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HomeMy WebLinkAboutMINUTES - 12291987 - T.1 T` 1 THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this order on December 29 1987 , by the following vote: AYES: Commissioners Powers , Fanden and Torlakson NOES: None ABSENT: Commissioners Schroder and McPeak ABSTAIN: None Resolution No. RA-87- 29 -------------------------------------------------------------- -------------------------------------------------------------- SUBJECT: Authorization of Execution of Fiscal Agreement with the Riverview Fire Protection District and Making Certain Required Findings in Connection with Such Agreement The Contra Costa County Redevelopment Agency RESOLVES THAT: The Contra Costa County Redevelopment Agency (hereinafter the "Agency") has prepared, for consideration for adoption by the Contra Costa County Board of Supervisors (hereinafter the "Board") , a Redevelopment Plan for the West Pittsburg Redevelopment Project (hereinafter the "Plan") . The Plan calls for the division and allocation of tax increment revenue to the Agency pursuant to Health and Safety Code Section 33670. The Riverview Fire Protection District (hereinafter the "District") is an "affected taxing entity" within the meaning of Health and Safety Code Section 33353 . 2 in that the District levies a property tax upon property located within the West Pittsburg Redevelopment Project Area (hereinafter the "Project Area") . Pursuant to meetings and discussions between the Agency and the District, the Agency has determined that the payment of tax increment revenue to the District as set forth below is necessary to alleviate the burden and detriment caused to the Fire District by the Plan. Based on the foregoing and on the information and analysis contained in Parts IX - XI of the Report on the Redevelopment Plan for the West Pittsburg Redevelopment Project prepared by the Agency and submitted to the Board pursuant to Health and Safety Code Section 33352 , it is reasonable to conclude that implementation of the Project and the method of tax increment financing set forth in the Plan will cause a significant financial burden or detriment to the District unless appropriate mitigation measures are taken. Health and Safety Code Section 33401 and Part VII of the Plan authorize the Agency to make payments to any taxing agency necessary to alleviate a significant financial burden or detriment. Agency staff has prepared a fiscal agreement (hereinafter "Agreement") with the District, which is attached hereto as Exhibit A and by this reference incorporated herein. The Agreement calls for the Agency to pay to the District one hundred percent (100%) of the District' s share of tax increment which would have been received by the District if all of the property tax revenues from the Project Area had -1- _ RA 87-29 ` been allocated to all the affected taxing agencies without regard to the division of taxes pursuant to Health and Safety Code Section 33670 . The Agency desires to enter into the Agreement in order to alleviate the significant financial burden or detriment that would otherwise be incurred by the District due to the implementation of the Project and the Plan. NOW, THEREFORE, BE IT RESOLVED that based on the information set forth above and in the Report on the Plan, and on information presented to the Board and the Agency, the Agency hereby finds that implementation of the Project and the Plan will cause a significant financial burden or detriment to the District in the absence of appropriate mitigation measures, and that the payments contemplated by the Agreement are necessary to alleviate the financial burden or detriment. BE IT FURTHER RESOLVED that the Agency hereby approves the Agreement in substantially the form attached hereto as Exhibit A and the payments contemplated by the Agreement, and authorizes and directs the Executive Director to execute the Agreement on behalf of the Agency. 12/04/87 #B016/B32007 1 hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Redevelopment Agency on IV date shown. cc: Redevelopment Agency ATTESTED: 6t. L4JAA�291 19f(1 PHIL BATCHELOR,AgencySecretary Riveaview Fire Protection District o County Counsel ByCADeputy County Administrator -2- RA 87-29 -AGREEMENT CONCERNING TAX INCREMENT FROM WEST PITTSBURG REDEVELOPMENT PROJECT AREA This is an Agreement between the Contra Costa County Redevelopment Agency (the "Agency") , and the Riverview Fire Protection District (the "Fire District") , executed as of this 29th day of December 1987 . RECITALS Each of the parties enters this Agreement in awareness of the following facts: (a) The Agency is in the process of preparing a redevelopment plan (the "Plan") for the redevelopment of an area within the unincorporated portion of Contra Costa County, pursuant to the California Community Redevelopment Law set forth in Section 33000 and following of the Health and Safety Code. The area has been designated as the West Pittsburg Redevelopment Project Area (the "Project Area" ) and is described in the attached Exhibit A. The redevelopment project has been designated as the West Pittsburg Redevelopment Project (the "Project") . (b) The Plan provides for "tax increment financing" in that ad valorem taxes levied on the taxable property within the Project Area are to be allocated pursuant to California Constitution Article XVI , Section 16 and Health and Safety Code Section 33670. 0 (c) The Fire District is a taxing agency with territory located within the Project Area. Upon adoption of the Plan by MM-1- n O ordinance of the Board of Supervisors of Contra Costa County, the territory of the Fire District within the Project Area will be subject to the tax increment financing provisions of the Plan. (d) Meetings have been held by the parties at which the Fire District has expressed concern over the fiscal impact of the Plan and the burden or detriment it anticipates experiencing because of the allocation of tax increment monies to implement the Plan. (e) Health and Safety Code Section 33401 (b) provides that the Agency may pay to any affected taxing agency an amount of money which in the Agency' s determination is necessary to alleviate any financial burden or detriment caused to any taxing agency by the Plan. (f) The Agency has determined that payments of tax increment revenue to the Fire District as set forth below are necessary to alleviate the burden and detriment caused to the Fire District by the Plan. (g) In consideration of this Agreement setting forth the obligations of the Agency, the Fire District is foregoing the right to contest the establishment of the Plan and the Project Area for the Project. NOW, THEREFORE, the parties do agree as follows: Section 1 . Payments to the Fire District. (a) This Section 1 shall apply only with respect to the portion of the taxes levied each year upon taxable property in the Project Area which otherwise would be allocated and paid entirely to the Agency pursuant to Health and Safety Code -2- MEW p Section 33670 (the "Tax Increment") and more particularly with respect to the portions of such Tax Increment that but for the provision for tax increment financing in the Plan would have been allocated and paid to the Fire District (such portion hereinafter sometimes referred to as the "Fire District Share" ) . (b) One hundred percent (100%) of the Fire District Share of the Tax Increment from the Project Area shall be paid to the Fire District each year pursuant to the terms of this Agreement. (c) The Agency agrees that it will claim the amounts itis obligated to pay to the Fire District pursuant to this Section 1 on its Statement of Indebtedness filed with the County Auditor-Controller pursuant. to Health and Safety Code Section 33675. To facilitate administration of payments pursuant to this Agreement, the Agency and the Fire District agree that in lieu of the County Auditor-Controller making payments to the Agency pursuant to Health and Safety Code Section 33670 and the Agency then making payments pursuant to this Agreement to the Fire District, the County Auditor-Controller may withhold from the amount to be paid to the Agency pursuant to Health and Safety Code Section 33670 the amounts to be paid to the Fire District pursuant to this Agreement and pay such amounts to the Fire District directly. At the request of the Agency, the County Auditor shall send 'to the Agency the supporting information and calculations used to determine the amounts paid to the Fire District. -3- Section 2 . Subordination. (a) The Agency may request the Fire District to subordinate its rights to payment under this Agreement to allow the Agency to pledge all or any portion of the tax increment revenue otherwise payable to the Fire District under this Agreement in order to secure repayment of Agency long-term bonded indebtedness incurred for the Project. For the purposes of this Agreement, "long-term" shall mean in excess of five years. The Fire District agrees to comply with such requests to subordinate and to execute all documents necessary to effectuate such subordination, provided that the Agency first demonstrates, to the reasonable satisfaction of the Fire District, the Agency' s anticipated ability to repay such indebtedness incurred for the Project without demand being made on the payment due the Fire District under the terms of this Agreement. Such demonstration by Agency shall show that the subordinate funds will be used in the cash-flow of the financing only for additional security (debt service coverage) and that Agency tax increment funds will be adequate, over the term of the bonds, to pay 100% of actual debt service on the bonds , to pay the Agency' s obligations under this Agreement, and to pay any other obligations of the Agency whether statutory or contractual which are or would be superior to the Agency' s obligations under this Agreement. Any such demonstration shall include, without limitation, revenue forecasts and debt service schedules. (b) In the event that, as a result of the provisions of this Section 2 , the payments to the Fire District are reduced below the amount otherwise payable to it pursuant to this -4- EMoUA Agreement, then such reductions shall be treated as an advance by the Fire District which shall be repaid by the Agency. The unpaid principal balance thereof shall bear interest at a rate agreed upon by the Agency and the Fire District at the time the bonds to which the subordination applies are sold. The advances and accrued interest shall be repaid as promptly as possible, and in any event Agency shall use all tax increment available to it to repay such advances and accrued interest, after payment of principal and interest on the bonds to which the subordination applies and payment of any other obligations which are superior to the Agency' s obligations under this Agreement (such as the Health and Safety Code Section 33334 .2 Housing Set Aside requirement) . Section 3 . Increases in Share. (a) The parties recognize that the pro rata amount of the Tax Increment that the Fire District would have received if there were no provision in the Plan for the allocation of the Tax Increment to the Agency could be increased by amendment to existing State law. Therefore, it is agreed that, in the event the Agency desires to incur long-term bonded indebtedness to be secured by Tax Increment revenues , the Agency may project its Tax Increment revenues and incur such long-term bonded indebtedness based upon the pro rata amount payable to the Fire District pursuant to this Agreement based upon State law in existence at the time such long-term indebtedness is incurred. (b) In the event State law is amended after the Agency has incurred such long-term indebtedness, increase the pro rata amount of the Tax Increment that would be payable to the Fire M -5- District in accordance with this Agreement, then such additional amounts of the Fire .District Share of the Tax Increment shall be payable to the Fire District in accordance with this Agreement unless the Agency needs such additional amounts to avoid a default or condition of default on such long-term bonded indebtedness or to discharge its statutorily created obligations (such as the Health and Safety Code Section 33334 .2 Housing Set Aside requirement) . The Agency' s obligation to pay such additional amounts to the Fire District shall be subordinate to the Agency' s obligation to pay debt service on its long-term bonded indebtedness and its statutorily created obligations. (c) In the event that in any fiscal year the subordination provided for in this Section 3 results in a reduction in the amount otherwise payable to the Fire District pursuant to this Agreement, then such reduction shall be treated as an advance by the Fire District which shall be repaid by the Agency. The unpaid principal balance thereof shall bear interest at the lower of the following rates; (i) the rate paid by the State of California Local Agency Investment Fund; or (ii) the highest rate permitted by law. The advances and accrued interest shall be repaid as promptly as possible, and in any event the Agency shall use all tax increment legally available to repay such advances and accrued interest. Section 4 . Decrease in Tax Increment. In the event that in any fiscal year the amount that is the total of the amount of the Agency' s debt service on long-term bonded indebtedness plus amounts necessary to discharge the Agency' s statutorily created obligations (such as the Health and Safety Code Section 33334 . 2 -6- MEW A Housing Set Aside requirement) plus the amounts due under this Agreement exceed the actual amount of Tax Increment payable to the Agency pursuant to Health and Safety Code Section 33670 , then the amount the Agency pays the Fire District pursuant to this Agreement for that year may be reduced by the amount necessary to pay in full such debt service and such statutorily created obligations. Any such reduction shall be treated as an advance by the Fire District which shall be repaid by the Agency. The unpaid principal balance thereof shall bear interest at the lower of the following rates: (i) the rate paid by the State of California Local Agency Investment Fund; or (ii) the highest rate permitted by law. The advances and accrued interest shall be repaid as promptly as possible, and in any event the Agency shall use all Tax Increment legally available to repay such advances and accrued interest. Section 5 . Effective Date. This Agreement shall be effective only "if the Contra Costa County Board of Supervisors by December 31 , 1987 adopts an ordinance adopting the Plan, and the boundaries of the Project Area as described in the adopted Plan are substantially those boundaries described in the attached Exhibit A. In the event litigation is initiated attacking the validity of the proposed Plan, the Project or the ordinance adopting the Plan, the provisions of this Agreement shall remain in full force and effect unless a judgment becomes final which declares the Plan, the Project or the ordinance invalid, in which case this Agreement shall become null and void. -7- EMD U W Section 6 . No Litigation. The Fire District agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the Project or the Plan or the ordinance adopting the Plan so long as they are not inconsistent with this Agreement. FIRE DISTRICT AGENCY CONTRA COSTA COUNTY RIVERVIEW FIRE PROTECTION REDEVELOPMENT AGENCY DISTRICT By: ��� � �� By: Its: Chairman Its: D ut Execut ve Direc r Ex-Officio Governing Board of Riverview Fire Protection District Approved as to form: Victor J. Westman County Counsel Ceputy LCR/mlm #011A/B32007 -B-