HomeMy WebLinkAboutItem #12 CRA Interlocal Agreement
AGENDA ITEM COVER SHEET
Meeting Date: February 7,2006
Item # 11
Contact Name:
Contact Number:
Reviewed By:
David E. Cardwell, Department Director:
Ocoee CRA Special Counsel
(407) 876-6945 City Manager:
Subject: eRA Interlocal Agreement
Background Summary:
On September 21,2004 the City Council adopted a resolution finding a certain defined area of the City of Dcoee
had conditions of "blight" as that term is defined in the Community Redevelopment Act. The next steps in the
process of redeveloping that area in accordance with the Act are: (i) create a Community Redevelopment
Agency; (ii) adopt a redevelopment plan; and (iii) create a redevelopment trust fund and provide for the deposit
therein of increment revenues attributed to the redevelopment area.
The Redevelopment Act states that in a county that has adopted a home rule charter all redevelopment powers
are vested in the county. A municipality located within such a county may exercise redevelopment powers under
the Act only if the governing body of the county has delegated those powers to the governing body of the city.
9163.400, Florida Statutes. Orange County had adopted a home rule charter so the City of Ocoee cannot
proceed with the next steps in the redevelopment process until the County Commission has delegated
redevelopment powers to the City.
Issue:
Should the Honorable Mayor and City Commissioners approve an Interlocal Agreement with Orange County
regarding the Ocoee CRA?
Recommendation:
Staff and Special Counsel recommend that the Mayor and City Commissioners approve the attached Interlocal
Agreement with Orange County regarding the Dcoee CRA and further authorize the Mayor and City Council to
execute the agreement on behalf of the City.
Attachments:
Interlocal Agreement Between Orange County, Florida, and the City of Ocoee, Florida
Financial Impact:
Unknown
Type of Item: (please mark with an "x'?
Public Hearing
_ Ordinance First Reading
Ordinance Second Reading
Resolution
~ Commission Approval
Discussion & Direction
For Clerk's Deot Use:
_ Consent Agenda
Public Hearing
_ Regular Agenda
_ Original Document/Contract Attached for Execution by City Clerk
_ Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ( )
N/A
N/A
N/A
2
City Manae:er
Robert Frank
Commissioners
Gary Hood. District 1
Scott Anderson. District 2
Rusty Johnson. District 3
Nancy J. Parker. District 4
Mayor
S. Scott Vandere:rift
STAFF REPORT
TO:
The Honorable Mayor and City Commissioners
FROM:
David E. Cardwell, Ocoee CRA Special Counsel
DATE:
January 27, 2006
RE:
CRA Interlocal Agreement
ISSUE:
Should the Honorable Mayor and City Commissioners approve an Interlocal Agreement with Orange County
regarding the Ocoee CRA?
BACKGROUND:
On September 21, 2004 the City Council adopted a resolution finding a certain defined area of the City of
Ocoee had conditions of "blight" as that term is defined in the Community Redevelopment Act. The next steps
in the process of redeveloping that area in accordance with the Act are: (i) create a Community Redevelopment
Agency; (ii) adopt a redevelopment plan; and (iii) create a redevelopment trust fund and provide for the deposit
therein of increment revenues attributed to the redevelopment area.
The Redevelopment Act states that in a county that has adopted a home rule charter all redevelopment powers
are vested in the county. A municipality located within such a county may exercise redevelopment powers
under the Act only if the governing body of the county has delegated those powers to the governing body of the
city. 9163.400, Florida Statutes. Orange County had adopted a home rule charter so the City of Ocoee cannot
proceed with the next steps in the redevelopment process until the County Commission has delegated
redevelopment powers to the City.
DISCUSSION:
Since adoption of the resolution finding conditions of blight City administration, consultants, and special counsel
have negotiated the terms of such delegation with County staff. The result of those negotiations is the interlocal
agreement between the City and Orange County that is being submitted to you for approval. The County
Commission will also need to approve a resolution that will actually delegate the powers to the City. The
interlocal agreement is the means the County uses to implement and enforce the terms of the delegation of
powers. The County Commission will not consider the resolution and the interlocal agreement until the City
Commission has approved the interlocal agreement.
I
The following is a summary of the terms of the Interlocal Agreement:
1. The composition of the governing body of the Community Redevelopment Agency ("CRA") will be the
City Commission plus two individuals appointed by the City Commission. One of those two appointed
members will be nominated by the County Commission.
2. Beginning no later than the December 31st following the City adopting a redevelopment plan for the
area and continuing for so long as the interlocal agreement is in effect until December 31, 2036, the
County will pay into the trust fund the increment revenues calculated in accordance with the
Redevelopment Act. The County's payment to the trust fund is conditioned on the City having made its
annual payment of increment revenues to the trust fund and notifying the County that the payment has
been made. If the City has not timely provided such notice and the County's payment is not made by
December 31st the County is not liable for the penalty and interest for a late payment as provided in the
Redevelopment Act.
3. Within 60 days of receipt of the County's payment to the trust fund the CRA will rebate to the County the
following amounts:
a. 30% of the amount of the County's payment in excess of $1 million but less than or equal to $2
million, plus
b. 50% of the amount in excess of $2 million.
4. The CRA can also rebate to the City part of the City's payment to the trust fund, but the rebate to the
City cannot exceed the amount rebated to the County.
5. The County acknowledges that the City is contemplating entering into agreement(s) for development of
a new town center in the redevelopment area. The County agrees to consider proposals for adjustment
of the amount rebated to the County if needed for development of the town center, but is not obligated to
make any changes.
6. By June 1 st of each year the City shall provide to the County a detailed budget and financial report
describing the financial obligations of the City or CRA for carrying out the redevelopment plan and any
threatened or pending litigation involving redevelopment activities. The report shall also include the
status of any capital improvements planned or taking place in the redevelopment area.
7. The term of the interlocal agreement shall last until the final payment is made to the trust fund unless the
agreement is earlier terminated by the parties.
8. If the obligation to make the rebate to the County is found to be invalid, then the agreement terminates
immediately unless at that time there is any outstanding debt pledging the increment revenues in the
trust fund. In such an event the CRA shall deposit an amount equal to the rebate in a separate trust
account and used to defease or redeem any outstanding debt. Upon the debt being paid the obligation
of the County to make annual payments to the trust fund shall end.
9. The City agrees that it will not attempt or cause any attempt to be made to invalidate the interlocal
agreement or the rebate payment.
STAFF RECOMENDATION:
Staff and Special Counsel recommend that the Mayor and City Commissioners approve the attached Interlocal
Agreement with Orange County regarding the Ocoee CRA and further authorize the Mayor and City Council to
execute the agreement on behalf of the City.
Attachment:
INTERLOCAL AGREEMENT BETWEEN ORANGE COUNTY, FLORIDA, AND THE CITY OF OCOEE, FLORIDA
2
1/25/2006
1 INTERLOCAL AGREEMENT
2 BETWEEN ORANGE COUNTY, FLORIDA,
3 AND THE CITY OF OCOEE, FLORIDA
4 THIS INTERLOCAL AGREEMENT entered into this day of , 2006,
5 between ORANGE COUNTY, FLORIDA, a political subdivision of the State of Florida (the
6 "County"), the CITY OF OCOEE, FLORIDA, municipal corporation existing under the laws
7 of the State of Florida ("City").
8
9 A.
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15 B.
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20 C.
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RECITALS
Orange County, by Resolution No. 2005-M- _ , adopted on, 2006 (the
"Resolution"), delegated to the City the power to create a Community Redevelopment
Agency ("CRA") relating to the City of Ocoee Redevelopment Area, and delegated to
the City certain powers necessary or convenient to carry out and effectuate the
purposes and provisions of Part III, Chapter 163, Florida Statutes (the
"Redevelopment Act").
The Resolution required Orange County, and the City to enter into an Interlocal
Agreement obligating the City and the Agency to rebate back to Orange County each
year a portion of the amount deposited by Orange County into the Community
Redevelopment Trust Fund and to provide certain information to the County on an
ongoing basis.
It is the purpose and intent of this Interlocal Agreement to satisfy the
requirements of the Resolution.
22 NOW, THEREFORE, as consideration for Orange County's delegation of community
23 redevelopment powers, and for other good and valuable consideration, each to the other,
24 receipt of which is hereby acknowledged by all parties, the parties hereby agree, stipulate
25 and covenant as follows:
26 1.
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28 2.
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31 3.
PREAMBLE INCORPORATED: The foregoing recitals are true and correct and are
incorporated herein as part of the Interlocal Agreement.
AUTHORITY: This Interlocal Agreement (hereinafter referred to as the "Agreement")
is entered into pursuant to the Florida Interlocal Cooperation Act contained in
Section 163.01, Florida Statutes and pursuant to Section 163.400, Florida Statutes.
DEFINITIONS:
32 a. Terms used in this Agreement shall have the meanings as provided in Section
33 163.340, Florida Statutes (Definitions), unless the context otherwise indicates.
34 b. "Community Redevelopment Area" is defmed as described in Exhibit "A",
3 5 attached and incorporated by reference herein.
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The City agrees it shall appoint to its CRA whoever shall be nominated by the Board
of County Commissioners (the "Board") for appointment to the CRA, as provided in
the Resolution.
TAX INCREMENT CONTRIBUTION AND CONTRACTUAL REBATE:
a. Orange County shall, by December 31 st of each year, commencing the first
December 31 st following the date on which the Board has approved the Ocoee
Redevelopment Plan for so long as this Agreement remains in effect and ending no
later than December 31, 2036, pay to the CRA's Community Redevelopment Trust
Fund the increment revenues as calculated pursuant to Section 163.3 8 7 (1),
Florida Statutes in each year in which the City has provided notice to the County of
its own timely payment to such Community Redevelopment Trust Fund. Orange
County's payment into the Redevelopment Trust Fund is agreed to be contingent
upon the City paying its tax increment share into such Trust Fund each year before
Orange County is obligated to pay its increment. The City shall provide written
notice that the City has made its deposit into such Trust Fund at least ten (10) days
prior to the date the County is required to make its deposit into the Trust Fund.
Proof of such payment of the City contribution shall be provided to the County
Administrator, Orange County, 201 South Rosalind Avenue, 5th Floor, Orlando,
Florida 32801. The City and the Agency shall not be entitled to any interest
pursuant to Section 163.387(2)(b), Florida Statutes, or otherwise, if the City has
not provided ten day notice of deposit to Orange County as provided for in this
Section.
b. Upon receipt of Orange County's payment as set forth in Paragraph 5 (a) hereof,
the City hereby agrees to rebate, or cause the CRA to rebate back to Orange
County each year, within sixty (60) days of receipt of said payment, the following
portion of the amount deposited by Orange County in the Community
Redevelopment Trust Fund established by the City pursuant to Section 163.387,
Florida Statutes, for the particular year (such payment being herein referred to as
the "Rebate"):
(1) Thirty percent (30%) of the amount in excess of$I,OOO,OOO.OO but less than or
equal to $2,000,000.00, plus
(2) Fifty percent (50%) of the amount in excess of $2,000,000.00.
Nothing herein shall be construed to prevent the CRA from repaying the City a
portion of the amount deposited by the City in the Community Redevelopment Trust
Fund provided that no such repayments to the City from the Redevelopment Trust
Fund in any year shall exceed the percentage of funds rebated to the County in such
year. Likewise, if any funds remaining in the Trust Fund on the last day of the fiscal
year are returned to taxing authorities pursuant to Section 163.387(7)(a), Florida
Statutes, such funds shall be returned in the proportion that the amounts were paid by
each taxing authority into the Trust Fund, after taking into account any such rebates
to the City and the County pursuant to this Agreement.
Page 2 of5
1/25/2006
I The County acknowledges that the City andlor the CRA are contemplating entering
2 into an agreement or agreements for the development of a new town center. The
3 County agrees that it will entertain proposals for the adjustment of the Rebate
4 amounts set forth above in the event the City andlor CRA enter into such agreement
5 or agreements for the development of a new town center; however, this
6 acknowledgement shall not be interpreted to obligate the County in any way to accept
7 such proposals or to agree to amend this Interlocal Agreement.
8 6. REPOR TING: The City shall by June 1 of each year provide a detailed budget and
9 financial report, which report shall describe in detail sufficient to enumerate and
10 describe any and all financial obligations, including all incentives to Developers, of
11 the City or CRA entered into in the course of carrying out the Community
12 Redevelopment Plan, as well any pending or threatened litigation involving
13 redevelopment activities of the City or CRA. The City shall also report by June I of
14 each year to the County on the status of all capital improvements planned or taking
15 place within the Community Redevelopment Area.
16 7. TERM: This Agreement shall be in effect until the end of the fiscal year in which the
17 last payment pursuant to Section 5 hereof is made. In such earlier event that the City
18 or the Agency have completed the projects identified in its Community
19 Redevelopment Plan, as may be amended from time to time by the mutual agreement
20 of Orange County and the City, and any outstanding debt has been paid in full,
21 Orange County and the City agree that this Agreement shall be terminated by the City
22 and the Agency by written notification to the County Administrator and the County
23 shall have no further obligation to make payment into the Community Redevelopment
24 Trust Fund unless the County shall have agreed to continue such payments as
25 evidenced by an amendment to the Resolution.
26 8. REMEDIES: This Agreement shall be governed by the laws of the State of Florida.
27 Any and all actions necessary to enforce this Agreement shall be brought in Orange
28 County. No remedy herein conferred upon any party is intended to be exclusive of
29 any other remedy, and each and every such remedy shall be cumulative and shall be in
30 addition to every other remedy given hereunder or now or hereunder existing at law
31 or in equity or by statute or otherwise. No single or partial exercise by any party of
32 any right, power or remedy hereunder shall preclude any other or further exercise
33 thereof
34 9. INTERPRETATION: The headings contained in this Agreement are for reference
35 purposes only and will not affect in any way the meaning or interpretation of this
36 Agreeme~.
37 10. SEVERABILITY: If any item or provISIOn of this Agreement, or the application
38 thereof to any person or circumstances shall, to any extent, be held invalid or
39 unenforceable, the remainder of this Agreement, or the application of such terms or
40 provisions to persons or circumstances other than those as to which it is held invalid or
41 unenforceable, shall not be affected and every other term and provision of this
42 Agreement shall be deemed valid and enforceable to the extent permitted by law;
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provided however that in the event the rebate provided for in subparagraph 4(b) is
found to be invalid, the Agreement shall terminate immediately unless there is at that
time any outstanding debt pledging tax increment revenues. In such event, the City
agrees that it will cause the Community Redevelopment Agency to deposit funds equal
to the rebate amount for each fiscal year into a separate trust account to be used solely
to defease or redeem any such outstanding debt on the earliest ordinary call date when
the debt can be paid without penalty or premium. Upon such debt being paid, the
obligation of the County to make the annual deposits to the community redevelopment
trust fund shall terminate. The City agrees that it will make no attempt, nor seek or
cause any attempts to be made, to challenge or cause the invalidation of this
Agreement or such rebate provision.
EFFECTIVE DATE: This Agreement shall be effective upon approval by all parties
to this Agreement and upon filing by the City with the Clerk to the Board of County
Commissioners as required by Section 163.0 I, Florida Statutes.
CITY DEEMED CITY COMMISSION: Any action, requirement or vote, required,
allowed, or called for under this Agreement by the City shall be by action of the City
Commission unless otherwise delegated by the City Commission to the City Manager
or other City official.
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1/25/2006
1 IN WITNESS WHEREOF, the parties hereto have made and executed this Interlocal Agreement in
2 two (2) counterparts, each of which shall be deemed an original, executed by the parties hereto on
3 the _ day of , 2006.
4 ORANGE COUNTY, FLORIDA
5 By: Board of County Commissioners
6
7
By:
Mayor
8 Date:
9 ATTEST: Martha O. Haynie, County Comptroller
10 As Clerk of the Board of County Commissioners
11 It
12
Deputy Clerk
CITY OF OCOEE, FLORIDA
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By: S. Scott Vandergrift, Mayor
14 ATTEST:
15 Beth Eikenberry, City Clerk
16 (SEAL)
17 FOR USE AND RELIANCE ONLY BY
18 THE CITY OF OCOEE, FLORIDA;
19 APPROVED AS TO FORM AND
20 LEGALITY this day of
21 ,2006.
22 FOLEY & LARDNER LLP
23 By:
24 City Attorney
25 APPROVED BY THE OCOEE CITY
26 COMMISSION AT A MEETING
27 HELD ON , 2006
28 UNDER AGENDA ITEM NO.
29 S:\LMcHenry\Agrcnt\Ocoee ~ nterlocal County version 10-3-05 clean. doc
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