HomeMy WebLinkAboutRDA Item No. 3CITY OF
LSIlYORE
DREAM EXTREMEn
REPORT TO THE REDEVELOPMENT AGENCY
TO: HONORABLE CHAIRPERSON
AND MEMBERS OF THE REDEVELOPMENT AGENCY
FROM: ROBERT A. BRADY
EXECUTIVE DIRECTOR
DATE: JULY 12, 2011
SUBJECT: TERMINATION FOR CONVENIENCE OF THE LAKE ELSINORE
TECHNOLOGY CENTER
Background
Due to the economic climate, the state of the Agency's budget, and the uncertainty of
the existence of the Redevelopment Agency, the Agency determined to forego the
design and construction of the Lake Elsinore Technology Center (LETC).
Staff contacted the Federal Economic Development Agency (EDA) to identify the
procedures for abandoning the project and foregoing the grant. The EDA notified staff
that a "Termination for Convenience" (TOC) needed to be completed in order to finalize
the request. The TOC needed to include a letter requesting termination as well as a
resolution from the Agency Board identifying and approving the request. On April 28,
2011, staff forwarded a letter requesting a TOC to the EDA and notified them that staff
would bring the item before the Agency Board.
Discussion
Execution of the attached "Offer to Terminate Financial Assistance Award Agreement
for Convenience for the LETC ensures that the financial award grant is discontinued as
required by the EDA. It should be noted that the City has not expended any of the
EDA's funds, and therefore the reserved and obligated funds for the project will now be
de-obligated and returned to the United States Treasury.
AGENDA ITEM NO. 3
Page 1 of 4
Termination of Convenience for the Lake Elsinore Technology Center
July 12, 2011
Page 2
Fiscal Impact
The fiscal impact to the City's General Fund will be minimal as we are discontinuing the
design and construction of the LETC. Staffs time will be to prepare and forward all
necessary documents to the EDA.
Recommendations
Authorize the Executive Director to execute the "Offer to Terminate Financial Assistance
Award Agreement for Convenience" supplied by the EDA; thus terminating the grant for
the LETC.
Prepared by: Justin Carlsor~!c
Redevelopment Agency Analyst
Approved by: Robert A. Brad
City Manager
Attachments:
1. EDA "Offer to Terminate Financial Assistance Award Agreement for
Convenience" for the Lake Elsinore Technology Center.
Page 2 of 4
OFFER TO TERMINATE
FINANCIAL ASSISTANCE AWARD AGREEMENT FOR CONVENIENCE
EDA Investment No.07-79-06188
WHEREAS, the United States of America, Department of Commerce, Economic
Development Administration (herein the "Government") pursuant to its authority under the Public
Works and Economic Development Act of 1965 (P. L. 89-136), as amended, entered into a Financial
Assistance Award Agreement (herein the "Agreement'), with the City of Lake Elsinore, California
on September 17, 2008 and
WHEREAS, said Agreement as amended on January 4, 2010 provided an Award not to
exceed the lower of $2,669,623 or 50 percent of the actual cost of the project estimated to cost
$5,339,240 and consisting of construction of the Lake Elsinore Technology Center business
incubator; and
WHEREAS, the parties have now determined that it is not feasible to complete the project as
originally intended and that an accounting should be made and the Agreement terminated for
convenience of the parties; and
WHEREAS, the parties further agree that no eligible costs have been incurred or will be
incurred pursuant to said Agreement;
NOW THEREFORE, for and in consideration of the premises and for the mutual benefit and
convenience of the parties, the Government hereby tenders this Offer to Terminate on May 31, 2011.
Acceptance of this Offer to Terminate must be made by the City of Lake Elsinore, California and
returned to the Government on or before July 15, 2011.
DEPARTMENT OF COMMERCE
ECONOMIC DEVELOPMENT ADMINISTRATION
By:
Regional Office
_~'t c ~ X11
(Date)
Page 3 of 4
EDA Investment No. 07-79-06188
-2-
The above Offer to Terminate Award for Convenience is hereby accepted.
(Signature)
(Printed Name)
(Date)
CERTIFICATION (By Official other than Accepting Official)
The person signing this Acceptance is so authorized by the Governing Body or Board of the
Recipient.
(Signature)
(Printed Name)
(Title of Accepting Official)
(Title of Certifying Official)
(Date)
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