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HomeMy WebLinkAboutReso RDA 18-1993 RESOLUTION NO. 18-93 REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION AUTHORIZING EXECUTION OF A FISCAL AGREEMENT WITH THE SOUTH SAN FRANCISCO UNIFIED SCHOOL DISTRICT 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 South San Francisco Unified School District (the "District"); and WHEREAS, the Agency and the District 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 District. 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 5he foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at regular meeting held on the 14th day of July , 1993 by the following vote: AYES: 'Boardmembers Jack Drano, Joseph A. Fer~lekes, and Robert Yee NOES: None ABSTAIN: None ABSENT: Boardmember John R. Penra, and Chairwoman Roberta Cerri. Teglia ATTEST: Clerk Redevelopment Agency o~f the City of South San Francisco EXHIBIT A TO RESOLUTION NO. 18-93 FISCher, AGREEHENT REGarDING EL CJ~INO CORRIDOR REDEVELOPMENT PROJECT THIS AGREEMENT is made and entered into as of July 14, 1993, by and between the South San Francisco Unified School District (the "District") 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 i 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 District 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 District 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 . District and representatives of the Agency to discuss the fiscal impact of the Project on the District, at which meetings the District presented evidence that the District will suffer a financial burden and detriment as a result of the implementation of the Plan if it is adopted by the City Council. 631040.PS0 O6/25/93 G. The Agency agrees that the District 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 District 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 District if the parties did not agree to enter into this Agreement. I. The District by this Agreement is agreeing to forego and waive any action or proceeding contesting the validity of the proposed Plan. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and conditions contained herein, the parties hereto agree as follows: ARTICLE 1 DEFINITIONS Section 1.1 General Def~nStions. The following general definitions shall govern this Agreement= (a) "Agency" means the Redevelopment Agency of the City of South San Francisco, California. (b) "Base Year Ro11" 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. (c) "City" means thei City of South San Francisco, California. (d) "Community Redevelopment Law" means the California Community Redevelopment Law (Health and Safety Code Section 33000 et sea.). (e) "District" means the South San Francisco Unified School District. (f) "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 631040.PS0 0&,25/93 -2- division of taxes pursuant to Health and Safety Code Section 33670 et seq. (g) "Fiscal Year" means the period commencing on July I 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) "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 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; (2) the amount required to be deposited in the Housing Fund for that Fiscal Year; (3) 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; (4) any other amount required to be paid, deposited, or set-aside by stat'ate from Tax Increment Revenue for that Fiscal Year; and (5) 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. , (j) "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 District., (k) "Other Affected Taxing Entity" means one of the Other Affected Taxing Entities,l individually. 631040.PSO 06/23/93 ' 3- (1) "Plan" means the Redevelopment Plan for the E1 Camino Corridor Redevelopment Project, which has been prepared by the Agency for adoption by theiCity Council of the City. (m) "Project" meansithe program of r~development to be undertaken by the Agency pursuant to the provisions of the Plan and the Community Redevelopment Law. (n) "Project Area" =eans the E1 Camino Corridor Redevelopment Project Area established by the Plan, as mapped and described in Exhibits A and B of the Plan. (o) "Target Fiscal year" means the Fiscal Year in which the Net Tax Increment Reyenue allocated to and received by the Agency first equals or exceeds Three Million Seven Hundred Sixty Thousand Dollars ($3,760~000). (p) "Tax Increment Revenue" means those taxes allocated to and received by the Agency pursuant to Health and Safety Code Section 33670 et se~. 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. (q) "Transit Agreement" means an agreement to be entered into among the City and/or the Agency, and the San Francisco Bay Area Rapid Transit District and/or the San Mateo County Transportation Authorityl, providing for the undergrounding of the BART rapid transit line to be constructed through the Project Area. ARTICLE 2 PAYMENTS!TO DISTRICT Section 2.1 Amount of Payments. Subject to the conditions, exceptions, modifications, and~imltations set forth in this Article 2 and in Article 3, thelAgency shall pay to the District the following amounts: (a) Beginning for FiScal Year.1994-95 and continuing until the Fiscal Year preceding]the Target Fiscal Year, the Agency shall pay to the Distrlc~ an amount equal to the District Share of Tax Increment Revenue attributable to increases in assessed value of the taxable property in the Project Area, as the assessed value is established by the Base Year Ro11, which are, or otherwise would be, calculated annually pursuant to subdivision (f) of Revenue and Taxation Code Section 110.1. By 631040.PS0 06/2~/93 --4-- this subsection (a), 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). (b) In addition to payments described in subsection (a), beginning for the Fiscal Year following the Fiscal Year in which the Transit Agreement is executed, and continuing through the Fiscal Year preceding the Target Fiscal Year, the Agency shall pay to the District for each Fiscal Year an amount equal to the lesser of (1) Fifty Thousand Dollars ($50,000) or (2) thirty- three percent (33%) of the Net~Tax Increment Revenue for such Fiscal Year; provided, however, that in no event shall the Agency make payments for more than twenty (20) Fiscal Years pursuant to this subsection (b), even if the Target Fiscal Year has not occurred. (c) 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 subsection (c) that would cause the difference of (i) Net Tax Increment Revenue for that Fiscal Year minus (ii) the payment made to the DistriCt pursuant to this subsection (c) for that Fiscal Year to be less than Three Million Seven Hundred Sixty Thousand Dollars ($3,760,000). By this subsection (c), 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 limltation 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%). Section 2.2 payment Procedure: Documentation. The Agency shall approve and pay to the Dhstrict those respective amounts pursuant to Section 2.1 for each Fiscal Year within sixty (60) days of receipt by the Agency of the last installment of Tax Increment Revenue for such Fiscal Year. 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 631040.P50 amount of payment has been made, including a calculation of the Net Tax Increment Revenue for~the Fiscal Year. Section 2.3 ?.im~tatio~s 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 unaer this Agreement upon paying or causing the payment of those amounts payable to District under Section 2.1 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 Sectior 33676 or otherwise claim any additional property tax revenues from the Project Area. In the event the District has heretofore made an election pursuant to Health and Safety Code Section 33676, the District shall take such actions as are required by the County Auditor-Controller or other appropriate County official to rescind such election. (b) In addition, the Agency's obligations to make payments to the District pursuant to this Agreement In any Fiscal Year shall not exceed that am=mt of property tax revenues which would have been received by the District if all the Tax Increment Revenue from the Project Area had been allocated to all the affected taxing agencies with=at regard to the division of taxes required by Health and Safety Code Section 33670. Section 2.4 Tndebtedness. 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 District to subordinate its payment due under this Agreement to allow the Agency to pledge all or any portion of the Tax Increment Revenue in order to secure repayment of Agency long- term indebtedness incurred for the Project. The District 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 District 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 ser~hce coverage) and that the Tax Increment Revenue will be adequate, over the term of the indebtedness, to pay 100% of t~.e actual debt service thereon, to pay the Agency's obligations urder this Agreement, and to pay 63104o~w~0 other obligations of the Agency whether statutory or contractual which are or would be superior to Agencyts obligations under this Agreement. Any such demonstration shall include, without limitations, revenue forecasts~and debt service schedules. Section 2.6 Use of Funds'. The District shall use the moneys received from the Agency pursuant to this Agreement exclusively for the purposes of land acquisition, facility construction, reconstruction, or remodeling, or deferred maintenance. Section 2.? ~ffect of State Financing System. (a) Credit Against ~andated Payments. If a future legislative enactment requires the Agency to make specified payments to the District which payments are not for the purpose directly or indirectly of repl&cing State funding of District programs, the amounts paid by the Agency to the District pursuant to such legislative enactment ~hall be credited toward the amounts otherwise payable to the District under this Agreement, with the effect of reducing the amounts otherwise payable by the Agency to the District under this Agreement. The provisions of this subsection (a) are not intended to apply to payments made by the Agency to the Educational Revenue Augmentation Fund established pursuant to Revenue and Taxation Code Section 97.03, or any similar or successor funds, for distribution by formula among school districts in the County of San Mateo. (b) T~cal Benefits of Payments. The parties intend that the payments to be made by the Agency to the District pursuant to this Agreement will be available for use as additional funds of the District. In the event that the payments made to the District under this Agreement cause (1) a reduction in payments to the District from the State of California or a related-entity (referred to in this subsection as a "Reduction Event") or (2) an obligation of the District to make payments to the State of California or a related-entity (referred to in this subsection as a "Reimbursement Event"), thus defeating that intention, then the following procedures shall be followed: (1) Promptly upon occurrence of a Reduction Event or a Reimbursement Event, the District shall notify the Agency in writing of such event. (2) After conducting good faith consultations with the Agency, the District shall prepare an amendment to this Agreement which shall provide, no the fullest extent possible, that the intent of the parties set forth in this Section 3.5(b) is achieved. The Agency shall execute such amendment ~rov~de~= d31040.P50 O~.S/~ ' 7- (A) The p~ovisions of the amendment are not contrary to law~ and I (B) The provisions of the amendment do not: i) alter the status of, or impair the ability of the Agency to make payments with respect to, indebtedness incurred by the Agency prior to receipt of notice of the Reduction Event or Reimbursement Event; (ii) adversely affect the amount or timing. of Tax Increment Revenue that the Agency will receive after making payments to the District u~der this Agreement as so amended; (iii) modify the priority allocation of Tax Increment Revenue from that set forth in items (1) through (5) of the definition of NNet Tax Increment Revenue#$ (iv) create or increase any statutory obligation of the Agency~ or (v) otherwise adversely affect the financial ~osition of the Agency. (3) If it is not possible to provide by an amendment to this Agreement that the intent of the parties be achieved despite a Reduction Event or a Reimbursement Event, then the amount otherwise payable by the Agency to the District pursuant to the provisions of t~is Agreement shall be reduced: (A) in the case of a Reduction Event, by the amount by which payments from t_he State of California or a related-entity to the District would be reduced by reason of a payment made by the Agency to the District pursuant to this Agreement; or (B) in the case of a Reimbursement Event, by the amount that the. District would have to pay to the State of California or a related-entity by reason of a payment made by the Agency to the District pursuant to this Agreement. (4) If, at a subsequent date, the Reduction Event or Reimbursement Event no longer applies to the District, the District shall so notify the Agency in writing, and henceforth the District shall receive from the Agency the full payments to which it is otherwise due under this Agreement. ARTICLE 3 ADDITIONAL DOCUMENTATION; APPROVAL OF PLAN Section 3.1 Additional ~ocumentat~on. The Superintendent, on behalf of the District, shall execute and acknowledge any documentation necessary to give effect to this Agreement, including, but not limited to, the subordination provisions of Section 2.5. Section 3.2 Approval. The District agrees that it will not file or participate in any lawsuit or proceedings attacking or otherwise questioning the v&lidity 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. ARTICLE 4 MISCELLANEOUS Section 4.1 Rntire Agreement. 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 District 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 imple=ent any other action described in Health and Safety Code Section 33354.6 without addressing to the District's reasonable satisfaction any financial burden or detriment that might be caused to the District by such proposed amendment. Section 4.2 Fffective 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 ?.aw. 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. 631040.])S0 06/25/93 -9-- Section 4.4 7~gal 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 Plat, the Project or the ordinance adopting the Plan is declared invalid by a final judgment in a court of competent jurisdiction, then this Agreement shall become null and void. Section 4.5 Successors pnd AssJgns. 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. "DISTRICT" Approved as to Form: SOUTH SAN FRANCISCO UNIFIED SCHOOL DISTRICT Its: "AGENCY" Approved as to Form: REDEVELOPMENT AGENCY OF THE CITY OF S~UTH SAN FRANCISCO By: I=s: