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HomeMy WebLinkAboutMINUTES - 07141987 - 1.72 To: BOARD OF SUPERVISORS FRbM: Phil Batchelor, l.�lJl Cn=tra County Administrator to DATE'. July 13, 1987 cougy SUBJECT: TAX SHARING AGREEMENT SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: Adopt first amendment to Master Property Tax Agreement between the City of Clayton and the County. , FINANCIAL IMPLICATIONS: ' The agreement would provide for the County to share a portion of its current share of property taxes in the area, and to reduce the amount shared by ten percent ",of the sales taxes generated in the area to be annexed. BACKGROUND: This agreement is the ;'result of several months of negotiations with the City of Clayton on annexation and redevelopment issues. The amendment provides for a sharing of sales tax in the area to be annexed to the City, as well as a transfer' of a portion of the County' s current - share of property tax in the area. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADM INISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE I S : _ ACTION OF BOARD ON - JU171 4-1497 _ ?'r'PROVED AS RECP.,m MIENDED x OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X 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. cc: County Administrator ATTESTED JUL 14 1987 Auditor-Controller PHIL BATCHELOR, CLERK OF THE BOARD OF Treasurer-Tax Collector SUPERVISORS AND COUNTY ADMINISTRATOR City of Clayton BY (?// M382/7-83 ����._,DEPUTY F.TRST AMENDMENT TO MASTER PROPERTY TAX TRANSFER AGREEMENT FOR ALLOCATION OF PROPERTY TAX BETWEEN THE COUNTY OF CONTRA COSTA AND CITY OF CLAYTON UPON JURISDICTIONAL CHANGES WHEREAS the County of Contra Costa (COUNTY) andthe City of Clayton (CITY) entered into-, a Master "Pro „perty Tax Transfer Agreement For Allocation Of Property Tax Between The County Of Contra Costa And The City Of Clayton Upon Jurisdictional Changes, (THE AGREEMENT) , executed by COUNTY on December 2, 1980 and by CITY on January 9, 1981; and WHEREAS COUNTY and CITY wish to amend THE AGREEMENT with reference to the pending or proposed Oakhurst and Dana Hills/Dana Ridge Annexations to CITY, legal descriptions and maps of said annexations being attached hereto as Exhibit 11A-1 and A-2" respectively (the Parties recognize the boundaries of each annexation may be modified by LAFCO) . NOW THEREFORE, COUNTY and CITY hereby agree that THE AGREEMENT is amended as it applies to the Oakhurst and Dana Hills/Dana Ridge Annexations by the addition of the following provision: "Notwithstanding anything to the contrary in THE AGREEMENT, the total amount of property tax revenue to be obtained each year by CITY from COUNTY ' S base tax and annual tax increment, asset forth in THE AGREEMENT, from the Oakhurst and Dana Hills/Dana Ridge Annexations, shall be reduced by an amount equal to 10% of all sales tax generated within the combined Oakhurst and Dana Hills/Dana Ridge Annexation territories during each tax year subsequent to annexation; provided, however, that such reduction shall not in any year exceed the total amount of property taxes accruing to CITY generated from the Oakhurst and Dana Hills/Dana Ridge Annexation territories for that year . Total sales tax revenue received by CITY ,during the proceeding tax year from the Oakhurst Dana Hills/Dana Ridge Annexation territories will be reported to the County Auditor-Controller by August 1 of each year and the Auditor-Controller shall have the right to audit CITY ' S books to verify such amount. " Along with the execution of this First Amendment, its parties intend to enter into an agreement (the Redevelopment Agreement) covering taxes levied within the Project Area to be established by the pending adoption of a Redevelopnment Plan by ordinance of the , City Council of CITY. The Project Area embraces land lying within the existing boundaries of CITY, together with land lying within the territories proposed for annexation, as to which territories County has ceded or will cede jurisdiction to CITY to conduct the redevelopment proceedings in the event the Redevelopment Plan is adopted prior to annexation. The parties intend that the Redevelopment i EXHIBIT "A-1" MAY 1 , 1987 OAt;:.HURST ANNEXATION Being a portion of Sections 11 . 13. 24, and all of Section 12, Township 1 North, Range 1 West , Mount Diablo Base and Meridian , more particularly described as follows: Beginning at a point on the existing boundary of the City of Clayton , said point also beinq on the existinq City of Concord boundary, said point also being the northeast corner of Lot 220 as said lot is shown on the map entitled Subdivision 4956. filed May 24, 1978, in Boob: 2211 of Maps at paqe 21 , Contra Costa County Records; thence, departinq the City of Clayton boundary and following the existing City, of Concord boundary in a northeasterly direction , 2847.25 feet , more or less. to the common northern corner of Sections'�� il and 12; thence, departinq from the City of Concord boundary and continuinq on the northerly line of Section 12, South 86 33 ' 10," East , 5254.46 feet to the northeast corner of Section12; thence South 00 29' 28" West , 5167. 22 feet alonq the easterly line of Section 12 to the southeast corner of Section 12, said point also being the northeast corner of Section 13; thence. following the easterly line of said Section 13, South 00 19' 02" West , 1733.228 feet; thence, South 00 45 ' 02" East . 897. 26 feet ; thence, South 00 27 ' 02" East , 2556. 19 feet to the southeast corner of Section 13, said point also beinq the northeast corner Section 24; thence, continuinq in a southerly direction on the easterly line of Section 24, 718. 82 feet , more or less. to the northeast corner of Sub divi„sion 57-22, as shown on the map entitled Subdivision 5722, filed Auqust 6. 1984. in Book: 281 of Maps at paqe 4, Contra Costa County Records; thence, alonq the easterly line of said subdivision (281M4) , South 00 46 ' 24” West . 871 . 02 feet to the northeast corner of Parcel A, as shown on said map (281M4) ; thence, continuing in a westerly direction alonq the northerly boundary of said Parcel A, 1498. 64 feet , more or less, to the northwest corner of said Parcel A, said point beinq the southeasterly corner of Subdivision 4543 as shown on the map entitled Subdivision 4543 filed July 24, 1974 in Book. 171 of Maps at page 16. Contra Costa County Records, said point also beinq on the existinq City of Clayton boundary; 'thence, continuinq in a northwesterly direction along the existing City of Clayton boundary. 17,431 feet , more or less, to the point of beginninq. Containing 1 ,277 acres, more or less. EXHIBIT "A-1" t i e• t o IN iWbP a' tip 0 R ON - ------------------- t 1--19) [r I ■ �:a y w `I r- ...�r OO tw Y E--------- .. t t8 !;l r /I n CITY Or COwrOGO - !° oAKHLAsT ANNEXATION CITY OF CLAYTON _--- no•e••i.�.•+.a•„o. 1 EXHIBIT "A -2" DANA RIDGE DANA HILLS/ANNEXATION TO THE CITY OF CLAYTON Being a portion of sections 13, 14 and 24, Township 1 North, Range 1 West, Mount Diablo Base and Meridian, more particu- larly described as follows: Beginning at a point on the southerly boundary of the City of Clayton, said point being the northwest corner of Parcel A, as said parcel is shown on the map entitled Tract 4504 , filed August 23, 1973, in Book 162 of Maps at Page 21, Contra Costa County Records; thence, following said boundary in a clockwise direction, easterly, southerly, easterly and south- erly, 7300 feet, more or less, to the southeast corner of Parcel B, as said parcel is shown on the map entitled Tract 4018, filed April 21 , 1977, in Book 195 of Maps at Page 31 , Contra Costa County Records; thence, leaving said City boundary and following the southerly boundary of said Tract 4018 (195 MB 31) and the southerly boundary of Tract 4017, filed October 7, 1976, in Book 190 of Maps at Page 19, Contra Costa County Records, North 890 271 37" West, 1020. 00 feet 'to the southwest corner of said Tract 4017 (190 MB 19) ; thence, following the westerly boundary of said' Tract 4017 (190 MB 19) and the westerly boundary of Tract 4019 and 3576 as filed March 25, 1977, in Book 194 of Maps at Page 50 and filed February 11 , 1970, in Book 129 of Maps at Page 26, respectively, y, Contra Costa County Records, North 0° 13' 17" East, 1781 .00 feet to an angle point in said boundary; thence, westerly, continuing along the boundary of said Tract 3576 (129 MB 26) and the southerly boundaries of Tracts 4015, 4012 and 4504 asi; filed July 5, 1973, in Book 158 of Maps at Page 28, and May 19, 1971, in Book 137 of Maps at Page 15, and August 23, 1973, in Book 162 of Maps at Page 21 , respectively, Contra Costa Records, 1691 . 42 feet to the westerly boundary of said Tract 4504 (162 MB 21) ; the northerly, along said westerly boundary, 2687 . 92 feet to the Point of Beginning. Containing 235 Acres, more or less. ,� .. �, Oj�.•� �. ,yrs► � 1► ♦♦'"�, � .♦ �► Am ©+ ! �► y.�i�Me� r� _BON! z_ VA mms w,�' ���� � y � .�� ��r--r � � u � `fir" �R'.=•. � ,� � ��'; is iar VAR �, .� y�. ��, t!►;� � *-� +ate . ,- t , � � ��':--�' :Voi WORM -74 44. w AM -��� �� �� �''�'4',ad�► �� �► ♦:;�►v � it/x'1'1/1► � . r ■ ■■ ■ o ► - � ' wmm ■ 'WI. R. '�moi► �����M4� Agreement shall apply exclusively to the allocation and payment of taxes pursuant ,,to subdivision (b) of Section 33670 of the Health & Safety Code; and the parties intend that this amendment shall apply to the allocation and payment of all other taxes to be ; levied within the territories now pending for annexation to CITY, including taxes to be levied within the Project Area and to be allocated and paid pursuant to subdivision (a) of said Section 33670. JUL 14 1987 / Dated• Chair , Board o S pervisors i Dated: 71161,61 YY�' May r, Clayton City Council .Approved as to form: Dated: 7-rS-�S7 - s Co Counsel Dated -A t �.; � Clayton City Atto ey 0633h ITY- LATTT._ Founded 1837.,.—kc,orporated 1964 .p P.O.BOX 280 • CLAYTON, CALIFORNIA 94517 City Council TELEPHONE 672-3622 JAMES C.PARSONS,Mayor (� ANN HALL,Vice Mayor July1 5 1 9 8 7 CAROLYN F. BOVAT Y O ROY F.HAwES GREGORY J.MANNING ILI contra Ft!- MS. Kerry Harms County Administrators Office Administration Building `�� 651 Pine Street Martinez, CA 94553 Dear Ms. Harms: Enclosed please find four (4) certified copies of Resolution No. 34-87 and four (4) certified copies of Resolution No. 87-11 both authorizing the the execution of Agreement Con- cerning Tax Increment from the Clayton Redevelopment Project Area. Enclosed also are six (6) copies of the "Agreement Concerning Tax Increment from the Clayton Redevelopment Project Area" executed by the City Council and Redevelopment Agency of the City of Clayton. Jim Hildabrand, Attorney for the Redevelopment Agency, said your office would handle other signatures required on this document. If you have any problem with this please let me know. Sincerely, Ruth A. Scott City Clerk Enclosures a/;s RS/s -7 To. BOARD OF SUPERVISORS FROM: Phil Batchelor, County Administrator Cn���,,,}}`�,� WLQ DATE'. July 8, 1987 CO �' SUBJECT; TAX INCREMENT FINANCING AGREEMENT WITH �' „� THE CLAYTON REDEVELOPMENT AGENCY SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION• Approve the attached agreement between the County and the Clayton Redevelopment Agency, which provides for redevelopment increment pass through to the county agencies governed by the Board. FINANCIAL IMPLICATIONS: There are differing. financial implications for each agency, but all will receive either direct pass through funds, or projects benefitting their services, which equal or exceed the value which would accrue to each entity if no redevelopment took place. BACKGROUND: Discussions and negotiations have been going on with the Clayton Redevelopment Agency for the past nine months. The County and the Agency approached the negotiations from a perspective of wanting to provide a redevelopment project to enhance the City of Clayton as well as to protect County financial interests. This agreement has been reached in conjunction with an annexation agreement with the City, which is „ also on the July 14 agenda. CONTINUED ON ATTACHMENT: _ YES SIGNATURE; RECOMMENDATION OF COUNTY,'ADMINISTRATOR RECOMMENDATION O BOALLLRD COMMITTEE APPROVE OTHER SIGNATURE S : ACTION OF BOARD ON A?PROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X 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 DATQQE��SHOWN. CC: County Administrator ATTESTED JUL � � IOU Auditor-Controller PHIL BATCHELOR, CLERK OF THE BOARD OF Treasurer-Tax Collector SUPERVISORS AND COUNTY ADMINISTRATOR City of Clayton BY ,DEPUTY M382/7-83 — AGREEMERT CONCERNING TAX INCREMMT FROM THE CLAYTON REDEVELOPMENT PROJECT AREA This is an Agreement between the Redevelopment Agency of the City of Clayton ("Agency") , the City of Clayton ("City") , the County of Contra Costa ("County") , the Contra Costa County Library District ("Library District") , the Contra Costa County Flood Control and Water Conservation District ("Flood Control District") and the Contra Costa County Consolidated Fire District ("Fire District") , executed as of the lye day of , 1987. RECITALS Each of the parties enters this Agreement in awareness of the following facts: (a) Agency is in the process of preparing a redevelopment plan ("Plan") pursuant to the California Community Redevelopment Law (the "Law") set forth in Section 33000 and following of the Health and Safety Code. The Plan applies to an area known as the Clayton Redevelopment Project Area ("Project Area") which is comprised of land lying partially within the present boundaries of City and partially within unincorporated portions of the County adjacent to City. Authority to conduct redevelopment in the unincorporated portions of the Project Area pending their annexation to City has been or will be conferred on City and Agency by County pursuant to the Law. DUPLICATE -ORIGINAL (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. (c) The county, the Library District, the Flood Control District and the Fire District are taxing agencies (hereinafter collectively sometimes referred to as the "Taxing Agencies") , each of which has territory within the Project Area. Upon adoption of the Plan by ordinance of the City Council of the City of Clayton, the respective territories of the Taxing Agencies will be subject to the tax increment financing provisions of the Plan. (d) Meetings have been held by the parties at which the Taxing Agencies have expressed concern over the fiscal impact of the Plan and the burden or detriment they anticipate experiencing because of the allocation of tax increment monies to implement the Plan. . (e) The parties hereto deem it appropriate to agree upon an allocation and distribution of. tax increment monies and certain related matters to alleviate the financial burden that would be caused by implementation of the Plan through a net increase in the quantity and quality of services which the Taxing Agencies are expected to provide to the Project Area. It is for this reason, and to amicably resolve any differences regarding the Plan, that the parties enter into this Agreement. -2- NOW, THEREFORE, the parties do agree as follows : Section 1. Allocation of Portions of Tax Increment. 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 Agency pursuant to subdivision (b) of Section 33670 of the Health and Safety Code and more particularly with respect to the portions of such taxes that but for the provision for tax increment financing in the Plan. would have been allocated and paid to County, to Library District, to Flood Control District or to Fire District (such portions hereinafter sometimes referred to as the "County Share", the-- "Library District .'Share", the "Flood Control District Share" and the "Fire District Share", respectively). The amounts of the County Share, the Library District Share, the Flood Control 'District Share and the Fire District Share to be allocated and paid to each of those respective Taxing Agencies pursuant to this Agreement, shall be determined as follows : A. Payments Based on Annual Inflation Factor. There shall be allocated and paid annually during the life of this Agreement to County, to Library District, .to Flood Control District and to Fire District, their pro rata portions of the tax revenues, if any, that are attributable to increases in the assessed value of the taxable property in the Project Area, as the assessed value is established by the assessment roll last equalized prior to the effective date of, City's ordinance adopting the Plan, which increases are calculated annually pursuant to subdivision (f) of -3- Section 110.1 of the Revenue and Taxation Code; provided that, in computing Library District's portion, the annual inflation factor that shall be used is not to exceed three percent (3 %) in lieu of the not to exceed two percent (2%) that would otherwise be applied under the Revenue and Taxation Code. B. Special Provisions Pertaining to Library District (1) The Plan provides that Agency is to construct a library to be owned and operated by Library District. By this Agreement, Agency undertakes to contribute funds in the amount set forth in the Plan for the construction of the library in accordance with the Plan. Agency shall have no obligation with respect to the operation or staffing of the facility after such contribution has been made. However, in the event Agency shall not have constructed the library by the end of Fiscal Year 2001-2002, Agency shall provide Library District the sum of $400,000.00 to be used by Library District for library purposes serving the Clayton area, such sum to be provided in Fiscal Year 2002-2003 or as soon as possible thereafter subject only to Agency's prior obligations to pay debt service on its outstanding bonds and to make the other payments required by this Agreement. If any amount of the $400,000.00 shall not have been paid to Library District by the end of Fiscal Year 2001-2002, such amount shall bear interest at the rate paid by the State of California Local Agency Investment Fund until paid. (2) Commencing with the Fiscal Year 2012-2013 and continuing for each fiscal year thereafter during the life of -4- • the Plan, one hundred percent (100%) of the Library Share (inclusive of any ,payment to which Library District might have been entitled under subsection A of this section) shall be paid to Library District. C. Special Provisions Pertaining to Flood Control District. The Plan provides that Agency is to construct certain improvements within the jurisdiction of Flood Control District. By this Agreement, Agency undertakes to construct such improvements in accordance with the Plan. Agency shall have no further obligation with respect to such improvements after construction. Agency agrees not to amend the Plan to change the provisions regarding the flood control improvements without the written consent of Flood Control District. ' D. S',pecial Provisions Pertaining to Fire District. (1) City and/or Agency undertakes to donate or cause to be donated to Fire District land of a suitable size and in a suitable location for a fire station, as determined by mutual agreement of City,;] Agency and Fire District. Beyond the provision of such site neither City nor Agency shall have any further responsibility in the matter. (2) During the negotiations that preceded .this Agreement, City agreed that one element of City's performance of the Agreement would be its enactment of an ordinance establishing a fire district faci1ities fee to be imposed on developers of real property, consistent with the authority conferred on cities in California under state law to impose such a fee. By execution of -5- this Agreement, City affirms that it hasperformed this element of City's perfermance under the Agreement. (3) Following construction of the fire station, Fire District may re-examine the issue of whether Fire District is then suffering a financial burden or detriment as a result of the redevelopment project activity. If such financial burden or detriment exists, Fire District and Agency shall negotiate in good faith toward solutions that would alleviate the burden or detriment; such negotiations shall take into consideration that the contractual burdans assumed by City and Agency in (1) and (2) above were intended by the parties to mitigate financial burden or detriment. E. Special Provisions Pertaining to County. ' (1) Commencing with the Fiscal Year 1997-1998 and continuing each year thereafter through Fiscal Year 2001-2002, thirty-three and o,pe-third percent (33-1/3%) of the County Share (inclusiv±e of any "payment to which County might have been entitled under subsection A of this section) shall be paid to County. (2) Commencing with Fiscal Year 2002-2003 and continuing each year thereafter through Fiscal Year 2006-2007 sixty-six and two ;thirds percent (66-2/3%) of the County share (inclusive of any payment to which County might have been entitled under subsection A of this section) shall be paid to County. (3) Commencing with Fiscal Year 2007-2008 and continuing each year thereafter during the life of the Plan, one hundred percent (100%) of the County Share (inclusive of any -6- payment to which County might have been entitled under subsection A of this section) shall be paid to County. (4) Commencing with Fiscal Year 2012-2013 and continuing each year thereafter during the life of the Plan until paid in full , there shall be paid to County in addition to the amounts to be paid to County pursuant to (3) above, an amount equal to one-tenth (1/10th) of the "Total Amount" as that term is defined in the next sentence, without interest being charged thereon. The term "Total Amount" shall be the total -of all portions of the County Share that 'shall have been paid to Age :cy from Fiscal Year 1997-1998 through ';,Fiscal Year 2006-2007. Provided, however, that if the amount to be paid to County under this paragraph (4) , or any part thereof, is required as a payment to avoid a default or a condition of default with respect to any then outstanding tax. increment bond or bonds issued by Agency, °then County's entitlement therAto shall be deferred in accordance with the provisions set forth in the final paragraph of Section 3 of this Agreement, until such time as there is 'sufficient tax increment available to Agency for such purpose, after payments of bonds and paymentsof other amounts under this Agreement. Section 2. Subordination: (A) Agency. may request County, Library District, Flood Control District and Fire District to subordinate their rights to payment under this Agreement to allow Agency to pledge all or any portion of the tax increment revenue otherwise payable -7- to such Taxing Agencies under this Agreement in order to, secure repayment of Agency long-term indebtedness incurred for the project. For the purposes of this Agreement "long-term" shall mean in excess of five years, and "indebtedness" shall not include any indebtedness of Agency to City or other governmental agency controlled by Agency or City. County, Library District, Flood Control District and Fire District agree that their approvals of , such requests will not be unreasonably withheld provided that Agency first demonstrates to their satisfaction Agency's anticipated ability to repay such indebtedness incurred for the Project without demand being made on the payments due them 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 indebtedness, to pay 100% of actual debt service thereon, to pay Agency's obligations under this Agreement, and to pay any other obligations of Agency whether statutory or contractual which are or would be superior to Agency's obligations under this Agreement. Any such demonstration shall include, without limitation, revenue forecasts and debt service schedules. In the event that, as a result of the provisions of this Section 2, the payments to the Taxing Agencies are reduced below the amount otherwise payable to them pursuant to this Agreement, then such reductions shall be treated as an advance by the Taxing Agencies which shall be repaid by Agency. The unpaid -g_ principal balance thereof shall bear interest at the rate paid by the State of California Local Agency Investment Fund. 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, after payment of principal and interest on the bonds to which the subordination applies and payment of any other obligations which are superior to Agency's obligations under this Agreement, to repay such advances and !accrued interest. (B) Nothwithstanding A. above, from and after January 1, 2003, Agency shall not issue tax increment indebtedness unless the Agency shall have obtained the prior written consent of County to the subordination of that portion of the County Share described in Section 1. E. (14) of this Agreement. Agency shall not issue prior to January 1, 2003, tax increment indebtedness which either provides for funds to be held in escrow subject to being withdrawn after January 1, 2003, or provides for debt service beyond January 1, 2003 that is not substantially level. Section 3. Increases in Shares. The parties recognize that the pro rata amount of the tax increment revenues that County, Library District, i,Flood Control District or Fire District would have received if there were no provision in the Plan for the allocation of tax increment revenues to Agency could be increased by amendment to existing State law. Therefore, it is agreed that, in the event Agency desires to incur long-term bonded indebtedness to be secured by tax increment revenues, Agency may project its tax increment revenues and incur such long-term bonded indebtedness -9- based upon the pro rata amounts payable to County, Library District, Flood Control District and Fire District pursuant to this Agreement based upon State law in existence at the time such long- term indebtedness is incurred. In the event State law is amended after Agency has incurred such long-term indebtedness, to increase the combined pro rata amounts of tax increment revenues that would be payable to County, to Library District, to Flood Control District and to Fire District in accordance with this Agreement, then .such additional amounts of the tax increment revenues shall be payable to County, to Library District, to Flood Control District and to Fire District in accordance with this Agreement unless Agency needs such additional amounts to avoid a default or condition of default on such long- term bonded indebtedness. Agency's obligation to . pay such additional amounts to the Taxing Entities shall be subordinate to Agency's obligation to pay debt service on its long-term bonded indebtedness. 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 Taxing Entities pursuant to this Agreement, then such reduction shall be treated as an advance by the Taxing Agencies which shall be repaid by Agency. The unpaid principal balance thereof shall bear interest at the rate paid by the State of California Local Agency Investment Fund. The advances and accrued interest shall be repaid as promptly as possible, and in any event Agency shall use all tax increment legally available -10- to repay such advances and accrued interest. Section 4. In Lieu Payments. If Agency acquires any property within the Project Area which property was not exempt from property taxes on the assessment roll last equalized prior to adoption of the P1 an and which property is acquired for purposes other than use for facilities or buildings .which are publicly owned or for low or very' low-income housing, then, for all or part of each fiscal year Agency owns such property, it shall pay to the Taxing Entities an amount in lieu of property taxes. The annual in lie!: payment to each of the Taxing Agencies shall be the amount of property taxes the Taxing Agency would have received with respect to the property acquired by Agency if such property had remained on the property tax assessment rolls and the Plan did not include a provision permitting allocation of taxes to the Agency pursuant to Health and Safety ' Code Section 33670. ,, Section 5. Waiver by Agency. Agency hereby waives and . relinquishes to the Taxing Agencies any right that it might otherwise have in the respective payments to be made to the Taxing Agencies under Section l of this Agreement arising under Section 33670 (b) of the Health and Safety Code. Agency, County, Library District, Flood Control District and Fire District hereby request and direct the County Controller and County Auditor to allocate and pay directly to the Agency, County, Library District, Flood Control District and Fire District the payments to which each is entitled under Section 1 of this Agreement. -11- It is intended by the parties that by Agency's waiving its rights to be allocated and paid the aforesaid portions of the levied taxes, and the parties' directing that such portions of the levied taxes be paid directly to the Taxing Agencies as set forth above, that such portions of the levied taxes not be considered to have been received, constructively or otherwise, by Agency, or to be revenues of Agency, or an indebtedness of Agency required to be set forth in any Agency statement thereof filed pursuant to Health and Safety Code Section 33675 (b). In the event that pursuant to court order such waiver and relinquishment by the Agency is declared invalid, then Agency agrees that it will claim the amounts it is_ obligated to pay pursuant to this Agreement on its statement of indebtedness filed with the County Auditor-Controller pursuant to Health and Safety Code Section 33675 and pay the amounts owing to the Taxing Agencies immediately following receipt of funds pursuapt to the statement of indebtedness and Health and Safety Code Section 33670. In the event that in any fiscal year the claim on a statement of indebtedness of the amounts owing pursuant to this Agreement causes Agency to incur monetary obligations and the amount of such obligations for that year when added to the amount owing under this Agreement for that year and the debt service for that year 'on indebtedness to which Agency's payment obligations under this Agreement are subordinate pursuant to Section 2 or Section 3 above is in excess of the amount of tax increment payable to the Agency for that year pursuant to Health and Safety Code -12- Section 33670, then the amount Agency pays the Taxing Agencies pursuant to this Agreement for that year may be reduced by the amount necessary to pay in full such monetary obligations and such debt service. Any such reduction shall be treated as an advance by the Taxing Agenc ie,s which shall be repaid by Agency. The unpaid _ principal balance ',thereof shall bear interest at the rate paid by the State of California Local Agency Investment Fund. The advances and accrued interest shall be repaid as promptly as possible, and in any event Agency shall use all tax increment legally available to repay such advances and accrued interest. Section 6. Reimbursement of Expenses. Agency agrees to reimburse County for any expenses incurred by County in performing any of the services required to be performed by County for Agency pursuant to Health and Safety Code Sections 33670, 33675 and 33676. Section 7. Effective Date. This Agreement shall be effective only if the City Council of City by August 20, 1987 shall have adopted an ordinance adopting the Plan. In the event litigation is initiated attacking the validity of the proposed Plan, the Project or the ordinance, 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. Section 8. . No Litigation. County, Library District, Flood Control District and Fire District agree not to file or engage in any litigation to directly or indirectly challenge the validity of the Project or Plan or the ordinance so long as they are not -13- inconsistent with this Agreement. Agency and City agree not to file or engage in any litigation to directly or indirectly challenge this Agreement. Section 9. Scope of Agreement. The parties acknowledge that they intend to enter contemporaneously one or more other agreements in connection with the pending annexation by City of certain unincorporated territories, covering the subject of the sharing of taxes among the parties following completion of such annexations. This agreement shall control the other agreements with respect to the allocation and payment of tax revenues pursuant to subsection (b) of Section 33670 of the Health and Safety Code. COUNTY : CITY/AGENCY : COUNTY OF CONTRA COSTA REDEVELOPMENT AGENCY OF THE CITY OF C LAY TON CONTRA COSTA COUNTY LIBRARY DISTRICT B B Y G �'u � �� . Y Chairman, Board of Supervisors CONTRA COSTA COUNTY ATTEST: FLOOD CONTROL AND, WATER CONSERVATION DISTRICT By: lef 5 neer Secretary -14- i ATTEST: PHIL BATCHELOR, CLERK THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CITY OF CLAYTON By: C. By: QIL Deputy ''Clerk Mayor ATTEST: City Clerk CONTRA COSTA COUNTY CONSOLIDATED FIRE DISTRICT By ' Approved as to form: Victor J. W„ n Co De ty 500-002 -15-