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HomeMy WebLinkAboutMINUTES - 01091996 - C64 To- BOARD OF SUPERVISORS SEL Contra -, FROM: �` Costa Phil Batchelor, County Administrator �;�� _ .s Count y DATE: January 16, 1996ti _ ::.: c'uur<` SUBJECT: FISCAL AGREEMENT WITH THE CITY OF LAFAYETTE ON A REDEVELOPMENT PLAN SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. AUTHORIZE the Chair of the Board of Supervisors to sign the fiscal agreement between the County, Contra Costa County Fire and Flood Control Districts and the City of Lafayette on a proposed Redevelopment Plan. BACKGROUND: For over a year, County and City staff have been negotiating a fiscal agreement involving a redevelopment plan for Lafayette. The attached agreement is consistent with Board parameters and direction and is recommended for approval. The agreement has three essential elements. First,the agreement limits the Lafayette Redevelopment Agency to a maximum of$75 million in property tax increment from among all taxing agencies. Property tax sharing formulas are no longer a negotiable issue as new redevelopment law establishes property tax sharing formulas. Second, the agreement requires the Redevelopment Agency to purchase and maintain the Library, located in the redevelopment area. Finally, the agreement requires the Agency to finance 20 units of affordable housing for mentally disabled persons. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE (S): ACTION OF BOARD ON �) �l (n APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN:_ OF SUPERVISORS ON THE DATE SHOWN. 3 ATTESTED ((� �.. �.+ 1 q 9 �O Contact: PHIL EOrCHELOR,CL OF THEJ BOARD OF CC: City of Lafayette SUPERVISORS AND COUNTY ADMINISTRATOR County Counsel County Redevelopment Director County Aiiditor BY DEPUTY County Library Contra Costa Fire District AGREEMENT (Settlement and Release of Claims) This Agreement is made this , 1995, between the County of Contra Costa, County of Contra Costa Fire Protection District and County of Contra Costa Flood Control District (collectively referred to as "County") and the City of Lafayette, City Council of the City of Lafayette and Lafayette Redevelopment Agency (collectively referred to as "City") . R E C I T A L S: This Agreement is predicated upon the following facts: A. On December 27, 1994 , the City Council of the City of Lafayette adopted Ordinance No. 437 (the "Ordinance") adopting the Redevelopment Plan for the Lafayette Redevelopment Project (the "Plan") . Pursuant to the Community Redevelopment Law ("CRL") , the Lafayette Redevelopment Agency ("Agency") is charged with implementing and administering the Plan. B. On or about March 30, 1995, the County filed an action against the City in Contra Costa County Superior Court (Case No. 95-01437) (the "Action") seeking to invalidate the Plan and the Ordinance on various grounds. C. The County and the City acknowledge that all claims which have been or could be made by the County in the lawsuit are disputed by the City. Without either admitting the validity of the County's claims, the County and City, both on behalf of the other parties to the lawsuit and themselves, desire and intend to fully and finally compromise and settle all such claims and to fully and finally resolve all differences between them. THE PARTIES AGREE AS FOLLOWS: 1. Agency Forbearance. The Agency agrees that it will not claim and will forebear from receiving for its use, "Countable Tax Increment Revenue" (as defined below) in excess of $75 million. "Countable Tax Increment" shall include property taxes paid to the Agency pursuant to Health and Safety Code Section 33670(b) and the Plan or with respect to or generated from property in the area governed by the Plan and amounts paid to the Agency for state reimbursement for homeowner property tax exemptions pursuant to the provisions of Revenue & Taxation Code Sections 95 (c) and 218 and any successor provisions to those 863069.P50 11/29/95 -1- sections. "Countable Tax Increment" shall not be reduced by reason of payments by the Agency to the County or other taxing agencies pursuant to Health and Safety Code Sections 33445, 33607 .5 or any other current or future provision of law or payments by the Agency to its low and moderate income housing fund pursuant to Health and Safety Code Sections 33334 .2 and 33334 . 3 or any successor or similar provisions of law. However, "Countable Tax Increment Revenue" does not include tax increment revenues as may hereafter be derived from areas added to the area governed by the Plan pursuant to amendments to the Plan, or an amount equal to that amount, if any, as may be expended by the Agency, for improvements to one or more of the Library, fire stations located within the corporate limits of the City of Lafayette, or such other facilities as may hereafter be designated by the Agency or the City and the County as mutually acceptable projects. 2 . Instructions to Auditor. The parties shall provide a copy of this Agreement to the Auditor-Controller of the County of Contra Costa (the "Auditor") . By this Agreement, the parties hereby- instruct -the Auditor that the Auditor shall not pay any Tax Increment to the Agency in excess of the amount specified in Section 1 above. 3 . Compliance with Housing Requirements. In implementing the Plan, the Agency shall comply with the requirements of the CRL relating to providing funding for and producing low and moderate income housing. Periodically, but no less than annually, the Agency shall provide to the County a written report containing the information specified in subdivision (c) of Health and Safety Code Section 33080. 1, which report may be the one prepared by the Agency pursuant to Health and Safety Code Section 33080. 1. 4 . Special Needs Housing. The Agency and County shall cooperate and make good faith efforts to obtain the construction, rehabilitation, or other provision of not less than 20 new or existing units of affordable Special Needs Housing for disabled persons who are not dangerous to the health and safety of others and who are mentally disabled or impaired or are affected by physical disabilities or impairments, or by other limitations which the Agency and County may mutually deem appropriate for inclusion. The parties contemplate that that cooperation shall include planning, design and construction phases of the housing. The Agency will utilize a portion of its low and moderate income housing fund (Health and Safety Code Sections 33334 .2 and 33334. 3) to assist in defraying the direct and indirect costs as may be incurred in connection with the efforts to obtain the Special Needs Housing, consistent with local land use enactments 863069.P50 11/29/95 -2- and the CRL and specifically provided that such dwelling units would be countable by the Agency as long-term production units of the purposes of Section 33413 (b) or (c) of the CRL, whichever is applicable. The Agency agrees that Special Needs Housing together with senior housing are its highest priority. projects for funding with money from the low and moderate income housing fund. The parties shall make good faith efforts to complete the Special Needs Housing by January 1, 2001 subject to the availability of funds and other factors beyond the control of the parties. 5. Purchase of Library. The Agency will purchase of the Lafayette Branch Building of the Contra Costa County Library (the "Library Property") on or before June 30, 2011, at the fair market value as of the time of such consideration to purchase. The land and building shall be appraised for use as a library in determining value. Moneys received by the County in this transaction shall be expended on mutually agreed Lafayette Library uses. If the parties cannot agree on a purchase price, any party may initiate a. determination of the price by the appraisal process described below by giving written notice to the other parties. In no event shall the purchase price exceed $1, 250, 000 increased by a percentage equal to the percentage increase in the CPI (as defined below) from January 1, 1996 to the date of purchase. The CPI shall mean the United States Department of Labor, Bureau of Labor . Statistics, Consumer Price Index for All Urban Consumers (all items for the San Francisco- Oakland-San Jose area on the basis of 1982-84=100) or such other index as replaces the CPI . The appraisal process shall be as follows: the County shall select an appraiser, and the Agency shall select an appraiser. Each appraiser shall prepare an appraisal of the Library Property. If the higher of the two appraisals is equal to or less than 110% of the lower of the two, the purchase price shall be the lower appraisal plus 50% of the difference between the lower and higher appraisal. If the higher appraisal is more than 110% of the lower, than the two appraisers shall jointly select a third appraiser who shall select which of the two appraisals most accurately reflects the value of the Library Property. The appraised value as set forth in the appraisal selected by the third appraiser shall then be the purchase price. The purchase price shall be payable in cash at the time the County conveys the Library Property to the Agency. If the two appraisers cannot agree on a third appraiser, the parties shall jointly apply to the Contra Costa County Superior Court or the American Arbitration Association for appointment of the third appraiser. 863069.PS0 11/29/95 -3- If the Library Property is still being used as a public library at the time the County conveys it to the Agency, then the County and the Agency shall enter into an agreement providing for the County to operate a public library on the Library Property on such terms as the parties may reasonably agree and the following terms: (i) County would pay no rent or other amounts for use of the Library Property as a public library; (ii) Agency would be responsible for all outdoor upkeep, maintenance and repair on the Library Property and for exterior and structural upkeep, maintenance and repair of the building on the Library Property; (iii) County would be responsible for upkeep, maintenance and repair of the interior of the building on the Library Property; (iv) . County would operate a public library on the Library Property, or any other property designated by the Agency for library purposes. If, after purchasing the Library Property, the Agency sells the Library Property, moneys received by the Agency in the transaction shall be expended on mutually agreed Lafayette Library uses. 6. Dismissal of Litigation. The parties fully and finally compromise and settle all claims, demands, contentions and causes of action arising from the reference litigation. Promptly following execution of this Agreement, the County shall dismiss the Action with prejudice. Each party shall bear its own costs and attorney's fees incurred in connection with or related to the action. The County shall not bring any other action seeking to invalidate or otherwise challenge the adoption of the Plan, but nothing in this Agreement shall preclude the County from challenging or seeking to invalidate an amendment to the Plan which adds area to area governed by the Plan. 7. Acknowledgment by the Parties. The parties acknowledge that they have been represented by counsel of their own choice and that they have executed this Agreement with the consent and upon the advice of their counsel and that they have fully read and understand and voluntarily accept the terms of this Agreement. 863069.P50 11/29/95 -4- This Agreement constitutes the entire agreement between the parties. 8. No Admission of Liability. Nothing contained in this Agreement shall be construed as an admission by any party to it of any liability of any kind. 9 . Non-liability of Agency or City Officers and Employees. No officer, official, employee, agent, representative or volunteer of County, Agency or the City shall personally be liable in the event of any default or breach of any obligation of the terms of this Agreement. 10. Effective Date. This Agreement becomes valid and binding upon the last date hereafter set forth below the signatures of the respective parties. 11. Time: Binding Upon Others. This Agreement shall bind the respective successors and legal representatives of the parties. 12 . Notices. Any notice required or permitted to be delivered by a party to the other may be delivered or via first class United States mail, addressed to the respective parties as follows: CITY: COUNTY: Robert F.D. Adams Philip Bachelor City Manager County Administrator 3675 Mt. Diablo Boulevard 651 Pine Street P.O. Box 1968 Martinez, CA 94553 Lafayette, CA 94549 cc: Charles J. Williams cc: Lee C. Rosenthal City Attorney Goldfarb & Lipman 1320 Arnold Dr. , #160 1 Montgomery Street Martinez, CA 94553 Telesis Tower, 23rd Floor San Francisco, CA 94104 Notices delivered via first class US mail are considered effective 24 hours after mailing. 13. Breach of Agreement. If there has been a breach or default under this Agreement, a party may give written notice of the breach or default to the breaching or defaulting party specifying the nature of the breach or default. The breaching or defaulting party shall then have forty-five (45) days to cure or remedy the breach or default or, if the breach or default is not 863069.P50 11/29/95 -5- reasonably susceptible to cure or remedy in that forty-five day period, the breaching or defaulting party shall begin to cure or remedy within that forty-five day period and thereafter diligently prosecute the cure or remedy to completion. No party shall take any action or seek any judicial remedy for a breach or default under this Agreement until it has provided the written notice and opportunity to cure specified in this section. 14 . Attorneys Fees. In any litigation between the parties tho this Agreement concerning or arising out of this Agreement, the prevailing party shall be entitled to recover its attorneys fees. 15. Inadmissibility of Agreement. In the event this Agreement fails to become effective or ceases to be effective for any reason, then, notwithstanding anything to the contrary in Evidence Code sections 1152 and 1600, neither this Agreement nor any prior drafts or negotiations with respect to this Agreement shall be admissible as evidence in any proceeding or litigation for any purpose, except to prove the terms of this Agreement. 16. Incorporation by Reference. The parties agree that the recitals are incorporated and made a part of this Agreement. 17 . Integration. This Agreement contains the entire agreement between the parties concerning the subject matter herein, and supersedes, terminates, cancels and replaces any and all previous negotiations and agreements between the parties, whether oral or written, concerning the lawsuit and all matters which could have been raised by parties adverse to the Agency or City or challenging the validity of the Ordinance or the Redevelopment Plan. 18. Amendment. This Agreement may be amended at any time by any instrument in writing with the consent of the parties to this Agreement. 863069.P50 11/29/95 -6- IN WITNESS WHEREOF, this Agreement is executed by the parties: CITY OF LAFAYETTE COUNTY OF CONTRA COSTA a municipal corporation a political subdivision of the State of California by: by: Payor) Judy Garvens Ch rperson Dated: 1995 Dated: ATTEST: ATTEST: City Cler sa M. Jusai ti s Clerk CITY COUNCIL OF THE COUNTY OF CONTRA COSTA CITY -jGf LAFAYETTE FIRE PROTECTION DISTRICT B By: Authorized Representative Authorized Representative Dated: , 1995 Dated: O / -O 9 , 199 j� � LAFAYETTE REDEVELOPMENT COUNTY OF CONTRA COSTA FLOOD Agency CONTROL DISTRICT By: By: _ Authorized Representative Autho ized Repre ntative Dated: , 1995 Dated: ei i - 6'9 , 199x(0c= 863069.P50 11/29/95 -7-