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HomeMy WebLinkAboutAG RPTS 1999 0721 RDA REG`( ESTABLISHED * (( MARCH 11L lost LJF0Vt rY OF ;`Q,�11 MOORPARK REDEVELOPMENT AGENCY REGULAR MEETING AGENDA WEDNESDAY, JULY 21, 1999 6:30 P.M. Resolution No. 99 -85 Moorpark Community Center 799 Moorpark Avenue 1. CALL TO ORDER: 2. ROLL CALL: 3. PUBLIC COMMENT: 4. PRESENTATION /ACTION /DISCUSSION: A. Consider Approval of Release Agreement with Mark and Charlene Bailey. Staff Recommendation: Approve the Release Agreement between the Moorpark Redevelopment Agency and Mark and Charlene Bailey, and authorize the Executive Director to execute said Agreement on behalf of the Agency. B. Consider Resolution No. 99- Accepting an Interest Rate on Loans from the City of Moorpark. Staff Recommendation: Approve Resolution No. 99- accepting the interest rate charge and payment schedule for loans received from the City of Moorpark. C. Consider Loan to the City's Gabbert Road /Casey Road AOC Fund to Provide Full Funding for a Project to Reconstruct the Pavement on the North Side of Casey Road. Staff Recommendation: Adopt Resolution No. 99- amending the FY 1999/00 MRA Budget by providing a loan to the Gabbert Road /Casey Road AOC fund in the amount of $20,000. D. Consider Options Related to the Payment of Tax Increment Funds to the Moorpark Unified School District. Staff Recommendation: Direct staff to work with District staff to prepare an amendment to the Agreement for Distribution of Tax Increment Funds. Redevelopment Agency Agenda July 21, 1999 Page 2 5. CONSENT CALENDAR: A. Consider Approval of Minutes of Regular Moorpark Redevelopment Agency Meeting of February 17, 1999. Consider Approval of Minutes of Regular Moorpark_ Redevelopment Agency Meeting of March 3, 1999. Consider Approval of Minutes of Regular Moorpark Redevelopment Agency Meeting of March 17, 1999. Consider Approval of Minutes_ of _Adjourned Moorpark Redevelopment Agency Meeting of June 9,_1999_ Staff Recommendation: Approve minutes as processed. B. Consider Approval of Warrant Register of Julv 21, 1999. Fiscal Year 1998/99 Manual Warrants 1013 - 1016 $139,743.77 Staff Recommendation: Approve the Warrant Register. 6. CLOSED SESSION: 7. ADJOURNMENT: ----------------------------------------------------------------------------------- Any member of the public may address the Agency during the Public Comments portion of the Agenda, unless it is a Public Hearing or a Presentation /Action /Discussion item. Speakers who wish to address the Agency concerning a Public Hearing or Presentations /Action /Discussion item must do so during the Public Hearing or Presentations/Action/Discussion portion of the Agenda for that item. Speaker cards must be received by the City Clerk for Public Comments prior to the beginning of the Public Comments portion of the meeting and for Presentation /Action /Discussion items prior to the beginning of the first item of the Presentation /Action /Discussion portion of the Agenda. Speaker Cards for a Public Hearing must be received prior to the beginning of the Public Hearing. A limitation of three minutes shall be imposed upon each Public Comment and Presentation /Action /Discussion item speaker. A limitation of three to five minutes shall be imposed upon each Public Hearing item speaker. Written Statement Cards may be submitted in lieu of speaking orally for open Public Hearings and Presentation /Action /Discussion items. Copies of each item of business on the agenda are on file in the office of the City Clerk and are available for public review. Any questions concerning any agenda item may be directed to the City Clerk at 529 -6864. In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk's Department at (805) 529- 6864. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (CFR 35.102- 35.104 ADA Title II). a1�1 . 9 ITEM H-A CI TN' 0F'4100RPARK, CA11FOR I Redevelopment Agency .Meeting of �,.., _ �� A, y ACTION: MOORPARK REDEVELOPMENT AGENCY�� AGENDA REPORT $�' TO: Honorable Agency Board of Directors FROM: John E. Nowak, Assistant Executive Director DATE: July 6, 1999 (Agency Meeting of 07/21/99) SUBJECT: Consider Approval of Release Agreement with Mark and Charlene Bailey. BACKGROUND: In 1997 the Redevelopment Agency approved a business loan for the Baileys to establish the Red River Restaurant. The restaurant has gone out of business and an outstanding balance remains on the loan. The Baileys have requested that the Agency forgive a portion of the loan and release one of the liens held. DISCUSSION: In 1997 the Redevelopment Agency approved a loan of $17,000 to the Baileys to establish the Red River Restaurant on High Street. Collateral on the loan included a 3rd Trust Deed on the Bailey's home and 133 shares of stock in the Walt Disney Company. Approximately $767 of the loan principal was repaid in addition to $300 in interest payments. In July 1998 the restaurant closed and no further payments were received. The Baileys have requested that the Agency release them from the balance of the loan in consideration of a $4,000 cash payment and the transfer of the stock ownership to the Agency (current value approximately $4,000). In return the Agency would reconvey the 3rd Trust Deed and release the borrowers from all remaining obligations under the loan. Both the cash payment and the stock ownership have been received by the Agency. 000001 Release Agreement Meeting of 21 July 1999 Page 02 RECOMMENDATION: Staff recommends that the Agency Board of Directors approve the Release Agreement between the Moorpark Redevelopment Agency and Mark and Charlene Bailey, and authorize the Executive Director to execute said Agreement on behalf of the Agency. Attached: Release Agreement 000002 Both Parties hereto do concur with this Agreement as witnessed by their signatures hereto. AGENCY: BORROWERS: Executive Director Mark J. Bailey Date: ATTEST: Agency Secretary Date: Date: Charlene S. Bailey Date: 3 000003 RELEASE AGREEMENT By And Between CITY OF MOORPARK REDEVELOPMENT AGENCY And MARK J. and CHARLENE S. BAILEY This AGREEMENT is entered into by and between the City of Moorpark Redevelopment Agency, a municipal corporation (hereafter the "Agency ") and Mark J. Bailey and Charlene S. Bailey, a married couple (hereafter the "Borrowers "). WHEREAS, on October 7, 1997 Borrowers signed an Installment Note (hereafter the "Note ")for a Loan from the City of Moorpark Redevelopment Agency in the amount of Seventeen Thousand Dollars ($17,000.00), (hereafter the "Loan ")for the purpos.e of funding improvements to the Red River Steak & Fish House Restaurant; and WHEREAS, as collateral for the Note and Loan the Borrowers gave a 3rd Trust Deed on property located at 12456 Mountain Trail Street, Moorpark, California, and pledged one hundred thirty -three (133) shares of Common Stock in The Walt Disney Company (Certificate 1340440); and WHEREAS, the Borrowers are in default under the Note and Loan; and WHEREAS, as of June 1, 1999 the outstanding principal due on the Loan was $16,233.38; and WHEREAS, Borrowers wish to settle with Agency with a partial payment of the outstanding balance due and payable on the Loan. NOW, THEREFORE, THE PARTIES HERETO DO AGREE AS FOLLOWS: SECTION 1. Prior to the execution of this Agreement by the Agency, the Borrowers shall: A. Provide a cash payment to Agency in the amount of Four Thousand Dollars ($4,000.00); and 1t11� B. Execute a transfer of ownership of the one hundred thirty -three (133) shares of Common Stock in The Walt Disney Company to the City of Moorpark Redevelopment Agency. SECTION 2. Within thirty (30) days of the execution of this Agreement, the Agency shall: A. Process a release and reconveyance for the Trust Deed held on the property at 12456 Mountain Trail, Moorpark, California; and B. Provide a letter signed by the Agency's Executive Director indicating that Borrowers are released from all remaining obligations under the Loan documents. SECTION 3. Borrowers, and each of them, hereby fully and unconditionally release and discharge the Agency, its elected and appointed officials, officers, employees, agents and servants from all claims, losses, liabilities, actions, judgements, costs and expenses (including attorney's fees and costs) which Borrowers, and each of them, now have, have at any time in the past had, or may hereafter in the future have, whether known or unknown, foreseen or unforeseen, absolute or contingent, arising out of or relating to the Note and the Loan and any negotiations, transactions or agreements in connection therewith. Borrowers, and each of them, hereby waive the provisions of California Civil Code Section 1542, which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which is known by him must have materially affected his settlement with the debtor." SECTION 4. This Agreement shall be effective upon signature of both parties hereto. 2 000005 • INTEROFFICE MEMORANDUM V.RJi i1.V JUL 1 6 1919 TO: Honorable Agency Board of Directors 0-1 dry of, Y z =i. �: "' Ftti'sCE FROM: John E. Nowak, Assistant Executive Director DATE: 16 July 1999 RE: RED RIVER LOAN - Agenda Item # 4A On July 12 Charlene Bailey transferred the 133 shares of Wait Disney stock to the Moorpark Redevelopment Agency. The share value was $27.8125 for a total value of $3,699.06. On July 14 the Baileys submitted a check to the Agency in the amount of $4,000. This meets the two payment requirements outlined in the proposed Settlement Agreement that is on the Agency. C: Executive Director ITEM- q.B. ()-F %lg ' If ) R PA T? K, C'-,1,Irotz -N�1, MOORPARK REDEVELOPMENT AGENCY Redeve;09roen Agency, Nfeei;ng AGENDA REPORT of ACT10N: TO: Honorable Agency Board of Directors FROM: John E. Nowak, Assistant Executive D DATE: July 6, 1999 (Agency Meeting of 07/21/99) SUBJECT: Consider Resolution No. 99- Accepting an Interest Rate on Loans from the City of Moorpark. BACKGROUND: The City of Moorpark Redevelopment Agency has received loans from the City of Moorpark for various purposes. The interest rate associated with those loans has been ten percent (10 %) per annum. As part of the discussions on loan repayments to the City, a reduction of the interest rate to eight percent (8%) for the remaining loans was agreed to. DISCUSSION: Since 1993 the Redevelopment Agency has received loans from the City of Moorpark to pay for various operational and capital expenses when tax increment revenues were insufficient to meet costs. The interest charged the Agency was ten percent (10 %) simple interest paid annually. When the Agency and Council discussed an accelerated repayment of the outstanding loans to the City, it was agreed that the interest rate would be reduced to eight percent (8 %) per annum. The attached resolution will formally change the interest rate charged on loans from the City to eight percent (8 %) simple interest. Payment of interest is set to occur between June 1 and June 15 of each fiscal year, as had been previously discussed. RECOMMENDATION: Staff recommends the Agency Board of Directors approve Resolution No. 99- accepting the interest rate charge and payment schedule for loans received from the City of Moorpark. Attached: Resolution No. 99- RESOLUTION NO. 99- A RESOLUTION OF THE MOORPARK REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, ACCEPTING AN INTEREST RATE CHARGED.ON THE LOAN OF CITY FUNDS. WHEREAS, the City of Moorpark has loaned funds to the Moorpark Redevelopment Agency for various purposes; and WHEREAS, the interest rate charged on those loaned funds has been ten percent (10 %) simple interest payable annually; and WHEREAS, in consideration of the Agency's accelerated repayment of the loaned amounts to the City the City proposes to reduce the annual interest rate charged; and WHEREAS, the Agency Board of Directors has agreed to accept a revised interest rate. NOW, THEREFORE, THE REDEVELOPMENT AGENCY BOARD OF DIRECTORS OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Effective July 1, 1999, the interest rate to be paid by the Moorpark Redevelopment Agency for any City funds loaned to it shall be a rate of eight percent (8 %) per annum simple interest. SECTION 2. The interest due on all outstanding loan balances shall be paid by the Agency to the City prior to June 1 of each year for that year. SECTION 3. The Agency Secretary shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 21St day of July 1999. Patrick Hunter, Chairman ATTEST: Deborah S. Traffenstedt, Secretary 00000'7 CITY OF MOORPARK AGENDA REPORT To: The Moorpark Redevelopment Agency X03 - SO 3oa . 1 Cv (2) ITEM q - 1C: 0 kgency Meeting of —7ACTita.N: 2 L4 AG�7u' L'3iY l.e��til J�{� From: Kenneth C. Gilbert, Director of Public Works Date: July 10, 1999 (Council Meeting 7- 21 -99) ff 7A, Subject: Consider Loan to the City's Gabbert Road / Casey Road AOC Fund to Provide Full Funding for a Project to Reconstruct the Pavement on the North Side of Casey Road DISCUSSION A. City Approval On July 7, the City Council approved the subject project to reconstruct the pavement on the north side of Casey Road. The amount budgeted for the project is $65,000. B. Funding Shortfall The fund balance for the Gabbert Road / Casey Road AOC Fund [Fund 25031 is only $49,553. This amount is insufficient to fully fund the project. C. Loan It is recommended that the Moorpark Redevelopment Agency (MRA) provide a loan to the City, to be placed into Fund 2503: Gabbert Road / Casey Road AOC Fund, to provide full funding for the project. The loan- would be repaid when the Gabbert Road / Casey Road AOC fees are paid by the Bollinger Project. RECOMMENDATION Staff recommends that the Moorpark Redevelopment Agency adopt Resolution No. 99- amending the FY 1999/00 MRA Budget by providing a loan to the Gabbert Road / Casey Road AOC fund in the amount of $20,000. RESOLUTION NO. 99 - A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FY 1999/2000 BUDGET BY PROVIDING A LOAN TO THE CITY OF MOORPARK, TO BE PLACED INTO THE GABBERT ROAD / CASEY ROAD AOC FUND TO PROVIDE SUFFICIENT FUNDING FOR CERTAIN IMPROVEMENTS TO CASEY ROAD WHEREAS, on June 23, 1999, the Moorpark Redevelopment agency adopted the MRA Budget for Fiscal Year 1999/00; and WHEREAS, a staff report has been presented to the Moorpark Redevelopment Agency (MRA) requesting that the MRA loan the City funds in the amount of $20,000 for the construction of certain pavement improvements on Casey Road; and WHEREAS, Exhibit "A," attached hereto and made a part hereof, describes the budget amendment required for said loan. NOW, THEREFORE, THE MOORPARK REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That a Budget amendment in the aggregate increase of $20,000, as more particularly described in Exhibit "A," is hereby approved. SECTION 2. That a loan to the City in the amount of $20,000, as more particularly described in Exhibit "A," is also approved. SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 21St day of July, 1999. Patrick Hunter, Chairman ATTEST: Deborah S. Traffenstedt, Secretary Attachment" Exhibit 'A': Appropriation and Loan Detail Resolution No. 99 - Exhibit "A" APPROPRIATIONS FUND ACCOUNT NUMBER APPROPRIATION REQUEST MRA Tax Increment 2901.0000.0000.2410 $20,000 TOTALS: AMOUNT $20,000 LOAN TO CITY OF MOORPARK FOR CITY PROJECT 8023 ACCOUNT NUMBER CURRENT SUBJECT LOAN REVISED LOAN LOAN AMOUNT AMOUNT 2901.0000.0000.2401 $0 $20,000 $20,000 TOTALS: $0 $20,000 $20,000 00001.® �i ISM H. D. _� CITN* OF 1100RRAO V, CATAFORNIA Redevelopment Agency Meeting of 1";L-I qq ACTION: t{ Q P_A a 1p.�151DA��0 MOORPARK REDEVELOPMENT AGENC_W ii h � QP AGENDA REPORT BY u �i C -f p SCE is v 8 G'�dC�fL. Urr r i ff i t trO TO: Honorable Agency Board of Directors 1gCj clle. FROM: John E. Nowak, Assistant Executive Director 'nEJ-D DATE: July 6, 1999 (Agency Meeting of 07/21/99) SUBJECT: Consider Options Related to the Payment of Tax Increment Funds to the Moorpark Unified School District. BACKGROUND: As part of the tax increment Settlement Agreement in 1993, the Moorpark Redevelopment Agency agreed to pay the Moorpark Unified School District $750,000 when two (2) conditions were satisfied: construction of a new maintenance facilities and sale of certain District owned property. The School District has requested that the Agency pay the funds at this time. DISCUSSION: The Moorpark Redevelopment Agency and the Moorpark Unified School District reached an Agreement for Distribution of Tax Increment Funds (Agreement) in 1993. Section 5 of that Agreement provided that the Agency would make a one -time payment of tax increment funds to the District in the amount of $750,000 when the latter of two conditions were met. These were: 11(i) within six (6) months after the sale of the portion of the Casey Road site where the existing School District maintenance facility is located to a Bonafide Purchaser as evidenced by the close of escrow; or (ii)the date the School District issues the notice to proceed with construction pursuant to a construction contract for the new School District maintenance facility." 000011 Tax Increment Payment to MUSD Meeting of 21 July 1999 Page 02 In a letter to the Mayor dated June 23, 1999 from District Board President Pollack, the District requested that the full $750,000 be released at this time. The Agency maintains a total of four funds. One is the debt service that retires the Agency's bond. A sufficient amount of tax increment is assigned to this fund to retire the bond payments for the fiscal year before any other allocation is made. The second fund is the Housing Set Aside which is 20% of the gross tax increment received and which by State law may be expended only on affordable housing programs. The third fund is the bond fund that contains the remaining proceeds from the 1993 bond sale and can only be expended on capital projects, as required by the Bond issuance documents. Projects totaling 90% of the balance available have been established for the approximately $3 million remaining in this fund. The fourth fund is the tax increment and other discretionary revenues, including interest revenues to the Agency from which the District payment would come. Based on the adopted budget there would be an estimated $2,976,866 in this fund as of June 30, 2000 without the $750,000 payment. Attached to this report is a summary of the Agency's tax increment funds projected through FY 2000 -01 showing the effect of the full $750,000 payment in FY 1999/00. A concern raised at a previous Agency meeting was the length of time that may be required before the District could sell its property. If the Agency desires to make payment prior to the time called for in the Agreement, there are three (3) options available. The fiscal implications of each are shown on the attachment. rr�r�. Tax Increment Meeting of 21 Page 03 Payment to MUSD July 1999 • The first option is to pay the full $750,000 as soon as an amendment to the Agreement is approved. The net fiscal impact is $826,865 less funds in reserves, including an estimated $76,865 in lost interest income, at the end of a two -year period in FY 2000/01, a result of the early payment and lost interest revenue. • A second option is to deduct the balance of funds owed the City from the District for the tennis courts at Arroyo Vista Community Park. Under that agreement, the District is to pay one -half of the estimated $622,000 construction cost. Last fiscal year (FY 98 -99) $104,213.92 of tax increment was withheld from the District, leaving an estimated balance due of $206,786.08. That amount would go directly from the Agency to the City, and the District would receive its regular tax increment pass through payments (estimated to be approximately $108,000 in FY 99 -00) later in the fiscal year. The remaining $543,213.92 of the Agreement amount would be paid as soon as the Agreement is amended. Under this option the Agency's lost interest would be approximately $15,000 less than in Option 1. • The third option is to discount the amount paid to the District. Using a two year, 5% discount the district would receive $673,950 at this time. If the amount were discounted for one year, the District would receive a payment of $711,975. From a fiscal perspective, either subtracting the tennis court payment or discounting the payment are better options. The long -term implication would be a possible slow down of economic development programs the Agency would be able to undertake in the near future. As indicated earlier, the Agency has $3 million remaining from the bond sale, but only $30,000 currently remains uncommitted. Although tax increment will grow, interest income will decrease with the payment to the District. In summary, the Redevelopment Agency has cash in reserve to make the $750,000 payment at this time, but will forego 000013 Tax Increment Payment to MUSE) Meeting of July 21, 1999 Page 04 interest income that would otherwise be available for Agency use. RECOMMENDATION: Direct staff to work with District staff to prepare an amendment to the Agreement for Distribution of Tax Increment Funds. Attachment: Tax increment fund projection 0®00 .14 0 0 0 0 Cli MOORPARK REDEVELOPMENT AGENCY 1,767,200 284,560 No MUSD Payment Full Payment FY 1999 -2000 $2,161,060 $2,154,520 Beginning Balance $4,357,856 $4,357,856 Revenues 2,500,000 2,500,000 Tax Increment Interest 1,767,200 1,767,200 Rents 311,700 274,215 109,300 109,300 Total Revenues: $2,188,200 $2,150,715 Expenditures Operating Pass through Payments 566,890 566,890 Ciyt Loan Repayment 149,400 149,400 City Loan Intertest (8 %) 2,500,000 2,500,000 School Repayment 352,900 352,900 0 750,000 Total Expenditures: $3,569,190 $4,319,190 Ending Balance: $2,976,866 $2,189,381 FY 2000 -2001 Beginning Balance Revenues Tax Increment Interest Rents Expenditures Operating Pass through Payments Ciyt Loan Repayment City Loan Intertest (8 %) Ending Balance: Total Revenues: Total Expenditures: $2,976,866 1,933,870 245,540 96,300 $2,275,710 596,800 165,000 1,910,000 152,000 $2,823,800 $2,428,776 $2,189,381 1,933,870 206,160 96,300 $2,236,330 596,800 165,000 1,910,000 152,000 $2,823,800 $1,601,911 Payment Minus 2 -yr Discounted Tennis Courts Payment $4,357,856 $4,357,856 1,767,200 1,767,200 284,560 278,020 109,300 109,300 $2,161,060 $2,154,520 566,890 566,890 149,400 149,400 2,500,000 2,500,000 352,900 352,900 750,000 673,950 $4,319,190 $4,243,140 $2,199,726 $2,269,236 $2,199,726 $2,269,236 1,933,870 1,933,870 206,680 210,155 96,300 96,300 $2,236,850 $2,240,325 596,800 596,800 165,000 165,000 1,910,000 1,910,000 152,000 152,000 $2,823,800 $2,823,800 $1,612,776 $1,685,761 —ico Z . Z 1 000034 ACCOUNTS PAYABLE 06/29/99 15:58:03 WARRANT DATE VENDOR BOFA BANK OF AMERICA 1013 06/23/99 MOORPARK MOSQUIT 277 1014 06/23/99 VENTURA CO COMMU 517 1015 06/23/99 VENTURA COUNTY S 522 1016 06/23/99 CITY OF MOORPARK 4469 BANK OF AMERICA 0 Q Q C4 CA Disbursements Journal DESCRIPTION AMOUNT CLAIM INVOICE 98/99 PASS THRU 19,155.37 98/99 PASS THRU 14,509.80 98/99 PASS THRU T 1,864.68 98 /99PASS THRU- 104,213.92 139,743.77 011854 PASS THRU 011853 PASS THRU 011852 PASS THRU 011860 PASS THRU -MUSD *TOTAL CITY OF MOORPARK GL540R- V03.00 PAGE 1 PO# F 9 S ACCOUNT P N H 410.510.0000.000.9190 P N H 410.510.0000.000.9190 P N H 410.510.0000.000.9190 P N H 410.510.0000.000.9190