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HomeMy WebLinkAboutMINUTES - 12211989 - 2.5G THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this order on December 21,1989 by the following vote: AYES: Supervisors Fanden, Schroder, McPeak and Torlakson NOES: None CORRECTED COPY! ABSENT: Supervisor Powers PLEASE DESTROY PREVIOUS ISSUE ABSTAIN: None --------------------------------------------------RESOLUTION N0. 89-24 - SUBJECT: Authorization of Execution of Fiscal Agreement with the Oakley Union School 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 Oakley 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 Oakley Union School 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 Oakley 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 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 Oakley Redevelopment Project prepared by the Agency and submitted to the Board pursuant to Health and Safety Code Section 333.52, 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 appro- priate 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 twenty five percent ( 250) 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 been allocated to all the affected taxing agencies without regard to the division of taxes pursuant to Health and Safety Code Section 33670. In addition, the Agreement calls for the Agency to pay to the District all or any portion of the tax revenues attributable to increases in the assessed value of the taxable property in the Project Area which are calculated annually pursuant to subdivision ( f) of Section 110. 1 of the Revenue and Taxation Code. Said calculation is currently established at 2%. RA 89-24 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 on the Plan, 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. cc: Redevelopment Agency Oakley Union School District County Counsel County Administrator GR16/j b/o akf i s ag.res I hereby certify that titin t:;a true and correct copy of an action taken and entered on the minutes of the Redevelopmlgency on�the date shown. ATTESTED ego �I ; pH BATCHELOR,Agency Secretary BY Dept I RA 89-24 FISCAL AGREEMENT . REGARDING OAKLEY REDEVELOPMENT PROJECT THIS AGREEMENT (the "Agreement") is made and entered into this day of 1989, by and among the CONTRA COSTA COUNTY REDEVELOPMENT AGENCY (the "Agency") and OAKLEY UNION SCHOOL DISTRICT (the "District" ) , on the basis of the following facts, understandings and intentions of the parties: RECITALS A. The Agency is in the process of preparing a proposed redevelopment plan (the "Redevelopment Plan") for adoption by the Board of Supervisors of Contra Costa County for the Oakley Redevelopment Project (the "Project") pursuant to the California Community Redevelopment Law (Health and Safety Code, Section 33000, et seq. ) . B. The proposed Redevelopment Plan contains provisions for the distribution and allocation of property tax revenues derived from property located within the area covered by the Redevelopment Plan (the "Project Area" ) and allocated to the Agency pursuant to California Health and Safety Code Section 33670(b) (the "Tax Increment Revenue" , as more fully defined in Section 1 below) . C. Section 33401 of the Community Redevelopment Law authorizes the Agency to enter into this Agreement. D. The Agency has determined that, based on certain reports and evidence submitted by the District, and in a -�- EWN, o �� Q spirit of mutual cooperation, certain actions as set forth below are necessary to alleviate the burden and detriment or potential burden and detriment identified by the District. E. Pursuant to Health and Safety Code Section 33676(a) (1) , the District, by appropriate resolution, has heretofore made the election to receive future property tax revenues generated in the Project Area attributable to increases' in the rate of. tax imposed for the benefit of the District after the tax year in which the ordinance adopting the Redevelopment Plan becomes effective. This Agreement is not intended in any way to affect the election made by the District pursuant to Health and Safety Code Section 33676(a) (1 ) . F. As permitted by Health and Safety Code Section 33676, this Agreement is entered into by the District in lieu of the election described in Health and Safety Code Section 33676(a) (2) , as more fully set forth in Section 9 below. THEREFORE, the Agency and the District agree as follows: _ AGREEMENTS Section 1 . General Definitions In addition to the terms defined elsewhere in this Agreement, the terms set forth in this Section shall have the following meanings : -2- L�,W1J11�DD LI lJ W (a) "Base Year Value" means the assessed valuation of the property within the Project Area as shown on the Fiscal Year 1989-90 assessment roll (Fiscal Year 1989-90 being the "base year" for the Redevelopment Plan pursuant to Health and Safety Code Section 33670) . (b) "District Fund" means the fund designated and maintained by the District into which all amount to be paid by the Agency pursuant to Section 2 below shall be deposited for use as provided in Section 3 below. (c) "District Share" means the portion of the property taxes that the District would have received if there were no provision in the Redevelopment Plan for the allocation of Tax Increment Revenue to the Agency. (d) "Fiscal Year" means the period commencing on July 1 and ending on the following June 30. (e) "Tax Increment Revenue" means those taxes allocated to and received by the Agency pursuant to Health and Safety Code Section 33670(b) in any Fiscal Year, from increases in the valuation of real property within the Project Area above the valuation shown on the assessed valuation roll last equalized prior to the date of adoption of the ordinance adopting the Redevelopment Plan. Tax Increment Revenue is sometimes hereinafter divided into two components defined as follows : (1) "Tax Increment Revenue A" means the Tax Increment Revenue attributable to increases in the assessed value of taxable property in the Project Area -3 above the sum of the Base Year Value which are, or otherwise would be, calculated annually pursuant to subdivision (f) of Section 110. 1 of the Revenue and Taxation Code; and (2) "Tax Increment Revenue B" means all Tax Increment Revenue other than that described in paragraph (1) above. Section 2. Payment of a Portion of Tax Increment Revenue (a) Beginning in Fiscal Year 1990-91 and continuing through the term of this Agreement, the Agency shall pay to the District the following amounts: (1) One Hundred percent (100%) of the District Share of Tax Increment Revenue A; and (2) Twenty-five percent (25%) of the District Share of Tax Increment Revenue B. (b) It is anticipated that the Agency will receive its annual allocation of Tax Increment Revenue in two or three partial installments during the course of each Fiscal Year (each such partial installment is hereinafter referred to as a "Partial TIR Installment") . Within thirty (30) days of receipt of each such Partial TIR Installment, the Agency shall pay to the District a partial payment of the amount payable to the District for the Fiscal Year pursuant to subsection (a) above (a "Partial District Payment") . The amount of each Partial District Payment shall be in the same proportion to the total amount payable to the District for the Fiscal Year as the proportion the applicable Agency TIR Installment is to -4 the total amount of Tax Increment Revenue payable to the Agency for the Fiscal Year. Each Partial District Payment shall be- accompanied by a statement setting forth in reasonable detail the basis on which the determination of the amount of the payment has been made. Section 3. Use of District Funds The monies deposited in the District Fund shall be used to finance projects for the benefit of the District for the following purposes : (a) Rehabilitation, construction or reconstruction of: (1 ) Permanent or temporary classrooms; (2) Gyms, pools, athletic or recreational facilities; (3) Library, auditorium and school site administration facilities ; (4) District administrative offices, maintenance and warehouse facilities; (5) On-site and off-site public improvements such as but not limited to, sidewalks, crosswalks, lights, curbs, gutters and streets; (6) Landscaping, irrigation, and lighting; (7) Other ancillary facilities, equipment and furnishings appurtenant to a school or District facility to make such facilities operable; and (8) Buses and transportation costs necessary to transport students to schools of the District. (b) Acquisition of property for public school facilities, District administrative and other support services . (c) Design, planning, administrative and engineering costs equal to not more than twenty percent (20%) of the acquisition, rehabilitation, construction or reconstruction cost of the projects undertaken by. the District. Monies otherwise required by this Agreement to be paid into the District Fund shall be paid, instead, in whole or in part, to a designee of the District ( "Designee") upon prior written direction of the District. Such funds paid to Designee shall be used to pay., on behalf of the District, the principal of and interest on loans, construction projects, money advanced to or indebtedness incurred by such Designee to finance or refinance in whole or in part the projects set forth in this Section 3. Section 4. Limitations on Payment Notwithstanding any other provision of this Agreement, no payments shall be made to the District by the Agency: (a) which would exceed the amount, annually, that the District would have otherwise received from property taxes from the Project Area had the Redevelopment Plan not been adopted; or (b) the receipt of which would cause the District to violate its expenditure limitations under Article XIII-B of California Constitution as certified by the District to the State of California pursuant to State law; or (c) which would be contrary to the provisions of Section 33401 of the Community Redevelopment Law or violate any other -6- 6- FW IJ IJ o � lJ W provision of the Community Redevelopment Law or the laws of the State of California. Any- excess amounts under subsection (a) , (b) or (c) above shall be.retained by the Agency for distribution, in the Agency' s sole discretion, to other taxing entities or for the purposes of paying indebtedness incurred by the Agency in carrying out the Project. Section 5 . Reduction in Payments Notwithstanding any other provision of this Agreement, if the amount the District would receive from the State of California would be reduced pursuant to Education Code Section 42238 or other similar or successor provision of law by reason of a payment made by the Agency to the District pursuant to Section 2, then the Agency may reduce its payments under this Agrement to the District by the amount that the amount the 0 District would receive from the State of California would be reduced pursuant to Education Code Section 42238 or other similar or successor provision of law by reason of a payment made by the Agency to the District pursuant to this Agreement. The parties understand and agree that the District will only derive benefit from the payments the Agency will make pursuant to this Agreement to the extent that such payments do not cause a reduction in payments to the District from the State pursuant to the Education Code and, for that reason, the parties have agreed to the provisions of this Section 5 . Section 6. Subordination 5 ` The Agency may request the District to subordinate its right to the revenue payable to the District pursuant to Section 2 above (hereinafter referred to as the "Subordinated Revenue"� to allow the Agency to pledge all or any portion of the Subordinated Revenue in order to secure repayment of Agency long-term indebtedness incurred for the Project. For the purpose of this Agreement "long-term" shall mean in excess of two (2) years, and "indebtedness" shall not include any indebtedness of the Agency to Contra Costa County or other governmental agency controlled by the Agency or Contra Costa County. The District agrees that its approval of such requests will not be unreasonably withheld provided that the Agency first demonstrates to its satisfaction the Agency' s anticipated ability to repay such indebtedness incurred for the Project without demand being made on the payments due it under the terms of this Agreement. Such demonstration by the Agency shall show that the Subordinated Revenue will be used in the cash-flow of the financing only for additional security (debt service coverage) and that the Tax Increment Revenue payable to the Agency will be adequate, over the term of the indebtedness, to pay one hundred percent (100%) of actual debt service thereon, 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. -8- FUUHI Do�� Q Any such demonstration shall include, without limitation, revenue forecasts and debt service schedules. If,- as a result of the subordination provided for in this Section 6, the payments to the District are reduced below the amount otherwise payable to it pursuant to this Agreement, then such reductions shall be treated as an advance by the District which shall be repaid by the Agency. The unpaid principal balance thereof shall bear interest at the rate paid by the State of California Local Agency Investment Fund or its successor entity. The advances and accrued interest shall be repaid as promptly as possible, and in any event the Agency shall use all Tax Increment Revenue available to it, after payment of principal and interest on the indebtedness to which the subordination applies and payment of any other obligations which are superior to the Agency' s obligations under this Agreement (including statutory obligations, such as the Agency's housing set-aside obligation under Health and Safety Code Section 33334. 2) , to repay such advances and accrued interest. Section 7. Increase in Shares The parties recognize that the District Share could be increased by amendment to existing State law, thus increasing the amount of revenue payable to the District under this Agreement. Therefore, it is agreed that, in the event the Agency desires to incur long-term indebtedness to be secured by Tax Increment Revenue, the Agency may project its Tax Increment Revenue and incur such long-term indebtedness based -9- upon the District Share and the resulting amount of revenue payable to the District under this Agreement assuming the continuing effectiveness of State law in existence at the time such long-term indebtedness is incurred. In the event State law in amended after the Agency has incurred such long-term indebtedness to increase the District Share and the resulting amount of revenue payable to the District under this Agreement, then such additional amount of revenue shall be payable to the District in accordance with this Agrement, unless the Agency needs such additional amounts to avoid a default or condition of default on such long-term indebtedness. The Agency's obligation to pay such additional amount to the District shall be subordinate to the Agency's obligation to pay debt service on its long-term indebtedness. If, in any Fiscal Year, the subordination provided for in this Section 7 results in a reduction in the amount otherwise payable to the District pursuant to this Agreement, then such reduction' shall be treated as an advance by the District which shall repaid by Agency. The unpaid principal balance thereof shall bear interest at the rate paid by the State of California Local Agency Investment Fund or it successor entity. The advances and accrued interest shall be repaid as promptly as possible, and in any event -the Agency shall use all Tax Increment Revenue available to it, after payment of principal and interest on the indebtedness to which the subordination applies and payment of any other obligations - -10- which are. superior to the Agency' s obligations under this Agreement (including statutory obligations , such as the Agency's-housing set-aside obligation under Health and Safety Code Section 33334. 2) , to' repay such advances and accrued interest. Section 8. Indebtedness of Agency The payments to be made pursuant to this Agreement shall constitute an indebtedness• of the Agency incurred in carrying out the Project and a pledging of Tax Increment Revenue from the Project to repay such indebtedness under the provisions of Article XVI , Section 16 of the California Constitution and under the California Community Redevelopment Law (with reference to California Health and Safety Code Section 33675) . Section 9. Waiver of Section 33676(a) (2) Election The parties agree that this Agreement supersedes any - election heretofore or hereafter made or purported to be made by the District pursuant to Health and Safety Code Section 33676(a) (2) ; that any such election or purported election .shall be null and void and of no further force or effect; and that the District shall receive no payment of Tax Increment Revenue other than as expressly provided in this Agreement or as authorized by the County's separate election to receive the amount specified in Health and Safety Code Section 33676(a) (1) , which separate election shall not be modified by the terms of this Agreement. The District shall take such actions as are reasonably necessary to accomplish the waiver of its election under -11- �WI1lJ�� �11 Q Health and Safety Code Section 33676(a) (2) and to notify the Auditor of Contra Costa County or such other responsible District- officials as may be appropriate that the District has entered into this Agrement in lieu of its election to receive the amounts permitted by Health and Safety Code Section 33676(a) (2) . In the event Contra Costa County by error or otherwise makes a payment to the District of funds the District has waived under Section 33676(a) (2) , the District shall receive and hold the funds in trust for the Agency. The District shall pay the funds to the Agency and notify Contra Costa County in writing that the funds have been paid to the Agency pursuant to this Section 9. Upon receipt of the funds, the Agency shall immediately notify Contra Costa County in writing of its receipt of the funds from the District pursuant to this Section 9. Section 10. District and Agency Cooperation in Development of Pro 'ect Area In accordance with their policies, rules, and regulations, the District and the Agency will expend the revenues payable as provided in this Agreement for the effective implementation of the projects, programs and services set forth in Section 3 above of mutual benefit to the District and the Agency consistent with the goals and objectives of the Redevelopment Plan. Section 11 . No Contest of Redevelopment Plan (a) The District acknowledges and agrees that the -12- payments to be provided and the other fiscal mitigation measures to be undertaken by the Agency pursuant to this Agreement will effectively eliminate any financial burden or detriment, if any, to the District that might otherwise be caused by the adoption and implementation of the Redevelopment Plan. In consideration of the undertakings of the Agency described in this Agreement, the District shall forego any right or remedy it may have in law or equity to contest the preparation, adoption or validity of the Redevelopment Plan (including without limitation any right or remedy pursuant to the California Environmental Quality Act) , and the redevelopment program to be undertaken pursuant to the Redevelopment Plan. The District further declares its support for the efforts of the Agency in connection with preparation, adoption and implementation of the Redevelopment Plan. (b) The Agency recognizes the District's agreement not to contest the Redevelopment Plan, as described in subsection (a) above, as good and legal consideration. Section 12. Term of Agreement This Agreement shall be effective as of the date that the ordinance enacted by the Board of Supervisors of Contra Costa County adopting the Redevelopment Plan for the Project becomes effective and shall terminate upon the earlier of (a) the payment in full of all Agency debts incurred pursuant to the Redevelopment Plan, or (b) the filing of an action in a court of competent jurisdiction or an administrative action by any person or entity challenging the adoption of the Redevelopment -13- Plan or any of the proceedings in connection therewith. In the event such a lawsuit is filed or such an administrative action commences or is taken, the Agency. shall not be required to pay the District any amounts due under this Agreement until resolution of such lawsuit or administrative action; provided, however, that in the event such lawsuit or administrative action is finally determined to uphold the validity of the Redevelopment Plan, the Agency shall pay to the District any amounts due to the District pursuant to this Agreement (including interest accrued thereon, if any) which become due during the pendency of such lawsuit or administrative action. Such payment shall be due to the District as soon as possible after such determination. Following termination, neither of the parties shall have any rights or obligations under this Agreement. Section 13. Obligation to Defend Agreement In the event litigation is initiated attacking the validity of this Agreement, each party shall in good faith defend and seek to uphold the Agreement. The District further agrees to indemnify and hold the Agency harmless in the event that any person or entity not a party to this Agreement (a "third party") seeks to recover from the Agency funds that -such third party claims were unlawfully paid to the District pursuant to this Agreement. Section 14. State Law This Agreement, and the rights and obligations of the -14 EWH D parties hereto, shall be construed and enforced in accordance with the laws of the State of California . Section -15. Attorneys ' Fees In any action .4hich 'the Agency or the District brings to enforce its rights hereunder, the unsuccessful party shall pay all costs incurred by the prevailing party, including reasonable attorneys ' fees . Section 16 . Successors and Assigns This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors and assigns . Section 17 . Entire Agreement This Agreement constitutes the entire agreement of the parties with respect to the subjects covered herein. -15- EMU A IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. Attest: CONTRA COSTA COUNTY REDEVELOPMENT AGENCY By: Agency Secretary Agency Chair Attest: OAKLEY UNION SCHOOL DISTRICT By: Secretary to the Board 12/19/89 #B035/B32009 -16- Fg11 lJ Q � ff G=is