CITY COUNCIL AGENDA ITEM
November 25, 2003
Subject/Title: Approve Resolution amending the Reimbursement Agreement
between the Brentwood Redevelopment Agency and the City of Brentwood for an
additional $728,000 to fund construction of cul-de-sac improvements and
traffic signal improvements for the Sunset Industrial Complex, CIP Project
Submitted by: Gina Rozenski, Redevelopment Manager
Approved by: John Stevenson, City Manager
Approve Resolution amending the Reimbursement Agreement between the
Brentwood Redevelopment Agency and the City of Brentwood for an additional
$728,000 to fund construction of cul-de-sac improvements and traffic signal
improvements for the Sunset Industrial Complex, CIP Project No. 336-3128.
City Council authorized the purchase of approximately 40 acres of property
located at the northeast corner the Tresch and Sunset Roads.
City Council authorized various consultant contracts to master-plan and
prepare environmental documents for approximately 132 acres of city owned
land northeast of Tresch and Sunset Roads to include a 49.2 acre Wastewater
Treatment Plant, 2.7 acre Solid Waste Plant, 37.7 Sports Park, 13.3 acre
Corporation Yard and a 28.4 acre Industrial Complex.
City Council authorized a consultant contract with McGill Martin Self to
prepare infrastructure improvement plan for the Sunset Industrial Complex.
In September 2001, the Brentwood Redevelopment Agency issued Tax
Allocation Bonds (TAB) to refinance existing bonds and to pay for certain
redevelopment and public improvement projects. One of the top three projects
identified by the Agency included funding the infrastructure improvements at
the Sunset Industrial Complex with TAB proceeds.
On June 4, 2002, the Planning Commission certified the Environment Impact
Report for the Sunset Industrial Complex, and on June 6 the Notice of
Determination was filed with the County.
On July 23, 2002 the City Council adopted Ordinance 710 approving the PD
Zoning for Sunset Industrial Complex, and also awarded the construction
contract for the Sunset Industrial Complex Improvements Project (CIP No.
336-3128) to Teichert Construction.
On August 13, 2002, the City Council and Redevelopment Agency approved a
Reimbursement Agreement wherein the Agency would loan $3,000,000 to the City
for infrastructure improvements at Sunset Industrial Complex (CIP No.
On November 26, 2002 the City Council approved a sales strategy for
property located at the Sunset Industrial Complex and adopt criteria for the
selection of successful candidates to purchase the subject property.
On September 23, 2003 authorize the City Manager to execute a professional
services agreement with Carlson Barbee & Gibson, Inc. to prepare a Survey,
Tentative Map, Final Map and related work for the Sunset Industrial Complex
and amend the CIP Project # 336-3128 budget.
On October 28, 2003, the City Council approved the Sunset Industrial
Complex sales strategy criteria ranking and preliminary lot layout which
included the cul-de-sac site plan.
The City purchased a 40-acre parcel off Sunset Road in 1999 for the
expansion of the adjacent sports complex by 16± acres, and to implement an
economic development strategy by zoning the remaining acres for medium
industrial land use in the 2001 General Plan update. The City intends to
sell parcels within the Sunset Industrial Complex to end-users. The sale
revenues to the City will be then used to reimburse the City for its cost of
the land, planning, engineering and a portion of the infrastructure
improvements. The sales revenues will also reimburse the Redevelopment
Agency for paying a portion of the cost of improvements. Therefore, both the
City and the Agency expect to receive full reimbursement for their
out-of-pocket costs associated with developing the Sunset Industrial Complex
as parcels are sold. Any excess receipts from the proceeds of the sales
beyond the actual costs shall be shared between the City and Agency in
amounts equitable to their contributions.
The project construction improvements are presently 95% complete. Requests
for proposals (RFPs), following Council-approved guidelines, to purchase
property in the Complex were distributed to interested buyers in late Spring
2003. Responses to our RFPs indicated a need for more industrial-zoned
property than what is available at Sunset Industrial Complex. Over 28 acres
were requested, while Sunset Industrial Complex has only 21.7 acres to sell.
To accommodate the majority of the requests, a site plan was prepared that
included cul-de-sac configurations. This provided the City an opportunity to
accommodate as many buyers as possible within the Sunset Industrial Complex,
while also configuring 1.0 acre parcels in a more developable manner. Rather
than long, narrow 1.0 acre parcels, the cul-de-sacs provide a suitable
geometry for truck traffic patterns and efficient site development.
A traffic signal at the intersection of Sunset Road and Elkins Way has
always been planned. However, the installation of the traffic signal was
intentionally delayed until such time Garin Parkway was extended to Sunset
Road, meeting the entrance of Sunset Industrial Park. Plans have since been
amended to provide for Garin Parkway to extend to the entrance of Sunset
Sports Complex. Consequently, engineering staff proposes to install the
traffic signal at the intersection of Sunset Road and Elkins Way at this
time, since Garin Parkway will no longer extend into the Sunset Industrial
The submitted bids from Teichert Construction for the construction of the
two cul-de-sacs and installation of the traffic signals, and the associated
construction management costs, are $661,697 plus 10% contingency for a total
of $727,867, rounded to $728,000. The City Council shall consider a change
order for these improvements earlier this evening.
The existing Reimbursement Agreement of August 13, 2002, between the
Brentwood Redevelopment Agency and the City of Brentwood evidences the
Agency’s contribution of $3,000,000 from its Tax Allocation Bond proceeds to
this Capital Improvement Project to fund a portion of the public improvement
costs, and evidences the City’s reimbursement back to the Agency as parcels
are sold. Staff recommends the Council approve an amendment to the
Reimbursement Agreement for an additional $728,000 to fund the construction
of two cul-de-sacs, including but not limited to, sidewalk, curb, gutter and
landscaping, and the installation of the traffic signals at the intersection
of Sunset Road and Elkins Way.
Staff has investigated other financing options for the improvements at
Sunset Industrial Complex, however, each alternative was eliminated for
various restrictive reasons. In addition, there is a lack of sufficient
funds in the City’s capital improvement budget to fund these improvements.
It was concluded that no other reasonable means of financing such
improvements are available to the City, other than from the Redevelopment
The existing Reimbursement Agreement between the Agency and the City for the
infrastructure improvements at Sunset Industrial Complex is $3,000,000. The
proposed amendment to the Reimbursement Agreement is for an additional
$728,000, for a total contribution of $3,728,000 from the Agency. This shall
be funded from the Agency’s 2001 Tax Allocation Bond Proceeds, with the
expectation of full reimbursement to the Agency as parcels in the Sunset
Industrial Complex are sold. Any excess receipts shall between the City and
Agency in amounts equitable to their contributions.
Attachments: 1. Resolution
2. Amended Reimbursement Agreement
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AN
AMENDMENT TO THE REIMBURSEMENT AGREEMENT AMONG THE REDEVELOPMENT AGENCY OF
THE CITY OF BRENTWOOD AND THE CITY OF BRENTWOOD
WHEREAS, the City Council of the City of Brentwood ("City") approved and
adopted the Redevelopment Plan for the North Brentwood Redevelopment Project
("Project") on July 9, 1991, by Ordinance No. 496, as amended; and
WHEREAS, the Redevelopment Agency of the City of Brentwood ("Agency") is
carrying out the Redevelopment Plan and in connection therewith adopted an
Implementation Plan for the Project on March 28, 2000, by Resolution No.
RA15 in accordance with Health and Safety Code Section 33490; and
WHEREAS, the Agency and City entered into a Reimbursement Agreement on
August 13, 2002, by City Council Resolution 2630, pursuant to which the
Agency proposed to pay the City the cost of designing, constructing and
installing certain public improvements ("Public Improvements") within the
Project, and the City proposed to reimburse the Agency as set forth in the
Reimbursement Agreement; and
WHEREAS, the Agency and City wish to amend the Reimbursement Agreement to
provide for an additional $728,000 funding from the Agency to the City to
pay for additional costs of designing, constructing and installing
cul-de-sac and traffic signal improvements (“Public Improvements”) within
the Project, and the City agrees to reimburse the Agency as set forth in the
Amended Reimbursement Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood
1. The City Council hereby finds and determines as follows:
a. The Public Improvements will be of benefit to the Project. This finding
is based on the fact that the Public Improvements will be located within the
Project Area and will provide needed infrastructure within the Project.
b. There is no other reasonable means of financing the Public Improvements.
This finding is based on the lack of sufficient funds in the capital
improvement budget of the City to fund the Public Improvements together with
other urgently needed public improvements and facilities and the
infeasibility of financing the Public Improvements through an assessment
district, community facilities district or other conventional method of
financing public facilities.
c. The payment of funds for the Public Improvements will assist in the
elimination of one or more blighting conditions inside the Project and is
consistent with the Implementation Plan. This finding is based on the
(1) Reimbursement for the Public Improvements is anticipated to help
revitalize other areas of the Project, provide needed infrastructure for and
provide area for relocated businesses to move to;
(2) Reimbursement for the Public Improvements will help implement
development of underutilized property by the City and the provision of
necessary public facilities; and
(3) The Implementation Plan identifies as objectives for the five-year
period from Fiscal Year 1999-2000 through Fiscal Year 2003-2004 the
Provide needed public improvements: revitalize the redevelopment project
areas through installation of public improvements, including streets, curbs,
gutters, sidewalks, utility undergrounding, landscaping, sewer, water and
storm drain systems, and bring area infrastructure into compliance with all
Federal and State laws.
2. The City Council hereby consents to the Agency paying the City for the
cost of the Public Improvements, and the City reimbursing the Agency
pursuant to the Amended Reimbursement Agreement.
3. The City Council hereby approves the Amended Reimbursement Agreement in
the form attached hereto as Exhibit A, together with such minor technical
and clarifying revisions as shall be approved by the City Manager and City
Attorney. The City Council hereby authorizes the City Manager to execute the
Amended Reimbursement Agreement on behalf of the City and to take all
further actions reasonably necessary to carry out the provisions of the
Amended Reimbursement Agreement.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at
a regular meeting held on the 25th day of November 2003 by the following
Karen Diaz, CMC
AMENDED REIMBURSEMENT AGREEMENT
AMENDED REIMBURSEMENT AGREEMENT
NORTH BRENTWOOD REDEVELOPMENT PROJECT
(Sunset Industrial Complex Project)
THIS AMENDED REIMBURSEMENT AGREEMENT is entered into this 25th day of
November, 2003, by and between the REDEVELOPMENT AGENCY OF THE CITY OF
BRENTWOOD, a public body, corporate and politic (the “Agency”), and the CITY
OF BRENTWOOD, a municipal corporation (the “City”).
A. Pursuant to the Community Redevelopment Law of the State of California
(Health and Safety Code Section 33000 et seq.), the Agency is a duly
constituted redevelopment agency under the laws of the State of California
and pursuant to said laws is carrying out a redevelopment project in the
City, in accordance with the redevelopment plan duly adopted by the City
B. By Ordinance No. 496, adopted on July 9, 1991, as amended to date, the
City Council of the City of Brentwood adopted, and the Agency is carrying
out the Redevelopment Plan for the North Brentwood Redevelopment Project
C. Pursuant to Health and Safety Code Section 33445, the Agency is
authorized, with the consent of the City Council, to pay all or part of the
cost of the installation and construction of any building, facility,
structure, or other improvements which are publicly owned either within or
without the Project Area, upon a determination by the City Council that such
buildings, facilities, structures or other improvements are of benefit to
the Project or the immediate area in which the Project is located, that no
other reasonable means of financing such buildings, facilities, structures,
or other improvements are available to the community, and that the payment
of funds for the cost of such buildings, facilities, structures or other
improvements will assist in the elimination of one or more blighting
conditions inside the project area and is consistent with the Agency’s
five-year Implementation Plan. The City Council has heretofore given and
made, and the Agency and the City hereby reaffirm and declare, such consents
and determinations with respect to the infrastructure improvements within
the Sunset Industrial Area and related improvements proposed to be installed
and constructed as further defined below in Section 1 (collectively, the
“Infrastructure Improvements”). The Agency has agreed to secure the
financing for and the City has agreed to undertake the construction and
installation of the Infrastructure Improvements for the benefit of the
Project and the immediate area in which the Project is located.
D. The Agency is funding a portion of the Infrastructure Improvements
through proceeds of the Tax Allocation Bond issued in September of 2001 by
the Brentwood Infrastructure Financing Authority.
E. Once Infrastructure Improvements are completed, the City shall diligently
market and sell the parcels to third party buyers. The proceeds of such
sales shall be used to reimburse the Agency for its contribution of the cost
of the Infrastructure Improvements as further set forth herein.
F. The City will reserve approximately six and one-half (6.5) acres of land
for use by the Agency to relocate existing businesses from Brentwood
Boulevard and from within the Agency’s two Redevelopment Project Areas to
the Sunset Industrial Area.
G. In order to enable the City to undertake the construction of the
Infrastructure Improvements for the benefit of the Project and the immediate
area in which the Project is located and as an inducement to the City to do
so, the parties desire to enter into this Agreement providing for the Agency
to pay for a portion of the Infrastructure Improvements and the City to
reimburse the Agency once the land is sold to third party buyers.
THE AGENCY AND THE CITY HEREBY AGREE AS FOLLOWS:
1. The City shall cause to be designed, constructed and installed within the
Sunset Industrial Area, Infrastructure Improvements which include
modification of existing Tresch Road, widening and overlaying Sunset Road
and the new construction of an entrance road (more commonly referred to as
“Elkins Way”) with grading, wet utilities, joint trench, landscaping,
irrigation, and planting. A portion of the costs for the construction of the
Infrastructure Improvements shall be paid by the Agency to the City from the
proceeds of Tax Allocation Revenue Bonds issued through the Brentwood
Infrastructure Financing Authority in September of 2001 (the “Bonds”). The
City shall cause the Infrastructure Improvements to be commenced as soon as
feasible after the execution of this Agreement and shall ensure that the
Infrastructure Improvements are completed in a timely manner.
2. In consideration of the undertakings of the City under Section 1 of this
Agreement, the Agency shall pay the City a portion of the actual costs
incurred by the City for the design, construction and installation of the
The estimated total costs to be funded by the Bond proceeds is Three Million
Seven Hundred Twenty Eight Thousand Dollars ($3,728,000).
The City shall, immediately upon completion of the construction of the
Infrastructure Improvements, begin to market and sell the land. The proceeds
of sales of the land shall be allocated to the City in the amount of the
unimproved value of the land and to the Agency in the amount of the
difference between the unimproved value of the land and the actual sales
price up to a maximum of Three Million Seven Hundred Twenty Eight Thousand
Dollars ($3,728,000). The City shall pay the Agency as set forth above as
funds are available to the City or in such other amounts and times as the
parties may agree.
Receipts from the proceeds of the sales exceeding the combined actual amount
of the unimproved value of the land and the Infrastructure Improvements
shall be shared between the City and Agency in amounts equitable to their
contributions, which equals fourteen percent (14%) of excess receipts to the
City and eighty-six percent (86%) of excess receipts to the Agency. The City
shall pay the Agency its share of the excess receipts as funds are available
to the City or in such other amounts and times as the parties may agree.
3. The City shall designate six and one-half acres (6.5) acres for use as
relocation sites for existing businesses to be relocated from Brentwood
Boulevard and from within the Agency’s two Redevelopment Project Areas. The
City has agreed to hold this property for the Agency’s use for eighteen (18)
months from the date of this Reimbursement Agreement or until the Agency has
reached agreement with those relocated businesses, whichever occurs first.
The reserved acreage may be expanded and the time period may be extended as
the parties may agree.
4. Failure by either party to perform its obligations hereunder shall
constitute a default under this Agreement, and the other party may institute
legal action to cure, correct or remedy such default, to recover damages for
such default or to obtain any other remedy, including injunctive or
declaratory relief, consistent with the purpose of this Agreement.
5. This Agreement constitutes an indebtedness of the Agency incurred in
carrying out the Project, and a pledging of Bond proceeds to repay such
6. Pursuant to Section 895.4 of the Government Code, the Agency and City
agree that each will assume the full liability imposed upon it or any of its
officers, agents or employees for injury caused by a negligent or wrongful
act or omission occurring in the performance of this Agreement and each
party agrees to indemnify and hold harmless the other party for any loss,
costs or expense that may be imposed upon such other party by virtue of
Sections 895.2 and 895.6 of the Government Code.
7. This Agreement and the obligations of the City and the Agency hereunder
shall terminate upon the sale of the land and the Agency’s reimbursement of
the Infrastructure Improvements and excess receipts, if any, as set forth in
IN WITNESS WHEREOF, the Agency and the City have executed this Amended
Reimbursement Agreement as of the date first above written.
REDEVELOPMENT AGENCY OF THE
CITY OF BRENTWOOD
John Stevenson, Executive Director
Karen Diaz, CMC, Secretary
CITY OF BRENTWOOD
John Stevenson, City Manager
Karen Diaz, CMC, City Clerk