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HomeMy WebLinkAboutReso RDA 14-1993 RESOLUTION NO. 14-93 REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION AUTHORIZING THE AGENCY TO PREPARE AND PRESENT A FISCAL AGREEMENT TO THE SOUTH SAN FRANCISCO UNIFIED SCHOOL DISTRICT WITH RESPECT TO THE ADOPTION OF EL CAMINO CORRIDOR REDEVELOPMENT PLAN WHEREAS, the Redevelopment Agency of the City of South San Francisco (the "Agency") has prepared, and the City Council (the "City Council") of the City of South San Francisco (the "City") is considering for adoption, a Redevelopment Plan for the E1 Camino Corridor Redevelopment Project (the "Plan"); and WHEREAS, among other matters, the Plan would remove the blighting conditions which currently exist in the Project Area in order to create developable parcels. The Agency will participate with SAMTRANS and BART to underground and proposed BART extension which will run along the existing railroad right-of-way to ensure that parcels which currently have limited use become more developable. In addition, the project includes covering portions of Colma Creek and improvements to Oak Avenue to provide additional development opportunities. The Agency will also assist in the development of high-density residential and transit-oriented commercial uses; and WHEREAS, the Projects envisioned to be undertaken pursuant to Plan are necessary to (1) alleviate the conditions of blight in the Project Area, and (2) accomplish redevelopment of the Project Area in accordance with the goals, objectives and policies of the Plan; and WHEREAS, in preparing the Plan, the Agency has participated in the deliberations of a Fiscal Review Committee convened pursuant to Health & Safety Code §33353, and has diligently undertaken consultations with the affected taxing entities to ascertain if, and to what extent, the Plan and the Project might cause a significant "financial burden or detriment" to any affected taxing entity, as that phrase is defined in Health & Safety Code §33012; and WHEREAS, the Agency'has d~ligently conducted consultations with the South San Francisco Unified School District (hereinafter the "District"); and WHEREAS, as part of the Plan adoption process, the Agency has prepared or assisted in the preparation of a Preliminary Report; Report on the Plan as supplemented (the "Final Report"), which includes the Agency's response to the report of the Fiscal Review Committee; an Environmental Impact Report (the E.I.R.), which includes a Draft EIR and Final EIR containing responses to comments received on the Draft EIR; and the City Council's responses and findings to written comments received on the Plan (the "Findings") prepared in accordance with Health & Safety Code §33363. The Plan, the Preliminary Report, the Final Report, the EIR, and the Findings are sometimes collectively referred to in this resolution as the Plan Documents; and WHEREAS, based on detailed information and analysis contained in the Plan Documents, the Agency and the City Council have determined that the adoption of the Plan and the implementation of the Project under the Plan will not cause any "net increase in the quality or quantity of...service(s)" to any affected taxing entity within the meaning and intent of Health & Safety Code §33012(a) (1), in that: (1) The Project is designed to encourage high-density residential and commercial development in the Project Area; (2) The Project will result in an area which contains adequate public services and will concentrate development so as to maximize the efficiency of providing these services; (3) Consequently, the Project will not cause an increase in the quantity of quality of services to be provided by the affected taxing entities; (4) To the contrary, by enhancing the affordability of housing, alleviating and blighting conditions in the Project Area, the Project will improve the physical, social and economic conditions of the Project Area and its residents, and will help to develop a community in which public facilities and services can be more economically and efficiently provided; and (5) Consequently, .implementation of the Project will result in a long-term decrease in the quantity, and improvements of the quality, of services to be provided by the affected taxing entities, as contrasted to the situation that would result if the Plan were not adopted and the Project was not implemented; and WHEREAS, based on detailed information and analysis contained in the Plan Documents, the Agency and the City Council have determined that a preponderance of the private development and assessed valuation growth that has occurred to date and that can reasonably be anticipated to occur in the future in the Project Area would not occur without the direct or indirect incentive to private investment made possible through implementation of the Project under the Plan; and consequently, with respect to private development in the Project Area and assessed valuation growth, there is no "loss of property tax revenues by [any] affected taxing entity procured by a change of ownership or new construction which would have been received, or was reasonably expected to have been received, by [any] taxing entity if the [Project] was not established" and the Plan were not adopted, within the meaning and intent of Health & Safety Code §33012; and WHEREAS, the foregoing determination is based on information and analysis that, without implementation of the Project under the Plan, a substantial portion of the development contemplated for the Project Area under the City's General Plan would not occur either in the Project Area, elsewhere in the City or in its environs, and a substantial portion of the potential increase in assessed valuation of all property in the Project Area would not occur, with a resulting limitation on property tax revenues available for allocation among the affected taxing entities; and WHEREAS, as determined above, a limited amount of new residential development is likely to occur in the Project Area as a result of implementation of the Project under the Plan which otherwise would not have occurred, with the result that affected taxing entities may suffer a marginal increase in the quality or quantity of services to be provided; and WHEREAS, Health & Safety Code §33401 authorizes redevelopment agencies to pay to an affected taxing entity an amount that the Agency has found necessary and appropriate to alleviate a financial burden or detriment of the type identified in the immediate preceding Recital; and WHEREAS, the Agency has determined that any limited potential financial burden or detriment to the District resulting from the Project and the Plan can be fully and effectively alleviated through the execution of a fiscal agreement pursuant to Health & Safety Code §33401 containing the terms~set forth in Exhibit "A" attached hereto and by this reference incorporated herein; and WHEREAS, it is the Agency's intention to enter into the fiscal agreement and implement the fiscal mitigation measures described below in order to fully and effectively alleviate any limited potential financial burden or detriment to the District resulting from the Project and the Plan. NOW, THEREFORE, BE IT RESOLVED, by the Redevelopment Agency of the City of South Francisco as follows: 1. The Agency hereby finds and determines that. the foregoing Recitals are true and correct, and have served as the basis for the Agency's good faith implementation of the fiscal mitigations set forth in this Resolution and accompanying Exhibit and in the Plan. 2. The Agency hereby authorizes and directs the Interim Executive Director to prepare and submit to the District a fiscal agreement containing the following provisions to alleviate any financial burden or detriment to the District resulting from the Project and the Plan. 3 a. An agreement by the Agency to make pass-through payments of tax increment revenue to the District in the amounts and at the times as set forth in the attached Exhibit "A". b. Appropriate language subordinating the payments to the District to any bonds, notes or any other borrowing instruments which will enable the Agency to borrow monies which are secured by the tax increment revenue not required to be paid to the District under the fiscal agreement. c. Provisions to properly assure that the pass- through payments will be applied to provide services and facilities of benefit to Project Area and other South San Francisco residents, consistent with discussions and proposals regarding such services and facilities conducted and considered between Agency staff and representatives of the District. d. An agreement by the District to not file litigation, challenging the adoption of the Plan and a provision that if any such litigation is filed by the District, the fiscal agreement will become null and void. e. Any other provisions approved by the Interim Executive Director which are either appropriate or required by law to implement the Agency's intention under this resolution. 3. Upon approval by the District of the fiscal agreement which is consistent with the terms of this resolution, the Agency will authorize its execution. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at re§u]ar meeting held on the 23rd day of June , 1993 by the following vote: AYES: Boardmembers Jack Drago~ Joseph A. Fernekes, and Robert Yee NOES: None ABSTAIN: None ABSENT: Boardmember John R. Penna, and Chairwoman Roberta Cerri Teglia ATTEST: City of South San Francisco -- RESOLUTION NO. 14-93 EXHIBIT "A" PAYMENT OFFER 1. Beginning for Fiscal Year 1994-95 and continuing until the Fiscal Year preceding the Target Fiscal Year (as defined in Paragraph 3. below), the Agency shall pay to the District an amount equal to the District Share (as defined in Paragraph 4. below) of Tax Increment Revenue (defined in Paragraph 5. below) attributable to increases in assessed value of the taxable property in the Project Area, as the assessed value is established by the Base Year Roll (as defined in Paragraph 6. below), which are, or otherwise would be, calculated annually pursuant to subdivision (f) of Revenue and Taxation Code Section 110.1. By this Paragraph 1, it is intended that, during the period specified above, the District will receive from the Agency the amount that it would have received had it made the election pursuant to Health and Safety Code Section 33676(a)(2). 2. Beginning for the Target Fiscal Year and continuing until the expiration or other termination of the Plan, the Agency shall pay to the District for each Fiscal Year an amount equal to the District Share of Tax Increment Revenue attributable to actual annual increases in assessed value of the taxable real property in the Project Area, as the assessed value is established by the Base Year Roll, not in excess of five percent (5%) per annum; provided, however, that in no event shall the Agency be required to make a payment for a given Fiscal Year pursuant to this Paragraph 2 that would cause the difference of (i) Net Tax Increment Revenue (as defined in Paragraph 7. below) for that Fiscal Year minus (ii) the payment made to the District pursuant to this Paragraph 2 for that Fiscal Year to be less than Three Million Seven Hundred Sixty Thousand Dollars ($3,760,000). By this Paragraph 2, it is intended that, during the period specified above and subject to the proviso contained at the end of the preceding sentence, the District will receive from the Agency the amount that it would have received had it made the election pursuant to Health and Safety Code Section 33676(a)(2), except that, instead of a two percent (2%) per annum limitation on the growth in assessed value of the taxable real property in the Project Area, the amount payable to the District will be calculated as if such limit were five percent (5%). 3. "Target Fiscal Year" means the Fiscal Year in which the Net Tax Increment Revenue allocated to and received by -6- the Agency first equals or exceeds Three Million Seven Hundred Sixty Thousand Dollars ($3,760,000). 4. "District Share" for a given Fiscal Year means the proportionate percentage share of Tax Increment Revenue that the District 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. 5. "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. 6. "Base Year Roll" means the 1992-93 property assessment roll for the Project Area, as such 1992-93 property assessment roll may be adjusted from time to time. 7. "Net Tax Increment Revenue" for a given Fiscal Year means the amount of Tax Increment Revenue remaining after subtracting the following amounts: -- (a) the amount required to be paid by the Agency to the County (or retained by the County from Tax Increment Revenue) pursuant to Revenue and Taxation Code Section 97, or any similar or successive statute, for property tax collection services of the County; (b) the amount required to be deposited in the Housing Fund for that Fiscal Year; (c) 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; (d) any other amount required to be paid, deposited, or set-aside by statute from Tax Increment Revenue for that Fiscal Year; and (e) 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. ~iO~F.~SO -7-