mid year modifications or
appropriations not originally budgeted for the Irvine Portion shall be reviewed and approved
by Irvine prior to their adoption by Agency.
Revised Rcdcvclopmcn! Cooperation Agrccmcnt
d. Appropriations and Disbursements. Budget approval by Irvine shall
constitute ~he authority for Agency to appropriate funds in accordance with the Irvine Portion
of the budgets and to deduct such appropriations from time to time from the Irvine Tax
Increment Account and the Irvine Housing Account, whichever is applicable. General
Administrative and Project Costs will be incurred by Agency, in accordance With approved
Annual Budgets and shall be reflected as expenses on a quarterly basis in a disbursement
report. Agency shall provide evidence of the deductions from the Irvine Tax Increment
Account and Irvine Housing Account in the quarterly disbursement report, which shall be
provided to Irvine's Manager of-Fiscal Services and City Manager. If either the Irvine Tax
Increment Account or Irvine Portion Housing Account is insufficient to cover such approved
appropriations, Irvine shall pay the amounts due from the Irvine General Fund within 30 days
of an invoice from Agency
7. Termination of Aqreement. Except as provided in Section 5i. herein, this Agreement
shall terminate as of the expiration of the MCAS Tustin Redevelopment Plan and the
fulfillment of all obligations hereunder which may extend beyond such expiration date.
8. Binding Agreement. Each of the parties hereto acknowledge that the obligations
described herein shall survive beyond the terms of present City Council members or Agency
board members, and that this Agreement will bind Tustin, Agency, and Irvine and their
respective future City Councils and Agency Boards to the obligations set forth herein.
9. Further Assurances. Each of the' parties hereto agrees to do all things in a timely
manner that are reasonably necessary or convenient to carry out the intent of the parties
described in this Agreement, whether or not expressly prescribed herein, and no consent,
agreement, approval, concurrence, decision, determination, or action shall be unreasonably
withheld by any party except as to those matters to which a party is herein granted sole
discretion.
10. Mutual Indemnification and Irvine Covenant.
a. Irvine shall defend, indemnify, and hold Agency harmless, from any action or
proceeding, claims, liabilities, or penalties arising out of performance or nonperformance by
Irvine under this Agreement. Irvine assumes all responsibility under the CRL for spending or
encumbering funds in the Irvine Portion Housing Account in accordance with the CRL. Irvine
covenants with Agency that it shall take all necessary action to insure that during the term of
this Agreement, Irvine shall direct Agency to expend or encumber excess surplus funds in the
Irvine Portion Housing Account so as to avoid the sanctions of Health and Safety Code
Section 33334.12. If Irvine's actions or inactions threaten to create a condition that could
subject the Agency to sanctions under Health and'Safety Code Section 33334.12, the
Agency shall notify irvine in writing to immediately correct such conditions. If Agency so
notifies Irvine, Irvine shall immediately take corrective measures to cure the condition, irvine's
obligation to avoid or cure a condition permitting sanctions under Health and Safety Code
Section 33334.12, which condition is under Irvine's control, shall be enforceable by Agency in
an action for specific performance or writ of mandate; provided, however, no such action or
writ of mandate shall be sought by Agency before Agency has notified Irvine and Irvine has
been given a reasonable opportunity to correct such condition.
Revised Redevelopment Cooperation Agrccmcnt
b. Agency shall defend, indemnify and hold irvine harmless, from any action or
proceeding, claims, liabilities or penalties arising out of performance or nonperformance by
Agency under this Agreement. Agency assumes all responsibility under the CRL for spending
or encumbering funds from the Tustin Portion in the Agency's Low and Moderate Income
Housing Fund in accordance with the CRL. Agency covenants with lrvine that it shall take all
necessary action to insure that during the term of this Agreement, Agency shall expend or.
encumber excess surplus funds in the Agency's Low and Moderate Income Housing Fund so
as to avoid the sanctions of Health and Safety Code Section 33334.12. If Agency's actions or
inactions threaten to create a condition that could subject Irvine to sanctions under Health
and Safety Code Section 33334.12, Agency shall immediately take corrective measures to
cure the condition. Agency's obligation to avoid or cure a condition permitting sanctions under
Health and Safety Code Section 33334.12, which condition is under Agency's control, shall
be enforceable by Irvine in an action for specific performance or writ of mandate; provided,
however, no such action or writ of mandate shall be sought by Irvine before Irvine has notified
Agency and Agency has been given a reasonable opportunity, to correct such cOndition.
11. Notices. All notices required hereunder or by law shall be delivered by Tustin,
Agency, and Irvine by (i) United States mail, prepaid, certified, or (ii) by personal delivery, or
(iii) by reputable document delivery service that provides a receipt showing date and time of
delivery. Notices personally delivered or delivered by document delivery service shall be
deemed effective upon receipt. Notices sent by mail shall be deemed effective upon the
earlier of (i) receipt, or (ii) 5:00 p.m. on the second business day following dispatch. Notices
shall be sent to the addresses indicated bellow (a change in the follOwing addresses may be
made by following the terms of this Section):
If to Tustin or Agency:
Tustin Community Redevelopment Agency
City of Tustin
300 Centennial Way
Tustin, CA 92780
Attn: Executive Director/Assistant City Manager
If to Irvine:
City of Irvine
One Civic Center Plaza
P.O. Box 19575
Irvine, CA 92713-9575
Attn: City Manager
12. Litigation Matters. The Municipal and Superior Courts of the State of California in
and for the County of Orange shall have exclusive jurisdiction of any litigation between the
parties arising out of or connected to this Agreement. This Agreement shall be governed by
and construed under the laws of the State of California. The exclusive remedies under this
Agreement shall be specific performance or writ of mandate.
13. Informal Dispute Resolution. Notwithstanding anything in this Agreement to the
contrary, in the event of any dispute between the parties hereto concerning the subject matter
Revised Redevelopment Cooperation Agreement
of this Agreement, designated representatives of the parties, prior to taking any action which
is the subject of dispute and prior to pursuing any other remedy at law or equity, shall meet at
least once and confer in good faith in an attempt to resolve, such dispute.. Any time period for
taking any action that is the subject of a dispute and any actions contingent on resolution of
such dispute shall be extended by the period of time during which the parties'are conferring
in good faith to resolve such dispute. If such dispute is not resolved to the parties' resPective
satisfaction, One or more of the parties shall notify the other parties that the period of good
faith consultation has ended.
14. Nonliability of Agency and City Officials. No 'official, officer, employee, agent, or
representative of Tustin, Agency, or Irvine shall be persOnally liable in the event of any
default or breach by said party, or for any amount which may become due hereunder, or for
breach of any obligation of the terms of this Agreement.
15. Interpretation: Severability. The terms of this Agreement shall not be construed for
or against any party hereto by reason of authorship of this Agreement. Each provision of this
Agreement shall be severable from the whole. If any provision of this Agreement shall be
found contrary to law, the remainder of this Agreement shall continue in full force unless the
portion struck shall be material to the intent and objectives of the parties.
16. No Assignment. This Agreement may not be transferred, assigned; or encumbered
by any party hereto without the express, Drior, written consent of the other party's hereto,
which consent may be given or withheld in said consenting party's sole and absolute
discretion.
17. Entire Agreement; Amendment. This Agreement is the entire agreement between
the parties with respect to the subject matter hereof. This Agreement may be amended by an
instrument in writing approved and signed by all the parties hereto.
18. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed to be an original, and such counterparts shall constitute one and the same
instrument.
..
19. Corporate Authority. The person(s) executing this Agreement on behalf of each of
the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly
authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing
this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the
entering into this Agreement does not Violate any provision of any other agreement to which
said party is bound.
20. Effective Date. The effective date of this revised agreement shall be the latest of
the dates set next to the signatures of the parties hereto, which date shall be inserted into the
preamble of the agreement.
[end - signature pages follow]
Rcviscd Rcdcvclopmcnt Cooperation Agreement
-~-
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as
of the Effective Date. ·
"Agency"
TUSTIN COMMUNITY
AGENCY .
REDEVELOPMENT
Dated:
By:
Tracy Wills Worley, Chair
ATTEST:
Agency Secretary
APPROVED AS TO FORM.:
Lois Jeffrey
Agency Counsel
CITY OF TUSTIN
Dated:
By:
Tracy Wills Worley, Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
Lois Jeffrey
City Attorney
Rcviscd Redevelopment Cooperation Agrccmcnt
Dated:
CITY OF IRVINE
Christina Shea, Mayor
ATTEST:
APPi~/~/~~/~ED AS TO F RM:
Joel ~.q~'b"pe rl~efg ,
Ci~/~ttorney
[end of signatures]
Revised Redevelopment Cooperation Agrccmcnt