HomeMy WebLinkAboutC2012-091 - 3/27/2012 - ApprovedINTERLOCAL COOPERATION AGREEMENT
BETWEEN THE CITY OF CORPUS CHRISTI AND
THE CORPUS CHRISTI DOWNTOWN MANAGEMENT DISTRICT
TO ENCOURAGE THE REDEVELOPMENT OF DOWNTOWN CORPUS CHRISTI
This Interlocal Cooperation Agreement ( "Agreement ") is made between the Corpus
Christi Downtown Management District ( "District "), created under Chapter 375 of the
Texas Local Government Code, and the City of Corpus Christi, Texas ( "City "), a
municipal corporation.
WHEREAS, the District and the City desire to enter into an Agreement under the
Interlocal Cooperation Act to provide for Downtown Corpus Christi redevelopment
( "Project ");
Now, therefore, in consideration of the mutual covenants in this Agreement, the City and
the District (each, "Party ") authorized by appropriate actions of their governing bodies,
agree as follows:
I. DEFINITIONS
"Corpus Christi Downtown Management District" means a municipal management
district created under Chapter 375 of the Texas Local Government Code.
"Corpus Christi Downtown Management District Boundary" means the area bounded to
the north by Interstate Highway 37, to the south by Kinney Street, to the west by North
Lower Broadway, and to the east by Corpus Christi Bay and includes the area within the
Corpus Christi Marina.
"Downtown Merchants Association Cooperative Marketing Program" means the Corpus
Christi Downtown Management District's Marketing /Cooperative Advertising Committee
consisting of no less than 4 members who represent downtown merchants and retailers.
"Merchants" means Corpus Christi Downtown Management District businesses that
trade in commodities, either wholesale or retail, that were produced by others, in order
to earn a profit.
"Retailers" means Corpus Christi Downtown Management District businesses that sell
goods or merchandise to consumers from a fixed location, i.e., a shop, in small or
individual lots for direct consumption by the purchaser.
II. SERVICES
2.1. The District shall provide the following services to provide for the redevelopment of
Downtown Corpus Christi:
a. Work in conjunction with the City to develop ways to encourage and promote
commerce in Downtown Corpus Christi.
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b. Maintain, continue, and enhance the current level of projects that provide for a
more pedestrian friendly environment and encourage commerce, retail, and
residential activities in Downtown Corpus Christi. It currently is delivering:
i. Curb sweeping.
ii. Landscaping.
iii. Event activities.
iv. Marketing.
v. Park enhancements.
c. Assist the City in its downtown development and redevelopment activities, and
coordinate its activities with the City.
d. Continue its mission to act as a catalyst to strengthen downtown's economic
base through:
i. Ensuring programs to improve image of Downtown Corpus Christi.
ii. Increasing attractiveness through maintenance.
iii. Assuring cleanliness and safety of Downtown Corpus Christi.
e. Promote the development and expansion of residential housing projects within
Downtown Corpus Christi.
f. Assist the City with code enforcement and rehabilitation projects within Corpus
Christi, including ensuring the proper maintenance of vacant buildings.
g. Conduct surveys of the owners of businesses and properties within Downtown
Corpus Christi to determine their needs and priorities.
h. Assist the City with the establishment of a tax increment reinvestment zone or
public improvement district to support infrastructure improvements within
Downtown Corpus Christi and adjacent areas and make a recommendation to
the City for one District representative to be appointed to the Board of Directors
of such tax increment reinvestment zone or public improvement district.
i. Recommend projects for consideration of the City's Tax Increment
Reinvestment Zone Number 3 (TIRZ #3), and implement projects at the request
of the TIRZ #3 board of directors.
j. Nominate two District representatives to be appointed members of the Parking
Advisory Committee in compliance with Section 53- 196(b)(1)(b), Code of
Ordinances.
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2.2. Preliminary plan.
a. By May 1 of each year, the District shall prepare and deliver to the City
Manager or the City Manager's designee ( "City Manager ") a preliminary plan to
deliver services to Downtown Corpus Christi during next fiscal year.
b. The preliminary plan must address City Council goals for Downtown Corpus
Christi, including a plan to increase commerce in Downtown Corpus Christi, and
must state the District's revenue received from the District's ad valorem taxes
from the previous fiscal year.
2.3. Plan, The District shall provide its final plan ( "Plan "), which outlines the overall
objectives of the District, to the City Manager no later than July 1 of each year.
a. The Plan must describe the plan of action for the upcoming year, including a
line item budget and significant initiatives.
b. Opportunities to develop commerce in Downtown Corpus Christi must be
specifically identified and included in the plan.
c. Information necessary to describe the District's efforts to help promote and
encourage commerce in Downtown Corpus Christi must be included.
2.4. The City agrees to appoint a representative from the City to serve in advisory
capacity to the District's Board of Directors.
2.5. The City agrees to have the Mayor or the District's City Council Representative
meet with the District's Board of Directors every calendar quarter at the regularly
scheduled Board of Director's meetings.
Ill. FINANCIAL REQUIREMENTS
3.1. The parties agree and understand that funding under this Agreement is subject to
annual appropriations by the City Council, and that each fiscal year's funding must be
included in the City's budget for that year. Funding is not effective until the City's
budget is approved by the City Council.
3.2. In consideration for the District's performance under this Agreement, City agrees to
make payment to the District matching the District's revenue received from the District's
ad valorem taxes each fiscal year at a minimum of $127,000, in four equal quarterly
payments, for work performed during the fiscal year.
a. The payments to the District will be based on the District's revenue received
from the District's ad valorem taxes from the previous fiscal year, as stated in the
District's Preliminary Plan described in Section 2.2(b) of this Agreement.
b. The quarterly payments will be made no later than thirty (30) days after the last
business day of the last month of each fiscal year quarter. If the District has not
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received their quarterly payment from the City by that due date, the District shall
give the City Finance Director notice in writing no later than fifteen days (15) days
after that missed due date, requesting payment.
c. The City's payments are contingent upon receipt of the District's Quarterly
Report for each fiscal quarter, as required by Section 4.1 of this Agreement,
within thirty (30) days of the end of that fiscal quarter. For example, the October
31, 2012 quarterly payment is contingent on receipt of the 2012 first quarter
report by the City on or before November 30, 2012.
d. Any annual increase in the City's payments to the District may not exceed the
percentage increase in ad valorem taxes received by the City over the prior year.
3.3. The District shall maintain funds provided under this Agreement in a separate
account established for that purpose, and may not commingle City funds with any other
funds.
a. The separate account is established and clearly identified as General
Fund /City Fund.
b. The funds provided for under this Agreement must be budgeted for
administrative expenses.
c. Monies from other District funds may be transferred to the "separate account"
to supplement the administrative budget, as long as they are clearly identified
and Board of Directors has approved the transfer.
3.4. Expenditures exceeding the total budgeted contract amount must be paid from
clearly identified funds of the District.
3.5. Interest earned on funds contributed to the District by the City must be clearly
identified, credited, and reflected on the books as resulting from the investment of the
funds. The interest earned is available for the District's use.
3.6. The parties agree that receipt of these funds creates a fiduciary duty of the District.
3.7. The District shall provide an independent audit for expenditures of funds allocated
under this agreement for each year based on its fiscal year. The District shall provide a
copy of the independent audit to the City Manager within one hundred twenty (120)
days after the end of the District's fiscal year.
3.8. The accounting records and independent audit must conform to the accounting
standards as promulgated by a Certified Public Accountant under Generally Accepted
Accounting Standards ( "GAAS ") and to the requirements of applicable state law, so as
to include a statement of support, revenues and expenses, and balance sheets for all
funds.
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3.9. Any funds provided by the City that are not expended during the District's fiscal
year must be returned to the City with the copy of the District's independent audit.
3.10. The books of account of the funds held by the District must be maintained in a
form approved by the City's Director of Finance, and must be available for inspection
and copying by the Director, or the Director's authorized agents and representatives,
during regular business hours of the District. Records must be maintained for at least 3
years after the expiration or termination of this agreement.
3.11. The District shall reimburse the City for any funds provided under this Agreement
that are expended on anything that is not specifically authorized by this Agreement.
3.12. If the District undertakes any special projects at the request of the City Council,
the City will reimburse the District for its expenses, but not including the reimbursement
for the time of District employees or other administrative expenses, within 30 days from
billing by the District.
IV. PERFORMANCE REPORTS.
4.1. Performance Reports: The District shall report quarterly to the City Council on its
activities and work accomplished. The District shall make any special presentations or
prepare specific reports, if requested by the members of the City Council, within thirty
(30) days of a request.
4.2. The Quarterly Performance Report is due within thirty (30) days after the end of
each fiscal quarter and should include:
a. A description of each project undertaken by the District in fiscal quarter.
b. The status of projects.
c, The amounts expended on each project.
d. The accomplishments of its performance measures for the fiscal year, as
specified in Article V of this Agreement.
V. PERFORMANCE MEASURES.
5.1. The District shall be deemed to have met its performance requirements for the
fiscal year upon accomplishment of the following:
a. Formation and staffing of a residential development task force, to assist
developers of property within the district.
1. Production and distribution of marketing materials on opportunities for
residential investment.
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2. Work cooperatively with the City's designee to promote redevelopment
of downtown.
3. Work as a liaison with developers regarding code enforcement issues
and requirements, and provide contact information for various City
services (e.g., Neighborhood Services, Development Services, Economic
Development).
4. Support the City's efforts to educate downtown owners on local code
enforcement requirements.
5. Identify downtown development needs and proactively work with the
City's designee in addressing those issues.
b. Operate a Downtown Merchants Association Cooperative Marketing program.
1. Budget no less than five thousand dollars ($5,000.00) for joint
advertising for Downtown merchants.
2. Devise and produce cooperative marketing for Downtown retailers.
3. Report issues and concerns expressed by Downtown merchants.
c. The value of property within the District increases from the previous fiscal year
due to new construction, improvements, or rehabilitation of property within the
District.
d. The District supports the City's Economic Development program to implement
approved Council actions related to downtown improvements, including
supporting the City's efforts with the annual Adopt Downtown project.
e. The District provides quarterly reports concerning economic, commercial, and
demographic data within the District to the City Manager or their designated
representative.
f. The District continues to improve the cleanliness, landscaping, event activities,
marketing, and park enhancement projects currently underway.
g. Increase taxable retail sales within the district. The District must obtain the
required sales tax reports from the State Comptroller's Office.
VI. MISCELLANEOUS
6.1. Implementation. The City Manager and Executive Director for the District are
authorized and directed to take all steps necessary or convenient to implement this
Agreement.
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6.2. Warranty. This Agreement has been officially authorized by the governing body of
the City and the District, and each signatory to this Agreement guarantees and warrants
that the signatory has full authority to execute this Agreement and to legally bind their
respective party to this Agreement.
6.3. Administrative Services. The City and the District agree to provide administrative
services necessary to coordinate this Agreement, including providing the other party
with a current list of contact information for each party.
6.4. Expending Funds. Any payment made by the District or the City for any of the
costs or expenses that either incurs under this Agreement must be made out of current
revenues available to the paying party as required by the Interlocal Cooperation Act.
6.5. Term of Agreement.
a. The effective date of this Agreement ( "Effective Date") is August 1, 2011.
b. Once approved by all Parties, this Agreement is for a term of one year, and
automatically renews annually, unless either party cancels its participation by
giving written notice to the other parties at least sixty days before the end of each
annual term.
c. The continuation and renewal of this agreement is contingent upon the
continued existence of the District.
6.6, Severability. If any portion of this Agreement, or its application to any person or
circumstance, is ever be held to be invalid or unconstitutional by any court of competent
jurisdiction, the remainder of this Agreement is not affected and continues to be
enforceable under its terms.
6.7. Oral and Written Agreements. All oral or written Agreements between the Parties
relating to the subject matter of this Agreement, which were developed prior to the
execution of this Agreement, have been reduced to writing and are contained in this
Agreement.
6.8. Not for Benefit of Third Parties. This Agreement and all activities under this
Agreement are solely for the benefit of the Parties and not the benefit of any third party.
6.9. Immunity Not Waived. Nothing in this Agreement is intended, nor may it be
deemed, to waive any governmental, official, or other immunity or defense of any of the
Parties or their officers, employees, representatives, and agents as a result of the
execution of this Agreement and the performance of the covenants contained in this
Agreement.
610. Breach. Any breach of this Agreement now or through the term shall render the
Agreement null and void.
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6.11. Notices. Any notice, correspondence or payment made pursuant to this
Agreement must be made by (a) depositing the same in the United States mail, postage
prepaid, addressed as follows, or (b) delivering the same to the other Party. Any notice
given in accordance with (a) shall be effective upon deposit in the United States mail,
and the addresses of the Parties shall, until changed by written notice, be as follows:
To the City:
City of Corpus Christi
City Manager
P. O. Box 9277
Corpus Christi, Texas 78469 -9277
To the District:
Corpus Christi Downtown Management District
Attn: President
223 N. Chaparral, Suite A
Corpus Christi, Texas 78401
6.12. Amendments or Counterparts. This Agreement may not be amended except by
written Agreement approved by the governing bodies of the Parties. This Agreement
may be executed in one or more counterparts, each of which shall be deemed an
original all of which shall constitute but one and the same instrument.
6.13. Modifications. No officer or employee of any of the Parties may waive or
otherwise modify the terms in this Agreement, without the express action of the
governing body of the Party.
6.14. Captions. Captions to provisions of this Agreement are for convenience and shall
not be considered in the interpretation of the provisions.
6.15. Governing Law and Venue. This Agreement is be governed by the laws of the
State of Texas. Venue for an action arising under this Agreement is in Nueces County,
Texas.
6.16. Approval. All Parties identified below agree to the provisions and terms of this
Agreement.
CORPUS CHRISTI DOWNTOWN MANAGEMENT DISTRICT
By: 6 /
Chad Magill
Chairman
Date: 2 " / Zo/ Z
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ATTEST
Armando Chapa
City Secretary
Date: ; �/ f Z
CITY C
Approved as to legal form: 2012
By:
Charlo hem
Assista"fff City Attorney
for City Attorney
AUTHUitULk
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