HomeMy WebLinkAboutMINUTES - 12141993 - 1.104 TO- BOARD OF SUPERVISORS
FROM: Phil Batchelor, County Administrator Contra
Costa
DATE: December 14,:1993 Cn, rrtih�
SUBJECT: FISCAL AGREEMENT WITH THE EL CERRITO REDEVELOPMENT AGENCY �'� ��1
ON REDEVELOPMENT PLAN AMENDMENT
SPECIFIC REQUEST(S) OR RECOMMENDATION!,S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION: �l
1. Authorize the Chair of the Board of Supervisors to sign the fiscal agreement with
the Redevelopment Aggrxc of City of EI Cerrito on a proposed Amendment
to the Agency Plan.
'BACKGROUND:
For the last 10 months, County an-4 City staff have been negotiating a fiscal agreement
involving a proposed amendment to the EI Cerrito Redevelopment Agency Plan. An
agreement has been arrived at consistent with Board parameters and direction. This
agreement will lessen the loss of County property tax revenues and provide greater fiscal
benefits to the County, than an agreement arrived at in 1994. Fiscal agreements in 1994
will be governed by AB-1290, legislation which establishes property tax sharing formulas
which are not favorable to the County.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE S :
ACTION OF BOARD ON APPROVED AS RECOMMENDED 4-1 OTHER _
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENTAND CORRECT COPY OF AN ACTION TARN
AYES: NOES. AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: City of E1 Cerrito ATTESTED
County Counsel PHIL BATCHELOR, CLERK OF THE BOARD OF
County Redevelopment Director SUPERVISORS AND COUNTY ADMINISTRATOR
M382/7-83 BY ,DEPUTY
FISCAL AGREEMENT
REGARDING
CITY OF EL CERRITO REDEVELOPMENT PROJECT
BY AND BETWEEN
COUNTRA COSTA COUNTY
AND
EL CERRITO REDEVELOPMENT AGENCY
Dated as of ���«�10 e r Q t , 1993
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TABLE OF CONTENTS
Page
ARTICLE 1 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . 2
ARTICLE 2 PAYMENTS TO COUNTY . . . . . . . . . . . . . . . . . 4
Section 2 . 1 Payments to the County
Section 2 .2 Additional Payments to the County . . . . . . . 4
Section 2 . 3 Time of Payment . . . . . . . . . . . . . . . . 5
Section 2 .4 Limitation on Payments . . . . . . . . . 6
Section 2 .5 Priority of Agency's Obligations . . . . . . . 6
Section 2.6 33676 Election Superseded . . . . . . . . . . . 7
Section 2.7 Indebtedness of the Agency . . . . . . . . . . 7
ARTICLE 3 GENERAL PROVISIONS . . . . . . . . . . . . . . . . . 8
Section 3 . 1 Elimination of Financial Burden;
No Contest of Plan. . . . . . . . . . . . . . . 8
Section 3 . 2 Notices . . . . . . . . 8
Section 3 . 3 No Third Party Beneficiaries 9
Section 3 .4 Term of Agreement . . . . . . . . . . . . . . . 9
Section 3 . 5 State Law . . . . . . . . . . . . . . . . . . . 9
Section 3 . 6 Attorneys' Fees . . . . . . . . . . . . . . . . 9
Section 3.7 Entire Agreement . . . . . . . . . . . . . . . . 9
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FISCAL AGREEMENT REGARDING
CITY OF EL CERRITO REDEVELOPMENT PROJECT
THIS AGREEMENT is entered into pursuant to Health,and Safety
Code Section 33401(b) as of Jec.-, be r azl ffl'3by and between the
County of Contra Costa (the "County") ,' and the E1 Cerrito
Redevelopment Agency (the "Agency") , on the basis of the
following facts, understandings, and intentions of the parties:
RECITALS
A. These recitals refer to and utilize certain capitalized
terms which are defined in Article 1 of this Agreement. The
parties intend to refer to those definitions in connection with
the use thereof in this Agreement.
B. The City has adopted the Redevelopment Plan and
established the Project Area.
C. The City Council adopted the Third Amended and Restated
City of E1 Cerrito Redevelopment Plan on March 1, 1993 pursuant
to Ordinance No. 93-2 . Prior to the Third Amended and Restated
Plan becoming effective, Ordinance No. 93-2 was repealed pursuant
to Ordinance No. 93-3 adopted June 7, 1993, in response to a
referendum petition filed by the voters of the City of E1
Cerrito.
D. Prior to adoption of the Third Amended and Restated
Plan by the City Council, a fiscal review committee was convened
pursuant to Health and Safety Code Section 33353 and meetings
were held and were attended by the County, the Agency and the
other affected taxing agencies.
E. As a result of the fiscal review committee process, the
Agency and the County determined that the adoption of the Third
Amended and Restated Plan would cause a financial burden or
detriment to the County unless mitigated by the provisions of
this Agreement.
F. The Agency and the City Council are now proposing to
reconsider the Amended Plan, which such Amended Plan will have
the same or reduced impacts on the County.
G. The parties hereto agree that, but for the fiscal
mitigation measures set forth in this Agreement, the Project
undertaken pursuant to the Amended Plan would create a financial
burden or detriment on the County as defined in Health and Safety
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Code Section 33012. The California Community Redevelopment Law
provides that a redevelopment agency may pay to any taxing agency
with territory located within a redevelopment project area any
amounts of money which, in the agency's determination, --are
appropriate to alleviate any financial burden or detriient caused
to such taxing agency by a redevelopment project. The parties
hereto deem it appropriate to agree upon an allocation and
distribution of tax increment monies to alleviate the financial
burden to be caused by implementation of the Amended Plan, and it
is for this reason that the parties enter into this Agreement.
NOW, THEREFORE, the County and the Agency agree as follows:
ARTICLE 1: DEFINITIONS
The following general definitions shall govern this
Agreement:
Section 1. 1 "Agency" means the El Cerrito Redevelopment
Agency.
section 1.2 "Amended Plan" means the proposed Third Amended
and Restated City of El Cerrito Redevelopment Plan, which will be
prepared by the Agency and submitted for adoption by the City
Council of the City.
Section 1. 3 "City" means the City of El Cerrito,
California.
Section 1.4 "City Council', means the City Council of the
City of El Cerrito, California.
Section 1.5 "Community Redevelopment Law" means the
California community Redevelopment Law (Health and Safety Code
Section 33000 et sea. ) .
Section 1. 6 "County" means the County, the County Library
and the County Flood Control District.
Section 1.7 "County Share" means the proportionate
percentage share of Tax Increment Revenue that the County would
have received as property taxes from the Project Area at the time
of the effective date of this Agreement if there were no
provision in the Redevelopment Plan and the Amended Plan for the
division of taxes pursuant to Health and Safety Code Section
33670 et seg. The County Share includes the proportionate
percentage share of Tax Increment Revenue that the County would
have received from the Project Area at the time of the effective
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date of this Agreement on behalf of itself and on behalf of the
Library Fund and Flood Control Fund if there were no provision in
-the Redevelopment Plan and the Amended Plan for the division of
taxes pursuant to Health and Safety Code Section 33670 -.et seq.
The parties acknowledge and agree that such proportion4te
percentage share equals 24. 64% of the basic one percent (lo)
County-wide ad valorem property tax rate imposed in accordance
with the provisions of Section (1) of Article XIIIA of the
Constitution of the State of California.
Section 1.8 "Fiscal Year" means the period commencing on
July 1 and ending the following June 30.
Section 1.9 "Gross Post-Amendment Tax Increment Revenue"
for a given Fiscal Year means that portion of Tax Increment
Revenue determined as follows:
(a) Subtract from the Project Area Assessed Valuation
for the given Fiscal Year the Project Area Assessed Valuation for
the fiscal year in which the Amended Plan becomes effective.
(b) Multiply the result of calculation (1.7 (a) ) above
by one percent (1%) .
Section 1.10 "Net Post-Amendment Tax Increment Revenue" for
a given Fiscal Year means that portion of Tax Increment Revenue
equal to:
(a) Gross Post-Amendment Tax Increment Revenue for
that Fiscal Year;
less
(b) the amount required to be deposited by the Agency
for that Fiscal Year into its Low and Moderate Income Housing
Fund pursuant to the provisions of Health and Safety Code Section
33343 . 2 and 33334 .3, or similar or successor statutes;
less
(c) the amount required to be paid by the Agency for
that Fiscal Year to the Educational Revenue Augmentation Fund
created pursuant to Revenue and Taxation Code Section 97. 03 , or
to a similar or successors fund or account, or to any school
district, community college district, or county office of
education/superintendent of schools.
Section 1. 11 "Project" means the program of redevelopment
to be undertaken by the Agency in the Project Area pursuant to
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the provisions of the Amended Plan and the Community
Redevelopment Law.
Section 1. 12 "Project Area" means the City of E1--Cerrito
Redevelopment Project Area established by the Redevelopment Plan,
as described and mapped in Part III and Exhibit A of the Amended
Plan.
Section 1. 13 "Project Area Assessed Valuation" for a given
Fiscal Year means the assessed valuation of Project Area property
as determined by the County Auditor-Controller in calculating Tax
Increment Revenue payable to the Agency for that Fiscal Year.
Section 1. 14 "Redevelopment Plan" means the City of E1
Cerrito Redevelopment Plan, adopted November 23 , 1977 by City
Ordinance No. 77-17, as amended and restated on December 15,
19980 by City Ordinance No. 80-13, and as further amended and
restated on July 10, 1989 by City Ordinance No. 89-5.
Section 1. 15 "Tax Increment Revenue" means those taxes
allocated to and received by the Agency pursuant to Health and
Safety Code Section 33670 et sea. from increases in assessed
valuation of the property in the Project Area above the valuation
shown on the assessed valuation roll last equalized prior to the
date of adoption of the City ordinance adopting the Redevelopment
Plan.
Section 1. 16 "Third Amended and Restated Redevelopment
Plan" means the Third Amended and Restated City of E1 Cerrito
Redevelopment Plan adopted on March 1, 1993 by Ordinance No 93-2
and repealed by Ordinance No. 93-3 on June 7, 1993 .
ARTICLE 2: PAYMENTS TO COUNTY
Section 2. 1 Payments to the County.
Subject to the conditions, exceptions, modification, and
limitation set forth in this Article 2, the Agency shall pay to
the County the following amounts:
(a) Prior to Fiscal Year 1999-2000, the Agency shall
make no payments to the County.
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(b) Beginning Fiscal Year 1999-2000 through and
including Fiscal Year 2006-07, the Agency shall pay to the County
-the amounts set forth in the following schedule.
Fiscal Year Payments to County
1999-2000 $ 87, 032
2000-01 100,479
2001-02 114, 196
2002-03 128, 186
2003-04 142 ,457
2004-05 157, 013
2004-06 171, 860
2006-07 187, 004
(c) Beginning in Fiscal Year 2007-08 and continuing
through and including Fiscal Year 2016-17, the Agency shall pay
to the County an amount equal to thirty percent (30%) of the
County Share of Net Post-Amendment Tax Increment Revenue.
(d) Beginning in Fiscal Year 2017-18 and continuing
until expiration or termination of the Amended Plan, the Agency
shall pay to the County an amount equal to fifty percent (50%) of
the County Share of Net Post-Amendment Tax Increment Revenue.
(e) Notwithstanding any other provision of this
Section 2 . 1, the Agency shall have no obligation to make any
payments to the County for any Fiscal Year beginning after the
Fiscal Year in which the Amended Plan expires or is otherwise
terminated by action of the City or Agency provided the Agency is
no longer receiving Tax Increment Revenue.
Section 2.2 Additional Payments to the County.
In addition to the payments to be made by the Agency to the
County pursuant to Section 2 . 1 above, the Agency shall pay to the
County the following amounts:
(a) The Agency agrees to contribute, not earlier than
January 1998, Five Million One Hundred Thousand Dollars
($5, 100, 000) towards acquisition, replacement or construction of
a public facility, maintained and operated by the County, which
would be of benefit to the Project Area and the City pursuant to
applicable redevelopment law. A County library is an example of
such a facility. Prior to payment of the Agency's contribution,
the Agency and the County shall agree to the facility or services
to be funded with the Agency's contribution and the payment
schedule for the Agency's contribution. The Agency and the
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County agree that debt financing is the most probable method of
fulfilling this obligation.
(b) The Agency and the County agree to negotiate in
good faith for the Agency to acquire the County's portion of the
juvenile court building located at 6323 Manila Avenue, E1
Cerrito, at such time as the County is prepared to vacate the
building, and to acquire the former County Probabion facility
located at 1820 Peerless Avenue, E1 Cerrito. The acquisition
costs to be negotiated by the parties for both the juvenile court
building and the probation building shall include applicable
relocation costs.
2. 3 Time of Payment.
The Agency shall make the payments required pursuant to
Section 2. 1 for a given Fiscal Year within fifteen (15) days of
receipt by the Agency of the last installment of Tax Increment
Revenue for such Fiscal Year. Each payment made by the Agency
shall be accompanied by a statement setting forth in reasonable
detail the basis on which the determination of the amount of
payment has been made.
2. 4 Limitation on Payments.
Except as provided in Section 2.5 herein, the payment made
to the County by the Agency pursuant to this Article 2 for any
given Fiscal Year shall not exceed the amount that the County
would otherwise receive from property taxes from the Project Area
for that given Fiscal Year had the Amended Plan not provided for
the division of taxes pursuant to Health and Safety Code Section
33670.
2.5 Priority of Agency's Obligations.
The Agency's obligation to make payments to the County
pursuant to this Agreement shall not be deemed to be a first
pledge of Tax Increment Revenue received by the Agency pursuant
to Health and Safety Code Section 33670(b) . The Agency may
request the County 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 County
under this Agreement in order to secure repayment of Agency long-
term bonded indebtedness incurred for the project. For purposes
of this Agreement, "long-term" shall mean in excess of five
years. For the purpose of this Agreement, "bonded indebtedness"
shall not include any indebtedness of the Agency to the City of
E1 Cerrito or other governmental agency. The County agrees to
approve the Agency's request to subordinate its interest herein
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and allow the Agency to pledge all or any portion of the tax
increments otherwise payable to the County under this Agreement
in order to secure the repayment of Agency indebtedness incurred
for the Project, provided, the Agency demonstrates, to-the
reasonable satisfaction of the County, its ability to take
payments due to the County under the terms of this Agreement.
In the event, as a result of the provisions of this Section
2. 5, the payments to the County are reduced below the amount
otherwise payable to them pursuant to this Agreement,. then such
reductions shall be treated as an advance by the County which
shall be repaid by the Agency. The unpaid principal balance
thereof shall bear interest at the rate earned by the State of
California Local Agency Investment Fund (or similar successor
fund) . The advances and accrued interest shall be repaid as
promptly as possible, and in any event the Agency shall use all
tax increment available to it after payment of principal and
interest on the bonds to which the subordination applies to repay
such advances and accrued interest.
Section 2. 6 33676 Election Superseded.
The County and Agency agree that for so long as this
Agreement is in effect, this Agreement supersedes any purported
right to election under Health and Safety Code Section 33676 with
respect to the Amended Plan. The County shall not make any
election pursuant to Health and Safety Code Section 33676
regarding the Amended Plan and this Agreement supersedes any
election previously made or purported to be made by the County
pursuant to Health and Safety Code Section 33676 with respect to
the Amended Plan. The County shall take any action required by
the County Auditor-Controller or other responsible County
official required to rescind any such prior election for the term
of this Agreement and to notify the county Auditor-Controller or
other responsible County official that the County has elected not
to receive any amounts pursuant to Health and Safety Code Section
33676 for the term of this Agreement. The County shall receive
no payment of Tax Increment Revenue other than as provided in
this Agreement for the term of this Agreement.
Section 2 .7 Indebtedness of the Agency.
The payments to be made pursuant to this Article 2 shall
constitute an indebtedness of the Agency incurred in carrying out
the Project and a pledge of Tax Increment Revenue from the
Project to repay such indebtedness under the provisions of
Article XVI, Section 16 of the Constitution of the State of
California and under the Community Redevelopment Law.
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ARTICLE 3: GENERAL PROVISIONS
Section 3. 1 Elimination of Financial Burden; No Contest of
Plan.
The Agency and the County acknowledge and agree that the
payments to be made and actions to be undertaken by the Agency
pursuant to this Agreement will effectively eliminate any
financial burden or detriment that would otherwise be caused by
the adoption of the Amended Plan, which the Agency is proposing
to accomplish in fiscal year 1993-94 and implementation of the
Project pursuant to said Amended Plan. The Agency agrees that
the Amended Plan to be submitted to the City Council for its
consideration shall not extend the life of the Redevelopment Plan
and shall not contain a limit on the amount of tax increment to
be received by the Agency over the life of the Plan which exceeds
$250, 000,000 nor contain a limit on the amount of bonded
indebtedness that may be outstanding at any one time which
exceeds $80,000, 000. The County agrees not to file or engage in
any litigation to directly or indirectly challenge the validity
or implementation of the Amended Plan (including without
limitation, the right to call for formation of a Fiscal Review
Committee pursuant to Health and Safety Code Section 33353 et
sea. , and any right or remedy pursuant to the California
Environmental Quality Act) so long as they are not inconsistent
with the Agreement. Agency and City agree not to file or engage
in any litigation to directly or indirectly challenge this
Agreement.
Section 3.2 Notices.
All notices, statements, or other communications made
pursuant to this Agreement to the other party shall be in
writing, and shall be sufficiently given and served upon the
party if sent by United States registered mail, return receipt
requested, postage prepaid, and addressed as follows:
COE: Contra Costa County
651 Pine Street
Martinez, California
Attention:
AGENCY: E1 Cerrito Redevelopment Agency
10890 San Pablo Avenue
E1 Cerrito, California 94530
Attention: Executive Director
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Either party may change its address for notice purposes by
written notice to the other party prepared and delivered in
accordance with the provisions of this Section 3 .2.
Section 3 . 3 No Third Party Beneficiaries.
No person or entity other than the County, the Agency, and
their permitted successors and assigns, shall have any right of
action under this Agreement.
Section 3.4 Term of Agreement.
This Agreement shall take effect as of the date of adoption
of the City Ordinance adopting the Amended Plan and shall
terminate upon the earliest to occur of: (a) the filing of a
final judgement by a court of competent jurisdiction that the
Amended Plan or any proceedings in connection therewith is
invalid; (b) certification by the County Registrar of Voters of a
"no" vote in a referendum election on the Amended Plan or repeal
by the City Council of the ordinance adopting the Amended Plan
upon receipt of a certified referendum; (c) or expiration of the
Amended Plan and completion of all obligations of the parties
under this Agreement incurred during the term of the Amended
Plan. Following termination, neither of the parties shall have
any further rights or obligations under this Agreement.
Section 3 . 5 State Law.
This Agreement, and the rights and obligations of the
parties hereto, shall be construed and enforced in accordance
with the laws of the State of California.
Section 3.6 Attorneys' Fees.
In any action which a party brings to enforce its rights
hereunder, the unsuccessful party shall pay all costs incurred by
the prevailing party, including reasonable attorney's fees.
Section 3 .7 Entire Agreement.
This Agreement constitutes the entire and integrated
.agreement of the County and the Agency, and supersedes all prior
negotiations, representations, or agreements either written or
oral. This Agreement may be amended only by written instrument
executed by both the County and the Agency.
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IN WITNESS WHEREOF, this agreement is executed as of the
date first above written.
Attest: __ CONTRA COSTA COUNTY
Its• Chair,Board of Supervisors
Attest: EL CERRITO R OPMENT AGENCY
By: (
Linda"� . Gidd> ntgs U V V
City Clerk
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