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HomeMy WebLinkAboutReso RDA 12-1993 RESOLUTION NO. 12-93 REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION AUTHORIZING EXECUTION OF A FISCAL AGREEMENT WITH THE COUNTY OF SAN MATEO WHEREAS, the Redevelopment Agency of the City of South San Francisco (the "Agency") has prepared for City Council of the City of South San Francisco (the "City Council") consideration, a Redevelopment Plan for the E1 Camino Corridor Redevelopment Project (the "Redevelopment Plan") in accordance with the procedures and requirements of the California Community Redevelopment Law (the "CRL") (Health and Safety Code §33000 et seq.); and WHEREAS, the Redevelopment Plan calls for the redevelopment of the E1 Camino Corridor Redevelopment Project Area; and WHEREAS, the parties have determined that the adoption by the City and implementation by the Agency of the Redevelopment Plan would, but for the mitigations set forth in the Agreement described below, cause a financial burden or detriment to the County of San Mateo (the "County"); and WHEREAS, the Agency and the County desire to enter into a Fiscal Agreement (the "Agreement"), the terms of which are set forth in the Agreement attached hereto as Exhibit "A" and by this reference incorporated herein, to alleviate any such potential burden or detriment. NOW, THEREFORE, BE IT RESOLVED, that the Redevelopment Agency of the City of South Francisco hereby finds and determines, based on evidence provided at this meeting, that the adoption of the Redevelopment Plan by the City and implementation by the Agency would, but for the mitigations set forth in the attached Agreement, cause a financial burden or detriment to the County. BE IT FURTHER RESOLVED that the Agency hereby approves the Agreement in substantially the form attached hereto as Exhibit "A" with any further modifications as deemed appropriate by the Executive Director of the Agency, and authorizes and directs the Executive Director to execute the Agreement on behalf of the Agency. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at regular meeting held on the 26th day of May , 1993 by the following vote: AYES: Boardmembers Jack Draqo, Joseph A. Fernekes, and Robert Yee NOES: None ABSTAIN: Chairwoman Roberta Cerri Teqlia ABSENT: Boardmember John R. Penna ATTEST: Redevelopment Agency of the City of South San Francisco 2 EXHIBIT A TO RESOLUTION-'NO. 12-93 EXECUTION AGREEMENT TO ALLEVIATE FINANCIAL BURDEN OR DETRIMENT FROM THE SOUTH SAN FRANCISCO EL CAMINO CORRIDOR REDEVELOPMENT PROJECT THIS AGREEMENT is made and entered into this day of , 1993, by and between the County of San Mateo (the "County") and the Redevelopment Agency of the City of South San Francisco (the "Agency"), with reference to the following facts, understandings, and intentions. RECITALS A. These Recitals refer to and utilize certain capitalized terms which are defined in Article 1 of this Agreement. The parties intend to refer to those definitions in connection with the use thereof in this Agreement. B. The Agency is a redevelopment agency existing pursuant to the provisions of the Community Redevelopment Law, and has been authorized to transact business and exercise the powers of a -- redevelopment agency pursuant to action of the City Council of the City. The County is a taxing agency that receives property taxes from the Project Area. C. Pursuant to Health and Safety Code Section 33327, the Agency previously notified the County of its intention to prepare the Plan for the Project. D. The proposed Plan contains provisions for the distribution and allocation of Tax Increment Revenue derived from property located within the Project Area to the Agency pursuant to Health and Safety Code Section 33670(b). E. Health and Safety Code Section 33401 provides that a redevelopment agency may pay to any taxing agency any amounts of money which, in the agency's determination, are necessary and appropriate to alleviate any financial burden or detriment caused to such taxing agency by a redevelopment project. F. Meetings have been held by representatives of the County and representatives of the Agency to discuss the fiscal impact of the Project on the County, at which meetings the County presented evidence that the County will suffer a financial burden 63103C.P50 05/25/93 and detriment as a result of the implementation of the Plan if it is adopted by the city Council. G. The Agency agrees that the County has demonstrated financial burden and detriment and desires to alleviate such financial burden and detriment pursuant to Health and Safety Code Section 33401, and the County desires to consent to and approve the Plan. H. The Agency has adopted a resolution approving this Agreement and recognizing the financial burden and detriment that would be suffered by the County if the parties did not agree to enter into this Agreement. I. The County by this Agreement is agreeing to forego and waive any action or proceeding contesting the validity of the proposed Redevelopment Plan. J. Concurrently with and as a condition to execution of this Agreement, the City and the County have entered into the Annexation Agreement regarding the McLellan Nursery Site. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and conditions contained herein, the parties hereto agree as follows: ARTICLE 1. DEFINITIONS AND EXHIBIT Section 1.1. General Definitions. The following general definitions shall govern this Agreement: (a) "Agency" means the Redevelopment Agency of the City of South San Francisco, California. (b) "Annexation Agreement" means that certain property tax exchange resolution and agreement between the City and the County regarding annexation and property tax exchange matters related to the McLellan Nursery Site attached as Exhibit A to City Council Resolution No. , dated May 26, 1993. (c) "City" means the City of South San Francisco, California. (d) "Community Redevelopment Law" means the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.). 63103C.P50 05/25/93 --2 -- (e) "County" means the County of San Mateo, California. The parties acknowledge and agree that the term "County" expressly excludes the County of San Mateo Library District, the County of San Mateo Flood Control District, the County of San Mateo Fire District, and any other district, board, commission or other legal entity (other than the County of San Mateo itself) for which the County of San Mateo Board of Supervisors serves as the governing body. (f) "County Share" for a given Fiscal Year means the proportionate percentage share of Tax Increment Revenue that the County would receive as property taxes from the Project Area in that Fiscal Year if there were no provision in the Plan for the division of taxes pursuant to Health and Safety Code Section 33670 et seq. (g) "Fiscal Year" means the period commencing on July 1 and ending the following June 30. (h) "Housing Fund" means the Agency's Low and Moderate Income Housing Fund established pursuant to Health and Safety Code Section 33334.3, and into which the Agency must deposit a portion of Tax Increment Revenue pursuant to Health and Safety Code Section 33334.2. (i) "McLellan Nursery Site" means the portion of the Project Area that, as of the date of execution of this Agreement, is within the territorial jurisdiction of the County, and for which the County has granted redevelopment jurisdiction to the city and the Agency pursuant to the provisions of Health and Safety Code Section 33213. A map of the McLellan Nursery Site is set forth in Exhibit A. (j) "Net Tax Increment Revenue" for a given Fiscal Year means the amount of Tax Increment Revenue remaining after subtracting the following amounts: (1) the amount paid to the County pursuant to Section 2.1(a), (b), or (c) for that Fiscal Year; (2) the amounts paid to any Other Affected Taxing Entities for that Fiscal Year under fiscal agreements entered into pursuant to Health and Safety Code Section 33401; provided that such amount for any given Other Taxing Entity shall not exceed the amount that such Other Taxing Entity would have received had it made the election pursuant to Health and Safety Code Section 33676; 63103C.P50 05/25/93 -3 - (3) the amount required to be deposited in the Housing Fund for that Fiscal Year; (4) the amount, if any, required to be deposited in the Educational Revenue Augmentation Fund established pursuant to Revenue and Taxation Code Section 97.03, or any similar or successor fund for that Fiscal Year; and (5) any other amount required to be paid, deposited, or set-aside by statute for that Fiscal Year. (k) "Other Affected Taxing Entities" means, collectively, the governmental entities for which a property tax is levied on all or any portion of the property in the Project Area, other than the County. (1) "Other Affected Taxing Entity" means one of the Other Affected Taxing Entities, individually. (m) "Plan" means the Redevelopment Plan for the E1 Camino Corridor Redevelopment Project, which has been prepared by the Agency for adoption by the City Council of the City. (n) "Project" means the program of redevelopment to be undertaken by the Agency pursuant to the provisions of the Plan and the Community Redevelopment Law. (o) "Project Area" means the E1 Camino Corridor Redevelopment Project Area established by the Plan, as mapped and described in Exhibits A and B of the Plan. (p) "Project Financing Fiscal Year" means the Fiscal Year in which the cumulative total of Net Tax Increment Revenue allocated to and received by the Agency reaches Ninety-Three Million Dollars ($93,000,000). (q) "Tax Increment Revenue" means those taxes allocated to and received by the Agency pursuant to Health and Safety Code Section 33670 et seq. from increases in assessed valuation of the property in the Project Area above the valuation shown on the assessed valuation roll last equalized prior to the date of the adoption of the City ordinance adopting the Plan. (r) "Undergrounding Agreement" means an agreement to be entered into among the City and/or Agency, and the San Francisco Bay Area Rapid Transit District and/or the San Mateo County Transportation Authority, providing for the undergrounding of the rapid transit rail line to be constructed through the Project Area in exchange for Agency contributions of Tax 63103C.P50 05/25/93 --4 - Increment Revenue to pay all or a portion of the incremental costs related to such undergrounding. (s) "Undergrounding Agreement Fiscal Year" means the Fiscal Year in which the Undergrounding Agreement is executed. Section 1.2. Exhibit. Exhibit A, entitled "Map of McLellan Nursery Site", is attached to this Agreement and incorporated herein by this reference. ARTICLE 2. PAYMENTS TO COUNTY Section 2.1. Amount of Payments. Subject to the conditions, exceptions, modifications, and limitations set forth in this Article 2 and in Article 3, the Agency shall pay to the County the following amounts: (a) Beginning for Fiscal Year 1994-95 and continuing until the expiration or other termination of the Plan, the Agency shall pay to the County for each Fiscal Year an amount equal to the amount of sales tax revenue received by the City for such Fiscal Year from retail sales operations conducted on the McLellan Nursery Site by any business that was in operation on the McLellan Nursery Site as of the date of execution of this Agreement. (b) In addition to the amount set forth in subsection (a) above, beginning for Fiscal Year 1994-95 and continuing through and including the Undergrounding Agreement Fiscal Year, the Agency shall pay to the County for each Fiscal Year an amount equal to eighty percent (80%) of the County Share of Tax Increment Revenue; provided, however, that if the Undergrounding Agreement Fiscal Year is 1993-94, no payment shall be due under this subsection (b); provided further, however, that if the Undergrounding Agreement Fiscal Year is later than Fiscal Year 1997-98, the Agency shall pay to the County an amount equal to one hundred percent (100%) of the County Share of the Tax Increment Revenue for Fiscal Year 1998-99 and for each succeeding Fiscal Year through and including the Undergrounding Agreement Fiscal Year or, if the Undergrounding Agreement is never executed, until the termination or other expiration of the Plan; provided, further, however, that for purposes of this subsection (b), the County Share for the McLellan Nursery Site portion of the Project Area shall be as specified in subsection (e) below. (c) In addition to the amount set forth in subsection (a) above, beginning for the Fiscal Year following the 63103C.P50 05/25/93 --5-- Undergrounding Agreement Fiscal Year, and continuing through and including the Project Financing Fiscal Year, the Agency shall pay to the County for each Fiscal Year an amount equal to the portion of Tax Increment Revenue that the County would have received had it made the election pursuant to Health and Safety Code Section 33676(a) (1) and (a) (2), and had the McLellan Nursery Site not been annexed by the City. (d) In addition to the amount set forth in subsection (a) above, beginning for the Fiscal Year following the Project Financing Fiscal Year and continuing until the expiration or other termination of the Plan, the Agency shall pay to the County for each Fiscal Year an amount equal to eighty percent (80%) of the County Share of Tax Increment Revenue; provided, however, that if the expiration or other termination of the Plan is extended beyond Fiscal Year 2032-33 (e.g., pursuant to a subsequent amendment of the initial Plan), then beginning in Fiscal Year 2033-34 and continuing until such extended expiration or other termination of the Plan, the Agency shall pay to the County an amount equal to one hundred percent (100%) of the County Share of Tax Increment Revenue; provided, further, however, that for purposes of this subsection (d), the County Share for the McLellan Nursery Site portion of the Project Area shall be as specified in subsection (e) below. The Agency shall deposit the portion of the full County Share of Tax Increment Revenue not paid to the County pursuant to this subsection (d) into the Housing Fund in accordance with the requirements of Health and Safety Code Section 33334.2. (e) Notwithstanding the definition of "County Share" set forth in Section 1.1(f), and for purposes of subsection (b) and (d) above only, following City annexation of the McLellan Nursery Site the County Share for the McLellan Nursery Site shall be the County Share that will be in effect following termination of the Plan pursuant to the property tax exchange provisions of the Annexation Agreement (that is, 22.04% of the basic one percent (1%) county ad valorem property tax rate imposed in accordance with the provisions of Section l(a) of Article XIIIA of the Constitution of the State of California). Section 2.2. Payment Procedure; Documentation. The Agency shall approve and pay to the County those respective amounts pursuant to Section 2.1 for each Fiscal Year within a reasonable period after the Agency receives the Tax Increment Revenue from 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 January 31, that payments in relation to allocations received between January 1 and April 30 of any Fiscal Year shall be made no later than May 63]03c. P50 05/25/93 -6- 31, and that payments in relation to allocations for a Fiscal Year received on or after May 1 of that Fiscal Year shall be made no later than July 31 of the succeeding Fiscal Year. No interest shall accrue in relation to any amounts payable pursuant to this Agreement. Each payment made by the Agency shall be accompanied by a statement setting forth in reasonable detail the basis on which the determination of the amount of payment has been made. To assist in determining the Undergrounding Agreement Fiscal Year, the statement for the Fiscal Year in which the Undergrounding Agreement is executed shall be accompanied by a copy of the executed Undergrounding Agreement. To assist in determining the Project Financing Fiscal Year, the statement for each Fiscal Year through and including the Project Financing Fiscal Year shall include a statement of the Net Tax Increment Revenue for the given Fiscal Year (and the basis for determining such amount) and the cumulative total Net Tax Increment Revenue through the given Fiscal Year. Section 2.3. Limitations on Payment. (a) The Agency's obligation to make payments hereunder shall be limited to and be paid from Tax Increment Revenue received by the Agency. The Agency shall be deemed to have fully discharged its obligations under this Agreement upon paying or causing the payment of those amounts payable to County under Section 2.1 of this Agreement. This Agreement fully addresses any adverse fiscal impact of the Project upon the County, and the County 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. (b) In addition, the Agency's obligations to make payments to the County pursuant to this Agreement in any Fiscal Year shall not exceed that amount of property tax revenues which would have been received by the County if all the Tax Increment Revenue 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. Section 2.4. Indebtedness. The Agency's obligation to make payments pursuant to this Agreement is deemed to constitute an "indebtedness" within the meaning of Health and Safety Code Sections 33670 and 33675. Section 2.5. Subordination. The Agency may request the County to subordinate its payment due under this Agreement to allow the Agency to pledge all or any portion of the Tax 63103C.P50 05/25/93 --7-- Increment Revenue in order to secure repayment of Agency long- term indebtedness incurred for the Project. The County shall approve such requests provided that the Agency first demonstrates the Agency's anticipated ability to repay such indebtedness incurred for the Project without demand being made on the payments due the County under the terms of this Agreement. Such demonstration by the Agency shall show that the Tax Increment Revenue needed to make the payments due under this Agreement will be used in the cash-flow of the financing only for additional security (debt service coverage) and that the Tax Increment Revenue will be adequate, over the term of the indebtedness, to pay 100% of the actual debt service thereon, to pay the Agency's obligations under this Agreement, and to pay other obligations of the Agency whether statutory or contractual which are or would be superior to Agency's obligations under this Agreement. Any such demonstration shall include, without limitations, revenue forecasts and debt service schedules. The County Administrator, on behalf of the County, shall execute and acknowledge any documentation necessary to give effect to this Agreement, including, but not limited to, the subordination provisions of this Section 2.5. ARTICLE 3. ADDITIONAL COVENANTS; APPROVAL OF PLAN Section 3.1. Use of Housing Fund. Until the Agency has satisfied in full the Project Area affordable housing production requirement pursuant to Health and Safety Code Section 33413(b), the Agency shall expend not less than eighty percent (80%) of the cumulative amount deposited in the Housing Fund to assist in the production of new housing units within the Project Area available at affordable housing cost to low and moderate income households, including very low income households. Section 3.2. Approval. The County 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 the Plan or any proceedings in connection therewith (including, without limitation, proceedings pursuant to the Community Redevelopment Law or the California Environmental Quality Act), 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 shall be of no further force or effect. 63103C.P50 05/25/93 --8-- Notwithstanding any other provision of this Agreement, the County shall receive no payment from the Agency pursuant to Section 2.1 unless the County adopts an ordinance by not later than July 19, 1993 approving the Plan pursuant to Health and Safety Code Section 33213 in connection with the inclusion of the McLellan Nursery Site in the Project Area. ARTICLE 4. MISCELLANEOUS Section 4.1. Entire Aqreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them. Except as otherwise expressly provided therein, neither this Agreement nor any of the terms hereof may be amended, modified, waived or terminated except by a written instrument signed by the parties hereto. It is the intent of the Agency and the County that payments herein provided constitute a full, complete, fair and equitable adjustment for all detrimental financial and other impacts which have resulted or may result during the term of this Agreement from the Project. It is the further intent and understanding of the parties that the Agency will not amend the Plan to add significant new Project activities or to implement any other action described in Health and Safety Code Section 33354.6 without addressing to the County's reasonable satisfaction any financial burden or detriment that might be caused to the County by such proposed amendment. Section 4.2. Effective Date and Term of 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 become effective only upon the effective date of the ordinance of the City Council adopting the Plan. This Agreement shall continue in effect so long as the Agency receives Tax Increment Revenue from the Project Area. Section 4.3. State Law. This Agreement, and the rights and obligations of the parties hereto, shall be construed and enforced in accordance with the laws of the State of California. Section 4.4. Legal Actions. If litigation is initiated attacking the validity of this Agreement, each party in good faith shall defend and seek to uphold this Agreement. In the event this Agreement, the Plan, the Project or the ordinance adopting the Plan is declared invalid by a final judgment in a 63103C.P50 05/25/93 -9- court of competent jurisdiction, then this Agreement shall become null and void. Section 4.5. Successors and Assigns. 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 Agreement to be executed. "COUNTY" Approved as to Form: SAN MATEO COUNTY By: Its: "AGENCY" Approved as to Form: REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO By: Patricia E. Martel Interim Executive Director Its: 63]03C.P50 05/25/93 --10- PROJECT AREA Exhibit A El' CAMINO CORRIDOR REDEVELOPMENT STUDY AREA SOUTH SAN FRANCISCO, CA eot Area .'~" eoun, dary \ ,__Project Area iii May 1993