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AGREEMENT #284 A3033
R813, 9-4-91
AGREEMENT FOR REIMBURSEMENT
TAX INCREMENT FUNDS
Canyon Redevelopment Project
THIS AGREEMENT ( the "Agreement" ) is made and entered
into this day of / �1� : i° ;- , 1991 , by and between THE
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS
( "Agency" ) and THE DESERT WATER AGENCY ( "DWA" ) .
R E C I T A L S
A. On July 19 , 1991, the City Council of the City of
Palm Springs adopted Ordinance No. 1388 approving a
Redevelopment Plan for The Canyon Redevelopment Project ( the
"Plan" ) pursuant to the California Community Redevelopment
Law (Health & Safety Code Section 33000 , et sec . ) , which Plan
delineates a project area ( the "Project Area" ) .
B. The Plan includes provisions authorizing the
allocation to Agency of property taxes levied each year on
the increase in the assessed valuation of property within the
Project Area above the sum of the assessed values for the
Project Area as shown on the 1990-91 assessment roll .
C. The Project Area is located within DWA boundaries
and is served by DWA.
D. DWA has taken the position with Agency that , by
virtue of its tax allocation provisions, the Plan will result
in a "financial burden or detriment" to DWA within the
meaning of Section 33012 of the California Health and Safety
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Code.
E. Agency is authorized by Section 33401 of the Health
and Safety Code to compensate affected taxing entities,
including DWA, by paying to such taxing entities any amount
of money which Agency determines is appropriate to alleviate
any financial burden or detriment to such taxing entities
caused by its implementation of the Plan.
F. The purpose of this Agreement is to provide for
appropriate payments to be made by Agency to DWA, in order to
alleviate financial burden or detriment caused to DWA by the
tax allocation provisions of the Plan.
G. Agency has determined the payments to DWA as set
forth below is necessary to alleviate financial burden or
detriment caused to DWA by the 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 Plan.
NOW, THEREFORE, in consideration of the foregoing, and
the mutual promises and covenants set forth herein, the
parties agree as follows :
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C O 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. "City" shall mean the City of Palm Springs .
C. "Community Redevelopment Law" shall mean Part 1 of
Division 24 (commencing with Section 33000) of the
California Health and Safety Code .
d. "DWA" shall mean the Desert Water Agency.
e. "DWA Debt Service Tax Share" shall mean that
portion of the Property Tax Increment allocated to
and collected by Agency from within the Project
Area attributable to the special property tax
levied by and otherwise attributable to DWA' s State
Water Project debt service, as now established, or
as hereafter levied from time-to-time by DWA.
f . "DWA Share" shall mean that portion of the Property
Tax Increment allocated to and paid to Agency
pursuant to Health and Safety Code Section 33670(b)
DWA would have received as determined by
application of the tax rate levied on behalf of DWA
in the Project Area, but for adoption of the Plan.
The parties agree that for the 1990-91 base
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year, DWA received . 0178 percent of the one percent
( 1% ) general tax rate within the Project Area. If
for any subsequent Fiscal Year , DWA' s percentage
share of the portion of the one percent (1%)
general tax rate allocated to DWA from the Project
Area under Health and Safety Code Section 33670 (a)
changes from its percentage share as stated in the
preceding sentence, the DWA Share for that Fiscal
Year shall be recalculated in accordance with such
change.
g. "DWA Tax Rate Increase Amount" shall mean that
portion of the Property Tax Increment allocated to
and collected by Agency attributable to increases
in the rate of tax imposed for the benefit of DWA
which levy occurs after the 1990-91 tax year .
h. "Fiscal Year" shall mean the period from July 1 to
and including the following June 30 .
i . "Plan" shall mean the Redevelopment Plan for the
Canyon Redevelopment Project Area approved and
adopted by the City Council of City on July 19,
1991, by Ordinance No. 1388 .
j . "Project Area" shall mean the Project Area
identified in the Plan, the redevelopment of which
is necessary for the public purposes of the
California Community Redevelopment Law.
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k . "Property Tax Increment" shall mean the full amount
of property tax revenues generated from within the
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 on the 1990-91 assessment roll, plus any
identifiable California state legislative
supplements to or substitutes for ad valorem
property taxes 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 directly 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.
2 . Agency Payment to DWA. Subject to Section 7
herein, for each Fiscal Year during the entire term
of the Plan commencing with Fiscal Year 1991-92,
Agency shall pay to DWA an amount equal to the
following:
a. twenty-five percent ( 25%) of the DWA
Share less that portion of such twenty-
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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
statute, but 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; and
b. one hundred percent ( 100%) of the DWA
State Water Project Amount; and
C. 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 fails to make such payments
to DWA within such sixty ( 60 ) day period, interest shall
then commence to accrue on such payment amount at the
maximum legal rate of interest .
3 . Agency Indebtedness. Agency ' s obligations
hereunder 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
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( 30 ) days after receipt of written request from the
other, make available to the other for review or
audit its books and records regarding the payments
and expenditures referenced in this Agreement .
5 . Agreement 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 be paid to DWA from the Project
Area pursuant to Health & Safety Code Section
33676 (a) .
6 . Covenant Not to Sue and Miscellaneous Matters
Relating to Litigation. DWA hereby waives any and
all causes of action, cases, claims, counts,
actions, and/or complaints related to, and agrees
not-.:to challenge, the validity of the Plan, or the
ordinance adopting the Plan and/or the validity, on
the grounds of the invalidity of the Plan, of bonds
to finance or refinance in whole or in part the
Plan, 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 Project Area, the formulation
of the Preliminary Plan, the adoption of the Plan,
and the formulation and certification of the
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Environmental Impact Report and other environmental
documents for the Plan.
By agreeing to this provision, DWA does not
waive the right to dispute the validity of any
future amendments to the plan or the adequacy of
any environmental documents related to any such
future amendments to the Plan, and/or the right to
challenge any illegal implementation of the Plan;
provided, however , in the event Agency and City
amend the Plan, including to add area to the
Project Area, 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, or environmental documents prepared and
certified pursuant thereto, Agency ' s responsibility
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for making or directing any payment otherwise
required by this Agreement may, at Agency' s sole
discretion, accrue and be paid to DWA without
interest when and 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 Agency Obligations . City shall have no
financial obligation or liability by virtue of or
pursuant to this Agreement . Agency shall have no
financial obligation or liability by virtue of or
pursuant to this Agreement except for payments
solely from Property Tax Increment allocated to and
received by Agency as set forth in this Agreement .
B. 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.
9 . Indemnity. DWA shall indemnify, defend, and hold
Agency harmless , including but not limited to
attorney ' s fees , from any claims, liabilities,
causes of actions, and damages, asserted by any
third party by reason of Agency' s obligations or
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performance under this Agreement . 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.
11 . Payment Reduction and Offset . Nothing in Section 2
herein 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 self-aside requirements
under Health and Safety Code Section 33334 . 2 or
successor statute, Agency shall be entitled to
reduce the amounts paid to DWA from the DWA Debt
Service Tax Share as set forth in Section 2 herein
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(and to offset any monies previously paid to DWA
that are so affected) to the extent required to
satisfy such set-aside requirements .
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
hereof. 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
equi_t:able adjustment for all financial and other
impacts which have or may result to DWA during the
term of the Plan. This Agreement shall remain in
effect during the entire term of the Plan, and
shall not be changed or modified except by written
agreement of the parties .
13. Condition to Agreement Becoming Effective . This
Agreement shall become effective only if the City
Council of the City adopts an ordinance approving
and adopting the Plan. In the event the Plan or
the ordinance adopting the Plan is deemed invalid
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by a final judgment of a court of competent
jurisdiction, this Agreement shall terminate and be
of no further force and effect.
IN WITNESS WHEREOF, Agency and DWA have entered this
Agreement as of the date first above written.
"Agency"
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM/SPRINGS
l /
As-s-istant Secretary Chairman' �
APPROVED AS TO FORM:
o./
By: / ✓sir ✓ „(A,l,s
Agenq�Counsel
"DWA"
ATTEST: DESERT WATER GENCY
3
By: / % � f
Chairman J
APPROVE T , RM•
DWA Counsel
c�Y r�'l' K"
1,oEm y v d xai& No, 3
8/394/014084-0022/016
8/20/91 FINAL „a r ,., c..: ` 7c� 9. ��-,%✓