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HomeMy WebLinkAboutMINUTES - 12052006 - C.42 SEL TO: BOARD OF SUPERVISORS �?�-'----_----����' Contra FROM: John Cullen, County Administrator �, ua Ex Costa DATE: December 5, 2006 SrA cesri County SUBJECT: Authorize the County Administrator to Sign Clarification of Settlement Agreement with City of Lafayette SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: APPROVE and AUTHORIZE the County Administrator to sign letter clarifying terms of settlement agreement with Lafayette Redevelopment Agency. FISCAL IMPACT: No impact. BACKGROUND: The County and the Lafayette Redevelopment Agency (LRDA) entered into a Settlement Agreement on January 9, 1996 in connection with the formation of the Lafayette Redevelopment Project. The terms of this agreement and many of the goals and projects set out in the agreement have been successfully achieved due to the cooperation of the C and the LRDA since that time. CONTINUED ON ATTACHMENT: YES SIG TURE: ✓ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATIOh OF BOARD COMMITTEE ✓APPROVE OTHER SIGNATURE(S): "'e ACTION OF BO D N ( [� APPROVED AS RECOMMENDED _ OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. UNANIMOUS(ABSENT ) AYES: NOES: ABSEVT- ABSTAIN: Sri;IiVv Contact: Dorottty soe i009)�� cc: County Administration ATTESTED CCC Redevelopment AgencyZ62 ULLEN,CCLERK OF THE BOARD OFSUPERVISORS BY: '{ DEPUTY Page 2 of 2 A technical issue arose with the agreement which required clarification and agreement between the County and the LRDA. The agreement generally limits "Countable Tax Increment Revenue" received by the LRDA to a cumulative $75 million cap. This amount does not, however, include tax increment expended by the LRDA on projects that are considered mutually acceptable by both the County and the LRDA. The bond counsel for the LRDA requested clarification of what was considered. "countable" against the cap and what was not. So that the LRDA can have the certainty required in order to access the bond market for future projects, the LRDA requested that written clarification of the language contained in the Settlement Agreement. Both the Lafayette Redevelopment Agency and the County Counsel have agreed to the attached language in concept. To formalize the clarifying language, authorization is being requested to allow the County Administrator to sign the attached "Clarification of Settlement Agreement' on behalf of the County. LAFAYETTE REDEVELOPMENT AGENCY LETTER OF CLARIFICATION OF SETTLEMENT AGREEMENT I. The following tax increment revenues are considered to be "Countable Tax Increment Revenue" and subject to the $75 million cap: a. Tax increment revenue used to pay for all redevelopment projects other than"mutually acceptable projects." b. Tax increment revenue used to pay for debt service attributable to all redevelopment projects other than mutually acceptable projects." C. The first $15 million of tax increment paid into the Agency's low-and- moderate income housing fund (20% of the first $75 million of tax increment collected.) d. Statutory pass-through payments to taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on the first $75 million of tax increment collected. II. Tax increment revenues collected for the purposes described below are not considered to be "Countable Tax Increment Revenue." These funds are not subject to the $75 million cap: a. Tax increment revenue used to pay for"mutually acceptable projects" of the redevelopment agency. b. Tax increment revenue used to pay for debt service attributable to "mutually acceptable projects' of the redevelopment agency. C. Tax increment paid into the Agency's low-and-moderate income housing fund in excess of amount deposited in such fund pursuant to paragraph I.c. above. d. Statutory pass-through payments to other taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on tax increment collected in excess of the first $75 million as specified in paragraph I.d. above. �,,Ar: :; �. - 2 TO: BOARD OF SUPERVISORS -� SE - Contra FROM: John Cullen, County Administrator x, � Costa DATE: December 5, 2006 OST'4 COUK� County SUBJECT: Authorize the County Administrator to Sign Clarification of Settlement Agreement with City of Lafayette SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: APPROVE and AUTHORIZE the County Administrator to sign letter clarifying terms of settlement agreement with Lafayette Redevelopment Agency. FISCAL IMPACT: No impact. BACKGROUND: The County and the Lafayette Redevelopment Agency (LRDA) entered into a Settlement Agreement on January 9, 1996 in connection with the formation of the Lafayette Redevelopment Project. The terms of this agreement and many of the goals and projects set out in the agreement have been successfully achieved due to the cooperation of the C and the LRDA since that time. CONTINUED ON ATTACHMENT: YES SIG TURE: ✓ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S)11,l" ACTION OF BO D N pYi +0 0 LOP APPROVED AS RECOMMENDED i�/ OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. I UNANIMOUS(ABSENT ) AYES: NOES: C ®ABSE / ABSTAIN: 1 3 liter'\v� V L�. nso -1L Contact: Dore y S e 009) cc: County Administration ATTESTED 1 . L�- /) 5 (� CCC Redevelopment Agency JOH CULLEN, CLERK OF THE BOARD OFSUPERVISORS DEPUTY BY: Page 2 of 2 A technical issue arose with the agreement which required clarification and agreement between the County and the LRDA. The agreement generally limits "Countable Tax Increment Revenue" received by the LRDA to a cumulative $75 million cap. This amount does not, however, include tax increment expended by the LRDA on projects that are considered mutually acceptable by both the County and the LRDA. The bond counsel for the LRDA requested clarification of what was considered "countable" against the cap and what was not. So that the LRDA can have the certainty required in order to access the bond market for future projects, the LRDA requested that written clarification of the language contained in the Settlement Agreement. Both the Lafayette Redevelopment Agency and the County Counsel have agreed to the attached language in concept. To formalize the clarifying language, authorization is being requested to allow the County Administrator to sign the attached "Clarification of Settlement Agreement" on behalf of the County. LAFAYETTE REDEVELOPMENT AGENCY LETTER OF CLARIFICATION OF SETTLEMENT AGREEMENT I. The following tax increment revenues are considered to be"Countable Tax Increment Revenue" and subject to the $75 million cap: a. Tax increment revenue used to pay for all redevelopment projects other than "mutually acceptable projects." b. Tax increment revenue used to pay for debt service attributable to all redevelopment projects other than mutually acceptable projects." C. The first$15 million of tax increment paid into the Agency's low-and- moderate income housing fund (20% of the first $75 million of tax increment collected.) d. Statutory pass-through payments to taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on the first $75 million of tax increment collected. IL Tax increment revenues collected for the purposes described below are not considered to be "Countable Tax Increment Revenue." These funds are not subject to the $75 million cap: a. Tax increment revenue used to pay for "mutually acceptable projects" of the redevelopment agency. b. Tax increment revenue used to pay for debt service attributable to "mutually acceptable projects' of the redevelopment agency. C. Tax increment paid into the Agency's low-and-moderate income housing fund in excess of amount deposited in such fund pursuant to paragraph I.e. above. d. Statutory pass-through payments to other taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on tax increment collected in excess of the first $75 million as specified in paragraph I.d. above. In signing this letter, I represent and warrant to the Agency as follows: 1. That I am a duly authorized representative of the County and have the full power and authority to sign this letter and to bind the County to the terms hereof, I am a duly authorized representative of the County and have the full power and authority to sign this letter and to bind the County to the terms hereof. AGREEMENT: John Cullen, County Administrator Contra Costa County Lip, 1z-s-06�:'7 Signature Date I am a duly authorized representative of the Agency and have the full power and authority to sign this letter and to bind the Agency to the terms hereof. Steven Falk, Director Redevelopment Agency Signature Date LAFAYETTE REDEVELOPMENT AGENCY LETTER OF CLARIFICATION OF SETTLEMENT AGREEMENT I. The following tax increment revenues are considered to be "Countable Tax Increment Revenue" and subject to the$75 million cap: a. Tax increment revenue used to pay for all redevelopment projects other than "mutually acceptable projects." b. Tax increment revenue used to pay for debt service attributable to all redevelopment projects other than mutually acceptable projects." C. The first $15 million of tax increment paid into the Agency's low-and- moderate income housing fund(20% of the first $75 million of tax increment collected.) d. Statutory pass-through payments to taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on the first $75 million of tax increment collected. II. Tax increment revenues collected for the purposes described below are not considered to be "Countable Tax Increment Revenue." These funds are not subject to the $75 million cap: a. Tax increment revenue used to pay for "mutually acceptable projects" of the redevelopment agency. b. Tax increment revenue used to pay for debt service attributable to "mutually acceptable projects' of the redevelopment agency. C. Tax increment paid into the Agency's low-and-moderate income housing fund in excess of amount deposited in such fund pursuant to paragraph I.c. above. d. Statutory pass-through payments to other taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on tax increment collected in excess of the first $75 million as specified in paragraph I.d. above. it In signing this letter, I represent and warrant to the Agency,as follows: 1. That I am a duly authorized representative of the County and have the full power and authority to sign this letter and to bind the County to the terms hereof, I am a duly authorized representative of the County and have the full power and authority to sign this letter and to bind the County to the terms hereof. AGREEMENT: John Cullen, County Administrator Contra Costa County )?Ux LLD-(� Signature Date I am a duly authorized representative of the Agency and have the full power and authority to sign this letter and to bind the Agency to the terms hereof. Steven Falk, Director Redevelopment Agency Signature Date TO: BOARD OF SUPERVISORS Contra ��� �� FROM: John Cullen, County Administrator BCosta DATE: s ~ ~'4 DATE: County December 5, 2006 �°srA�o;;ii�`'A SUBJECT: Authorize the County Administrator to Sign Clarification of Settlement Agreement with City of Lafayette SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: APPROVE and AUTHORIZE the County Administrator to sign letter clarifying terms of settlement agreement with Lafayette Redevelopment Agency. FISCAL IMPACT: No impact. BACKGROUND: The County and the Lafayette Redevelopment Agency (LRDA) entered into a Settlement Agreement on January 9, 1996 in connection with the formation of the Lafayette Redevelopment Project. The terms of this agreement and many of the goals and projects set out in the agreement have been successfully achieved due to the cooperation of the C and the LRDA since that time. CONTINUED ON ATTACHMENT: YES SIG TURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATIOh OF BOARD COMMITTEE ./APPROVE OTHER SIGNATURE(S): t.� ACTION OF BO D N APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. UNANIMOUS(ABSENT ) AYES: NOES: 1 ST't ABSE ABSTAIN:IN: C'4" Contact:- Do'oie'S9no�10T09) - cc: County Administration ATTESTED CCC Redevelopment Agency JOH CULLEN,/CLERK OF THE BOARD OFSUPERVISORS BY: A. rl u/L�✓� DEPUTY I Page 2 of 2 A technical issue arose with the agreement which required clarification and agreement between the County and the LRDA. The agreement generally limits "Countable Tax Increment Revenue" received by the LRDA to a cumulative $75 million cap. This amount does not, however, include tax increment expended by the LRDA on projects that are considered mutually acceptable by both the County and the LRDA. The bond counsel for the LRDA requested clarification of what was considered "countable" against the cap and what was not. So that the LRDA can have the certainty required in order to access the bond market for future projects, the LRDA requested that-written clarification of the language contained in the Settlement Agreement. Both the Lafayette Redevelopment Agency and the County Counsel have agreed to the attached language in concept. To formalize the clarifying language, authorization is being requested to allow the County Administrator to sign the attached "Clarification of Settlement Agreement' on behalf of the County. LAFAYETTE REDEVELOPMENT AGENCY LETTER OF CLARIFICATION OF SETTLEMENT AGREEMENT I. The following tax increment revenues are considered to be"Countable Tax Increment Revenue" and subject to the $75 million cap: a. Tax increment revenue used to pay for all redevelopment projects other than "mutually acceptable projects." b. Tax increment revenue used to pay for debt service attributable to all redevelopment projects other than mutually acceptable projects." C. The first$15 million of tax increment paid into the Agency's low-and- moderate income housing fund (20% of the first $75 million of tax increment collected.) d. Statutory pass-through payments to taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on the first $75 million of tax increment collected. II. Tax increment revenues collected for the purposes described below are not considered to be "Countable Tax Increment Revenue." These funds are not subject to the$75 million cap: a. Tax increment revenue used to pay for "mutually acceptable projects" of the redevelopment agency. b. Tax increment revenue used to pay for debt service attributable to "mutually acceptable projects' of the redevelopment agency. C. Tax increment paid into the Agency's low-and-moderate income housing fund in excess of amount deposited in such fund pursuant to paragraph Lc. above. d. Statutory pass-through payments to other taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on tax increment collected in excess of the first$75 million as.specified in paragraph I.d. above. In signing this letter, I represent and warrant to the Agency as follows: 1. That I am a duly authorized representative of the County and have the full power and authority to sign this letter and to bind the County to the terms hereof, I am a duly authorized representative of the County and have the full power and authority to sign this letter and to bind the County to the terms hereof. AGREEMENT: John Cullen, County Administrator Contra Costa County Signature Date I am a duly authorized representative of the Agency and have the full power and authority to sign this letter and to bind the Agency to the terms hereof. Steven Falk, Director Redevelopment Agency Signature Date f LAFAYETTE REDEVELOPMENT AGENCY LETTER OF CLARIFICATION OF SETTLEMENT AGREEMENT I. The following tax increment revenues are considered to be"Countable Tax Increment Revenue" and subject to the$75 million cap: a. Tax increment revenue used to pay for all redevelopment projects other than"mutually acceptable projects." b. Tax increment revenue used to pay for debt service attributable to all redevelopment projects other than mutually acceptable projects." C. The first $15 million of tax increment paid into the Agency's low-and- moderate income housing fund (20% of the first $75 million of tax increment collected.) d. Statutory pass-through payments to taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on the first$75 million of tax increment collected. II. Tax increment revenues collected for the purposes described below are not considered to be"Countable Tax Increment Revenue." These funds are not subject to the $75 million cap: a. Tax increment revenue used to pay for "mutually acceptable projects" of the redevelopment agency. b. Tax increment revenue used to pay for debt service attributable to 'mutually acceptable projects' of the redevelopment agency. C. Tax increment paid into the Agency's low-and-moderate income housing fund in excess of amount deposited in such fund pursuant to paragraph I.c. above. d. Statutory pass-through payments to other taxing agencies under Health and Safety Code section 33607.5, or any successor statute, on tax increment collected in excess of the first $75 million as specified in paragraph Ld. above. In signing this letter, I represent and warrant to the Agency as follows: 1. That I am a duly authorized representative of the County and have the full power and authority to sign this letter and to bind the County to the terms hereof, I am a duly authorized representative of the County and have the full power and authority to sign this letter and to bind the County to the terms hereof. AGREEMENT: John Cullen, County Administrator Contra Costa County Signature Date I am a duly authorized representative of the Agency and have the full power and authority to sign this letter and to bind the Agency to the terms hereof. Steven Falk, Director Redevelopment Agency Signature Date