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HomeMy WebLinkAboutResolution No. 2013-18 Joint w/CRA (waiting for Recorded version) JOINT RESOLUTION NO. 2013-18 A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPE CANAVERAL, FLORIDA, AND THE CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY ("AGENCY"); PROVIDING FOR THE APPROVAL OF AN INTERLOCAL AGREEMENT AUTHORIZING A LOAN FROM THE CITY TO THE CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY, IN AN AMOUNT NOT TO EXCEED $100,000.00, FOR PURPOSES OF INITIALLY FUNDING THE CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY SO IT CAN COMMENCE REDEVELOPMENT ACTIVITIES WITHIN THE REDEVELOPMENT AREA AND REIMBURSE THE CITY FOR CERTAIN START-UP EXPENSES INCURRED BY THE CITY TO ESTABLISH AND CREATE THE AGENCY; PROVIDING FOR THE INCORPORATION OF THE TERMS AND CONDITIONS OF THE INTERLOCAL AGREEMENT INTO THE REDEVELOPMENT PLAN OF THE CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT RESOLUTIONS, NO CONFLICTS; SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, in 2012 the City created the Agency pursuant to Resolution 2012-16; and WHEREAS, the Agency has not received any tax increment financing because it was recently created and is uncertain as to how much, if any, tax increment financing it will receive in fiscal year 2013/2014; and WHEREAS, the Agency is in need of initial funding so it may commence operations as a community redevelopment agency and begin implementing the Agency's Redevelopment Plan; and WHEREAS, the City desires to lend initial funding to the Agency for purposes of allowing the Agency to commence redevelopment activities in furtherance of the Agency's Redevelopment Plan; and WHEREAS, the Agency also desires to reimburse the City for certain start-up expenses that were incurred to establish the Agency including, but not limited to planning, engineering and legal fees; and WHEREAS, the Florida Attorney General has previously opined that such loans between a city and redevelopment agency complies with Florida law. See Op. Fla. Att'y Gen. 2001-30; and City of Cape Canaveral and Cape Canaveral Community Redevelopment Agency Joint Resolution No.2013-18 Page 1 of 4 WHEREAS, it is necessary and proper for the Agency to borrow money to commence redevelopment activities within the Agency's Redevelopment Area and to reimburse the City the start-up expenses incurred to create the Agency; and WHEREAS,the Agency is willing and prepared to issue its redevelopment revenue notes secured by increment revenues deposited in its Redevelopment Trust Fund, and by any other available funding received by the Agency, to repay the City any funds loaned by the City to the Agency under this Agreement; and WHEREAS, the City and Agency are desirous of entering into an interlocal agreement to provide for the loan of funds to the Agency by the City and for the repayment thereof from increment revenues deposited into the Redevelopment Trust Fund, and by any other available funding received by the Agency, or the proceeds of bonds that may be issued by the Agency in the future; and WHEREAS, the City and the Agency hereby deem the terms and conditions of the attached Interlocal Agreement to be consistent with the Agency's Redevelopment Plan and hereby fully incorporated into the Agency's Redevelopment Plan in accordance with Section 163.361, Florida Statutes; and WHEREAS, the City Council of the City of Cape Canaveral, Florida, and the governing board of the Cape Canaveral Community Redevelopment Agency,hereby find this resolution to be in the best interests of the public health, safety, and welfare of the citizens of Cape Canaveral and Agency's redevelopment area. NOW, THEREFORE, BE IT JOINTLY RESOLVED BY THE CITY OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA, AND THE CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY, AS FOLLOWS: Section 1. Recitals. The foregoing recitals are hereby fully incorporated herein by this reference as findings of the City Council of Cape Canaveral and the governing board of the Agency. Section 2. Adoption of Interlocal Agreement. The Interlocal Agreement attached hereto as ATTACHMENT "1" is hereby approved by the City and the Agency and shall be deemed fully incorporated into this Joint Resolution by this reference ("Interlocal Agreement"). Section 3. Incorporation into the Agency's Redevelopment Plan. The Interlocal Agreement shall hereby be deemed fully incorporated into the Agency's Redevelopment Plan and shall be implemented pursuant to the terms and conditions of the Interlocal Agreement and the Community Redevelopment Act of 1969. Section 4. Repeal of Prior Inconsistent Resolutions. All prior inconsistent resolutions adopted by the City Council and Agency are hereby repealed. City of Cape Canaveral and Cape Canaveral Community Redevelopment Agency Joint Resolution No.2013-18 Page 2 of 4 Section 5. Severability. If any section,clause,phrase,word,or provision is for any reason held invalid or unconstitutional by a court of competent jurisdiction, whether for substantive or procedural reasons, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions of this resolution. Section 6. No Conflict. The City and Agency hereby declare that this Resolution is mutually beneficial to each party's objectives and does not present a conflict of interest between the City and the Agency. Section 7. Effective Date. This resolution shall become effective immediately upon adoption by the City Council of the City of Cape Canaveral, Florida and the Cape Canaveral Community Redevelopment Agency. This Resolution shall not be effective or binding until approved by both the Agency and the City. ADO'I'ED at a Itigtzlar Meeting of the City Council of the City of Cape Canaveral, Florida,-assembled this 17th day of September, 2013. w- Ad y. Rocky Randels, Mayor • - ►ttf ATTEST: • Angel. Apperson, ity Clerk Name FOR AGAINST John Bond X Bob Hoog Second Buzz Petsos X Rocky Randels Betty Walsh Motion City of Cape Canaveral and Cape Canaveral Community Redevelopment Agency Joint Resolution No.2013-18 Page 3 of 4 ADOPTED at a Meeting of the governing board of the Cape Canaveral Community Redevelopment Agency, assembled this 17th day of September, 2013. Rocky Randels Chairman ATTEST: 0444 Angela Appers , Recording Secretary Name FOR AGAINST John Bond X Bob Hoog Second Buzz Petsos X Rocky Randels X Betty Walsh Motion Approved as to form and legal sufficiency for the City a c only: Anthony A. Garganese, City and Agency Attorney City of Cape Canaveral and Cape Canaveral Community Redevelopment Agency Joint Resolution No.2013-18 Page 4 of 4 ) ATTACHMENT 1 } INTERLOCAL AGREEMENT } � \ � \ } - ( \ ( } i ) i Prepared by and return to: Anthony A. Garganese, City Attorney Brown, Garganese, Weiss & D'Agresta, P.A. Post Office Box 2873 Orlando, Florida 32802-2873 (407) 425-9566 INTERLOCAL AGREEMENT (CRA Initial Funding Loan Agreement) This Agreement entered into this 1ST day of October, 2013, by and between the CITY OF CAPE CANAVERAL, FLORIDA, a municipal corporation of the State of Florida ("City"), and the CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY, a body politic and corporate created pursuant to Part III, Chapter 163, Florida Statutes and City of Cape Canaveral Resolution No. 2012-16 ("Agency"). WITNESSETH: WHEREAS, in 2012 the City created the Agency pursuant to Resolution 2012-16; and WHEREAS, the Agency has not received any tax increment financing because it was recently created and is uncertain as to how much, if any, tax increment financing it will receive in fiscal year 2013/2014; and WHEREAS, the Agency is in need of initial funding so it may commence operations as a community redevelopment agency and begin implementing the Agency's Redevelopment Plan; and Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 1 of 24 WHEREAS, the Agency also desires to reimburse the City for certain start-up expenses that were incurred to establish the Agency including, but not limited to planning, engineering and legal fees; and WHEREAS, the City desires to contribute initial funding to the Agency for purposes of allowing the Agency to commence redevelopment activities in furtherance of the Agency's Redevelopment Plan and to allow the Agency to reimburse the start-up expenses over the loan period set forth herein; and WHEREAS, it is necessary and proper for the Agency to borrow money to commence redevelopment activities within the Agency's Redevelopment Area and to reimburse the City the start-up expenses incurred to create the Agency; and WHEREAS, the Agency is willing and prepared to issue its redevelopment revenue notes secured by increment revenues deposited in its Redevelopment Trust Fund, and by any other available funding received by the Agency, to repay the City any funds loaned by the City to the Agency under this Agreement and to reimburse the City for the start-up expenses; and WHEREAS, the City and Agency are desirous of entering into an interlocal agreement to provide for the loan of funds to the Agency by the City and for the repayment thereof from increment revenues deposited into the Redevelopment Trust Fund, and by any other available funding received by the Agency, or the proceeds of bonds that may be issued by the Agency in the future; and WHEREAS, by entering into this Agreement, it is the Agency's intent to pledge available funding received by the Agency to repay the loan granted by the City and the start-up Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 2 of 24 expenses under the terms and conditions of an Agency Note and this Agreement until the loan is paid in full; and WHEREAS, the City is willing to loan funds to the Agency for public and redevelopment purposes identified in this Agreement; and WHEREAS, the Agency is willing and prepared to issue its redevelopment revenue notes secured by increment revenues deposited in its Redevelopment Trust Fund, and all other funding sources, to repay the City any funds loaned by the City to the Agency for the redevelopment activities covered by this Agreement; and NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows: SECTION 1. RECITALS; AUTHORITY. The foregoing recitals are true and correct and hereby incorporated herein by this reference. This Agreement is entered into pursuant to the authority of Section 163.01, Florida Statutes, and Part III, Chapter 163, Florida Statutes, { particularly including Section 163.400, Florida Statutes. SECTION 2. CONSISTENCY AND INCORPORATION INTO THE REDEVELOPMENT PLAN. The City and the Agency hereby agree that this Agreement is consistent with the Agency's Redevelopment Plan and is also hereby fully incorporated into the Agency's Redevelopment Plan by this reference. SECTION 3. DEFINITIONS. (a) As used in this Agreement, the following terms shall have the following meanings: Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 3 of 24 I � (1) "Act" means the actions by the governing body of the Agency and the City Council creating the Agency and authorizing this Interlocal Agreement, Section 163.01, Florida Statutes, as amended, Part III, Chapter 163, Florida Statutes, and other applicable provisions of law. (2) "Agency" means the Cape Canaveral Community Redevelopment Agency Florida, and any successor thereto. (3) "Agency Bonds" means the bonds that may be issued by the Agency which may be adopted by the governing body of the Agency, and authorized and approved by the City Council pursuant to Section 163.358(3) and 163.385(1), Florida Statutes, to repay the Agency Notes. (4) "Agency Notes" or "Notes" means, collectively, the Agency's one or more Redevelopment Revenue Notes, dated the date of delivery thereof, issued in the original principal amount of up to One Hundred Thousand and NO/100 Dollars ($100,000.00) for Redevelopment Activities authorized pursuant to the Redevelopment Plan and Start-up Expenses, or such lesser amount as may have been advanced by the City to the Agency as provided in this Agreement, and such amount as may be outstanding from time to time, for the purpose of providing funds to the Agency to pay costs incurred by the Agency in connection with the Redevelopment Activities and Start-up Expenses. Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 4 of 24 (5) "Area" or "Redevelopment Area" means the Agency's jurisdictional area of operation which is legally described and set forth in City Resolution 2012-16, as may be amended. (6) "City" means the City of Cape Canaveral, Florida, a Florida municipal corporation. (7) "City Council" means the elected governing body of the City. (8) "Fiscal Year" means the period commencing on October 1 of each year and continuing to and including the succeeding September 30. (9) "Governing Body" means the governing board of the Agency, or any successor board, commission or council thereto. (10) "Holder," "Note Holder," "Registered Holder," or "Registered Owner" means the registered owner or owners (or its or their authorized representative) of any of the Notes. (11) "Increment Revenues" means any monies deposited in the Redevelopment Trust Fund pursuant to Section 163.387, Florida Statutes, plus any investment earnings thereof (12) "Investment Obligations" means any obligations in which surplus funds of local units of government may be invested under the Investment of Local Government Surplus Funds Act, Part IV, Chapter 218, Florida Statutes, as amended. Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 5 of 24 (13) "Plan" means the Redevelopment Plan adopted by the Agency and the City Council pursuant to the Act for redevelopment in the area of operation of the Agency. (14) "Redevelopment Activities" shall mean those activities falling within the definitions of"community redevelopment," "redevelopment," "related activities," and "community policing innovation" as those terms are defined in section 163.340, Florida Statutes, and authorized by the Plan . (15) "Start-up Expenses" shall mean out-of-pocket expenses which were necessarily incurred by the City for purposes of creating and establishing the Agency including, but not limited to, planning, engineering, and legal expenses that were incurred to prepare this Agreement, resolutions, ordinances, studies, maps, reports, and plans. (16) "Purchase Price" means the amount paid by the City to the Agency inclusive of the Start-up Expenses and the amount deposited in the CRA Project Account which shall be equal to the par amount of the Agency Note being purchased at that time by the City for the Redevelopment Activities provided in this Agreement. (17) "CRA Project Account" means the Agency's CRA Project Account, which is internally created by the City to track the loan funds for auditing purposes. Said account is specifically created pursuant to Section 12 hereof, in which the Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 6 of 24 proceeds loaned by the City to the Agency for the Redevelopment Activities shall be deposited. (18) "Redevelopment Trust Fund" means the redevelopment trust fund of the Agency created and established pursuant to the Act in which Increment Revenues are deposited. (b) Words importing singular numbers shall include the plural number in each case and vice versa, and words importing persons shall include firms, corporations or other entities, including governments or governmental bodies. References to Florida Statutes are to Florida Statutes (2012), as amended. SECTION 4. FINDINGS AND DETERMINATIONS. (a) The parties hereto recognize and find that it is in the best interest of each and the public to establish an additional cooperative relationship between the parties hereto in order to best carry out the purposes of the Act, specifically including the Redevelopment Activities, and operating activities related to redevelopment of the Area on a timely and expeditious basis. The parties hereto do further find that the Agency does not presently have sufficient available funds to carry out its activities under the Act because the Agency was recently created by the City, and it is necessary that the City make a loan or loans to the Agency from time to time in order to provide funds to the Agency to carry out its duties and responsibilities under the Act. See Op. Fla. Att'y Gen. 2001-30. Further, the parties recognize and find that the Agency's reimbursement of Start-up Expenses to the City is in the best interests of each and the public and a necessary expense that was required to establish and create the Agency. Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 7 of 24 (b) It is hereby ascertained, determined and declared by the Governing Body of the Agency, that: (1) It is in the best interests of the citizens of the City and is contemplated by the Act and the Agency's Redevelopment Plan that the Agency undertake certain actions in order to further the redevelopment of its Area of operation within the corporate limits of the City through the implementation of the Plan by engaging in Redevelopment Activities. (2) The Agency is authorized under the Act to issue the Agency Notes and use the proceeds thereof to pay all or a portion of the costs of establishing and creating the Agency and implementing the Plan and administering and operating the Agency. (3) The Agency Notes will be paid from all available funding sources available to the Agency including, but not limited to, Increment Revenues, grants, and any Agency Bonds that may be issued by the Agency if financially feasible, and the Agency is authorized under the Act to issue the Agency Notes without a vote of the electors residing within the area of operation of the Agency or within the City or any part thereof (4) A negotiated sale of the Agency Notes to the City is required and necessary and is in the best interests of the Agency for the following reasons: the costs of issuance of the Agency Notes are likely to be greater and the time until issuance longer if the Agency Notes are sold at public sale by competitive bid Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 8 of 24 than if the Agency Notes are sold at negotiated sale, and there is no basis, considering prevailing market conditions, for any expectation that the terms and conditions of a sale of the Agency Notes at public sale by competitive bid would be more favorable than at negotiated sale; short term obligations having the characteristics of the Agency Notes are typically sold at negotiated sale under prevailing market conditions; the market conditions are favorable for the immediate issuance of the Agency Notes to the City; and the Agency has undertaken substantial negotiations with the City regarding the purchase of the Agency Notes by the City, and has received a favorable commitment for the purchase of the Agency Notes. SECTION 5. AUTHORIZATION. The parties acknowledge and agree the Agency has been authorized to proceed with the implementation of the Plan, and the issuance of the Agency Notes to pay the costs thereof is hereby authorized and approved as required by Section 163.358(3) and Section 163.385(1), Florida Statutes. SECTION 6. PAYMENT OF PURCHASE PRICE. On October 1, 2013, the City shall make the requested payment of the Purchase Price to the Agency by depositing funds in the amount of said Purchase Price into the CRA Project Account(as created pursuant to Section 12). Further, no later than such time, the Agency agrees to execute an Agency Note evidencing the Agency's obligation to repay the City the Purchase Price. Simultaneously with the delivery of any Agency Note for the Redevelopment Activities and reimbursement of the Start-up Expenses, as provided in Section 12 below, the City shall pay to the Agency an amount equal to the Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 9 of 24 Purchase Price, not to exceed One Hundred Thousand and No/100 Dollars ($100,000.00) which shall be deposited in the CRA Project Account herein created and established in Section 12 hereof. SECTION 7. DESCRIPTION OF NOTE. (a) The Agency Notes shall be issued in one or a series of separate notes not to exceed a cumulative total of One Hundred Thousand and No/100 Dollars ($100,000.00), for the purpose of financing all or part of the Redevelopment Activities undertaken by the Agency within the Agency's Redevelopment Area and reimbursement of Start-up Expenses, and for no other purpose. Each of the Agency Notes shall be designated by the following applicable title: Cape Canaveral Community Redevelopment Agency, Initial Funding Revenue Note, and shall be issued in the name of and delivered to the City, and have a term of ten (10) years. (b) Interest on the outstanding principal balance of each of the Initial Funding Agency Notes shall be equal to two percent (2%)per annum. (c) The offer of the City to purchase the Agency Notes set forth above in the principal amounts stated or such lesser principal amounts as may be paid to the Agency by the City from time to time as provided herein, at a purchase price of par in accordance with the terms and conditions as set forth herein, is hereby accepted and the Agency Notes are hereby awarded and sold to the City upon the terms set forth herein. Payment of the purchase price of the "Cape Canaveral Community Redevelopment Agency, Initial Funding Revenue Note" shall be made in the form of one or more payments to the Agency of funds which shall be deposited in the CRA Project Account as provided herein. The Chairman and the Recording Secretary of the Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 10 of 24 Agency are hereby authorized to execute the Agency Notes as further provided in this Agreement in such principal amount and deliver the applicable Agency Note in the name of or upon the order of the City upon payment of the principal amount thereof by the City to the Agency. (d) If the date for payment of the principal of, and interest on, any of the Agency Notes shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such institutions are authorized to close, and payment on such date, which shall include accrued interest to such date, shall have the same force and effect as if made on the scheduled date of payment. (e) Principal due on each of the Agency Notes is payable to the City upon presentation of the Agency Note to the Agency when due at the offices of the Agency, or such other location within the City as may be designated by the Agency and reasonable notice thereof given to the City. (f) So long as any portion of the principal amount of any of the Agency Notes or interest thereon remains unpaid: (1) if any law, rule, regulation or executive order is enacted or promulgated by any public body or governmental agency which changes the basis of taxation of payment or causes a reduction in yield to the City with respect to the principal or interest payable pursuant to the Agency Note, including without limitation the imposition of any excise tax or surcharge thereon, or (2) if as a result of action by any public body or governmental agency, any Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 11 of 24 payment is required to be made by, or any federal, state or local income tax deduction is denied the City by reason of the ownership of, borrowing money to invest in, or receiving principal or interest on the Agency Note, the Agency shall reimburse the City within thirty (30) days after receipt by the Agency of written demand for such payment and shall indemnify the City against any loss, cost, charge or expense with respect to such charge. (g) In the event it shall be necessary for the City to pay any documentary excise tax levied or imposed upon any of the Agency Notes pursuant to Chapter 201, Florida Statutes, then the Agency shall be required under the provisions of this Agreement to pay or indemnify the City for the payment of such tax, provided the City shall have delivered to the Agency a notice stating that as a consequence of final action by an appropriate governmental authority, it shall have been determined that the City is obligated to pay such documentary excise tax on the Agency Note and requesting reimbursement from the Agency of the amount paid. The City shall give the Agency notice of any proceedings, either administrative or judicial, or both, which may result in a determination of the City's obligation to pay such tax, and nothing herein shall prohibit the Agency from participating in such proceedings to the extent allowable by applicable law, rule,policy, or ruling. For the purpose of this subsection, the term "final action" shall mean either (i) action taken by the Florida Department of Revenue or other appropriate governmental official or agency which cannot be appealed administratively or in a court of competent jurisdiction, or, if any such action is appealable, in the opinion of counsel to the City (which opinion is acceptable to the Agency), such appeal would likely not be successful; or (ii) action by any court of Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 12 of 24 competent jurisdiction as to which the time to appeal has expired or as to which an appeal has been denied or dismissed without further right of appeal. SECTION 8. EXECUTION OF NOTE. Each of the Agency Notes shall be signed and executed in the name of the Agency as set forth in the form of the note attached hereto as EXHIBIT "A."" The signatures of the Chairman or other officers of the Agency authorized to sign the Agency Note shall be manual. The seal (if any) of the Agency shall be impressed, imprinted, reproduced or lithographed on each of the Agency Notes. Each of the Agency Notes shall be validly executed when signed by the persons who shall respectively hold the appropriate offices at the time of execution and attestation, without regard to who held the office on the effective date of this Agreement, the date of that Agency Note or who held that office at the time of the delivery of that Agency Note. SECTION 9. PREPAYMENT. Each of the Agency Notes shall be subject to prepayment, in whole, or in part, at the option of the Agency, on any date prior to its maturity, without premium or penalty. Notice shall be given to the City at least five (5) days prior to the date for such prepayment. SECTION 10. NOTE MUTILATED,DESTROYED, STOLEN OR LOST. (a) If any of the Agency Notes is mutilated, destroyed, stolen or lost, the Agency may, in its discretion either deliver a duplicate replacement Agency Note or pay the Agency Note together with accrued interest. Any mutilated Agency Note shall be surrendered to and canceled by the Agency. Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 13 of 24 (b) Any such duplicate Agency Note shall constitute an original contractual obligation on the part of the Agency whether or not the destroyed, stolen, or lost Agency Note be at any time found by anyone, and such duplicate Note shall be entitled to the same benefits and rights as to lien on, and source of and security for payment from, the revenues and other funds pledged herein as the mutilated, destroyed, stolen or lost Agency Note was entitled. SECTION 11. FORM OF NOTE. Each of the Agency Notes shall be substantially in the form of the note attached hereto as EXHIBIT "A" (with such variations, omissions and insertions, due to differences in denominations and other provisions, as may be required or permitted by this Agreement or any amendment hereto). SECTION 12. REIMBURSEMENT OF START-UP EXPENSES; CRA PROJECT ACCOUNT. (a) On October 1, 2013, the City is hereby authorized to internally transfer $100,000.00 of the Purchase Price, less Start-up Expenses, to a separate internal fund or account hereby designated as the Cape Canaveral Community Redevelopment Agency, "CRA Project Account," which is hereby created and established. Said internal fund or account shall be maintained by the City. The funds on deposit therein shall be withdrawn, used and applied by the Agency solely for the Redevelopment Activities and reimbursement of the Start-up Expenses authorized by this Agreement, and for purposes incidental thereto or for repayment of any of the Agency Notes. (b) The funds in the CRA Project Account that, in the opinion of the Agency and the City, are not immediately necessary to expend for Redevelopment Activities and reimbursement Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 14 of 24 of the Start-up Expenses, as hereinabove provided, may be invested and reinvested in Investment Obligations which shall mature or be redeemable at the option of the Agency at face value not later than the dates on which such funds are needed. All income derived from investment of funds in the CRA Project Account shall be deposited therein and shall be used to pay costs of Redevelopment Activities and the administration and operation of the Agency or to repay principal of and any interest on the Agency Notes. (d) Funds in the CRA Project Account shall be secured at all times in the manner prescribed by the laws of the State of Florida relating to the securing of public funds. (e) Upon expiration of the term of this Agreement and Agency Note, any amounts then remaining in the CRA Project Account and not reserved by the Agency for the payment of any remaining costs incurred and for which the Agency is obligated to pay, shall be used to reduce the outstanding principal amount of the Agency Notes. SECTION 13. COVENANTS OF THE AGENCY. Until the principal of and interest on all of the Agency Notes has been paid in full, the Agency covenants with the City as follows: (a) Punctual Payment. The Agency covenants and agrees with the City that it will punctually pay or cause to be paid the principal and interest of each of the Agency Notes, in conformity with the terms of the Agency Note and this Agreement and that it will be unconditionally and irrevocably obligated, so long as any of the Agency Notes are outstanding and unpaid, to take all lawful action necessary or required during each Fiscal Year to make any Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 15 of 24 and all payments of principal of and interest on each of the Agency Notes as such become due and payable. (b) Pledge of Certain Proceeds and Revenues. The payment of the principal of and interest on each of the Agency Notes issued hereunder shall be secured by a lien on and pledge of, and the Agency does hereby irrevocably pledge to the payment of each of the Agency Notes and the interest thereon: (i) the undistributed proceeds of the Agency Notes and the investment earnings thereon in the CRA Project Account that have not been incurred or used to pay costs of the implementation of the Plan and administration and operation of the Agency, (ii) Increment Revenues; (iii) all other revenue and funding sources available and received by the Agency at any given time, and (iv) the proceeds from any Agency Bonds that may be issued by the Agency with the City's approval to repay the Agency Notes. (c) Agency Notes Not General Obligation of the Agency. The Agency Notes and the obligations evidenced thereby shall not be deemed to constitute a general obligation of the Agency or the City or a debt, liability or obligation of the Agency, the City, the State of Florida or any political subdivision thereof or a pledge of the faith and credit of the Agency, the City, the State of Florida or any political subdivision thereof. Neither the Agency, the City, the State of Florida or any political subdivision thereof, shall be directly, indirectly or contingently obligated to levy or to pledge any form of ad valorem taxation whatsoever for the payment of any of the Agency Notes or make any appropriation therefrom for its payment. (d) Investment of Funds. All income on investments of funds in the CRA Project Account shall be retained therein and used for the purposes specified for such account. Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 16 of 24 (e) Compliance with Laws and Regulations. The Agency covenants and agrees to perform and comply in every respect material to the security of each of the Agency Notes with all applicable laws, rules and regulations relating to the preparation and implementation of the Plan and the performance of the Agency's covenants and obligations hereunder. (f) Trust Funds. As provided by Section 159.11, Florida Statutes, and this Agreement, all accounts created herein shall constitute trust funds to secure the payment of the Agency Notes and for the purposes herein provided, shall be established with and held by such officer, board or person as may be designated by the Agency, and used only for the purposes as set forth herein. SECTION 14. PAYMENT OF AGENCY NOTES. The Agency covenants and agrees with the City to pay when due and payable the full principal amount of each of the Agency Notes, plus any accrued interest, to the City from Increment Revenues in the Redevelopment Trust Fund, all other revenue and funding sources available and received by the Agency at any given time, proceeds from any Agency Bonds issued to repay the Agency Notes, or funds in the CRA Project Account. To secure the payment of each of the Agency Notes, the Agency does hereby pledge and grant to the City a lien upon the Increment Revenues deposited in the Redevelopment Trust Fund, all other revenue and funding sources available and received by the Agency at any given time, the net proceeds from any such Agency Bonds and the funds in the CRA Project Account. The Agency further covenants and agrees that it will not permit any lien or encumbrance on the funds in the Redevelopment Trust Fund, or funds from any other Interlocal Agreement City of Cape Canaveral -Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 17 of 24 revenue and funding sources available and received by the Agency at any given time, superior to or on a parity with the lien created by this Agreement without prior approval by the City. SECTION 15. REDEVELOPMENT TRUST FUND; DEPOSIT OF INCREMENT REVENUES. (a) The City covenants and agrees that so long as all prerequisites under the Act for doing so have been satisfied, it will take such action as is necessary to create and continue in existence the Redevelopment Trust Fund and cause the deposit therein of Increment Revenues. (b) The Agency covenants and agrees that upon creation of the Redevelopment Trust Fund it will take all such actions as are necessary to collect and cause to be deposited in the Redevelopment Trust Fund all Incremental Revenues and will retain all funds in the Redevelopment Trust Fund. (c) The Agency covenants and agrees, so long as any of the Agency Notes remain outstanding, to promptly deposit Increment Revenues in the Redevelopment Trust Fund as such revenues are received from each "taxing authority" or become available to the Agency for the purpose of being deposited into the Redevelopment Trust Fund. (d) The Agency covenants and agrees, so long as any of the Agency Notes remain outstanding, to promptly pay to the City any funds received by the Agency from any other revenue and funding sources available at any given time that are not required to fund normal operating expenditures of the Agency. SECTION 16. REMEDIES; NO GENERAL OBLIGATION. In the event the Agency should fail to perform any promise, covenant or condition contained herein, the City Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 18 of 24 shall be entitled to seek any remedy then available to it under applicable law and may proceed to obtain equitable relief, including injunctive relief, from any court of competent jurisdiction. The parties hereto recognize and acknowledge that the only sources of payment to the City of the Agency Notes are from funds in the CRA Project Account, Increment Revenues deposited in the Redevelopment Trust Fund, funds from any other revenue and funding sources available and received by the Agency at any given time, and the proceeds from any Agency Bonds issued to repay the Agency Notes, and the obligation evidenced here is not a general obligation or a pledge of the full faith and credit of the Agency or any other governmental entity or political subdivision of the State of Florida, under any applicable statutory or constitutional provision. SECTION 17. FURTHER DOCUMENTS. The parties hereby agree to execute such agreements, instruments, certificates, or other documents (including an Agency Note substantially in the form attached hereto as EXHIBIT"A") as may be necessary to cause payment of each Purchase Price to be timely made, each Agency Note issued, proceeds therefrom deposited in the CRA Project Account, and such other purposes as may be necessary under this Agreement. SECTION 18. REPRESENTATIONS AND WARRANTIES. (a) The Agency does hereby represent and warrant to the City that it has all requisite power, authority and authorization to enter into this Agreement and issue each of the Agency Notes, has taken, or will take in the near future, all necessary actions required to enter into this Agreement and issue each of the Agency Notes, make any payment contemplated hereby, and to Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 19 of 24 fulfill any and all of its obligations, duties and responsibilities for or required of it by this Agreement, for their exercise individually or collectively. (b) The City does hereby represent and warrant to the Agency that it has all requisite power, authority, and authorization to enter into this Agreement, has taken, or will take in the near future, all necessary actions required to enter into this Agreement, pay each of the Purchase Price, accept and hold the Agency Notes and to fulfill any and all of its obligations, duties and responsibilities for or required of it by this Agreement, whether exercised individually or collectively. (c) The City does hereby represent and warrant to the Agency that it does not intend to sell, convey, assign, or give any of the Agency Notes to any other person and intends to hold all Agency Notes until maturity. SECTION 19. AMENDMENTS. This Agreement may be amended only by the mutual written agreement of the City and the Agency at any time and from time to time. SECTION 20. THIS AGREEMENT CONSTITUTES A CONTRACT. In consideration of the acceptance of their mutual duties, obligations, and responsibilities hereunder, this Agreement shall be deemed to be and shall constitute a contract between the City and the Agency. SECTION 21. SEVERABILITY. If any one or more of the covenants, agreements or provisions of this Agreement shall be held contrary to any express provisions of law or contrary to any policy or express law, although not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 20 of 24 provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or provisions of this Agreement. SECTION 22. CONTROLLING LAW. All covenants, stipulations, obligations, and agreements of the City and the Agency contained in this Agreement shall be deemed to be covenants, stipulations, obligations and agreements of each of the City and Agency, respectively, to the full extent authorized by the Act and provided by the Constitution or the laws of the State of Florida. Any and all provisions of this Agreement and any proceedings seeking to enforce or challenge any provisions of this Agreement shall be governed by the laws of the State of Florida. Venue for any proceeding pertaining to this Agreement shall be Brevard County, Florida. SECTION 23. NO MEMBER LIABILITY. No covenant, stipulation, obligation or agreement contained herein shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future member of the governing body or agent or employee of the City or the Agency in its, his or their individual capacity, and neither the members of the City Council or the Governing Body of the Agency, nor any official executing this Agreement shall be liable personally or shall be subject to any accountability for reason of the execution by the City or the Agency of this Agreement or any act pertaining thereto. SECTION 24. FILING OF AGREEMENT ONLY; AGENCY NOTES MAINTAINED ON FILE. (a) The Clerk of the City is hereby authorized and directed after approval of this Agreement by the City Council and the Governing Body of the Agency and the execution thereof by the duly qualified and authorized officers of each of the parties hereto, to file this Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 21 of 24 Agreement with the Clerk of the Circuit Court of Brevard County, Florida, in accordance with Section 163.01(11),Florida Statutes. (b) Any original Agency Notes executed in furtherance of this Agreement shall be maintained on file at Cape Canaveral City Hall for safekeeping. The Agency Note(s) shall not be recorded. SECTION 25. ASSIGNMENT. Neither party to this Agreement may assign, sell, transfer, convey, or give any or all of its rights, duties, obligations, and responsibilities under this Agreement, specifically including the City holding any of the Agency Notes, without the prior written approval and consent of the other party. SECTION 26. VALIDATION. If determined by the City Council to be necessary, the Agency consents to, and shall cooperate with, the City Attorney initiating and undertaking proceedings under Chapter 75, Florida Statutes, to validate the Agency's obligations created and established by and pursuant to this Agreement, including the Agency Notes. SECTION 27. EXPIRATION DATE. Unless extended by mutual agreement of the City and the Agency by adoption and execution of a subsequent interlocal agreement, this Agreement shall expire at such time as the principal and accrued interest on all of the Agency Notes is paid by the Agency or when the Agency sunsets as a legal entity, whichever occurs first. SECTION 28. EFFECTIVE DATE. This Agreement shall become effective on October 1, 2013 upon the execution by the appropriate officers of the City and the Agency, and upon filing this Agreement with the Clerk of the Circuit Court of Brevard County, Florida, as required by Section 163.01(11), Florida Statutes. Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 22 of 24 IN WITNESS WHEREOF, the parties hereto, by and through the undersigned, have entered into this.Tnterlo€al Agreement on the date and the year first above written. • • `H" CITY OF CAPE CANAVERAL, FLORIDA ATTEST.,,(SEAL): f ."\Y CZ6 Ang a Apperso , ity Clerk Rocky Randels, Mayor STATE OF FLORIDA COUNTY OF BREVARD I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State and County aforesaid to take acknowledgments, personally appeared Rocky Randels, Mayor of the City of Cape Canaveral, Florida, Ege6 me known personally or ❑ who produced as identification, to be the person described in and who executed the foregoing instrument and he acknowledged before me that he executed the same for the purposes set forth herein, and he did not swear an oath. (Notary Seal) NOT RY PUBLI My Commission Expires: or"'s., ANGELA M.APPERSON My COMMISSION t DD 980218 EXPIRES:April 13,2014 ' .' t r APublicUndeiwrilxs Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 23 of 24 f{! if CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY ATTEST: Ange a Appers Rocky Randels, Chairperson Recording Secretary STATE OF FLORIDA COUNTY OF BREVARD I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State and County aforesaid to take acknowledgments, personally. Rocky Randels, Chairperson of Cape Canaveral Community Redevelopment Agency, Ei4o me known personally or E]who produced { as identification,to be the person described in and who executed the foregoing instrument and he acknowledged before me that he executed the same for the purposes set forth herein, and he did not swear an oath. (Notary Seal) NO PUBLI My Commission Expires: :i , ANGELA M.APPERSON MY COQ t DD 980218 + Banded gru ENeaY Public 2 Interlocal Agreement City of Cape Canaveral-Cape Canaveral Community Redevelopment Agency CRA Initial Funding Loan Agreement Page 24 of 24 { Exhibit"A" $100,000.00 UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF BREVARD CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY INITIAL FUNDING REVENUE NOTE KNOW ALL MEN BY THESE PRESENTS, that the Cape Canaveral Community Redevelopment Agency,Florida hereinafter called the"Agency"),a Florida public body corporate and politic, created and existing under and by the virtue of the laws of the State of Florida, for the value received,hereby promises to pay to the City of Cape Canaveral,Florida(hereinafter called the "City") or to registered assigns or legal representatives thereof(Collectively, the "Registered Owner"), on the 1st day of October, 2013, unless prepaid prior thereto as hereinafter provided,but solely from the funds hereinafter mentioned, the principal sum of ONE HUNDRED THOUSAND AND NO/100 DOLLARS as of the date of maturity hereof and to pay interest on the outstanding principal sum hereof from the date hereof,as provided in the Agreement,until this Note is fully paid at an annual interest rate equal to TWO PERCENT (2%) per annum to be used for any Redevelopment Activities and reimbursement of Start-Up Expenses identified in that certain Interlocal Agreement between the City and the Agency,dated October 1,2013 ("Agreement"),and Joint Resolution No. 2013-18, adopted September 17, 2013 by the City and Agency("Joint Resolution") (computed on the basis of a year containing 365 days). In no event, however, shall interest be charged in an amount in excess of the maximum interest rate permitted to be paid by applicable law. It is understood and agreed to by the Agency that repayment of this Note will be in annual equal installments amortized on a ten(10)year term. The first installment shall be due the City on October 31,2014 and subsequent installments shall be due each year thereafter on October 31'until the Note is paid in full. The intent and purpose of this Note is to require repayment no later than the expiration of the ten year term. Principal and Interest on the outstanding principal balance of this Note shall be payable in equal installments,being due during the course of each fiscal year of the City and Agency at the time stated above, unless the Agency chooses to prepay the Note. Upon execution of this Note by the Agency,it is the Agency's intent to irrevocably pledge all future tax increment revenues, grants, or Initial Funding Revenue Note Page l of 3 Y 1 any other available funding source received by the Agency to repay the outstanding principal and interest balance of this Note until such time it is repaid in full,excluding annual increment revenues that are reasonably necessary and budgeted to cover the Agency's annual operational expenses. Principal and interest due on this Note are payable to the Registered Owner in immediately available funds upon presentation when due at the offices of the Agency in the City of Cape Canaveral, Florida. This Note will be subject to prepayment, in whole or in part, at the option of the Agency on any date prior to its maturity, without permission or penalty. Notice of such prepayment shall be given in the manner required by the Agreement, as hereinafter defined. This Note is issued to finance the Redevelopment Activities and reimburse the City for Start- Up Expenses identified in that certain Interlocal Agreement between the City and the Agency,dated October 1, 2013 ("Agreement"), and pursuant to the authority of and in full compliance with the Constitution and laws of the State of Florida, including particularly Part III, Chapter 163, Florida Statutes (2012) as amended, and actions by the Agency and the City Council of the City of Cape Canaveral, Florida, authorizing this Note. This Note is subject to all terms and conditions of Agreement and capitalized terms not otherwise defined herein shall have the same meanings as ascribed to them in the Agreement. The payment of the principal of and interest on this Note is secured by a lien on and pledge of, and the Agency does hereby irrevocably pledge to the payment of this Note and the interest thereon,(i)revenues received by the Agency and deposited in the Redevelopment Trust Fund of the Agency pursuant to Section 163.387, Florida Statutes, as amended ("Increment Revenues"); (ii) bonds issued by the Agency and secured by the Increment Revenues(the"Agency Bonds");and(iii) any other legally available funds of the Agency including,but not limited to,grants, fees, and other revenues. Reference is made to the Agreement for the provisions, among others, relating to the terms, lien and security for this Note, the rights, duties and obligations, to all of which provisions the Registered Owner hereof assents by acceptance hereof This Note and the obligations evidenced hereby, when delivered by the Agency pursuant to the terms and conditions of the Agreement and Joint Resolution, shall not be or constitute an indebtedness of the Agency, City or State of Florida, within the meaning of any constitutional, statutory or charter limitations of indebtedness, but shall be payable solely from the designated revenues, as provided in the Agreement and the Resolution. No holder of this Note shall have the right to compel the exercise of the ad valorem taxing power of the City or the State, or taxation in any form of any property therein to pay this Note or the interest thereon. It is hereby certified and recited that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this Note exist,have happened and have been performed in regular and due form and time as required by the laws and Constitution of Initial Funding Revenue Note Page 2 of 3 the State of Florida applicable hereto, and that the issuance of this Note does not violate any constitutional or statutory limitation or provision. IN WITNESS WHEREOF, the Cape Canaveral Community Redevelopment Agency, Florida,has issued this Note and has caused the same to be manually signed by the Chairman, and attested and countersigned by the Recording Secretary, and its corporate seal or a facsimile thereof to be affixed,impressed, lithographed or reproduced hereon, all as of the 1st day of October,2013. CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY ATTEST: By: By C/V■A S,OtS.JL Angela Appers Rocky Randels, Chairperson Recording Secretary fi f i Initial Funding Revenue Note Page 3 of 3 Loan Amortization Schedule Enter values Loan summary Wan amount $ 100,000.00 Scheduled payment $ 11,132.65 Annual interest rate 2.00 % Scheduled number of payments 10 Loan period in years 10 Actual number of payments 10 Number of payments per year 1 Total early payments $ - Start date of loan 10/1/2013 Total interest $ 11,525.71 Optional extra payments $ - Lender name:L Pmt Beginning Scheduled Extra Ending Cumulative No. Payment Date Balance Payment Payment Total Payment Principal Interest Balance Interest 1 10/31/2014 $ 100,000.00 $ 11,132.65 $ - $ 11,132.65 $ 8,965.99 $ 2,166.67 $ 91,034.01 $ 2,166.67 2 10/31/2015 91,034.01 11,132.65 - 11,132.65 9,311.97 1,820.68 81,722.04 3,987.35 3 10/31/2016 81,722.04 11,132.65 - 11,132.65 9,498.21 1,634.44 72,223.83 5,621.79 4 10/31/2017 72,223.83 11,132.65 - 11,132.65 9,688.18 1,444.48 62,535.65 7,066.26 5 10/31/2018 62,535.65 11,132.65 - 11,132.65 9,881.94 1,250.71 52,653.71 8,316.98 6 10/31/2019 52,653.71 11,132.65 - 11,132.65 10,079.58 1,053.07 42,574.13 9,370.05 7 10/31/2020 42,574.13 11,132.65 - 11,132.65 10,281.17 851.48 32,292.96 10,221.53 8 10/31/2021 32,292.96 11,132.65 - 11,132.65 10,486.79 645.86 21,806.17 10,867.39 9 10/31/2022 21,806.17 11,132.65 - 11,132.65 10,696.53 436.12 11,109.64 11,303.52 10 10/31/2023 11,109.64 11,132.65 - 11,109.64 10,887.45 222.19 0.00 11,525.71