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HomeMy WebLinkAbout0162C - PSUSD TAX INCREMENT PASSTHRU rs City of Palm Springs David H.Ready,Esq., Ph.D. City Manager 3200 Easy Tahgoitz Canyon Way,PaLn Springs CA 92262 �FQRN`P Tel 760.322.8350 • Fax 760.323.8207 • TDD 760,864,9327 David.Ready@palmspringsca.gov • w .palmspringsca.gov May 2,2013 Lisa Howell Assistant Superintendent, Business Services Palm Springs Unified School District 980 East Tahquitz Canyon Way Palm Springs, CA 92262-0119 Dear Ms. Howell: The Successor Agency to the Palm Springs Community Redevelopment Agency ("Successor Agency") received your March 25, 2013 letter referencing the pass-through agreements between the Palm Springs Unified School District("School District")and the former Palm Springs Community Redevelopment Agency ("RDA") on September 18, 1986, and on November 1, 1989 (collectively "Agreements"), which entitle the School District to annual redevelopment pass- through payments("Redevelopment Funds"). According to Section 3.3.1 of the Agreements: "The proceeds of the Fund shall be utilized for the following purposes,or as hereinafter may be agreed upon between the District and the Agency." The City and Successor Agency appreciate the School District's efforts to provide new schools and modernize older schools with capital facilities funds, including Redevelopment Funds. Therefore,the Successor Agency supports repurposing a portion of these funds for other critical needs and approves the fallowing uses of Redevelopment Funds: 1. Acquisition of technology devices and infrastructure for students and staff to provide students with the technological skills and the analytical and creative capacity needed to succeed in 21" century classrooms and better prepare them for post-secondary education and ultimately a career. 2. To support the School District's Foundation (The Pinnacle Fund), allowing the School District to use a portion of its Redevelopment Funds to offset the Foundation's staffing costs of $150,000 per year for the next three years. The City looks forward to partnering with the School District in improving technology and resources to the students and staff of the School District in a manner that is consistent with public policy. Allowing the uses described above for already-allocated Redevelopment Funds is one way for the City to support the education the School District provides to students and families in the City of Palm Springs. PO Box 2743,Palm Springs CA 92263 We further understand that the repurposing of the Redevelopment Funds by the School District happens at the District level and does not increase or decrease the amount of Redevelopment Funds from Successor Agency through Riverside County, nor does it constitute an amendment to the Agreements described above and therefore does not require either Successor Agency or Oversight Board action. If you have any questions regarding the Agreements, please feel free to call John Raymond, the City's Director of Community & Economic Development, at 760-323-8228 or email him at John.Raymond@paimspringsca.gov. We certainly look forward to further cooperation between the City and School District. Sincerely, David H. Ready, Esq., Ph.D. City Manager cc: Douglas C. Holland, Esq.,Agency Counsel James Thompson,City Clerk/Chief of Staff John S. Raymond, Director of Community&Economic Development Geoffrey Kiehl, Director of Finance and Treasurer Suzanne Harrell, Harrell&Co.Advisors Amendment #1 to P.S. Unified School Distr passthru agr for tax increment, Bar-Farr, PA8 AGREEMENT #162 & #2352 AMENDMENT TO THE Resolution 445 & 16012, 9-17-86 AGREEMENT FOR COOPERATION BETWEEN THE PALM SPRINGS UNIFIED SCHOOL DISTRICT THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AND THE CITY OF PALM SPRINGS 3 . 15 The per unit developer-paid school impact fee shall be reduced for residential developments within the Project Area to reflect, on a dollar for dollar basis, the funds provided by this agreement for the benefit of the district. The per unit -developer-paid school impact fee shall be reduced outside the Project Area for residential develop- ments to reflect, on a dollar for two dollars basis, the funds pro- vided by this agreement for the benefit of the District. These calcu- lations shall be made based upon the revenue estimates for each fiscal year derived for the equalized tax roles available in August of same fiscal year. Fee reductions shall become effective January 1st of same fiscal year. Reductions shall occur in the first year revenues are provided by this agreement for the benefit of the District. Exhibit "B" attached is a sample of the calculation referenced in 3.15 and is made part of this agreement for interpretive purpose. 3. 16 The agency agrees to issue redevelopment bonds, certi- ficates of participation or other financial obligations to assist the District for the construction, reconstruction or rehabilitation of the Palm Springs High School. The extent of such bonded indebtedness will be determined by the amount of tax increment provided by the Baristo Farrell and other agency projects to which the district is entitled. Additional funding for this purpose may be allocated from other district resources including loans from the developer fee fund. EXHIBIT B PALM SPRINGS UNIFIED SCHOOL DISTRICT AND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS EXAMPLES OF DEVELOPER FEE REDUCTION CALCULATIONS 1 . Within Project Area Given; a) Amount distributed to District (From Exhibit "A") $720 . 00 b) Amount distributed to District per unit ($720 : 80*) $ 9 . 00 c) Resultant fee ($636 - $9) $627. 00 * Projected average annual residential construction in Project Area. 2. Outside Project Area Given; a) Amount distributed to District (from Exhibit "A" ) $720 . 00 b) Amount distributed to District per unit ($720 : 500**) $ 1 . 44 c) Resultant fee ($636 - $1 . 44) $634 . 56 ** Projected average annual residential construction outside of Project Area. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS DATED(,( CHAIRMAN ATTEST: �TLM ASSISTANT JT,�,,` OW-', SECRETARY PALM SPRINGS UNIFIED SCHOOL DISTRICT DATED PRESIDENT 4'hjt� ATTEST: —Y CLERK CITY OF PALM SPRINGS )DATED CITY MANAGER ATTEST : CITY CLERK,, L irl Ns Ci.y LcH 01 V • P.S. Unified School District passthru agr for tx incr rev from Baristo-Farrell , PA8 AGREEMENT #162 & #2352 AGREEMENT FOR COOPERATION BETWEResolution 445 & 16012, 9-17-86 THE PALM SPRINGS UNIFIED SCHOOL DISTRICT, THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AND THE CITY OF PALM SPRINGS 1 . ' PARTIES AND DATE 1 . 1 THIS AGREEMENT ENTERED INTO IN THE CITY OF PALM SPRINGS , COUNTY OF RIVERSIDE , STATE OF CALIFORNIA, THIS 18TH DAY OF SEPTEMBER, 1986 BETWEEN THE PALM SPRINGS UNIFIED SCHOOL DISTRICT, A PUBLIC AGENCY (DISTRICT) , THE COMMUNITY REDEVELOPMENT , AGENCY OF THE CITY OF PALM SPRINGS, A PUBLIC BODY (AGENCY ) AND THE CITY OF PALM SPRINGS (CITY ) , 2 . RECITALS 2. 1 AGENCY IS PROPOSING TO UNDERTAKE A PROGRAM UNDER THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW (HEALTH AND SAFETY CODE SECTION 33000 ET SEQ) KNOWN AS THE BARISTO—FARRELL REDEVELOPMENT PROJECT (PROJECT) FOR THE REDEVELOPMENT, DEVELOPMENT, REPLANNING AND REDESIGN OF BLIGHTED AREAS WITHIN THE CITY WHICH ARE STAGNANT, IMPROPERLY UTILIZED , AND UNPRODUCTIVE BECAUSE OF DEFECTIVE OR INADEQUATE STREET LAYOUT, FAULTY LOT LAYOUT IN RELATION TO SIZE , SHAPE, ACCESSIBILITY, OR USEFULNESS , OR FOR OTHER CAUSES AND BECAUSE THE AREA REQUIRES REPLANNING FOR RECLAMATION OR DEVELOPMENT IN THE INTEREST OF THE GENERAL WELFARE BECAUSE OF VARIOUS REASONS . 2 . 2 THE DISTRICT IS IN RECEIPT OF ORDINANCE NO. 1264 ADOPTED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS , CALIFORNIA, ON JUNE 6 , 1986 AUTHORIZING THE REDEVELOPMENT OF AN AREA WITHIN THE TERRITORIAL LIMITS OF THE CITY OF PALM SPRINGS BY THE AGENCY. 2 . 3 THE AGENCY HAS FOUND AND DECLARED THAT THERE EXISTS IN THE CITY BLIGHT AREAS WHICH ARE CHARACTERIZED BY ONE OR MORE OF THOSE CONDITIONS SET FORTH IN SECTIONS 33031 AND 33032 , CAUSING A REDUCTION OF, OR LACK OF, PROPER UTILIZATION OF THE AREA TO SUCH AN EXTENT THAT IT CONSTITUTES A SERIOUS PHYSICAL , SOCIAL, AND ECONOMIC BURDEN ON THE COMMUNITY WHICH CANNOT REASONABLY BE EXPECTED TO BE REVERSED OR ALLEVIATED BY PRIVATE ENTERPRISE ACTING ALONE. 2 . 4 AS DEFINED IN SECTION 33353. 2 , THE DISTRICT IS AN AFFECTED TAXING ENTITY WHICH HAD BONDED INDEBTEDNESS AND GENERAL PURPOSE PROPERTY TAXES LEVIED ON ITS BEHALF BY THE COUNTY OF RIVERSIDE ON ALL OF THE PROPERTY LOCATED IN THE PROPOSED REDEVELOPMENT PROJECT AREA IN FISCAL YEAR 1985-1986. 2 . 5 THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW AUTHORIZED REDEVELOPMENT AGENCIES TO PAY TO ANY TAXING AGENCY WITH TERRITORY LOCATED WITHIN A PROJECT AREA OTHER THAN THE COMMUNITY WHICH HAS ADOPTED THE PROJECT, ANY AMOUNTS OF MONEY WHICH IN THE AGENCY DETERMINATION IS APPROPRIATE TO ALLEVIATE ANY FINANCIAL BURDEN OR DETRIMENT CAUSED TO ANY TAXING AGENCY BY A REDEVELOPMENT PROJECT. 2. 6 DISTRICT HAS SUBMITTED OBJECTIONS AND HAS SUBSTANTIATED BY DATA AND INFORMATION SUBMITTED TO THE AGENCY THE EXTENT AND SCOPE OF THE PROJECT' S FINANCIAL IMPACT ON THE DISTRICT. 2 .7 DISTRICT AND AGENCY WISH TO ENTER INTO A COOPERATIVE AGREEMENT BETWEEN THEMSELVES TO PROVIDE MUTUAL• AID AND ASSISTANCE IN THE REDEVELOPMENT, DEVELOPMENT AND PHYSICAL IMPROVEMENTS OF CERTAIN AREAS OF THE PROJECT AREA THROUGH THE CONSTRUCTION AND INSTALLATION OF PUBLIC SCHOOL FACILITIES , BUILDINGS AND STRUCTURES OR OTHER IMPROVEMENTS INCLUDING PLANNING AND ENGINEERING COSTS DIRECTLY RELATED TO SUCH CONSTRUCTION AND INSTALLATION, HEREINAFTER COLLECTIVELY REFERRED TO AS "PUBLIC SCHOOL FACILITIES" , AND AGENCY AND DISTRICT HAVE A COMMON INTEREST IN AND WISH TO FACILITATE REDEVELOPMENT AND TO PROVIDE FOR THE COOPERATION OF DISTRICT AND AGENCY IN CARRYING OUT THE REDEVELOPMENT ACTIVITIES , GOALS AND OBJECTIVES SET FORTH IN THE REDEVELOPMENT PLAN. 2 . 8 DISTRICT AND AGENCY RECOGNIZE THE NEED TO PROVIDE ADEQUATE PUBLIC SCHOOL FACILITIES TO SERVE THE PROJECT OR THE IMMEDIATE NEIGHBORHOOD IN WHICH THE PROJECT IS LOCATED IN ORDER TO ASSIST IN ELIMINATING BLIGHTING CONDITIONS AND HAVE DETERMINED THAT SUCH FACILITIES , BOTH IN AND OUT OF THE PROJECT AREA, ARE OF PRIMARY BENEFIT TO THE PROJECT AREA OR THE IMMEDIATE NEIGHBORHOOD IN WHICH THE PROJECT IS LOCATED AND THAT REDEVELOPMENT FINANCING IS THE ONLY MEANS OF FINANCING ALL OR A PORTION OF THE REHABILITATION, CONSTRUCTION, AND RECONSTRUCTION OF SUCH PUBLIC SCHOOL FACILITIES IN CONJUNCTION WITH OTHER AVAILABLE DISTRICT FINANCING. 2 . 9 AGENCY HAS FOUND AND DETERMINED THAT IT WOULD BE IN THE BEST INTEREST OF THE AGENCY TO PARTICIPATE WITH THE DISTRICT BY PLEDGING A PORTION OF ITS TAX INCREMENT REVENUE TO THE DISTRICT AS , PROVIDED IN SECTIONS 33401 AND 33445 TO BE USED FOR THE REHABILITATION, CONSTRUCTION AND RECONSTRUCTION OF PUBLIC SCHOOL FACILITIES AND BY OTHERWISE EXPANDING AND IMPROVING THE COMMUNITY ' S PUBLIC SCHOOL FACILITIES . 2 . 10 IT IS THE INTENT AND DESIRE OF THE DISTRICT AND AGENCY TO EXPEDITE AND FACILITATE THE IMPLEMENTATION OF ELIGIBLE PROJECTS BY THE DISTRICT WHICH ARE INSIDE OR OUTSIDE THE BARISTO-FARRELL REDEVELOPMENT PROJECT AND WHICH PRIMARILY BENEFIT SAID PROJECT AND THE GOALS AND OBJECTIVES OF THE REDEVELOPMENT PLAN. TO THIS END AND IN ACCORDANCE WITH ITS POLICIES , RULES , AND REGULATIONS , THE DISTRICT WILL EXPEND THE REVENUES PAID TO IT PURSUANT TO THIS AGREEMENT FOR THE EFFECTIVE IMPLEMENTATION OF THE REDEVELOPMENT PLAN, ITS GOALS AND OBJECTIVES. 2 . 11 AGENCY AND DISTRICT, IN CONSIDERATION OF THESE MUTUAL UNDERTARINGS , DESIRE TO COOPERATIVELY PROVIDE FOR THE REDEVELOPMENT OF CERTAIN AREAS OF THE CITY. NOW THEREFORE IN CONSIDERATION OF THE FOREGOING AND THE MUTUAL PROMISES AND COVENANTS CONTAINED HEREIN, THE PARTIES HERETO AGREE AS FOLLOWS : 0 • 3 . TERMS 3 . 1 FIFTY PERCENT ( 50% ) OF ALL TAXES ATTRIBUTABLE TO THAT AREA WITHIN THE TERRITORIAL LIMITS OF THE DISTRICT RESULTING FROM AN INCREASE IN THE ASSESSED VALUATION OF THE PROJECT AREA OVER THE BASE YEAR WHICH WOULD HAVE OTHERWISE BEEN LEVIED UPON TAXABLE PROPERTY IN THE PROJECT AREA BY OR FOR THE BENEFIT OF THE DISTRICT AND WHICH ARE ALLOCATED TO AGENCY PURSUANT TO SECTION 33670 (b ) (TAX INCREMENT) SHALL BE PAID BY AGENCY INTO A TRUST FUND TO BE ADMINISTERED FOR THE EXCLUSIVE BENEFIT OF THE DISTRICT AND DESIGNATED AS THE "PALM SPRINGS UNIFIED SCHOOL DISTRICT TRUST FUND" HEREINAFTER CALLED "FUND" . PAYMENTS INTO THE FUND SHALL BE SUBJECT TO THE PROVISIONS OF SECTION 3 . 8 OF THIS AGREEMENT WHEREBY AN AMOUNT NOT TO EXCEED 20 % OF THE DISTRICT FUND MAY BE USED BY THE AGENCY TO SATISFY THE REQUIREMENTS OF HEALTH AND SAFETY CODE SECTION 33334. 2 FOR LOW AND MODERATE INCOME HOUSING . EXHIBIT "A" ATTACHED IS A SAMPLE OF THE CALCULATION REFERENCED IN 3 . 1 AND 3 . 8 AND IS MADE A PART OF THIS AGREEMENT FOR INTERPRETIVE PURPOSES . 3 . 2 THE PROCEEDS OF THE "FUND" INCLUDING ACCRUED INTEREST SHALL BE TO PAY THE PRINCIPAL OF AND INTEREST ON LOANS , MONEY ADVANCED TO, OR INDEBTEDNESS, (WHETHER FUNDED, REFUNDED, ASSUMED OR OTHERWISE) INCURRED BY DISTRICT TO FINANCE OR REFINANCE, IN WHOLE OR IN PART, THE REHABILITATION, CONSTRUCTION OR RECONSTRUCTION OF NEW OR EXISTING PUBLIC SCHOOL FACILITIES AND FOR ANY OTHER PURPOSE ENUMERATED IN SECTION 3 . 3 . 1 . WHEN THE ANNUAL DEBT SERVICE FOR SUCH LOANS , ADVANCES AND INTEREST THEREOF, HAVE BEEN PAID IN ANY ONE YEAR, ALL MONIES THEREAFTER RECEIVED FROM TAXES IN THAT YEAR IN ACCORDANCE WITH SECTION 3 . 1 OR ANY LESSER PORTION THEREOF AGREED 'TO BY THE PARTIES , ATTRIBUTABLE TO DISTRICT, UPON THE TAXABLE PROPERTY WITHIN THAT PORTION OF SUCH REDEVELOPMENT PROJECT INCLUDED WITHIN THE TERRITORIAL LIMITS OF DISTRICT SHALL CONTINUE TO BE PAID TO "FUND" PURSUANT TO THIS AGREEMENT. 3 .3 DISTRICT SHALL ANNUALLY ADOPT A BUDGET AND A CAPITAL IMPROVEMENT PROGRAM SETTING FORTH THE REHABILITATION, CONSTRUCTION, RECONSTRUCTION OR OTHER ACTIVITIES BEING UNDERTAKEN. THE DISTRICT SHALL SUBMIT ITS BUDGET PLAN TO THE AGENCY IN ACCORDANCE WITH THE "CRITERIA FOR USE OF FUND" ENUMERATED IN SECTION 3 .3 . 1 AND THE AGENCY SHALL APPROVE OF THE BUDGET AS LONG AS THE BUDGET PLAN ADHERES TO THE CRITERIA ESTABLISHED IN SECTION 3 . 3 . 1 AND IS IN CONFORMANCE WITH THE REDEVELOPMENT PLAN. SUCH APPROVAL PROCESS SHALL INCLUDE FINDINGS THAT THE BUDGET AND PROJECTS ARE IN CONFORMANCE WITH THE GOALS , OBJECTIVES AND INTENT OF THE REDEVELOPMENT PLAN AND THIS AGREEMENT. THE DISTRICT AGREES TO CONSTRUCT, INSIDE OR OUTSIDE THE PROJECT AREA, FACILITIES NECESSARY TO HOUSE STUDENTS AT SUCH TIME AS ENROLLMENT PROJECTIONS INDICATE THAT SUCH FACILITIES ARE NECESSARY AND AT SUCH TIME AS BOND FUNDS OR OTHER FUNDING FOR SUCH CONSTRUCTION IS PROVIDED BY PLEDGING TAX INCREMENT FOR PAYMENT OF BONDED OR OTHER INDEBTEDNESS . 3 . 3 .1 CRITERIA FOR USE OF FUND THE PROCEEDS OF THE FUND SHALL BE UTILIZED FOR THE FOLLOWING PURPOSES , OR AS HEREINAFTER MAY BE AGREED UPON BETWEEN THE DISTRICT AND THE AGENCY: 1 . REHABILITATION, CONSTRUCTION AND/OR RECONSTRUCTION OF: A. PERMANENT OR TEMPORARY CLASSROOMS , B . GYMS , ATHLETIC OR RECREATIONAL, FACILITIES , AND POOLS , C . LIBRARY, AUDITORIUM AND SCHOOL SITE ADMINISTRATION FACILITIES, D . DISTRICT ADMINISTRATIVE OFFICE, MAINTENANCE AND WAREHOUSING FACILITIES , E. ON SITE PUBLIC IMPROVEMENTS SUCH AS SIDEWALKS CROSSWALKS , LIGHTS , CURBS , GUTTERS AND STREETS , F. LANDSCAPING, IRRIGATION AND LIGHTING AND G . OTHER ANCILLARY FACILITIES AND EQUIPMENT APPURTENANT TO A SCHOOL OR DISTRICT FACILITY TO MAKE SUCH FACILITIES OPERABLE . 2 . ACQUISITION OF PROPERTY FOR PUBLIC SCHOOL FACILITIES , DISTRICT ADMINISTRATIVE AND OTHER SUPPORT SERVICES 3 . DESIGN, PLANNING AND ENGINEERING COSTS EQUAL TO NOT MORE THAN 2006 OF THE ACQUISITION, REHABILITATION, CONSTRUCTION OR RECONSTRUCTION COST OF THE SPECIFICALLY DESIGNATED PROJECT. 3 .4 THE MONIES REQUIRED TO BE PAID INTO THE FUND BY THIS AGREEMENT SHALL BE PAID TO FUND NOTWITHSTANDING ANY AGENCY BOND RESOLUTION OR INDENTURE PROVIDING FOR THE ISSUANCE TO TAX ALLOCATION BONDS , OR OTHER FORMS OF INDEBTEDNESS INCURRED BY AGENCY UNDER THE COMMUNITY REDEVELOPMENT LAW INCLUDING REVENUES TO BE DISTRIBUTED TO OTHER AFFECTED TAXING ENTITIES TO ALLEVIATE ANY FINANCIAL BURDEN OR DETRIMENT CAUSED BY AGENCY 'S PROJECT, EXCEPT AS MAY THEREAFTER BE MUTUALLY AGREED UPON. 3 . 5 THAT PORTION OF TAXES WHICH ARE TO BE ALLOCATED TO AGENCY PURSUANT TO SECTION 33670 (b) AND WHICH ARE TO BE PAID TO THE FUND PURSUANT TO SECTION 3 . 1 SHALL BE ALLOCATED AND PAID TO THE FUND NO LATER THAN THIRTY ( 30 ) DAYS AFTER TAXES ARE ALLOCATED AND PAID TO AGENCY BY THE RIVERSIDE COUNTY AUDITOR OR OFFICER RESPONSIBLE FOR THE DISBURSEMENT OF TAXES . 3 . 6 DISTRICT SHALL BE ALLOCATED, IN ADDITION TO THE PORTION OF TAXES ALLOCATED PURSUANT TO SUBDIVISION (a ) OF SECTION 33670 AND SECTION 3 . 1 OF THIAGREEMENT, ALL OR ANY PORAN OF THE TAX REVENUES ALLOCATED TO AGENCY PURSUANT TO SUBDIVISION (b) OF SECTION 33670 ATTRIBUTABLE TO INCREASES IN THE RATE OF TAX IMPOSED FOR THE BENEFIT OF THE DISTRICT WHICH LEVY OCCURS AFTER THE TAX YEAR IN WHICH THE ORDINANCE ADOPTING THE REDEVELOPMENT PLAN BECOMES EFFECTIVE. 3 .7 SPECIAL BONDED INDEBTEDNESS TAXES FOR EXISTING DEBT SERVICE ATTRIBUTABLE TO THAT AREA WITHIN THE TERRITORIAL LIMITS OF THE DISTRICT WHICH WOULD HAVE OTHERWISE BEEN LEVIED UPON TAXABLE PROPERTY IN THE PROJECT AREA BY OR FOR THE BENEFIT OF THE DISTRICT AFTER THE EFFECTIVE DATE OF ORDINANCE NO. 1264 WHICH WOULD HAVE BEEN ALLOCATED TO AGENCY PURSUANT TO SECTION 33670 (b ) SHALL CONTINUE TO BE COLLECTED BY THE COUNTY OF RIVERSIDE AND WHEN SO COLLECTED SHALL BE ALLOCATED AND PAID TO THE DISTRICT AND SHALL BE USED TO PAY THE PRINCIPAL OF AND INTEREST OF EXISTING BONDED INDEBTEDNESS. WHEN SUCH INDEBTEDNESS, IF ANY, AND INTEREST THEREOF, HAS BEEN PAID , ALL MONIES THEREAFTER RECEIVED FROM TAXES ATTRIBUTABLE TO THE DISTRICT UPON THE TAXABLE PROPERTY WITHIN THAT PORTION OF SUCH REDEVELOPMENT PROJECT INCLUDED WITH THE TERRITORIAL LIMITS OF PROJECT SHALL BE ALLOCATED PURSUANT TO SECTION 33670 . 3 . 8 TAX INCREMENT ALLOCATED TO DISTRICT BY AGENCY UNDER THIS AGREEMENT SHALL INCLUDE ALL ALLOCATIONS OF SUCH TAX INCREMENT EXCEPT THAT AN AMOUNT NOT TO EXCEED 20% OF FUNDS COLLECTED PURSUANT TO SECTION 3 . 1 WILL BE DEDUCTED FROM THE FUND FOR THE PURPOSE OF SATISFYING THE REQUIREMENTS OF HEALTH AND SAFETY CODE SECTION 33334. 2. TAX INCREMENT PAYMENTS REDUCED TO DISTRICT UNDER THIS SECTION SHALL BE INCREASED PROPORTIONALLY IN THE EVENT AGENCY REDUCES OR ELIMINATES THE DEPOSIT OF TAX INCREMENT TO AGENCY' S LOW AND MODERATE INCOME HOUSING FUND. 3 . 9 MONIES INCLUDING INTEREST ACCRUED, OTHERWISE REQUIRED BY THIS AGREEMENT TO BE PAID TO DISTRICT BY AGENCY MAY BE RETAINED IN WHOLE OR PART BY AGENCY UPON REQUEST OF DISTRICT. SUCH FUNDS INCLUDING INTEREST SHALL BE ALLOCATED BY AGENCY TO THE FUND AND SHALL BE USED TO PAY ON BEOLF OF THE DISTRICT THE PR OVCIPAL OF AND INTEREST ON LOANS , CONSTRUCTION PROJECTS , MONEY ADVANCED TO, OR INDEBTEDNESS (WHETHER FUNDED, REFUNDED, ASSUMED OR OTHERWISE) INCURRED BY AGENCY TO FINANCE OR REFINANCE IN WHOLE OR PART, THE PROJECTS SET FORTH IN SECTION 3 . 3 OF THIS AGREEMENT. 4 . 0 IF AFTER THIS AGREEMENT IS EXECUTED , THE STATE OF CALIFORNIA ENACTS LAWS OR POLICIES TO CONFLICT WITH ALL OR ANY PORTION OF THIS AGREEMENT, THE AGENCY AND DISTRICT MAY MUTUALLY AGREE TO EXCUSE PERFORMANCE OF ALL OR ANY PORTION OF THIS AGREEMENT . IN THE EVENT ANY SECTION OR PORTION OF THIS AGREEMENT SHALL BE HELD, FOUND OR DETERMINED TO BE UNENFORCEABLE OR INVALID FOR ANY REASON WHATSOEVER, THE REMAINING PROVISIONS SHALL REMAIN IN EFFECT, AND THE PARTIES HERETO SHALL TAKE FURTHER ACTIONS AS MAY BE NECESSARY AND AVAILABLE TO THEM TO EFFECTUATE THE INTENT OF THE PARTIES TO ALL PROVISIONS SET FORTH -IN THIS AGREEMENT. 4 . 1 IF EITHER PARTY COMMENCES LITIGATION AGAINST THE OTHER FOR THE PURPOSE OF DETERMINING OR ENFORCING ITS RIGHT HEREUNDER OR FOR MONEY DAMAGES FOR A BREACH HEREOF OR FOR OTHER EQUITABLE RELIEF RELATED HERETO, THE PREVAILING PARTY SHALL BE ENTITLED TO RECEIVE FROM THE LOSING PARTY, ATTORNEY FEES IN AN AMOUNT DETERMINED BY THE COURT; TOGETHER WITH COSTS REASONABLY INCURRED IN PROSECUTING OR DEFENDING SUCH ACTION. 4 . 2 DISTRICT AND AGENCY MUTUALLLY AGREE TO ASSIST EACH OTHER IN THE IMPLEMENTATION OF THE REDEVELOPMENT PLAN IN ACCORDANCE WITH APPLICABLE STATE AND FEDERAL LAWS . DISTRICT AND AGENCY SHALL SUPPLY TO ONE ANOTHER SUCH INFORMATION AND REPORTS AS FROM TIME TO TIME EITHER MAY REQUIRE TO UNDERTAKE THEIR RESPECTIVE OBLIGATIONS . COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS i i DATED �S/,j'L CHAIRMAN ATTEST; § r��4da' ASSISTANT SECRETARY AGENCY SSA RZS, No..�./ PALM SPRINGS UNIFIED SCHOOL DISTRICT DATED August 20, 1986 PRESIDENT I neC ATTEST: 4 I—e—A—V ��Z(l CITY OF PALM SPRINGS DATED �� �� CITY MANAGER ATTEST: APPIZOVED DDT r CIT'°a C. url-j u CITY CLERK �f�PROVEFI is To 1,616�1 /'Y-SSaYp�.ril�,,Y" 3ii,it7V'S"tlFl�i C3EaI� EXHIBIT A PALM SPRINGS UNIFIED SCHOOL DISTRICT AND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS EXAMPLE OF PASS-THROUGH CALCULATION Given ; 1 ) Current Year Assessed Valuation $ 11100 , 000 2 ) Less : Base Year Assessed Valuation 00 , 000 3 ) Equals : Tax Growth from Ease Year 0,00 , 000 s ) Tax Increment Generated •? 1% Levy 0 , 000 S ) Amount Generated By District @ 30% '_ , 300 o ) 40 % Distribution to District 720 7 ) 40 '1 Distribution to agency 720 3 20 % To Low/Moderate Income Housing 300