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HomeMy WebLinkAboutReso RDA 67-1985 RESOLUTION NO. 67 REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT ON THE ALLOCATION AND DISTRIBUTION OF TAX INCREMENT MONIES ARISING OUT OF THE U. S. STEEL SITE PROJECT BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that: 1. Approval of Agreement. The Agreement between the County of San Mateo and the Redevelopment Agency of the City of South San Francisco entitled "Agreement" regarding the allocation and distribution of tax increment monies arising out of the U. S. Steel Site Project is hereby approved, and a copy of said Agreement is attached 'hereto as Exhibit "A." 2. Execution of Agreement. The Chairman is hereby authorized to execute said Agreement on behalf of the Redeyelopment Agency of the City of South San Francisco, and the Executive Director attest his signature thereto. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at ah Adjourned ~,egul ar meeting held on the 19th day of June , 1985 §y the following vote: AYES: Vice Chairperson Roberta Cerri Teglia, ~lember I!ark N. Addiego, ~ember Gus Nicolopulos NOES: NONE ABSENT: Chairman Richard A. Haffey, l~ember Emanuele Damonte Chai fmah 'R6devel b~m~qt/[~ge]~y of the City of South S~~cisco ATTE ST: Redevelopment Agency of the City of South San Francisco AGREEMENT AGREEMENT, made on or as of the f~-~ day of ~_ , 19 ~ , by and between THE COUNTY OF SAN MATEO, a body corporate and politic (hereinafter "County") and THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, a public body, corporate and politic (which, together with any successor public body or officer hereafter designated by or pursuant to law, is hereinafter referred to as "Agency"), established pursuant to Part I (commencing with Section 33000) of Division 24 of the Health and Safety Code of the State of California (hereinafter called "Community Redevelopment Law"), W I TNE S S E T H: WHEREAS, in furtherance of the objections of the Community Redevelopment Law, the Agency has undertaken a program for the clearance and reconstruction or rehabzlztatzon of slum and blighted areas in the City, and in this connection is engaged in carrying out a redevelopment project known as the U.S. Steel plant Site (hereinafter referred to as "Project,'), in an area (hereinaftek referred to as "Project Area"), located in the City pursuant to a proposed Redevelopment Plan; and WHEREAS, Article XVI, Section 16 of the Constitution of the State of California, and Article 6, Chapter 6 of the Community Redevelopment Law, Division 24 of the California Health and Safety Code (commencing with Section 33670) provides a method of financing redevelopment activities through the utilization by the Agency of increased tax revenues, if any, for repayment of loans, advances and indebtedness referred to as "tax increment financing"; and 4/16/85 1. WHEREAS, the provisions of Article XVI, Section 16 of the Constitution of the State of California and Article 6, Chapter 6 of the Community Redevelopment Law, Division 24 of the California Health and Safety Code are incorporated in the aforesaid proposed Redevelopment Plan; and WHEREAS, the California Community Redevelopment Law, Section 33401 of the Health and Safety Code, provides, inter alia, that a redevelopment agency may pay to any taxing agency with territory located within a redevelopment project area any amounts of money which, in the agency's determination, are appropriate to alleviate any financial burden or detriment caused to such taxing agency by a redevelopment project; and WHEREAS, the parties hereto deem it appropriate to agree upon an allocation and distribution of tax increment monies to alleviate the financial burden caused by implementation of the Plan and it is for this reason, and to amicably resolve any differences regarding the proposed Redevelopment Plan that the parties enter into this Agreement; and WHEREAS, the County is a taxing agency with territory located within the Project Area and enters into this Agreement on behalf of itself as said taxing agency; and WHEREAS, the County by this Agreement is agreeing to forego and waive any action or proceeding contesting the validity of the proposed Redevelopment Plan and/or any incidents relating to the establishment of and validity of the proposed Redevelopment Plan. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 5/7/85 2 1. This Agreement is intended to operate only with respect to the portion of the tax revenue generated by application of the basic tax levy (i.e., levy generated by application of tax rates other than those representing voter-approved debt) to any increases in assessed values within the Project Area above the base year roll which would otherwise be allocated and paid entirely to Agency pursuant to Section 33670 ("tax increments") and more particularly the payments to the County and/or any taxing agency in any single year shall not exceed the amount of property tax revenues which would have been received by that taxing agency if all the property tax revenues from the Project Area had been allocated to all the taxing agencies without regard to the division of tax required by Health and Safety Code Section 33670. 2. (a) The parties agree that Agency, until it has received a cumulative sum of Ten Million Dollars ($10,000,000), (excluding amounts representing the exception noted in the following sentence) shall receive the full amount of each year's tax increment revenues pursuant to Section 33670 of the C~mmunity Redevelopment Law. Each year's allocation to Agency shall be the amount which remains after deduction of an amount representing taxes generated by application of tax rates other than those representing voter-approved debt to the inflationary growth (at a rate of up to an annual maximum of two percent) of the Project's 1984-85 Base Year Roll taxable value, calculated pursuant t° subdivision (f) of Section 110.1 of the Revenue and Taxation Code. (b) Thereafter, Agency shall continue to receive the full amount of each year's tax increment revenues pursuant to Section 33670 of the Community Redevelopment Law, subject to the aforementioned in- 5/7/85 3 flationary deduction, but from each year's revenues Agency will reimburse to County a sum equivalent to 25.95575412 percent of that portion of the tax increment revenue resulting from application of tax rates other than those representing voter-approved debt. (c) Agency will annually deposit into a Project low and moderate income housing fund a sum equivalent to twenty percent (20%) of the tax increment revenues received that year, unless a lesser amount is deposited after appropriate findings are made which permit deposit of a lesser amount. Until Agency has received a cumulative total of Ten Million Dollars ($10,000,000), as provided in (a) above, in any year in which it makes a deposit of an amount less than twenty percent (20%), the difference between the sum representing such amount and the sum representing the full twenty percent shall be deducted from the Ten Million Dollars ($10,000,000) agreed to in (a) above, and the remaining amount shall thereafter constitute the maximum figure Agency may receive before the provisions of (b) above shall apply. 3. The parties hereto further agree that the primary reason for entering into this Agreement is to ensure that the Redevelopment Plan and Project is successfully adopted, implemented and carried out to a successful conclusion without any undue delay and in this regard, the parties accordingly agree as follows: (a) As an express condition precedent, the adoption of the Plan must be as of a date so that the "base assessment roll" for the Project pursuant to Health and Safety Code §33670(a) shall be the assessment roll last equalized and in effect for the tax year ending June 30, 1985; and 5/7/85 4 -- (b) As an express condition subsequent, this Agreement and all obligations thereunder shall be suspended in the event legal action is instituted against the Agency to contest the provisions of the Redevelopment Plan and/or Project and/or to invalidate the pro- visions of this Agreement, and in such event that the Plan is determined to be invalid or illegal by a court of competent jurisdiction, this Agreement and all the obligations and terms thereunder shall be null and void. 4. The payment of monies to the County or other taxing agencies as called for in this Agreement is subordinate to the avoidance of any default or condition of default or to the satisfaction of any Agency debt. The Agency further agrees that it will not impair its obligation or ability to satisfy the annual reimbursement payments pursuant to this Agreement in establishing any such debt. 5. County further covenants and agrees that County will not bring, commence, institute, maintain or prosecute, or voluntarily aid any action at law, proceeding in equity, including but not limited to an action to invalidate, set aside, oppose or contest in any manner the Redevelopment Plan, the method of financing or otherwise prosecute or sue the Agency or City of South San Francisco or their subsidiaries, affiliates, successors, representatives, assigns, officers, directors, partners and employees, either affirmatively or by way of cross-complaint, defense or counterclaim or by any other manner or at all, on any alleged claims, demand, liability or cause of action in any manner arising out of the Redevelopment Plan, which is the subject of this Agreement. 6. This Agreement may be pleaded as a full and complete defense to and may be used as the basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted by any party hereto in breach hereof. "5/7/85 5 7. If any clause or paragraph of this Agreement is held to be invalid or illegal by a Court of competent jurisdiction, such in- validity or illegality shall not act to invalidate any other provision of this Agreement, and all such other provisions shall remain in full force and effect to the greatest extent legally possible. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. REDEVELOPMENT AGENCY OF THE CITY OF SOUTH AN FRANCISCO ATTEST: SeCretary COU~0F SAN MATEO ~ ~[aj/r ? o~ the Board of u~.ffervi s or s ATTEST: "5/7/85 6.