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HomeMy WebLinkAboutMINUTES - 06052001 - C.151 • TO: ' BOARD OF SUPERVISORS ,•E-s -L o Cont ��- -__ FROM: John Sweeten, County Administrator Costa DATE: June 5, 2001 County 'SrA'cour`� SUBJECT: FIRST AMENDMENT TO AGREEMENT WITH REDEVELOPMENT AGENCY OF CITY OF HERCULES ON REDEVELOPMENT PLAN SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: AUTHORIZE the Chair of the Board of Supervisors to sign the First Amendment to the Agreement between the Redevelopment Agreement of the City of Hercules and the County of Contra Costa Providing Assurances of Tax Increment Limitations. BACKGROUND: The Hercules Redevelopment Agency ("Agency") has been in existence since September 22, 1982. On November 30, 1983, the Hercules City Council adopted the Redevelopment Plan for the Dynamite Redevelopment Project. In connection with the adoption of the Redevelopment Plan, the County and the Agency entered into a November 23, 1982 agreement providing assurances of tax increment limitation. As part of that agreement, the Agency agreed that, unless the Redevelopment Plan was amended to increase the total amount of tax increment dollars, the Agency would not incur indebtedness in excess of$33 million. The agreement specified that, under no circumstances, would the total cumulative amount of tax increment monies 'exceed $94,000,000 unless the Redevelopment Plan was amended. As a result of actual growth in tax increment in the Dynamite Redevelopment Project Area being significantly below the Agency's original projections, the Agency has requested an amendment to the County Agreement removing this $33 million cap and allowing it to incur indebtedness up to the total amount of tax increment it is authorized to receive, i.e., $94,000,000. CONTINUED ON ATTACHMENT:X YES SIGNATURE: --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- RECOMMENDATION OF COUNTYADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): -------------------1—----------------------------------------------------------------------------------------------------------------------------------------------------ACTION OF BOARD ON_, /U d g 00/ APPROVE AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFYTHAT THIS IS A TRUE y AND CORRECT COPYOF AN ACTION TAKEN Ll—UNANIMOUS(ABSENT �'LO'r�2- ) AND ENTERED ON THE MINUTES OF THE BOARD OF SUP RVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ] ATTESTED CONTACT: Tony Enea 335-1094 N WEETEN,C[f RK OF THE BOARD OF SUPERVISORS AND COUNTYADMINISTRATOR CC: City of Hercules County Counsel County Redevelopment Director County Auditor County Library /BY ,"_2����-DEPUTY H:\REDEVLOP1H.r,ule¢i—LAgtAm.ndBO.wpd FIRST AMENDMENT TO AGREEMENT WITH REDEVELOPMENT AGENCY OF CITY OF HERCULES ON REDEVELOPMENT PLAN June 5, 2001 Page 2 of 2 In consideration of the County's consent to this amendment, the Agency has agreed that on or before October 1, 2001, it will make one-time transfers to the County in the amounts of (i) $109,211.00, which amount equals 50% of the tax increment lost by the County with respect to the Dynamite Project Area in Fiscal Year 2000-01, and (ii) $57,335.78, which amount equals 25% of one hundred five percent (105%) of the tax increment lost by the County with respect to the Dynamite Project Area in Fiscal Year 2000-01. The amendment specifies that these monies will be used by the County solely for supporting libraries in the City of Hercules and/or for such other qualified projects as are agreed to by the Agency and the County in writing. In addition, the Agency and the County have agreed to work together to provide for the construction, rehabilitation, or other provision of not less than 10 new or existing units of affordable special needs housing for disabled persons, as further specified in the amendment. The Agency has agreed to use a portion of its low and moderate income housing fund to assist in defraying the costs that may be incurred in connection with efforts to obtain this special needs housing. H:\REDEVLOPtHercule�is LAgtAmendBO.xpd w FIRST AMENDMENT TO COUNTY AGREEMENT by and between REDEVELOPMENT AGENCY OF THE CITY OF HERCULES And COUNTY OF CONTRA COSTA Dated as of June 5 , 2001 Amending the Agreement Between the Redevelopment Agency of the City of Hercules and the County of Contra Costa Providing Assurances of Tax Increment Limitations 45021868.4 FIRST AMENDMENT TO COUNTY AGREEMENT THIS FIRST AMENDMENT TO COUNTY AGREEMENT, made and entered into as of June 5 , 2001, by and between REDEVELOPMENT AGENCY OF THE CITY OF HERCULES (herein called the "Agency"), a redevelopment agency, and COUNTY OF CONTRA COSTA(herein called the"County"), a county: WITNESSETH.- WHEREAS, ITNESSETH:WHEREAS, the City Council of the City of Hercules (the "City Council"), acting pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 etseq.), activated the Hercules Redevelopment Agency (the "Agency") and had declared itself to constitute the Agency, by Ordinance No. 168, adopted on September 22, 1982; and WHEREAS, the City Council adopted the Redevelopment Plan for the Dynamite Redevelopment Project (the "Redevelopment Plan") on November 30, 1983 by Ordinance No. 181; and WHEREAS, in connection with the adoption of the Redevelopment Plan, the County of Contra Costa (the "County") and the Agency have heretofore entered into an agreement providing assurances of tax increment limitation, dated as of November 23, 1982 (the "County Agreement"); and WHEREAS, the Agency and the County wish to amend the County Agreement to delete certain restrictions imposed on the Agency for the purpose of furthering the Agency redevelopment activities within its project areas; and WHEREAS, this First Amendment is intended by the parties to mitigate certain of the financial burden or detriment caused the County by removing the limitation on the Agency's authority to incur indebtedness; and WHEREAS, the Agency has assured the County that this First Amendment constitutes a legal, valid and binding agreement of the Agency, enforceable in accordance with its terms and that it is not in conflict with any existing law, regulation, court order or consent decree to which the Agency is subject; NOW, THEREFORE, in consideration of the covenants and agreements made below, the Agency and the County agree as follows: ARTICLE.I DEFINITIONS Section I.01. Definitions. Unless the context otherwise requires, all capitalized terms used herein and not otherwise defined shall have the respective meanings given to such terms in the County Agreement. ARTICLE H AMENDMENTS TO COUNTY AGREEMENT Section I1.01. Amendment to Section 4 of the Agreement. Section 4 of the County 45021868.4 2 Agreement is deleted in its entirety and replaced with the following: "Section 4. The Agency agrees that unless Section 502 of the Dynamite Redevelopment Plan is amended to increase the total amount of tax increment dollars authorized to be received by the Agency from the Dynamite Redevelopment Project Area, the Agency shall not incur indebtedness for projects in the Dynamite Redevelopment Project Area, including both Agency administration and the amount of tax increment required for low and moderate income housing, the principal cost of which exceeds $94,000,000. Under no circumstances shall the total cumulative amount of tax increment monies authorized to be received by the Agency from the Dynamite Redevelopment Project Area exceed $94,000,000 unless the Dynamite Redevelopment Plan is amended." Section 11.02. Addition of Section 9 to the Agreement. As material consideration for the County's consent to this First Amendment, Section 9 is hereby added to the County Agreement to read as follows: "Section 9. On or before October 1, 2001, the Agency shall make a one-time transfer to the County in the amount of $109,211.00, which amount equals 50% of the tax increment lost by the County with respect to the Dynamite Project Area in Fiscal Year 2000-01 and a one-time transfer to the County in the amount of$57,335.78, which amount equals 25% of one hundred five percent (105%) of the tax increment lost by the County with respect to the Dynamite Project Area in Fiscal Year 2000-01. Such moneys shall be used by the County solely for supporting libraries in the City of Hercules and/or for such other qualified projects as are agreed to by the Agency and the County in writing." Section I1.03. Addition of Section 10 to the Agreement. As further consideration for the County's consent to this First Amendment, Section 10 is hereby added to the County Agreement to read as follows: "Section 10. The Agency shall adopt a Special Needs Housing Goal as soon as practicable. Furthermore, the Agency and the County shall cooperate and make good faith efforts to obtain the construction, rehabilitation, or other provision of not less than 10 new or existing units of affordable Special Needs Housing for disabled persons who are not dangerous to the health and safety of others and who are mentally disabled or impaired or are affected by physical disabilities or impairments, or by other limitations which the Agency and the County may mutually deem appropriate for inclusion. The parties contemplate that such cooperation shall include planning, design and construction phases of the housing. The Agency will utilize a portion of its low and moderate income housing fund (Health and Safety Code Section 33334.2 and 33334.3) to assist in defraying the direct and indirect costs as may be incurred in connection with the efforts to obtain the Special Needs Housing, consistent with local land use enactments and the Community Redevelopment Law and specifically provided that such dwelling units would be countable by the Agency as long-term production units of the purposes of Section 33413(b) or (c) of the Community Redevelopment Law, whichever is applicable. The Agency agrees that, subject to existing obligations and commitments, Special Needs Housing together with senior housing are its highest priority projects for funding with money from the low and moderate income housing fund. The parties shall make good faith efforts to complete the Special Needs Housing by July 1, 2011 subject to the availability of funds and other factors beyond the control of the parties." ARTICLE III MISCELLANEOUS Section 1II.01. County greement to Remain in Effect. Except for the amendment agreed to herein, the County Agreement dated November 23, 1983, as amended herein, shall remain ill full force and effect. In the event that this Amendment is deemed to be invalid, illegal or 4502 l 868.4 3 unenforceable in any respect under applicable law, the validity, legality and enforceability of the County Agreement shall not in any way be impaired thereby. The Agency, the City and the County agree to never attack or contest the validity of the County Agreement or this First Amendment agreed to herein. Section III.02. Counterparts. This First Amendment to County Agreement may be executed in counterpart. IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to County Agreement to be executed by their duly authorized officers as of the date first above written. REDEVELOPMENT AGENCY OF THE CITY OF HERCULES By: Terry Segerberg, Chairperson COUNTY OF CONTRA COSTA By: Gyle ilkem , ' pervisor 45021868.4 4 J 'L09'01 PM 2:42 HERCU FIRST AMENDMENT TO COUNTY AGREEMENT by and between REDEVELOPMENT AGENCY OF THE CITY OF HERCULES And COUNTY OF CONTRA COSTA Dated as of June 5 , 2001 Amending the Agreement Between the Redevelopment Agency of the City of Hercules and the County of Contra Costa Providing Assurances of Tax Increment Limitations RECEB�E® JUL 2 7 2001 CLERK BOARD OF CONTRA COSTA�0VISORS i 45021868.4 FIRST AMENDMENT TO COUNTY AGREEMENT THIS FIRST AMENDMENT TO COUNTY AGREEMENT, made and entered into as of June 5 , 2001, by and between REDEVELOPMENT AGENCY OF THE CITY OF HERCULES (herein called the "Agency"), a redevelopment agency, and COUNTY OF CONTRA COSTA(herein called the"County"), a county: WITNESSETH.- WHEREAS,- ITNESSETH:WHEREAS, the City Council of the City of Hercules (the "City Council"), acting pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 etseQ.), activated the Hercules Redevelopment Agency (the "Agency") and had declared itself to constitute the Agency, by Ordinance No. 168, adopted on September 22, 1982; and WHEREAS, the City Council adopted the Redevelopment Plan for the Dynamite Redevelopment Project (the "Redevelopment Plan") on November 30, 1983 by Ordinance No. 181; and WHEREAS, in connection with the adoption of the Redevelopment Plan, the County of Contra Costa (the "County") and the Agency have heretofore entered into an agreement providing assurances of tax increment limitation, dated as of November 23, 1982 (the "County Agreement"); and WHEREAS, the Agency and the County wish to amend the County Agreement to delete certain restrictions imposed on the Agency for the purpose of furthering the Agency redevelopment activities within its project areas; and WHEREAS, this First Amendment is intended by the parties to mitigate certain of the financial burden or detriment caused the County by removing the limitation on the Agency's authority to incur indebtedness; and WHEREAS, the Agency has assured the County that this First Amendment constitutes a legal, valid and binding agreement of the Agency, enforceable in accordance with its terms and that it is not in conflict with any existing law, regulation, court order or consent decree to which the Agency is subject; i NOW, THEREFORE, in consideration of the covenants and agreements made below, the Agency and the County agree as follows: ARTICLE I DEFINITIONS Section 1.01. Definitions. Unless the context otherwise requires, all capitalized terms used herein and not otherwise defined shall have the respective meanings given to such terms in the County Agreement. ARTICLE 11 AMENDMENTS TO COUNTY AGREEMENT Section 11.01. Amendment to Section 4 of the Agreement. Section 4 of the County 45021868.4 2 Agreement is deleted in its entirety and replaced with the following: "Section 4. The Agency agrees that unless Section 502 of the Dynamite Redevelopment Plan is amended to increase the total amount of tax increment dollars authorized to be received by the Agency from the Dynamite Redevelopment Project Area, the Agency shall not incur indebtedness for projects in the Dynamite Redevelopment Project Area, including both Agency administration and the amount of tax increment required for low and moderate income housing, the principal cost of which exceeds $94,000,000. Under no circumstances shall the total cumulative amount of tax increment monies authorized to be received by the Agency from the Dynamite Redevelopment Project Area exceed $94,000,000 unless the Dynamite Redevelopment Plan is amended." Section 11.02. Addition of Section 9 to the Agreement. As material consideration for the County's consent to this First Amendment, Section 9 is hereby added to the County Agreement to read as follows: "Section 9. On or before October 1, 2001, the Agency shall make a one-time transfer to the County in the amount of $109,211.00, which amount equals 50% of the tax increment lost by the County with respect to the Dynamite Project Area in Fiscal Year 2000-01 and a one-time transfer to the County in the amount of$57,335.78,which amount equals 25% of one hundred five percent (105%) of the tax increment lost by the County with respect to the Dynamite Project Area in Fiscal Year 2000-01. Such moneys shall be used by the County solely for supporting libraries in the City of Hercules and/or for such other qualified projects as are agreed to by the Agency and the County in writing." Section 11.03. Addition of Section 10 to the Agreement. As further consideration for the County's consent to this First Amendment, Section 10 is hereby added to the County Agreement to read as follows: "Section 10. The Agency shall adopt a Special Needs Housing Goal as soon as practicable. Furthermore, the Agency and the County shall cooperate and make good faith efforts to obtain the construction, rehabilitation, or other provision of not less than 10 new or existing units of affordable Special Needs Housing for disabled persons who are not dangerous to the health and safety of others and who are mentally disabled or impaired or are affected by physical disabilities or impairments, or by other limitations which the Agency and the County may mutually deem appropriate for inclusion. The parties contemplate that such cooperation shall include planning, design and construction phases of the housing. The Agency will utilize a portion of its low and moderate income housing fund (Health and Safety Code Section 33334.2 and 33334.3) to assist in defraying the direct and indirect costs as may be incurred in connection with the efforts to obtain the Special Needs Housing, consistent with local land use enactments and the Community Redevelopment Law and specifically provided that such dwelling units would be countable by the Agency as long-term production units of the purposes of Section 33413(b) or (c) of the Community Redevelopment Law, whichever is applicable. The Agency agrees that, subject to existing obligations and commitments, Special Needs Housing together with senior housing are its highest priority projects for funding with money from the low and moderate income housing fund. The parties shall make good faith efforts to complete the Special Needs Housing by July 1, 2011 subject to the availability of funds and other factors beyond the control of the parties." ARTICLE III , MISCELLANEOUS Section 111.01. County Agreement to Remain in Effect. Except for the amendment agreed to herein, the County Agreement dated November 23, 1983, as amended herein, shall remain in full force and effect. In the event that this Amendment is deemed to be invalid, illegal or 45021868.4 3 unenforceable in any respect under applicable law,the validity, legality and enforceability of the County Agreement shall not in any way be impaired thereby. The Agency, the City and the County agree to never attack or contest the validity of the County Agreement or this First Amendment agreed to herein. Section E11.02. Counterparts. This First Amendment to County Agreement may be executed in counterpart. IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to County Agreement to be executed by their duly authorized officers as of the date first above written. REDEVELOPMENT AGENCY OF THE CITY OF HERCULES jjjBy: TerryVg b g airpers n COUNTY OF CONTRA COSTA B Gayl . Uilkem , Supervisor 45021868.4 4