This Staff Report Covers Calendar Item No.: 13
THIS STAFF REPORT COVERS CALENDAR ITEM NO.: 13
FOR THE MEETING OF: MARCH 16, 2006
TRANSBAY JOINT POWERS AUTHORITY
BRIEF DESCRIPTION: The Transbay Redevelopment Project Implementation Agreement between the Authority and the San Francisco Redevelopment Agency authorized the Authority to enter into Intergovernmental and Loan Agreements to provide for reimbursement of the Agency for services provided to the Authority (1) to prepare Caltrans Transfer Parcels for sale, and (2) to develop infrastructure to serve the Transbay Redevelopment Plan Area. The proposed Resolution would authorize the Executive Director to sign the Agreements.
SUMMARY:
- The TJPA's Transbay Transit Center Program will be partly funded through tax increment generated from the State-Owned Parcels by the Agency's implementation of the Redevelopment Plan for the Transbay Redevelopment Project.
- The Transbay Transit Center Program will also be partly funded through the sales proceeds of certain properties to be prepared and sold to third parties by the Agency.
- The Authority and Agency have executed the Transbay Redevelopment Project Implementation Agreement (the "Implementation Agreement"), which provides that the Authority will pay or loan the Agency funds to implement the Plan.
- Under the Implementation Agreement, the Authority intends to use local, regional, State and federal grants to pay the Agency for preparation of land for sale or other disposition.
- During FY 2004-05 and the first two quarters of FY 2005-06, the Agency provided two types of services to the Authority to implement the Plan: (1) services directly related to the preparation and sale of the State-owned parcels to be transferred from Caltrans to the Authority under the Cooperative Agreement between Caltrans and the Authority dated July 11, 2003 (“Agency Administrative Fees”); and (2) services not directly related to the preparation and sale of the State-owned parcels, including planning for public infrastructure in the Project Area, such as streetscape and open space (“Agency Costs”).
- The Agency Administrative Fees are for services directly related to the preparation and sale of the State-owned parcels that will confer direct benefits to the Authority by providing revenue that will be used to construct the TransbayTransitCenter and the Downtown Rail Extension. Accordingly, the Authority would pay the Agency for these services in the form of fees under the Intergovernmental Agreement. In contrast, the Agency Costs are for services not directly related to the preparation and sale of the State-owned parcels that will benefit the Redevelopment Project Area. Accordingly, the Agency would bear the cost of these services. The Agency presently lacks funds to pay the Agency Costs, however, and will borrow the funds from the Authority under the Loan Agreement.
- During FY 2004-05, the cost of all services provided by the Agency totaled $318,490. Authority and Agency staff have agreed that 70% of that work, or $222,943, is Agency Administrative Fees attributable to the preparation and sale of the State-owned parcels, and 30%, or $95,547, is Agency Costs attributable to planning infrastructure for the Redevelopment Project Area. Accordingly, on the effective date of the Intergovernmental and Loan Agreements, the Agency would present separate invoices for the two sums to the Authority for payment. The $222,943 Agency Administrative Fee would be a direct payment to the Agency under the Intergovernmental Agreement with no requirement for repayment; the Agency would repay the $95,547 loan for Agency Costs according to the repayment schedule set forth in the Loan Agreement.
- Also on the effective date of the Loan Agreement and this Agreement, the Agency would present an invoice to the Authority for payment for the Agency’s services for the first two quarters of FY 2005-06. The Parties’ staff agree that 100% of these services were Agency Costs for other than preparation and sale of the State-owned parcels, and therefore would constitute a loan under the Loan Agreement and would be repaid according to the repayment schedule.
- In order to fund the Agency's activities under the Implementation Agreement, the Loan Agreement and the Intergovernmental Agreement form the binding contractual agreements setting forth specific terms and conditions for invoicing and payment of amounts within a specific budget.
- The attached resolution authorizes the TJPA Executive Director to execute the Intergovernmental and Loan Agreements.
ENCLOSURES:
- Resolution
- Intergovernmental Agreement
- Loan Agreement
RECOMMENDATION: Adopt the resolution authorizing the Executive Director to execute the Intergovernmental and Loan Agreements.
TRANSBAY JOINT POWERS AUTHORITY
BOARD OF DIRECTORS
Resolution No. ______
WHEREAS, The TJPA's Transbay Transit Center Program will be partly funded through tax increment generated from the State-Owned Parcels by the San Francisco Redevelopment Agency's implementation of the Redevelopment Plan for the Transbay Redevelopment Project; and
WHEREAS, The Transbay Transit Center Program will also be partly funded through the sales proceeds of certain properties to be prepared and sold to third parties by the Agency; and
WHEREAS, The Authority and Agency have executed the Transbay Redevelopment Project Implementation Agreement (the "Implementation Agreement"), which provides that the Authority will pay or loan the Agency funds to implement the Plan; and
WHEREAS, Under the Implementation Agreement, the Authority intends to use local, regional, State and federal grants to pay the Agency for preparation of land for sale or other disposition; and
WHEREAS, During FY 2004-05 and the first two quarters of FY 2005-06, the Agency provided two types of services to the Authority to implement the Plan: (1) services directly related to the preparation and sale of the State-owned parcels to be transferred from Caltrans to the Authority under the Cooperative Agreement between Caltrans and the Authority dated July 11, 2003 (“Agency Administrative Fees”); and (2) services not directly related to the preparation and sale of the State-owned parcels (“Agency Costs”); and
WHEREAS, The Agency Administrative Fees are for services directly related to the preparation and sale of the State-owned parcels that will confer direct benefits to the Authority by providing revenue to construct the TransbayTransitCenter and the Downtown Rail Extension. Accordingly, the Authority shall pay the Agency for these services in the form of fees under the Intergovernmental Agreement. In contrast, the Agency Costs are for services not directly related to the preparation and sale of the State-owned parcels that will benefit the Redevelopment Project Area. Accordingly, the Agency shall bear the cost of these services. The Agency presently lacks funds to pay the Agency Costs, however, and will borrow the funds from the Authority under the Loan Agreement; and
WHEREAS, During FY 2004-05, the cost of all services provided by the Agency totaled $318,490. 70% of that work, or $222,943, is Agency Administrative Fees attributable to the preparation and sale of the State-owned parcels, and 30%, or $95,547, is Agency Costs attributable to planning infrastructure for the Redevelopment Project Area. The $222,943 Agency Administrative Fee shall be a direct payment to the Agency under the Intergovernmental Agreement with no requirement for repayment; the Agency shall repay the $95,547 loan for Agency Costs according to the repayment schedule set forth in the Loan Agreement; and
WHEREAS, The Agency will present an invoice to the Authority for payment for the Agency’s services for the first two quarters of FY 2005-06. 100% of these services were Agency Costs for other than preparation and sale of the State-owned parcels, and therefore shall constitute a loan under the Loan Agreement and will be repaid according to the repayment schedule; and
WHEREAS, In order to fund the Agency's activities under the Implementation Agreement, the TJPA and Agency must enter into binding contractual agreements setting forth specific terms and conditions for invoicing and payment of amounts within a specific budget; now, therefore, be it
RESOLVED, That TJPA Board authorizes the Executive Director to execute the Intergovernmental and Loan Agreements with the San Francisco Redevelopment Agency; and therefore be it
FURTHER RESOLVED, That the Intergovernmental and Loan Agreements provide for the Authority to reimburse the Agency for services to the Authority and the Redevelopment Plan Area consistent with the Implementation Agreement
I hereby certify that the foregoing resolution was adopted by the Transbay Joint Powers Authority Board of Directors at its meeting of March 16, 2006.
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Secretary, Transbay Joint Powers Authority