RESOLUTION NO. 34
RESOLUTION OF THE EAST PALO ALTO REDEVELOPMENT
AGENCY APPROVING AGREEMENT WITH THE SAN MATEO COUNTY
COMMUNITY COLLEGE DISTRICT PROVIDING FOR PAYMENTS TO
ALLEVIATE FINANCIAL BURDEN OR DETRIMENT CAUSED BY THE
UNIVERSITY CIRCLE REDEVELOPMENT PROJECT
WHEREAS, the East Palo Allo Redevelopment Agency has prepared a Redevelopment Plan . for the University Circle Redevelopment Project, which Plan has been submitted by the Agency for approval by the City Council of the City of East Palo Alto following a joint public hearing held by the Agency and City Council on November 21, 1988 and continued to November 28, 1988; and WHEREAS, implementation of the Redevelopment Plan will cause a financial . burden or detriment to the San Matoo County Community College District; and WHEREAS, Section 33401 of the Health and Safety Code and Section 315 of the Redevelopment Plan provide that the Agency may pay to the District any amounts of money which the Agency finds are necessary and appropriate to alleviate such financial burden or detriment; and
WHEREAS, after consultations pursuant to Section 33028 of the Health and Safely Code, the Agency and the San Matoo County Community College District desire to enter into an agreement under which the Agency will pay certain amounts to the District to alleviate such financial burden or detriment.
NON, THEREFORE, BE IT RESOLVED by the Bast Palo Alto Redevelopment Agency as follows:
The "Agreement to Alleviale Financial Burden or Detriment from the East Palo Alto University Circle Redevelopment Project" betreen the East Palo Alto Redevelopment Agency and the San Matoo County Community College District in the form attached to this resolution and incorporated herein by reference, is hereby approved and the Chairman is hereby authorized and directed to agreement.
2. The Agency hereby finds, based upon the evidence provided by the San Matoo County Community Collogo District, which evidence is contained in the Agency's Report to City Council on the Redevelopment Plan, that the Bast Palo Alto University Circle Redevelopment Project would have a financial burden or delriment on the District, but that such burden or catriment is alleviated by the payments provided for in the attachod agreement.
Agency hereby determines that the amounts of money lo be paid to the District under the attached agreement are necessary and appropriale to alleviate the financial burden or detriment which would otherwise be caused by the Project.
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PASSED, APPROVED AND ADOPTED this 28th day of November ..., 1988.
APPROVED:
licitein hair.
William Vines, Mayor
ATTEST:
Í stanley.H. Hall, City Clerk
Ayes: Bostic, Coats, Mouton, Johnson, Vines
Noes: None
•. Abstentions: None
.:
.:
"AGRERMENT TO ALLEVIATE FINANCIAL BURDEN OR DETRIMENT
FROM THE
BAST PALO ALTO UNIVERSITY CIRCLE REDBVELOPMENT PROJECT" (ATTACH COPY OF AGREEMENT TO RESOLUTION]
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AGREEMENT TO : GLEVIATE FINANCIAL BURDEN OR
DETRIMENI FROM THE EAST PALO ALTO
UNIVERSITY C: RCLE REDEVELOPMENT PROJECT
THIS AGREEMENT 1s made and entered into this 28th day
lovember 1988, by and between the San Mateo County
Conmunity College District (the "pistrict") and the East Paro Alto Redevelopment Agency (the "Agency").
BECITALS
WHEREAS, the Agency is a redevelopment agency
existing pursuant to the provisions of the Community
Redevelopment Law (California Health and Safety Code Section 33000, et seg.) which has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council ("City Council") of the City of East Palo Alto ("City"); and
WHEREAS, pursuant to Section 33327 of the
California Health and Safety code, the Agency previously notifled . the District of its intention to prepare a redevelopment plan ("Plan") for the University Circle Redevelopment Project ("Project") for the Project area described in Exhibit A ("Project Area"); and
WHEREAS, the proposed Plan contains provisions for
the distribution and allocation of property tax revenues derived from property located within the Project Area to the Agency pursuant to California Health and Safety Code Saction 33670 (b) ; WHEREAS, meetings have been held by
representatives of the District and rapresentatives of the Agency to discuss the fiscal impact of the project on the District, at. which neetings the District presented substantial evidence that the District will suffer a financial burden and detriment as a result of the implanentation of the Plan 1f it is adopted by the city Council; and
WHEREAS, the Agency agrees that the substantial
evidence presentad by the District is parsuasive and desires to alleviate such financial burden or detriment pursuant to Health and Safety code Section 33401 and the District desires to consent to and approve of the Plan.
F. WHEREAS, the Agency has adopted a resolution
approving this Agreement and recognizing the financial burden and
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detriment that would be suffered by the District If the parties did not agreo to enter into this Agreement.
G.. WHEREAS, any loss to the District of property tax
revenue may have an adverse impact, on the District's capital improvement programs.
NOW, THEREFORE, in consideration of the foregoing and
the mutual covenants and conditions contained herein, the parties hereto agree as follows:
ARTICLE I
PAYMENT OF CERTAIN AMOUNTS IO DISTRICT
sectien lilh Aments Due te Increase in Assessed
Value over Base Year Arsessment Rell.
Subject to the limitations set forth in
Section 2.05 and elsewhere in this Agreement, in any fiscal year in which the Agency receives, pursuant to Haalth and Safety Code Section 33670(b), an allocation and payment of "property tax revenues" (as hereinafter defined) generated within the Project Area ("Tax Increment"), the Agency agrees to pay to the District, in the manner specified below, an amount equal to that portion of the Tax Increment allocated to and paid to the Agency for the applicable fiscal year which is attributable to those increases in the assessed value of the taxable property in the Project Area (as such assessed value is established by the assessment roll equalized prior to the effective date of the ordinance adopting the Plan as provided in Health and Safety Code Section 33670(a)), which are, or otherwise would be, calculated annually pursuant to subdivision (I) Of Section 110.1 of the California Revenue and Taxation Code (which provides that such increases shall not exceed an annual rate of two (2) percent of the full cash value of taxable property as defined in California Constitution Article XIIIA, Section 2). Such portion is equivalent to property tax revenues which would have been allocated to the District after an election pursuant to Health and Safety Code Section 33676(a) (2). (b) "Fiscal year" as used in this Agreement means
July 1 of each year through June 30 of the following ycar. section lel2 amounts Due to changes in state Funding
Formula for Local Scheel Ristricts.
(a) The District and the Agency agree that under
the current funding formula, the annual fiscal detriment to the District caused by the project is limited to the amount payable to the District by the Agency pursuant to Section : 01(a) hereinabove.
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(b) subject to the limitations set forth in
Section 2.05 and olsewhere in this Agreement, in the event that the State funding formula for local school districts is changed so that the District is not fully reimbursed by the state for that portion of the Tax Increment which would have been allocated to the District but for the existence of the Project, then the Agency shall thereafter annually pay to the District a. amount necessary to hold the District harmless from the loss of such State reimbursement.
Ellesatien el special Taxera. The
sectien 1e03
District shall be allocated, in addition to the portion of taxes allocated pursuant to Subdivision (a) of Health and Safety Code Section 33670, all or any portion of the tax revenues allocated to Agency pursuant to Subdivision (b) of Health and Safety Code Section 33670 attributable to incruases in the rate of tax imposed for the benefit of the District, which levy occurs after the tax year in which the ordinance adopting the Indevelopment plan becomes effective.
Sectien 1ul4 Low and Moderato Incene Heuring Fund.
As provided for in Health and Safety Code Sectiona 33487 and 33670, it is the intention of the parties that no amount due the District under Sections 1.01, 1.02, or 1.03 horeof is subject to the Low and Kaderate Income Housing Fund established pursuant to Health and Safety Code Sections 33334.3 or 33487.
Sectien 1.05 Property Tax Revenues Definitien. As
used in this Agreement, the term "property tax revenues" include only: (1) all ad valoren property taxes allocated and paid to the Agency pursuant to Article XVI, Section 16 of the California Constitution and Health and Safety Coda Section 33670 et seg., and (2) identifiable California State legislative supplements to or substitutes for ad valoren property tax, provided, however, by way of example and not of limitation, that "property tax revenues" as used herein shall not
include:
(1) Revenues, funds, monies, awards, loans,
indirectly, 1s the
grants or credits whose source, directly or
federal gorernment; nor
(2) Any monies or funds received from any other
publie source (State, county, municipal, or otheivise) as a result of any loan, grant, or award, or similar payment; not (3) Any public funds, or assessment, received by
the Agency upon precludes use of such funds Limitation of restriction that for payment to the District pursuant
to this Agreement; nor
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(4) Proceeds from any disposition of any real or
personal property: nor
(5) Proceeds from the sale of bonds or loan
agreements; nor
(6) Tax revenues received by the Agency as a
result of taxes levied by any affected taxing agency to retire voter-approved indebtedness.
ARTICLE II
CONDITIONS AND LIMITATIONS
sectien 2ll submission er claim by District. For
any year that the District is not fully reimbursed by the State as described in Section 1.02 (a) and 1.03 above, the District shall submit to Agency a written claim for payment pursuant to Health and Safety Code Section 33401 in order to alleviate the financial burden or detriment caused to the Diatrict by the Project. Such written claim shall be submitted not later than the May 30th proceding the commencement of tha Agency's fiscal year for which such payment is requested. The claim shall specify the amount requested to be paid during such fiscal year of the Agency together with information showing how such payment amount was calculated. Any such amount requestad by the District shall be deemed an estimated maximum amount until final adoption of the District's budget for the fiscal year for which such payment is requested, at which time the District shall provide the Agency with the specific amount, not to excend the estimated maximum amount, of such requested payment, together with information showing how such amount was calculated.
The Agency and the District agree that any claim
submitted by the District and paid by the Agency pursuant to this Section 2.01 shall be prima facia ovidence of financial burden or detriment caused to the District by the Project, and that no additional substantiation of such burden or detriment shall be required.
sactien 2el2 Payment Procedure. The daency shall
approve and pay to the fund or account designatad in writing by the District those respective amounts due pursuant to this Agreement during each fiscal year within a reasonable period after the Agency receives the Tax Increment fron the County Controller, provided that payments in relation to allocations received between July 1 and December 31 of any fiscal year shall be made no later than the following February 28; and that payments in relation to allocations received between January 1 and June 30 of any fiscal year shall be made no lator than the following August 30. No interest shall accrue in relation to any amounts payable pursuant to this Agreement.
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Section 2.l3 Limitations en Payments. The Agency's
obligation to make payments hereunder shall be limited to and be paid from Tax Increment received by the Agency from the Project Area. The Agency shall be deemed to have fully discharged its obligations under this Agreement upon paying or causing payment of those amounts payable to District under Sections 1.01,
1.02, and 1.03 of this Agreement. This Agreement fully addresses any adverse fiscal impact of the Project upon the District, and the District may not hereafter elect to receive pursuant to Health and Safety Code Section 33676 or otherwise claim any additional property tax revenues from the Project Area.
In addition, the Agency's obligation to make payments
to the District pursuant to this Agreement in any single year shall not exceed the amount of property tax revenues which would have been received by the District il all the lax Increment from the Project Area had been allocated to all the affected taxing agencies without regard to the division of taxes required by Health and Safety Code Section 33670.
Sectien 2.04 Indebtednese. The Agency's obligation
to make payments pursuant to this Agrecnent is deemed to constitute an indebtedness" within the meaning of Health and Safety Code Sections 33670 and 33675.
section 2l5 Suberdinatien. The indebtedness of the
Agency under this Agreemen: shall not be a first pledge of the Tax Increment and chall bo subordinate to Agency bonds, notes, certificates of participation, and any other legally enforceable contract or agreement requiring Agency expenditure of tax revenues for any of its purposes, except contracts or agreements with the City, a private developer owning or developing land in the Project Area, or other affected taxing agencies if for the purpose of alleviating fiscal detriment caused by the project.
However, any indebtodness of the Agency arising f1 m Section 1.02 which comes into existenco upon a cubnission of a claim by the District pursuant to section 2.01 above, shall not bo Indebtednesd of the Agone under delt does entail no included indebtedness of the Long i the can
in all calculations of the amounts of the other Agency
indebtedners used in connection with tha sale of bonds or any agreement for which a pledge of property tax revenues is necessary, and this Agreement shall be communicated to bond counsel with recpect to Agency indebtedness.
The Agency shall not knowingly impair the Agency's
obligations to the District under this Agraement. The Agency shall use good faith afforts to give the District sixty (60) days' notice of the Agency's intent to issue bonds, notes or other indebtedness to which the Agency intends to subordinate the
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District's interests under this Agreement, provided, however, that the Agency's failure to give such notice shall
constitute a default hereunder. The Agency lurther agrees to give the District two weeks' prior notice of the submission to the Agency, for its approval of a preliminary official statement or other official document by which the Agency intends to incur debt of the type described in this paragraph, together with copies of such documents and other data as the Agency shall upon in approving the proposed issuance of debt. Notwithstanding the foregoing, nothing in this Agreement shall be construed to give the District the right to approve or disapprove any Agency indebtedness.
If during any fiscal year the Agency is unable to pay • the full amounts due and owing to the District pursuant to this Agreement, such deficit shall be paid by the Agency according to a schedule upon which the parties shall mutually agree. Any sums and owing shall accumulate and not be discharged through the passage of tina. The parties agree that such deferral may be necessary to accomplish the purposes of the Project at an earlier time than would otherwise be the case in that such deferral would allow for issuance of bonds with a higher principal amount. section 2,l6 Agency Bond Issues en Rohali et
District. At the District's request, and only it determined to be mutually beneficial in each party's sole discretion, the Agency may expend proceeds from an Agency bond issue for capital projects specified by the District. Any such use of Agersy bond funds for the District shall be subject to all applicable laws and regulations. The Agency shall use all or a portion of the Tax Increment, as determined by the Agency, in its sole discretion, which it would otherwise have paid to the District under this Agreement to pay issuance, administrative, and debt service costs on such bond issues. In the event an amendment to the Plan is necessary to issue such bonds, the District consents to such an amendment.
sectien 3 l7 Use lt Funds. The District shall employ
District under this Agreement for the benefit of the residents of its best efforts to use any funds the Agency shall pay to the the City, provided that the Agency shall have no right to approve or disapprove the District's budget or actual financial and provided, further, that in the event the Agency expenditures,
shall be required to make payments to the District pursuant to Section 1.02 (b) hereof, the District and the Agency shall enter an agreement providing for specific methods by which such payments shali be used to benefit the residents of the city.
Section 2.08 Depesit of Funds. All sums paid to the
District by the Agency pursuant to this Agreement shall be
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deposited in the District's Special Reserve Fund unless otherwise designated by the District.
ARTICLE III
ADDITIONAL DOCUMENTATION; APPROVAL OF PLAN
Section 3ell Decumentation. The District agrees to
execute and acknowledge any other documentation that may be necessary to give effect to this Agreement, including, but not limited to, the subordination provisions of Section 2.05 hereof. sectien 3,02 Approval. The District consents to and
approves the proposed Plan, which has been reviewed by the District and provides for the use of tax increment financing with The District agrees that it will
not file or participate in any lawsuit or proceedings attacking or otherwise questioning the validity of the Plan or the adoption or approval of such Plan, or any other findings or determinations previously made or to be made by the Agency or the City Council in connection with such Plan or its implementation. In the event such lawsuit or proceedings are brought or joined and final judgment is rendered declaring the Plan invalid, this Agreement shail be of no further force or effect.
ARTICLE IV
MISCELLANEOUS
sectien 4.ll Entire Aareement. This A, reement
constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them. parties hereto. It is the intent of the Agency and the District that the payments herein provided constitute a full, complete, tair and equitable adjustment for all detrimental financial and other impacts which have resulted or may result during the term of this Agreement fron the Project.
sostien tl2 Effective Date and Term el Agreement.
The date of this Agreement shall be the date when the Agreement shall have been signed by the Agency; provided, however, that this Agreement shall becone effective only upon the effective •This Agrecment shall continue in effect so long as the Agency receives the Tax Increment from the Project Area.
section 4.03 State Law. This Agreement, and the
rights and obligations of the parties heroto, shall be construed
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and enforced in accordance with the laws of the State of California.
Section 4.l4 Atterneys' Fees. In any action which
Agency or District brings to enforce its respective rights hereunder, the unsuccessful party shall pay all costs incurred by the prevailing party, including reasonable attorneys' fees.
Sectien 4l5 Successors and Assians. This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors and assigns.
IN WITNESS WHEREOF, the parties hereto have caused this to be executed on the date set forth opposite their
Agreement
signatures.
# De ts
Date
Its
Date By
Its
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