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Home My WebLink About0283C - DESERT WATER AGENCY - PA1 & PA2 TAX INCREMENT PASSTHRU DWA - PA1 A PA2 Tax Incr Pass-Thru AGREEMENT #283 �}aa3z R813, 9-4-91 AGREEMENT FOR REIMBURSEMENT TAX INCREMENT FUNDS -- (Central Business District Project Area and Tahquitz-Andreas Project Area) r THIS AGREEMENT ( "Agreement" ) is made this f "" day or / r liLe L z�ir 1991, by and between the Desert Water Agency ( ""➢WA" ) and the COMMUNITY REDEVELOPMENT AGENCY OF TFE CITY OF PALM SPRINGS ( "Agency" ) . R E C I T A L S A. The City Council of the City of Palm Springs ( "City" ) , by Ordinance No. 952 on July 27, 1973, approved and adopted the Central Business District Redevelopment Plan ( "CBD Plan" ) , which delineates a project area ( "CBD Project Area" ) . The City, by Ordinance No . 1187 on August 19, 1983, approved and adopted the Tahquitz-Andreas Redevelopment Plan ( "Tahquitz-Andreas Plan" ) , which delineates a project area ( "Tahquitz-Andreas Project Area" ) . B. The CBD Plan and the Tahquitz-Andreas Plan include provisions authorizing the allocation to Agency of property taxes levied each year on the increase in the assessed valuation of property within the CBD Project Area and Tahquitz-Andreas Project Area above the sum of the assessed values for those Project Areas as shown on the assessment rolls as of the tax years in which the Plans were adopted. C. The CBD Project Area and Tahquitz-Andreas Project 8/20/91 FINAL i Desert Water Agency Pass Through Agreement/CBD/TA 1991 Page 2 Area are located within DWA boundaries and are served by DWA. D. Since the adoption of the CBD and Tahquitz-Andreas redevelopment plans , the Agency has been collecting property tax increment (as hereinafter defined) from those two project areas, which has included tax increment attributable to certain property taxes levied for the purpose of payment of DWA' s State water project debt service. B. DWA has taken the position with Agency that, by virtue of the tax allocation provisions of CBD Plan and the Tahquitz-Andreas Plan, these two Plans result in a "financial burden or detriment" to DWA within the meaning of Section 33012 of the California Health and Safety Code. F. Agency is authorized by Health and Safety Code Section 33401 to pay to DWA any amount of money to alleviate all financial burden or detriment caused by the adoption and implementation of thel, two Plans . G. Agency and DWA mutually desire to modify the Agency' s collection ' of a portion of the tax increment attributable to the iDWA state water project debt service property tax and to provide .for payments to alleviate financial burden or ' detriment caused to DWA by the tax allocation provisions of the CBD Plan and Tahquitz-Andreas 8/20/91 FINAL ❑esert Water Agency Pass Through Agreement/CBD/TA 1991 Page 3 Plan. H. In consideration of Agency' s entering into this Agreement, DWA has agreed to waive any and all claims, demands, and disputes with Agency and City arising from the adoption and implementation of the CHD Plan and Tahquitz- Andreas Plan. NOW, THEREFORE, in consideration of the foregoing Recitals, and the mutual promises and covenants set forth herein, the parties agree as follows : C 0 V E N A N T S 1. Definitions . The words and terms used in this Agreement shall have the following meanings: a , "Agency" shall mean the Community Redevelopment Agency of the City of Palm Springs . b. "CBD Plan" shall mean the Redevelopment Plan for the Central Business District Redevelopment Project Area, as approved and adopted by the City Council of the City on July 27, 1973, by Ordinance No. 952 . C. "CHD Project Area" shall mean the Project Area identified in the CBD Flan, the redevelopment of which is necessary for the public purposes of the California Community Redevelopment Law. d_ "City" shall mean the City of Palm Springs. 8/20/91 FINAL Desert Water Agency Pass Through Agreement/CBD/TA 1991 Page 4 e . "Community Redevelopment haw" shall mean Part 1 of Division 24 (commencing with Section 33000) of the California Health and 'Safety Code. f . "DWA" shall mean the Desert Water Agency. g. "DWA Amount"; shall mean that portion of the Property Tax Increment, allocated and paid to Agency pursuant to Health and Safety Code Section 33670 (b) from within the CBD Project Area and Tahquitz-Andreas Project Area that DWA would have received as determined by application of DWA' s portion of the ane percent (1%) general tax rate within the CBD Project Area and Tahquitz-Andreas Project Area, but for the adoption of the CBD Plan and Tahquitz--Andreas Plan. h. "DWA Debt Service 'Sax Share" shall mean that portion of the Property Tax Increment allocated and collected by Agency from within the CBD Project Area and Tahquitz-Andreas Project Area attributable to the special property tax levied by DWA for the purpose of DWA's State Water Project debt service, as now established, or as hereafter levied from time to time by DWA. i . "DWA Tax Rate Increase Amount" shall mean that portion of the Property Tax Increment allocated to and collected by Agency from within the CBD Project Area and Tahquitz-Andreas Project Area attributable to increases in 8/20/91 FINAL Desert water Agency Pass Through Agreement/CSD/TA 1991 Page 5 the rate of tax imposed for the benefit of DWA which levy occurs after the 1990-91 tax year. j . "Fiscal Year" shall mean the period from July 1 to and including the following June 30 . k . "Property Tax Increment" shall mean the full amount of property tax revenues generated from within the CSD Project Area and Tahquitz--Andreas Project Area that are. allocated to and paid to Agency pursuant to Health and Safety Code Section 33670 (b) , which amounts are attributable to increases in assessed valuation above the valuation shown ❑n the 1990-91 assessment roll, plus any identifiable California state legislative supplements to or substitutes for ad valorem property taxes and any additional or special property taxes generating tax increment, which are paid to Agency during the term of this Agreement. Not by way of limitation of the foregoing, Property Tax Increment shall include (i) payments made to DWA and other affected taxing entities, whether such payments are made by Agency or by the County of Riverside, and ( ii) funds set aside or expended by Agency pursuant to Health and Safety Code Section 33334 . 2 or successor statute. 1. "Tahquitz-Andreas Plan" shall mean the Redevelop- ment Plan for the Tahquitz-Andreas Redevelopment Project 8/20/91 FINAL i Desert Water Agency Pass Through Agreement/CHD/TA 1991 Page 6 Area, as approved an,d adopted by the City Council of the City on August 19, 1983, by Ordinance No. 1187 . M. "Tahquitz-Andreas Project Area" shall mean the Project Area identified in the Tahquitz-Andreas Plan, the redevelopment of which is necessary for the public purposes of the California Community Redevelopment Law. 2 . Agency Payment to DWA. Subject to Section 7 herein, Agency shall make the following payments to DWA for the purposes set forth in the above Recitals: a. AaencylPayment of DWA Debt Service Tax Share. Based on a DWA Debt Service Tax Share for Fiscal Year 1992-93 of One Hundred Eighty-one Thousand Fifty Five Dollars ($181,055) for the CBD Project Area and One Hundred Ninety- Seven ( Thousand Six Hundred Fifty-Eight Dollars' ($197, 658) for the Tahquitz-Andreas Project Area ( "DWA Debt Service Tax Share Henchmairks" ) , Agency shall pay to DWA the followiing amounts in the following Fiscal Years. (i) for Fiscal Year 1992-93, an amount 'iequal to twenty percent (20%) of the DWA Debt Service Tax Share Benchmarks; ( ii) for Fiscal Year 1993-94 , an amount equal to 8 20 91 FINAL Desert Water Agency Pass Through Agreement/CBD/TA 1991 Page 7 forty percent ( 40%) of the DWA Debt Service Tax Share Benchmarks; ( iii ) for Fiscal Year 1994-95 , an amount equal to sixty percent (60%) of the DWA Debt Service Tax Share Benchmarks; and ( iv) for Fiscal Year 1995-96, an amount equal to eighty percent (80%) of the DWA Debt Service Tax Share Benchmarks . Commencing Fiscal. Year 1996-97, and for each Fiscal Year thereafter for the term of the CBD Plan and Tahquitz-Andreas Plan, as applicable, Agency shall. pay to DWA an amount equal to one hundred percent (100%) of the DWA Debt Service Tax Share. b_ Agency Payment of Excess DWA Debt Service Tax Share. Commencing Fiscal Year 1991-92 and each Fiscal Year thereafter for the term of the CBD Plan and Tahquitz-Andreas Plan, in the event the Agency is allocated and receives DWA Debt Service Tax Share in excess of the DWA Debt Service Tax Share Benchmarks, Agency shall pay to DWA an amount equal to one hundred percent ( 100%) of such excess. 8/20/91 FINAL Desert Water Agency Pass Through Agreement/CBD/TTA 1991 Page 8 C. Agency Reimbursement of DWA Debt Service Tax Share. As set forth in subsection (a) of this Section 2, Agency shall pay to DWA certaini percentage amounts for Fiscal Year 1992-931through 1995-96 based on the DWA Debt Service iITax Share Benchmarks. Commencing in Fiscal year 1997-98, and for each of the four successive ( 4) Fiscal Years thereafter, Agency shall reimburse DWA, without interest, an amount equal to uwenty percent (20%) of the portion of the DWA Debt Service Tax Share retained by Agency in Fiscal Years 1992-93 through� 1995-96 . d. Agency _ Payment of DWA Amount. For Fiscal Year 1992-93 and for each Fiscal Year thereafter for the term of the CHD Plan and Tahquitz-Andreas Plan, Agency shall pay to DWA aniamount equal to twenty-five percent ( 25%) oIE the DWA Amount less that portion of such twenty-five percent (25% ) Agency is required to set aside for low and moderate income housing purposes pursuant to Health and Safety Code Section 33334 . 2 or successor 8 20 91 FINAL 0 • Desert Water Agency Pass Through Agreement/CM/TA 1991 Page 9 statute, buz in no event shall the set aside deduction exceed the minimum set aside required under Health and Safety Code Section 33334 . 2 or successor statute. e. Agency Payment of DWA Tax Rate Increase Amount . For Fiscal Year 1992-93 and for each Fiscal Year thereafter for the life of the CBD Plan and Tahqui t z-Andreas Plan, Agency shall pay to DWA an amount equal to one hundred percent (100%) of the DWA Tax Rate Increase Amount. - Payments required to be made by Agency to DWA hereunder shall be Made within sixty (60) days of receipt of such funds by Agency. If Agency -tails to make such payments to DWA within such sixty ( 60) day period, interest shall then cozmnence to accrue on such payment amount at the maximum legal rate of interest . 3. Agency indebtedness. Agency ' s obligations here- under to make payments for the benefit of DWA constitute an indebtedness of Agency within the meaning of California Health and Safety Code Section 33670 (b) . 4. Books and Records. Each party shall, within thirty (30) days after receipt of written request from the 8/20/91 FINAL Desert Water Agency Pass Through Agreement/CBD/TA 1991 Page 10 other , make available ito the other for review or audit its .books and records regarding the payments and expenditures referenced in this Agreement . 5. A re_g ement in Lieu of DWA Election Under Section 33676 . The parties hereto intend that this Agreement shall be in lieu of any payments which otherwise would he paid to DWA from the CBD Project Area and Tahquitz-Andreas Project, Area (hereinafter, individually and collectively, as applicable, the "Project Area(s) " ) pursuant to Eealth & Safety Code Section 33676(a) . 6 . Covenant Not to Sue and Miscellaneous Matters Relating to Litication. DWA hereby waives any and all causes of act-ion, cases, claims, counts, actions, and/or complaints related toi, and agrees not to challenge, the validity of the CB Plan or Tahquitz-Andreas Plan, (hereinafter, individually and collectively, as applicable, the "Plan(s) " ) , or theliordinance adopting the Plan( s) and/or the validity, on the, grounds of the invalidity of the Plan(s ) , of bonds to 'finance or refinance in whole or in part the Plan(s) , including, without limiting the generality of the foregoing, the legality and validity of all proceedings heretofore taken or in any way connected with the designation of the survey area, the 8 20 91 PIPIAL • • Desert Water Agency Pass Through Agzeement/CBD/TA 1991 Page 11 Project Area(s) , the formulation of the Preliminary Plan (s) , the adoption of the Plan(s) , and the formulation and certification of the Environmental Impact Report and other environmental documents for the Plan(s) . By agreeing to this provision, DWA does not waive the right to dispute the validity of any future amendments to the Plan(s) or the adequacy of any environmental documents related to any such future amendments to the Plan(s) , and/or the right to challenge any illegal implementation of the Plan( s ) ; provided, however, in the event Agency and City amend the Plan(s) , including to add area to the Project Area(s ) , for the purpose of providing land for or assistance for the development or construction of school facilities (including but not limited to classrooms and administrative facilities) , DWA expressly agrees to waive any rights it may have under Health and Safety Code Section 33353 et sea. to call for fiscal review for such amendment. In the event and to the extent that the Property Tax Increment, or any portion thereof, is withheld or not paid to Agency by reason of the pendency or filing of any cause of action, cases, claims, events, actions and/or complaints by any other public or private person or entity against the Plan(s) , or environmental documents prepared and certified 8/20/91 FINAL Desert Water Agency i Pass Through Agreement'/CHD/TA 1991 i Page 12 pursuant thereto, Agency' s l res responsibility for making or pp Y 4 directing any payment otherwise required by this Agreement may, at Agency' s soleidiscretion, accrue and be paid to TWA without interest when land if available at the conclusion of litigation. The time for Agency ' s performance under this Agreement shall be 'excused for the duration of such litigation. 7 . City and Acency Obligations. City shall have no financial obligation or liability by virtue of or pursuant to this Agreement. I Agency shall have no financial obligation or liabiliity by virtue of or pursuant to this Agreement except for payments solely from Property Tax Increment allocated to and received by Agency as seo forth in this Agreement. 8. Repeal of Section 3367 (b) _ Resolutions . Within sixty ( 60) days of executing this Agreement, Superintendent shall, pursuant to Health and Safety Code Section 33676(c) , repeal any resolution it has adopted pursuant to Health and Safety Code Section 33676(b) regarding the Plan(s) . 9. Indemnity. IDWA shall indemnify, defend, and hold Agency harmless, including but not -limited to attorney ' s fees, from any claimsll, liabilities, causes of actions, and damages, asserted by Many third party by reason of Agency ' s 8/20/91 FINAL 0 ❑esert Water Agency Pass Through Agreement/CBD/TA 1991 Page 13 obligations or performance under this Agr-eement . DWA' s indemnity hereunder shall be limited as set forth in this Section 9 and shall not extend to matters other than Agency ' s obligations or performance under this Agreement. 10 . Tax Increment Limit . Amounts paid by Agency to DWA pursuant to this Agreement shall not count against the limit on the total number of dollars to be allocated as• Property Tax Increment to Agency under the Plan(s) . 11. -Payment Reduction and Offset . Nothing in Section 2 of this Agreement or the Agreement as a whole shall constitute or be deemed an admission or an agreement that the DWA Debt Service Tax Share are funds subject to Health and Safety Code Section 33334.2 or successor statute; provided, however, that in the event state law, whether by legislative enactment, applicable reported appellate opinion, or judgment against Agency, requires Agency to count the DWA Debt Service Tax Share, or any portion thereof, for the purpose of calculating its set-aside requirements under Health and Safety Code Section 33334 .2 or successor statute, Agency shall be entitled t❑ reduce the amounts paid to ➢WA from the DWA Debt Service Share as set forth in Section 2 of this Agreement (and to offset any monies previously paid to DWA that are so affected) to the 8/20/91 FINAL Desert Water Agency Pass Through Agreement/CBD/TA 1991 Page 19 extent required to satisfy such set-aside requizements . 4 Y 12 . Entire Agreement. This Agreement constitutes the entire understanding 'and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter hezecf'. Each party to this Agreement has been advised by counsel of its choosing and in entering into this Agreement is relying upon its own investigation and evaluation and not upon any representations by any other party. It is the intent of Agency and DWA that the ,payment herein provided constitute a full, complete, fair, and equitable adjustment for all financial and other impacts which have or may result to DWA during the term of the Plan(s) . This Agreement shall remain in effect during the entire term(s) of thelPlan(s) , as -applicable, and shall not be changed or modified except by written agreement of the parties. 8/20/91 FINAL Desert Water Agency Pass Through Agreement/CBD/TA 1991 Page 15 IN WITNESS WHEREOF, Agency and AWA have entered this Agreement as of the date first above written. "Agency" ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PASS SPRINGS By� "ter Hy: \Assistant Secretary Chairman f APPROVED AS fTO FORM: By: '� � Agen[c��p'Counsel nAWA" ATTEST: �� rr DESERT WATER ENCY 1 By: S � ./V. ^w, ny: t v Cha rma _ APPROVEr S ``TO FO By: ari�G A Counsel 8/394/014084-0022/022 ��% �� COY N-ME C1MIiUG1IT'Y REDEV, 8/20/91 FINAL