Tigard City Center Development Agency - Agreement to make loans City of Tigard
Intergovernmental Agreement to Make Loans Between the
City of Tigard and the Tigard City Center Development Agency
This Intergovernmental Agreement is dated as of -400'- )Q- , 2007 and is
entered into by and between the Tigard City Centergevelopment Agency, Oregon, and the
City of Tigard, Oregon. The parties hereby agree as follows:
1. Definitions
Unless the context clearly requires otherwise, the following capitalized terms used in
this agreement shall have the following meanings:
"Agency" means the Tigard City Center Development Agency, an urban renewal
agency created pursuant to Oregon Revised Statutes Chapter 457.
"Agreement" means this Intergovernmental Agreement.
"City" means the City of Tigard,Washington County, Oregon.
"Plan" means the Tigard City Center Urban Renewal Plan adopted by the Tigard
City Council on December 13, 2005.
"Tax Increment Revenues" means all revenues which the Agency collects under the
provisions of Article IZ, Section 1c of the Oregon Constitution and ORS Chapter
457 from the urban renewal area described in the Plan.
2. Recitals
2.1 Tax Increment Revenues are limited to the retirement of debt, as defined in
Oregon Revised Statutes Chapter 457.
2.2 In order for the Agency to complete the projects described in the Plan it
must secure adequate funding resources.
2.3 The City is-willing and able to provide loans to the Agency for this purpose.
2.4 This Agreement constitutes indebtedness of the Agency within the meaning
of ORS 457.450 because it obligates the Agency to pay Tax Increment
Revenues to the City to carry out the Plan.
3. Loans and Terms
The City hereby agrees to loan funds to the Agency from time to tithe as required by
the Agency to carry out the Plan. Loans shall be made from surplus funds the City
has determined are unneeded for operating and capital expenses in the foreseeable
future. Interest shall accrue on all loaned amounts at the same average rate as that
earned on other funds invested by the City and shall be calculated using the same
methodology employed by the City in allocating investment earnings to its various
funds.
4. Repayment of Loans
The Agency hereby agrees to repay the principal and accrued interest on all loan
amounts provided under this agreement, but solely from the Tax Increment
Revenues. Unless prepaid, the principal amount of each loan shall be repaid in ten
substantially equal, annual installments of principal on the 30`h day of June of each
fiscal year,with the first principal payment due on the 30`' day of June in the tend-1
fiscal year after the fiscal year in which the loan is made. Interest shall be paid
annually on the 30`h day of June of each Fiscal Year, commencing no later than the
second fiscal year after the fiscal year in which the loan is made.
5. Use of Loan Funds
The Agency shall use the amounts loaned to pay for costs of urban renewal projects
described in the Plan.
6. Subordination
The Agency hereby pledges the Tax Increment Revenues to pay the loans made by
the City under this agreement. The pledge of the Tax Increment Revenues that
secures these loans is subordinate to any bonded indebtedness that the Agency is
obligated to pay to persons other than the City.
7. Miscellaneous
7.1 Binding Effect
This Agreement shall inure to the benefit of and shall be binding upon the
Agency and the City and their respective successors and assigns.
7.2 Severability
In the event any provision of this Agreement shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provisions hereof.
7.3 Amendments
This Agreement may be amended only by a writing signed by both parties.
7.4 Applicable Law
This Agreement shall be governed by and construed in accordance with the
laws of the State of Oregon. Any action regarding this Agreement or the
transactions contemplated hereby shall be brought in an appropriate court of
the State of Oregon in Washington County, Oregon.
City of Tigard:
Craig. Dirksen
Mayor—City of Tigard
The Tigard City Center Development
Agency (CCDA):
Craig Ptsser
Executive Director - CCDA