HomeMy WebLinkAboutRDA Reso 20-2011 RESOLUTION NO. 20 -2011
REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING THE EXECUTIVE
DIRECTOR TO EXECUTE AN AGREEEMENT WITH THE
COUNTY OF SAN MATEO TO PREPAY THE
REDEVELOPMENT AGENCY OF SOUTH SAN
FRANCISCO'S SHARE OF A MULTI -YEAR PROPERTY TAX
SETTLEMENT BETWEEN THE COUNTY OF SAN MATEO
AND GENENTECH, INC.
WHEREAS, on or around March 21, 2008 Superior Court Judge Carol L. Middlesteadt
issued a Notice of Entry of Writ of Mandate and Remand instructions to the County of San
Mateo ( "County ") to refund prior years' property taxes paid by Genentech Inc. ( "Genentech ")
(Case No. CIV 456781); and
WHEREAS, on or around April 8, 2011, the County and Genentech negotiated a
settlement that would pay Genentech in resolution of Case No. CIV 456781 as well as for several
other tax years' disputed by Genentech ( "Settlement "); and
WHEREAS, the County has estimated that the Settlement will reduce the
Redevelopment Agency of the City of South San Francisco's ( "Agency ") property tax increment
through 2013 -14 in the amount of $7,037,826.50, as shown in Exhibit C, attached hereto and
incorporated as part of this Resolution; and
WHEREAS, the Settlement is referred to in a press release shown as Exhibit B, attached
hereto and incorporated as part of this Resolution; and
WHEREAS, the Redevelopment Agency Board of South San Francisco ( "Board ")
believes it would be expeditious to pay the County of San Mateo up front in one installment for
the Agency's share of the multi -year settlement, so that the Agency may realize interest savings
over time; and
WHEREAS, if the County is able to negotiate a lower payment due to lowered interest
earnings with Genentech, the County will provide a document to the Agency Executive Director
demonstrating such savings.
NOW, THEREFORE, BE IT RESOLVED, by the Redevelopment Agency of the City of
South San Francisco that it hereby authorizes the Executive Director to execute an agreement on
behalf of the Agency to pay the County of San Mateo a total not to exceed $7,100,000 to reflect
the final settlement amount due to the County from the Settlement referred to above, in the event
that such prepayment realizes savings for the Agency, and to execute such additional instruments
as may be necessary or desirable in order to carry out the intent of this Resolution.
BE IT FURTHER RESOLVED, by the Redevelopment Agency of the City of South San
Francisco that the Redevelopment Agency operating budget may be correspondingly adjusted to
reflect that final payment amount and that funds have already been set aside to satisfy this
obligation.
* * *
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the
11 day of May, 2011 by the following vote:
AYES: Boardmembers Mark Addiego, Pedro Gonzalez, and Karyl Matsumoto,
Vice Chair Richard A. Garbarino and Chairman Kevin Mullin
NOES: None
ABSTAIN: None
ABSENT: None
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