COOPERATIVE AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF RIO VISTA AND THE CITY OF RIO VISTA

COOPERATIVE AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF RIO VISTA AND THE CITY OF RIO VISTA This Cooperative Agreement (this Agreement ) is entered into effective as of March 17, 2011 ( Effective Date ) by and between the Redevelopment Agency of the City of Rio Vista, a California redevelopment agency ( Agency ) and the City of Rio Vista, a municipal corporation ( City ). The Agency and the City are hereinafter collectively referred to as the Parties. RECITALS A. Pursuant to authority granted under Community Redevelopment Law (California Health and Safety Code section 33000 et seq.) ( CRL ), the Agency has responsibility to implement the redevelopment plan for Rio Vista for its general project area ( Project Area A ) established by the redevelopment plan adopted for the Project Areas pursuant to Ordinance 463, adopted on December 15, 1988 (and as subsequently amended from time to time, hereafter the Redevelopment Plan ). B. Pursuant to section 33220 of the CRL, any public body is authorized to enter into an agreement with the Agency for the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of redevelopment projects located within the jurisdiction in which such public body is authorized to act, upon the terms and with or without consideration as such public body determines. C. Pursuant to section 33126(b) of the CRL, the Agency may enter into a contract with any other public agency pursuant to which such public agency furnishes necessary staff services associated with or required by redevelopment. D. Pursuant to section 33445 of the CRL, the Agency may, with the consent of the City, pay for all or a portion of the cost of the land for, and the cost of construction of, any building, facility, structure, or other improvements that are publicly owned and located within or contiguous to Project Area A if the City Council finds based upon substantial evidence that: (1) The acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned are of primary benefit to Project Area A; (2) The acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned benefits Project Area A by helping to eliminate blight within Project Area A, or will directly assist in the provision of housing for low- or moderate-income persons; 1

(3) No other reasonable means of financing the acquisition of the land or the installation or construction of the buildings, facilities, structures, or other improvements that are publicly owned, are available to the community; (4) The payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements that are publicly owned is consistent with the implementation plan adopted pursuant to CRL section 33490; and (5) The acquisition of land and the installation of each building, facility, structure, or improvement that is publicly owned is provided for in the Redevelopment Plan. E. On the basis of the information and evidence presented to the City Council and the governing board of the Redevelopment Agency and provided in the staff report and other materials accompanying the resolutions approving this Agreement, and based upon further information contained in the Redevelopment Plan and the Implementation Plan, the City Council and the Redevelopment Agency have adopted the findings described in Recital D with respect to the public improvements to be funded by the Agency pursuant to this Agreement. F. The Parties desire to enter into this Agreement to set forth activities, services, and improvements that the City will undertake or make available to the Agency in furtherance of the redevelopment of Project Area A, and to provide that the Agency will pay for or reimburse the City for actions undertaken and costs and expenses incurred for and on behalf of the Agency or otherwise in furtherance of the redevelopment of Project Area A. NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises herein contained, the Parties hereby agree as follows: 1. Term. The term of this Agreement shall commence on the Effective Date, and shall continue in effect throughout the period during which the Agency remains in existence. Notwithstanding the foregoing, the Parties agree that if and to the extent any payment obligation incurred by the Agency pursuant to this Agreement may extend beyond the term during which the Agency is authorized to undertake activities pursuant to state law, such obligations shall be paid from any resources available to Agency or its successor in interest (subject to Section 7 below), including without limitation, tax increment revenue available to the Agency or its successor pursuant to Article XVI, section 16 of the California Constitution and CRL section 33670, the proceeds of bonds or other indebtedness heretofore or hereafter issued by the Agency (subject to applicable limitations imposed by federal law and the applicable bond indenture and related documents), reserve funds (to the extent not otherwise legally obligated), lease revenues, interest, and proceeds from the sale of land or other assets. 2. City to Provide Services. In support of the redevelopment of Project Area A, the City agrees to provide the staffing and other services described in the attached Exhibit A. Agency agrees to pay City for the cost of such staffing and other services in the amounts and in accordance with the schedule described in the attached Exhibit A. 2

3. Agency to Pay for Public Improvements. The Agency agrees to pay to the City the amounts set forth in Exhibit B for the cost of construction of the public improvements and acquisition of property therein identified and in accordance with the schedule set forth therein. 4. Agency to Provide Funds for Low and Moderate-Income Housing. The Agency agrees to pay to the City all funds within its Low and Moderate-Income Housing Fund (Fund 21) not previously obligated by Agency pursuant to the CRL or otherwise, for the purpose of increasing, improving and preserving the supply of low- and moderate-income housing within the City, to be utilized for the programs and activities identified in Exhibit A hereto. 5. Indebtedness. The obligations of the Agency to make payment to City pursuant to this Agreement shall constitute an indebtedness of the Agency within the meaning of Article XVI, section 16 of the California Constitution and CRL section 33670, and shall be payable from tax increment paid to the Agency pursuant to Article XVI, section 16 of the California Constitution and CRL section 33670 or from any other source legally available to the Agency for such payment, and shall constitute an indebtedness of the Agency until paid in full. The Agency shall include its obligations to the City under this Agreement as an indebtedness on the Agency s statement of indebtedness filed with the County Auditor pursuant to CRL section 33675. 6. Subordination. The obligations of the Agency to make payments to City pursuant to this Agreement shall be subordinate to any obligation of the Agency to pay debt service on bonds heretofore or hereafter issued by the Agency and to pay any other contractual indebtedness of the Agency incurred prior to the date of this Agreement. 7. Project Approvals; Environmental Review. The actions contemplated by this Agreement - the approval of funding sources for future improvements, activities and programs - has no potential for physical effects on the environment. Each individual improvement, project and/or activity listed in this Agreement has been or will be fully evaluated at a project level in full compliance with the California Environmental Quality Act ( CEQA ) and the National Environmental Protection Act ( NEPA ), as applicable, when sufficient physical details regarding site and proposed design and construction are available to permit meaningful CEQA review. (See CEQA Guidelines, section 15004(b)(1)). This Agreement does not, and is not intended to, limit in any manner the discretion of the City or the Agency, as applicable, in connection with the issuance of approvals and entitlements for the projects described in this Agreement, including without limitation, all required environmental review, all required public proceedings, and the City s and/or Agency s subsequent review and approval of plans and specifications. 8. Severability. If any term, provision, covenant, or condition set forth in this Agreement is held by the final judgment of a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions, covenants, and conditions shall continue in full force and effect to the extent that the basic intent of the Parties as expressed herein can be accomplished. In addition, the Parties shall cooperate in good faith in an effort to amend or modify this Agreement in a manner such that the purpose of any invalidated or voided provision, covenant, or condition can be accomplished to the maximum extent legally permissible. 3

9. No Third-Party Beneficiaries; Assignments. Nothing in this Agreement is intended to create any third-party beneficiaries to the Agreement, and no person or entity other than the Agency and the City, and the permitted successors and assigns of either of them, shall be authorized to enforce the provisions of this Agreement. 10. Further Assurances. Each Party agrees to execute, acknowledge and deliver all additional documents and instruments, and to take such other actions as may be reasonably necessary to carry out the intent of the transactions contemplated by this Agreement. 11. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 12. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. 13. Amendments. This Agreement may be modified or amended, in whole or in part, only by an instrument in writing, executed by the Parties. 14. Recitals. The Recitals set forth above are hereby incorporated into this Agreement as though fully set herein. 15. Exhibits. Exhibits A and B attached hereto are hereby incorporated into this Agreement by reference. SIGNATURE PAGE FOLLOWS 4

IN WITNESS WHEREOF, the Parties have executed this Cooperative Agreement as of the date first written above. CITY: CITY OF RIO VISTA, a municipal corporation Hector De La Rosa Title: City Manager ATTEST: Carolyn Parkinson, Interim City Clerk APPROVED AS TO FORM: Jonathan P. Hobbs, City Attorney AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF RIO VISTA, a California redevelopment agency Hector De La Rosa Title: Executive Director ATTEST: Carolyn Parkinson, Agency Secretary APPROVED AS TO FORM: Jonathan P. Hobbs, Agency Counsel 5

EXHIBIT A STAFFING AND ADMINISTRATIVE SERVICES The costs for the following staffing and administrative expenses shall be advanced by the City on behalf of the Agency. Reimbursement for such expenses shall be made by the Agency on an annual basis, upon demand by the City. The Agency s obligation to reimburse or repay to the City is limited to the remaining available tax increment after retiring any other indebtedness. Interest shall not be charged on the total principal amount of the indebtedness. 1. Fund 20: Public Infrastructure Projects and Property Acquisition In accordance with the Cost Allocation Plan of the City of Rio Vista, the amount of $160,000 per year shall be paid by the Agency to the City for staff services to be delivered by City Administration, City Attorney, Public Works, Community Development and Finance department staff persons for contract and document preparation and review, plan checking, permit issuance, project management, construction management, environmental review, financial accounting, project reporting and other administrative support tasks. City staff will also provide ongoing support to other infrastructure projects developed by or on behalf of the Agency. 2. Fund 21: Affordable Housing Projects City staff will provide administration, fiscal reporting, project management, marketing, loan and grant review and approval and administration services for a range of affordable housing programs and projects. Anticipated Cost Allocation Plan expenses are a total of $50,000 per year, which shall be paid by the Agency to the City annually. Staff Functions Marketing, code compliance, application processing, underwriting, Loan Committee review, and escrow management. HOME grant administration. CDBG loan administration. Marketing, construction oversight, inspection, application processing, and escrow management. Plan review environmental studies, construction inspection, affordable housing monitoring, loan administration, and statutory reporting. 6

EXHIBIT B PUBLIC IMPROVEMENTS, LOANS AND PROPERTY ACQUISITION The following public improvements, loans and property acquisitions shall be undertaken by the City, on behalf of the Agency. Reimbursement for such improvements, loans and property acquisitions shall be made by the Agency on a monthly basis, or other basis as mutually agreed upon by the parties, upon demand by the City. The Agency s obligation to reimburse or repay to the City is limited to the remaining available tax increment after retiring any other indebtedness. Interest shall not be charged on the total principal amount of the indebtedness. All of the improvements, loans and property acquisitions are anticipated to occur or be undertaken prior to the end of 2015. Project: Infrastructure Improvements Cost: $4,000,000 In an effort to strengthen the visibility of Rio Vista and attract tourism, retail, and commercial businesses in the Project Area, the Agency desires to fund needed improvements. Tourism, and business attraction is increased with proper signage, landscaping, paved roads, and other improvements such as level sidewalks, lighting, water and sewer lines. Some of the projects described are scheduled in the 2005-2010 Capital Improvement Program. Project: Construction of Public Boat Dock Cost: $_300,000 In an effort to strengthen the retail and commercial functions in the Project Area, the Agency desires to construct a public boat dock adjacent to City Hall. The City leases a boat dock from the State adjacent to City Hall. However, the dock has exceeded its useful life and is not ADA compliant. A new dock will allow water vehicles, boats, and boat charter to utilize the dock while its crew and passengers walk, shop, and eat in our downtown. Project: 45 Main Street Cost: $ 250,000 In order to provide retail outlets and/or community conference rooms, rehabilitation of a City owned business along Main Street near City Hall and the River is required. The building is currently a warehouse, which is not up to building code standards. Investment in the building is required to provide traffic and retail opportunities to the downtown. Project: Land Purchase Cost: $1,200,000_ In an effort to strengthen the downtown commercial corridor, additional parking is required. Parking is limited and at times insufficient resulting in reduced traffic and loss of revenue for businesses. Funding will be used for purchase of property (on side streets), demolishing of building and asphalting for produce additional downtown parking. 7

Project: Construction of Facility for Businesses Cost: $750,000_ In an effort to encourage business development and business attraction, the Agency desires to construct Butler (metal) style building, which will serve as business incubator shops for start up businesses or existing businesses needing a location. Cost will include site preparations, installation of utilities, and landscaping. The City Business Park is the ideal location for construction of business facilities. Project: Business New/Expansion Loans Cost: $2,000,000_ The economy has resulted in a decline of businesses in the downtown and throughout the community. Banks are hesitant to loan funds to new businesses let alone for expansion of businesses. The Agency may be able to spur development through a new and expanded business program. Funding would assist property owners bring their property up to ADA standards, update or paint building facades, install trees/landscaping, provide start up money for new businesses, or loans to expand business. The program will establish the guidelines. Project: Construction of City Facilities (Police/Fire Station/Community Center) Cost: $1,200,000_ Governmental facilities are in need of upgrading including construction of new facilities. Impact fees collected through development assist in construction of governmental facilities but do not pay the entirely of the cost. Additional funding is necessary which the Agency can assist. Development of such facilities, in areas of blight, encourages economic growth and security for the public. Project: Unreinforced Masonry Program Cost: $500,000_ Many of the buildings in the City s Downtown were built in the early 1900 s. New building standards require that masonry building be reinforced. A program to assist businesses reinforce the building will encourage property owners to invest in the building resulting in increases in property tax, creation of jobs, and sales tax to the City. Not to mention the improved sight of the downtown. Project: Installation of promenade/flood wall - Waterfront Cost: $25,000,000_ The waterfront area between City Hall and the Helen Madre Bridge has been vacant for years. The site is primed for development, elimination of blight, generation of revenues, jobs, and property tax. However, there are concerns of flooding. To commence development a floodwall must be developed, which can also serve as a promenade. Through construction of the flood wall development is eminent. 8

Low and Moderate Housing Set-aside The purpose of the Redevelopment Agency Low and Moderate fund is to provide assist in the development of affordable housing. There are specific requirements, which must be implemented with use of these funds such as documenting that the housing units must remain affordable for a specified period of time. The State also sets out guidelines as to the affordability levels by number of households in each County. These funds cannot be used for general redevelopment agency purposes. Project: First-Time Homebuyers Assistance Program Cost: $1,750,000_ Through a first time homebuyers program the City can offer grants, loans, or deferred loans to assist individuals in qualifying to purchase a home. The program to be developed will set limits as to how much an individual can obtain from the first time homebuyers program. A restriction on the property will be required to retain the property affordability. Project: Residential Rehabilitation Program Cost: $500,000_ Many homes in the community are aged and require updating to current building codes and/or for public health and safety matters. If the homeowner qualifies under established guidelines, the Agency could provide funding to address the health and safety issues. The program will outline the requirements and guidelines to participate in the residential rehabilitation program. Project: Purchase of Property Cost: $1,550,000_ To assist in the development of affordable housing the Agency will take the lead and purchase property. The property can be used to write down the overall cost for construction or placement of affordable housing. Project: Affordable Housing Assistance Cost: $1,000,000_ To assist in the development of affordable housing the Agency desires to offer incentives such as payment of impact fees, funding to write down land costs, and funding to write down home costs. Through these avenues, the value of the home can be decreased to a point where it is affordable to households of moderate, low, and very low income. Through a balanced approach of utilization of Redevelopment Agency tax increment dollars to provide needed public improvements and facilitation of business opportunities that will create jobs opportunities and generate increased property tax, affordable housing to assist future and current property owners, the Agency can continue to offer programs to serve the purposes of Redevelopment Total Indebtedness for Improvements and Property Acquisition: $ 39,500,000 9