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HomeMy WebLinkAboutMINUTES - 05081990 - 1.7 (2) • _ 1. 70 THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUN'T'Y, CALIFORNIA Adopted this order on May 8, 1990 , by the following vote: AYES: Commissioners Powers, Schroder, McPeak, Torlakson and Fanden NOES: None ABSENT: None ABSTAIN none -------------------------------------------------------------------------- RESOLUTION NO. RA 90-1 SUBJECT: Authorization of Execution of Fiscal Agreement with the Contra Costa Mosquito Abatement 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 Rodeo 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 Contra Costa Mosquito Abatement 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 Rodeo 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 is necessary to alleviate the burden or 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 Rodeo Redevelopment Project prepared by the Agency and submitted to the Board pursuant to Health and Safety Code Section 33352, 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 appropriate 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 beginning ten (10) years following the adoption of the Redevelopment Plan a one hundred percent ( 100°%) of the Districts' 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 . RA 90-1 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 or his designee to execute the Agreement on behalf of the Agency. cc: Redevelopment Agency Contra Costa Mosquito Abatement District County Counsel County Administrator SRA2/jb/mosgabtm.res 1 hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Redevelopment Agency on the date shown. ATTESTED: PHIL XT ELOR,Agency Secretary J By Deputy RA 90-1 AGREEMENT TO ELIMINATE POTENTIAL FISCAL BURDEN OR DETRIMENT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401 THIS AGREEMENT (the "Agreement" ) is made an entered into this day of 'A, 1990, by and between the REDEVELOPMENT AGENCY OF THE COUNTY OF CONTRA COSTA (the "Agency" ) and the CONTRA COSTA MOSQUITO ABATEMENT DISTRICT (the "District" ) . RECITALS Each of the parties enters this Agreement in awareness of the following facts: (a) The Agency is in the process of preparing a redevelopment plan (the "Plan" ) for the redevelopment of an area within the unincorporated portion of Contra Costa County, pursuant to the California Community Redevelopment Law set forth in Section 33000 and following of the Health and Safety Code. The area has been designated as the Rodeo Redevelopment Project Area (the "Project Area" ) and is described in the attached Exhibit A. The redevelopment project has been designated as the Rodeo Redevelopment Project (the "Project" ) . (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 District is a taxing agency with territory located within the Project Area. Upon adoption of the Plan by ordinance of the Board of Supervisors of Contra Costa County, the territory of the District within the Project Area will be subject to the tax increment financing provisions of the Plan. (d) Meetings have been held by the parties at which the District has expressed concern over the fiscal impact of the Plan and the burden or detriment it anticipates experiencing because of the allocation of tax increment monies to implement the Plan. (e) Health and Safety Code Section 33401(b) provides that the Agency may pay to any affected taxing agency an amount of money which in the Agency' s determination is necessary to alleviate any financial burden or detriment caused to any taxing agency by a redevelopment project. (f) The Agency has determined that payments of tax increment revenue to the District as set forth below are necessary to alleviate the burden and detriment caused to the District by the Plan. MEN A (g) In consideration of this Agreement setting forth the obligations, of the Agency, the District agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the project or redevelopment plan or ordinance. Agency and District do hereby agree as follows: Section 1. Definitions: (a) "Tax Increment Revenue" means the property tax revenue allocated to and received by the Agency pursuant to Health and Safety Code Section 33670 (b) and Part VII (C) of the Redevelopment Plan attributable to increases in the assessed value of the property within the Project Area as shown on the 1989-90 assessment roll which otherwise would be received by the County pursuant to the Countywide 1% tax. (b) "District' s Share" means the proportionate amount of the Countywide 1% tax 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. At the time of this Agreement, the District' s Share is 0. 2791%. Section 2 Payments to District: The Agency shall pay to the District a portion of the Tax Increment Revenue received by the Agency as follows: (a) Beginning ten ( 10) years following adoption of the Redevelopment Plan, and continuing throughout the life of the Project, 100% of the District' s Share. Section 3 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 "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 Section 3 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 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. However, nothing precludes Agency from paying to the District the full amount of District' s share rather than. a Partial TIR Installment. Section 4. The obligation of the Agency to make payments pursuant to Section 3 of this Agreement shall be subordinate to the Agency' s obligation to make payments of principal, interest or other amounts on or in connection with bonds, notes or other indebtedness issued by the Agency (other than obligations of the Agency to repay loans from the County) to finance the implementation of the Redevelopment Plan. An Agency obligation to make payments, pursuant to a reimbursement agreement or similar agreement, to reimburse or otherwise compensate a person or entity who has or is obligated to make payments of principal, interest or other amounts on bonds, notes or other indebtedness issued by the Agency to finance the implementation of the Redevelopment Plan shall be deemed to be an obligation in connection with such bonds, notes or other indebtedness for purposes of this Agreement. Section 5. Notwithstanding any other provision in 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 the' California Construction; or (c) Which would be contrary to the provisions of Section 33401 of the Community Redevelopment Law or violate any other provision of the Community Redevelopment Law or the laws of the State of California. Any excess amounts under subsections (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 6. This Agreement shall constitute an indebtedness of the Agency incurred in carrying out the Project and a pledging of tax increments from the Project to repay such indebtedness under the provisions of Article XVI , Section 16 of the California Constitution and Sections 33670 et seq of the Health and Safety Code and to alleviate any financial burden or detriment as permitted by Section 33401 of the Health and Safety Code. Section 7 . The District acknowledges and agrees that the obligations to be undertaken by the Agency pursuant to this Agreement will effectively eliminate any potential financial burden or detriment to the District that would otherwise be caused by the adoption of the Redevelopment Plan. In consideration of this Agreement setting forth the obligations of the Agency, the District agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the project or redevelopment plan or ordinance, including but not limited to, instituting or joining in litigation; and the Agency recognizes this as good and legal consideration. Section 8. This Agreement shall be effective as of the date that the ordinance enacted by the Board of Supervisors of the County of Contra Costa adopting the Redevelopment Plan (the "Ordinance" ) for the Project becomes effective and shall terminate upon the earlier of (a) the expiration of the Redevelopment Plan, or (b) the filing of an action in a court of competent jurisdiction by any person or entity challenging the adoption of the Redevelopment Plan or any of the proceedings in connection therewith. Following termination, none of the parties shall have any further rights or obligations under this Agreement. Section 9. 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. Agency and District agree not to file or engage in any litigation to directly or indirectly challenge this agreement. Section 10. This Agreement constitutes the entire agreement of the parties with respect to the subjects covered herein. IN WITNESS WHEREOF, the Agency and the District have executed this Agreement as of the date first above written. REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY Approved as to Form: By: Agency Counsel GR14/JB/mosabtmt.agr EKN� o�7 Q 1. 70 THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this order on May 8, 1990 , by the following vote: AYES: Commissioners, Powers, Schroder, McPeak, Torlakson and Fanden NOES: None ABSENT: None - ABSTAIN:None -------------------------------------------------------------------------- -------------------------------------------------------------------------- RESOLUTION NO. RA 90-2 SUBJECT: Authorization of Execution of Fiscal Agreement with the Rodeo-Hercules Fire Protection 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 Rodeo-Hercules 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 Rodeo-Hercules Fire Protection 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 Rodeo- Hercules 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 Fire 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 Rodeo Redevelopment Project prepared by the Agency and submitted to the Board pursuant to Health and Safety Code Section 33352, 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 one hundred percent ( 1000) 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. RA 90-2 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 informa- tion 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 or his designee to execute the Agreement on behalf of the Agency. cc: Redevelopment Agency Rodeo-Hercules Fire Protection District County Counsel County Administrator SRA2/jb/Oakleyfd.res 1 hereby certify that this Is a true and correct copy of an action taken and entered on the minutes of the Redovebpme t gency on the data shown. ATTESTED: 1q2T) _ PHI WAHZELOR,AgencySecretary By Deputy RA 90-2 AGREEMENT CONCERNING TAX INCREMENT FROM RODEO REDEVELOPMENT PROJECT AREA This is an Agreement between the Contra Costa County Redevelopment Agency (the "Agency") , and the Rodeo Fire Protection District (the "Fire District") , executed as of this day of 1990 RECITALS Each of the parties enters this Agreement in awareness of the following facts: (a) The Agency is in the process of preparing a redevelopment plan (the "Plan") for the redevelopment of an area within the unincorporated portion of Contra Costa County, pursuant to the California Community Redevelopment Law set forth in Section 33000 and following of the Health and Safety Code. The area has been designated as the Rodeo Redevelopment Project Area (the "Project Area") and is described in the attached Exhibit A. The redevelopment project has been designated as the Rodeo Redevelopment Project (the "Project") . (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 Fire District is a taxing agency with territory located within the Project Area. Upon adoption of the Plan by ordinance of the Board of Supervisors of Contra Costa County, the territory of the Fire District within the Project Area will be subject to the tax increment financing provisions of the Plan. (d) Meetings have been held by the parties at which the Fire District has expressed concern over the fiscal impact of the Plan and the burden or detriment it anticipates experiencing because of the allocation of tax increment monies to implement the Plan. (e) Health and Safety Code Section 33401(b) provides that the Agency may pay to any affected taxing agency an amount of money which in the Agency's determination is necessary to alleviate any financial burden or detriment caused to any taxing agency by the Plan. (f) The Agency has determined that payments of tax increment revenue to the Fire District as set forth below are necessary to alleviate the burden and detriment caused to the Fire District by the Plan. (g) In consideration of this Agreement setting forth the obligations of the Agency, the Fire District is foregoing the right to contest the establishment of the Plan and the Project Area for the Project. NOW, THEREFORE, the parties do agree as follows: Section 1. Payments to the Fire District. (1) 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 the Agency pursuant to Health and Safety Code Section 33670 (the "Tax Increment") and more particularly with respect to the portions of such Tax Increment that but for the provision for tax increment financing in the Plan would have been allocated and paid to the Fire District (such portion hereinafter sometimes referred to as the "Fire District Share") . (b) One hundred percent (100%) of the Fire District Share of the Tax Increment from the Project Area shall be paid to the Fire District each year pursuant to the terms of this Agreement. (c) The Agency agrees that it will claim the amounts it is obligated to pay to the Fire District pursuant to this Section 1 on its Statement of Indebtedness filed with the County Auditor-Controller pursuant to Health and Safety Code Section 33675. To facilitate administration of payments pursuant to this Agreement, the Agency and the Fire District agree that in lieu of the County Auditor-Controller making payments to the Agency pursuant to Health and Safety Code Section 33670 and the Agency then making payments pursuant to this Agreement to the Fire District, the County Auditor-Controller may withhold from . the amount to be paid to the Agency pursuant to Health and Safety Code Section 33670 the amounts to be paid to the Fire District pursuant to this Agreement and pay such amounts to the Fire District directly. At the request of the Agency, the County Auditor shall send to the Agency the supporting information and calculations used to determine the amounts paid to the Fire District. Section 2. Subordination. (a) The Agency may request the Fire District 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 Fire District under this Agreement in order to secure repayment of Agency long-term bonded indebtedness incurred for the Project. For the purposes of this Agreement, "long-term" shall mean in excess of five years. The Fire District agrees to comply with such requests to subordinate and to execute all documents necessary to effectuate such subordination, provided that the Agency first demonstrates, to the reasonable satisfaction of the Fire District, the Agency's anticipated ability to repay such indebtedness incurred for the Project without demand being made on the payment due the Fire District 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 bonds, to pay 100% of actual debt service on the bonds, 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. Any such demonstration shall include, without limitation, revenue forecasts and debt service schedules. URDU p (b) In the event that, as a result of the provisions of this Section 2, the payments to the Fire 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 Fire District which shall be repaid by the Agency. The unpaid principal balance thereof shall bear interest at a rate agreed upon by the Agency and the Fire District at the time the bonds to which the subordination applies are sold. 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 to repay such advances and accrued interest, after payment of principal and interest on the bonds to which the subordination applies and payment of any other obligations which are superior to the Agency's obligations under this Agreement (such as the Health and Safety Code Section 33334.2 Housing Set Aside requirement) . Section 3. Increases in Share. (a) The parties recognize that the pro rata amount of the Tax Increment that the Fire District would have received if there were no provision in the Plan for the allocation of the Tax Increment to the Agency could be increased by amendment to existing State law. Therefore, it is agreed that, in the event the Agency desires to incur long-term bonded indebtedness to be secured by Tax Increment revenues, the Agency may project its Tax Increment revenues and incur such long-term bonded indebtedness based upon the pro rata amount payable to the Fire District pursuant to this Agreement based upon State law in existence at the time such long-term indebtedness is incurred. (b) In the event State law is amended after the Agency has incurred such long-term indebtedness, increasing the pro rata amount of the Tax Increment that would be payable to the Fire District in accordance with this Agreement, then such additional amounts of the Fire District Share of the Tax Increment shall be payable to the Fire District in accordance with this Agreement unless the Agency needs such additional amounts to avoid a default or condition of default on such long-term bonded indebtedness or to discharge its statutorily created obligations (such as the Health and Safety Code Section 33334.2 Housing Set Aside requirement) . The Agency's obligation to pay such additional amounts to the Fire District shall be subordinate to the Agency's obligation to pay debt service on its long-term bonded indebtedness and its statutorily created obligations. (c) 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 Fire District pursuant to this Agreement, then such reduction shall be treated as an advance by the Fire District which shall be repaid by the Agency. The unpaid principal balance thereof shall bear interest at the lower of the following rates: (i ) the rate paid by the State of California Local Agency Investment Fund; or (ii ) the highest rate permitted by law. The advances and accrued interest shall be repaid as promptly as possible, and in any event the Agency shall use all tax increment legally available to repay such advances and accrued interest. Section 4. Decrease in Tax Increment. In the event that in any fiscal year the amount that is the total of the amount of the Agency's debt service on long-term bonded indebtedness plus amounts necessary to discharge the Agency's statutorily created obligations (such as the Health and Safety Code Section 33334.2 Housing Set Aside requirement) plus the amounts due under this Agreement exceed the actual amount of Tax Increment payable to the Agency pursuant to Health and Safety Code Section 33670, then the amount the Agency pays the Fire District pursuant to this Agreement for that year may be reduced by the amount necessary to pay in full such debt service and such statutorily created obligations. Any such reduction shall be treated as an advance by the Fire District which shall be repaid by the Agency. The unpaid principal balance thereof shall bear interest at the lower of the following rates: (i ) the rate paid by the State of California Local Agency Investment Fund; or (ii ) the highest rate permitted by law. The advances and accrued interest shall be repaid as promptly as possible, and in any event the Agency shall use all Tax Increment legally available to repay such advances and accrued interest. Section 5. Effective Date. This Agreement shall be effective only if the Contra Costa County Board of Supervisors by July 20, 1990 adopts an ordinance adopting the Plan, and the boundaries of the Project Area as described in the adopted Plan are substantially those boundaries described in the attached Exhibit A. In the event litigation is initiated attacking the validity of the proposed Plan, the Project or the ordinance adopting the Plan, 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 6. No Litigation. The Fire District agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the Project or the Plan or the ordinance adopting the Plan so long as they are not inconsistent with this Agreement. FIRE DISTRICT AGENCY RODEO-HERCULES FIRE PROTECTION CONTRA COSTA COUNTY DISTRICT REDEVELOPMENT AGENCY By: By: Its: Its: Ex-Officio Governing Board of Rodeo Fire Protection District Approved as to form: Victor J. Westman County Counsel By: Deputy RA45/jb/rodeotax.agr 1. 70 THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this order on May 8, 1990 by the following vote: AYES: Commissioners Powers, Schroder, McPeak, Torlakson and Fanden NOES: None ABSENT: None ABSTAIN: None -------------------------------------------------------------------------- -------------------------------------------------------------------------- RESOLUTION NO. RA 90-3 SUBJECT: Authorization of Execution of Fiscal Agreement with the County Office of Education 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 Rodeo 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 County Office of Education (hereinafter the "Superintendent" ) 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 Rodeo Redevelopment Project Area (hereinafter the "Project Area" ) . Pursuant to meetings and discussions between the Agency and the Superintendent, the Agency has. determined that the payment of tax increment revenue to the Superintendent as set forth below is is necessary to alleviate the burden or detriment caused to the Superintendent 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 Rodeo Redevelopment Project prepared by the Agency and submitted to the Board pursuant to Health and Safety Code Section 33352, 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 appropriate 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 Superintendent, which is attached hereto as Exhibit A and by this reference incorporated herein. The Agreement calls for the Agency beginning five ( 5) years following the adoption of the Redevelopment Plan or after construction of at least 100 residential units which create a demand for school facilities, whichever occurs first, a fifty percent ( 500) of the Superintendent' s share of the tax increment and beginning ten ( 10) years following the adoption of the Redevelopment Plan, a one hundred percent ( 100%) of the Superintendent' s share of tax increments which would have been received by the Superintendent 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. RA 90-3 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 or his designee to execute the Agreement on behalf of the Agency. cc: Redevelopment Agency County Office of Education County Counsel County Administrator RA46Jeducatn.res 1 hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Redevetopmnt ency on the date shown. ATTESTED: .L�..�.... PHI H,cLOR,Agency Secretary By Deputy RA 90-3 AGREEMENT TO ELIMINATE POTENTIAL FISCAL BURDEN OR DETRIMENT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401 THIS AGREEMENT (the "Agreement" ) is made and entered into this day of , 1990, by and between the REDEVELOPMENT AGENCY OF COUNTY OF CONTRA COSTA (the "Agency"l and the COUNTY OFFICE OF EDUCATION (the "Superintendent" ) . RECITALS Each of the parties enters this Agreement in awareness of the following facts: (a) The Agency is in the process of preparing a redevelopment plan (the "Plan" ) for the redevelopment of an area within the unincorporated portion of Contra Costa County, pursuant to the California Community Redevelopment Law set forth in Section 33000 and following of the Health and Safety Code. The area has been designated as the Rodeo Redevelopment Project Area (the "Project Area" ) and is described in the attached Exhibit A. The redevelopment project has been designated as the Rodeo Redevelopment Project (the "Project" ) . (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 Superintendent is a taxing agency with territory located within the Project Area. Upon adoption of the Plan by ordinance of the Board of Supervisors of Contra Costa County, the territory of the Superintendent within the Project Area will be subject to the tax increment financing provisions of the Plan. (d) Meetings have been held by the parties at which the Superintendent has expressed concern over the fiscal impact of the Plan and the burden or detriment it anticipates experiencing because of the allocation of tax increment monies to implement the Plan. (e) Health and Safety Code Section 33401(b) provides that the Agency may pay to any affected taxing agency an amount of money which in the Agency' s determination is necessary to alleviate any financial burden or detriment caused to any taxing agency by a redevelopment project. (f) The Agency has determined that payments of tax increment revenue to the Superintendent as set forth below are necessary to alleviate the burden and detriment caused to the Superintendent by the Plan. ENEo7A 6 Y (g) In consideration of this Agreement setting forth the obligations of the Agency, the Superintendent agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the project or redevelopment plan or ordinance. NOW THEREFORE Agency and Superintendent do hereby agree as follows: Section 1. Definitions: (a) "Tax Increment Revenue" means the property tax revenue allocated to and received by the agency pursuant to Health and Safety Code Section 33670(b) and Part VII (c) of the Redevelopment Plan attributable to increases in the assessed value of the property within the Project Area as shown on the 1989-90 assessment roll which otherwise would be received by the County pursuant to the Countywide l% tax. (b) "Superintendent' s Share" means the proportionate amount of the Countywide 1% tax that the Superintendent would have received if there were no provision in the Redevelopment Plan for the allocation of Tax Increment Revenue to the Agency. At the time of this Agreement, the Superintendent' s Share is 2%. Section 2. Payments to District: The Agency shall pay to the Superintendent a portion of the Tax Increment Revenue received by the Agency as follows. (a) Beginning five ( 5) years following adoption of the Redevelopment Plan or after construction of at least 100 residential units which create a demand for school facilities, whichever occurs first, 50% of Superintendent' s Share. (b) Beginning ten ( 10) years following adoption of the Redevelopment Plan 100% of Superintendent' s Share. Section 3 . The obligation of the Agency to make payments pursuant to Section 2 of this Agreement shall be subordinate to the Agency' s obligation to make payments of principal, interest or other amounts on or in connection with bonds, notes or other indebtedness issued by the Agency (other than obligations of the Agency . to repay loans from the County) to finance the implementation of. the Redevelopment Plan. An Agency obligation to make payments, pursuant to a reimbursement agreement or similar agreement, to reimburse or otherwise compensate a person or entity who has or is obligated to make payments of principal, interest or other amounts on bonds, notes or other indebtedness issued by the Agency to finance the implementation of the Redevelopment Plan shall be deemed to be an obligation in connection with such bonds, notes or other indebtedness for purposes of this Agreement. EAM0 7 Q Section 4. The Superintendent shall exclusively use payments received from the Agency for services to be provided for Contra Costa County School Districts. Priority will be given to the classroom and instructional support service needs of the John Swett Unified School District. Section 5. Notwithstanding any other provision in this Agreement, no payments shall be made to the Superintendent by the Agency: (a) Which would exceed the amount, annually, that the Superintendent 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 Superintendent to violate its expenditure limitations under Article XIII-B of the California Construction; or (c) Which would be contrary to the provisions of Section 33401 of the Community Redevelopment Law or violate any other provision of the Community Redevelopment Law or the laws of the State of California. Any excess amounts under subsections (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 6. This Agreement shall constitute an indebtedness of the Agency incurred in carrying out the Project and a pledging of tax increments from the Project to repay such indebtedness under the provisions of Article XVI, Section 16 of the California Constitution and Sections 33670 et seq of the Health and Safety Code and to alleviate any financial burden or detriment as permitted by Section 33401 of the Health and Safety Code. Section 7. The Superintendent acknowledges and agrees that the obligations to be undertaken by the Agency pursuant to this Agreement will effectively eliminate any potential financial burden or detriment to the Superintendent that would otherwise be caused by -the adoption of the Redevelopment Plan. In consideration of this Agreement setting forth the obligations of the Agency, the Superintendent agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the project or redeveloment plan or ordinance, including but not limited to, instituting or joining in litigation; and the Agency recognizes this as good and legal consideration. W Section 8. This Agreement shall be effective as of the date that the ordinance enacted by the Board of Supervisors of the County of Contra Costa adopting the Redevelopment Plan (the "Ordinance" ) for the Project becomes effective and shall terminate upon the earlier of (a) the expiration of the Redevelopment Plan, or (b) the filing of an action in a court of competent jurisdiction by any person or entity challenging the adoption of the Redevelopment Plan or any of the proceedings in connection therewith. Following termination, none of the parties shall have any further rights or obligations under this Agreement. Section 9. 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. Agency and Superintendent agree not to file or engage in any litigation to directly or indirectly challenge this agreement. Section 10. This Agreement constitutes the entire agreement of the parties with respect to the subjects covered herein. IN WITNESS WHEREOF, the Agency and the Superintendent have executed this Agreement as of the date first above written. Attest: REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY By: Agency Secretary Approved as to Form: unsel Attest: CONTRA COSTA OFFICE OF EDUCATION He��'icYsna fipF Sri 'nlF'Oent D�SLIfiSS Sfl4w�S By: Clerk to the Board of Education Contra Costa County RA45/jb/fisbagr.rod E 1. 70 THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this order on May 8, 1990 by the following vote: AYES:- Commissioners Powers, Schroder, McPeak, Torlakson and Fanden NOES: None ABSENT: None ABSTAIN: None -------------------------------------------------------------------------- -------------------------------------------------------------------------- RESOLUTION NO. RA 90-4 SUBJECT: Authorization of Execution of Fiscal Agreement with the Contra Costa Community College 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 Rodeo 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 Contra Costa Community College 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 Rodeo 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 is necessary to alleviate the burden or 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 Rodeo Redevelopment Project prepared by the Agency and submitted to the Board pursuant to Health and Safety Code Section 33352, 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 appropriate 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 beginning ten ( 10) years following the adoption of the Redevelopment Plan a one hundred percent ( 1000) 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. RA 90-4 A 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 or his designee to execute the Agreement on behalf of the Agency. cc: Redevelopment Agency Contra Costa Community College District County Counsel County Administrator RA46/commcol.res hereby certify that this is a Lase and correctcopy of an action taken and entered on the minutes of the Redevelopment Agency on the date shown. ATTESTt;D: �l t`� PHIL AT HELOR,Agency Secretary By Deputy RA 90-4 AGREEMENT TO ELIMINATE POTENTIAL FISCAL BURDEN OR DETRIMENT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401 THIS AGREEMENT (the "Agreement" ) is made an entered into this day of , 1990, by and between the REDEVELOPMENT AGENCY OF THE COUNTY OF CONTRA COSTA (the "Agency" ) and the CONTRA COSTA COMMUNITY COLLEGE DISTRICT (the "District" ) . RECITALS Each of the parties enters this Agreement in awareness of the following facts: (a) The Agency is in the process of preparing a redevelopment plan (the "Plan" ) for the redevelopment of an area within the unincorporated portion of Contra Costa County, pursuant to the California Community Redevelopment Law set forth in Section 33000 and following of the Health and Safety Code. The area has been designated as the Rodeo Redevelopment Project Area (the "Project Area" ) and is described in the attached Exhibit A. The redevelopment project has been designated as the Rodeo Redevelopment Project (the "Project" ) . (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 District is a taxing agency with territory located within the Project Area. Upon adoption of the Plan by ordinance of the Board of Supervisors of Contra Costa County, the territory of the District within the Project Area will be subject to the tax increment financing provisions of the Plan. (d) Meetings have been held by the parties at which the District has expressed concern over the fiscal impact of the Plan and the burden or detriment it anticipates experiencing because of the allocation of tax increment monies to implement the Plan. (e) Health and Safety Code Section 33401(b) provides that the Agency may pay to any affected taxing agency an amount of money which in the Agency' s determination is necessary to alleviate any financial burden or detriment caused to any taxing agency by a Redevelopment Plan. (f) The Agency has determined that payments of tax increment revenue to the District as set forth below are necessary to alleviate the burden and detriment caused to the District by the Plan. (g) In consideration of this Agreement setting forth the obligations, of the -Agency, the District agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the project or redevelopment plan or ordinance. Agency and District do hereby agree as follows: Section 1. Definitions: (a) "Tax Increment Revenue" means the property tax revenue allocated to and received by the Agency pursuant to Health and Safety Code Section 33670 (b) and Part VII (C) of the Redevelopment Plan attributable to increases in the assessed value of the property within the Project Area as shown on the 1989-90 assessment roll (which otherwise would be received by the County pursuant to the Countywide 1% Tax) . (b) "District's Share" means the proportionate amount of the Countywide 1% Tax 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. At the time of this Agreement, the District' s Share is 5.1098%. Section 2. Payments to District: The Agency shall pay to the District a .portion of the Tax Increment Revenue received by the Agency as follows. (a) Beginning ten ( 10) years following adoption of the Redevelopment Plan, and continuing throughout the life of the Project, 100% of the District' s Share. Section 3 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 "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 Section 3 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 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. However, nothing precludes Agency from paying to the District the full amount of District' s share rather than a Partial TIR Installment. Section 4. Subordination. (a) The Agency may request the District 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 District 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. The District agrees to comply with such requests to subordinate and to execute all documents, necessary to effectuate such subordination, provided that the Agency first demonstrates, to the reasonable satisfaction of the District, the Agency' s anticipated ability to repay such indebtedness incurred for the Project without demand being made on the payment due the District 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 1000 of actual debt service on the indebtedness, 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. Any such demonstration shall include, without limitation, revenue forecasts and debt service schedules. . (b) In the event that, as a result of the provisions of this Section 4, 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 Agency shall use all Tax Increment Revenue available to it to repay such advances and accrued interest, 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 (such as the Health and Safety Code Section 33334. 2 Housing Set Aside requirement) . Section 5. Notwithstanding any other provision in 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 the California Construction; or URDU A (c) Which would be contrary to the provisions of Section 33401 of the Community Redevelopment Law or violate any other provision of the Community Redevelopment Law or the laws of the State of California. Any excess amounts under subsections (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 6. This Agreement shall constitute an indebtedness of the Agency incurred in carrying out the Project and a pledging of tax increments from the Project to repay such indebtedness under the provisions of Article XVI , Section 16 of the California Constitution and Sections 33670 et seq. of the Health and Safety Code and to alleviate any financial burden. or detriment as permitted by Section 33401 of the Health and Safety Code. Section 7 . The District acknowledges and agrees that the obligations to be undertaken by the Agency pursuant to this Agreement will effectively eliminate any potential financial burden or detriment to the District that would otherwise be caused by the adoption of the Redevelopment Plan. In consideration of this Agreement setting forth the obligations of the Agency, the District agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the project or redevelopment plan or ordinance, including but not limited to, instituting or joining in litigation; and the Agency recognizes this as good and legal consideration. Section 8. This Agreement shall be effective as of the date that the ordinance enacted by the Board of Supervisors of the. County of Contra Costa adopting the Redevelopment Plan (the "Ordinance" ) for the Project becomes effective and shall terminate upon the earlier of (a) the expiration of the Redevelopment Plan, or (b) the filing of an action in a court of competent jurisdiction by any person or entity challenging the adoption of the Redevelopment Plan or any of the proceedings in connection therewith. Following termination, none of the parties shall have any further rights or obligations under this Agreement. Section 9. 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. Agency and District agree not to file or engage in any litigation to directly or indirectly challenge this agreement. Section 10. This Agreement constitutes the entire agreement of the parties with respect to the subjects covered herein. IN WITNESS WHEREOF, the Agency and the District have executed this Agreement as of the date first above written. REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY Approved as to Form: By: � cy C 1 CONTRA COSTA COMMUNITY COLLEGE DISTRICT By: � YZtiy'-� William P. Moses President, Governing Board BL:krc C:mosabtmt.agr GR14/JB/mosabtmt.agr 1. 70 THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this order on May 8, 1990 by the following vote: AYES: Corin-issioners Powers, Schroder, McPeak, Torlakson and Fanden NOES: None ABSENT: None ABSTAIN: None - ------------------------------------------------------------------------- --------------------------------------------------------------------------- RESOLUTION. NO. RA 90-5 SUBJECT: Authorization of Execution of Fiscal Agreement with the East Bay Regional Park 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 Rodeo 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 East Bay Regional Park 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 Rodeo 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 is necessary to alleviate the burden or 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 Rodeo Redevelopment Project prepared by the Agency and submitted to the Board pursuant to Health and Safety Code Section 33352, 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 appropriate 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 beginning four ( 4) years following the adoption of the Redevelopment Plan a $500,000 maximum of the District' s share of tax increment which would have been received by the District if al 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 . RA 90-5 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 or his designee to execute the Agreement on behalf of the Agency. cc: Redevelopment Agency East Bay Regional Park District County Counsel County Administrator RA46jb/ebpark.res I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Redevelopment Aency on the date shown. ATTESTED: 1 q g _ PHIL B T HELOR,Agency Secretary 0 By Deputy RA 90-5 t AGREEMENT TO ELIMINATE POTENTIAL FISCAL BURDEN OR DETRIMENT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401 THIS AGREEMENT (the "Agreement") is made and entered into this day of , 1990, by and between the REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY (the "Agency") and the EAST BAY REGIONAL PARK DISTRICT (the "District") . 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 (the "Plan") for the redevelopment of an area within the unincorporated portion of Contra Costa County, pursuant to the California Community Redevelopment Law set forth in Section 33000 et seq of the Health and Safety Code. The area has been designated as the Rodeo Redevelopment Project Area (the "Project Area") and is described in the attached Exhibit A. The redevelopment project has been designated as the Rodeo Redevelopment Project (the "Project") . (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) District is a taxing agency with territory located within the Project Area. Upon adoption of the Plan by ordinance of the Board of Supervisors of Contra Costa County, the territory of the District within the Project Area will be subject to the tax increment financing provisions of the Plan. (d) Meetings have been held by the parties at which the District has expressed concern over the fiscal impact of the Plan and the burden or detriment it anticipates experiencing because of the allocation of tax increment monies to implement the Plan. (e) Health and Safety Code Section 33401(b) provides that the Agency may pay to any affected taxing agency an amount of money which in the Agency's determination is necessary to alleviate any financial burden or detriment caused to any taxing agency by a redevelopment project. (f) Agency has determined that payments of tax increment revenue to the District as set forth below are necessary to alleviate the burden and detriment caused to the District by the Plan. (g) In consideration of the Agreement setting forth the obligations of the Agency, the District agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the project or Plan or ordinance. AGENCY AND DISTRICT DO HEREBY AGREE AS FOLLOWS: Section 1 District intends to develop and operate recreational facilities along San Pablo Bay. Agency hereby agrees to assist the District with the costs of such improvements in the amount of $500,000. Agency and District agree that within four years of the date of adoption of the Plan, Agency and District will negotiate an agreement regarding payments to District by Agency of Tax Increment Revenue to assist in paying for the development and operation of recreational facilities and improvements as specified in District's Land Use Development Plan for the San Pablo Bay Shoreline; however, in no event shall Agency's obligation to District exceed $500, 000 unless agreed to in writing by Agency. Agency's obligation to District shall commence at the time the improvements are undertaken by District or such time as is negotiated in the Agreement. Agency's obligation to District with regards to park improvements will be limited to the amount of Tax Increment Revenue received by Agency which is in excess of the amount needed to complete the items shown on Agency's then current five-year budget, which budget must be adopted prior to the commencement date of the fiscal year for which District requests assistance pursuant to this Agreement. In the event that Agency is unable to provide Tax Increment Revenue to District at the time District begins construction and/or operation of the park improvements due to the unavailability of excess Tax Increment Revenue, Agency and District will enter into a reimbursement agreement whereby Agency will agree to reimburse District for the costs specified in Section 1. Said reimbursement agreement shall allow for the payment of simple interest by Agency at the lower of the following rates on the date said reimbursement agreement is executed: (i) the rate paid by the State of California Local Agency Investment Fund or (ii) the highest rate permitted by law. Section 2 In addition to the payment to be made in Section 1 above, beginning in Fiscal Year 1991-1992 and continuing until expiration of the Plan, District shall receive an amount equal to Tax Increment Revenue attributable to the rate of tax imposed for the benefit of District to repay principal of and interest on bonded indebtedness. Section 3 It is anticipated that 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 "Partial TIR Installment") . Within thirty days of receipt of each Partial TIR Installment, Agency shall pay to District a partial payment of the amount payable to District for the Fiscal Year pursuant to Section 2 above (a "Partial District Payment") . The amount of each Partial District Payment shall be in the same proportion to the total amount payable to District for the Fiscal Year as the proportion of the Applicable Agency TIR Installment is to the total amount of Tax Increment Revenue payable to 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. However, nothing precludes Agency from paying to District the full amount of District's Share rather than a Partial TIR Installment. Section 4 The obligation of Agency to make payments pursuant to Section 1 above shall be subordinate to Agency's obligation to make payments of principal, interest or other amounts on or in connection with bonds, notes or other indebtedness issued by Agency (other than obligations of Agency to repay loans from Contra Costa County) to finance the implementation of the Plan. An Agency obligation to make payments, pursuant to a reimbursement agreement or similar agreement, to reimburse or otherwise compensate a person or entity who has or is obligated to make payments of principal, interest or other amounts on bonds, notes or other indebtedness issued by Agency to finance the implementation of the Plan shall be deemed to be an obligation in connection with such bonds, notes or other indebtedness for purposes of this Agreement. Section 5 This Agreement shall constitute an indebtedness of Agency incurred in carrying out the Project and a pledging of tax increments from the Project to repay such indebtedness under the provisions of Article XVI, Section 16 of the California Constitution and Sections 33670 et seq of the Health and Safety Code and to alleviate any financial burden or detriment as permitted by Section 33401 of the Health and Safety Code. Section 6 District acknowledges and agrees that the obligations to be undertaken by Agency pursuant to this Agreement will effectively eliminate any potential financial burden or detriment to District that would otherwise be caused by the adoption of the Plan. In consideration of this Agreement setting forth the obligations of Agency, District agrees not to file or engage in any litigation to directly or indirectly challenge the validity of the project or Plan or ordinance, including but not limited to, instituting or joining in litigation; Agency recognizes this as good and legal consideration. Section 7 This Agreement shall be effective as of the date that the ordinance enacted by the Board of Supervisors of Contra Costa County adopting the Plan (the "Ordinance") for the Project becomes effective and shall terminate upon the earlier of (a) the expiration of the Plan, or (b) the filing of an action in a court of competent jurisdiction by any person or entity which invalidates the adoption of the Plan or any of the proceedings in connection therewith. Following termination, none of the parties shall have any further rights or obligations under this Agreement. Section 8 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. Agency and District agree not to file or engage in any litigation to directly or indirectly challenge this Agreement. Section 9 Notwithstanding any other provision in this Agreement, no payments shall be made to District by Agency: (a) which would exceed the amount, annually, that District would have otherwise received from property taxes from the Project Area had the Plan not been adopted; (b) the receipt of which would cause District to violate its expenditure limitations under Article XIII-B of the California Constitution; or (c) which would be contrary to the provisions of Section 33401 of the Community Redevelopment Law or violate any other provision of the Community Redevelopment Law or the laws of the State of California. Any excess amounts under subsections (a) , (b) or (c) above shall be retained by Agency for distribution, in Agency's sole discretion, to other taxing entities or for the purposes of paying indebtedness incurred by Agency in carrying out the Project. Section 10 This Agreement constitutes the entire agreement of the parties with respect to the subjects covered herein. Section 11 Should a dispute arise between parties under this Agreement which results in the filing of litigation, the prevailing party in the action shall be entitled to reasonable attorneys' fees. IN WITNESS WHEREOF, Agency and District have executed this Agreement as of the date first above written. REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY X By: EAST BAY REGIONAL PARK DISTRICT By: Jelllc�� Approved as to form: gen n el agreemen.424