HomeMy WebLinkAbout0277C - DESERT COMMUNITY COLLEGE DISTRICT - TAX INCREMENT PASSTHRU PA10 I �
PA10 Canyon - Tax Pass Thru
Desert Comm College Dist
AGREEPIENT #277
R806, 9-4-91
AGREEMENT FOR REIMBURSEMENT OF TA7C -- - -
INCREMENT FUNDS
Canyon Redevelopment Project
THIS AGREEMENT ( "Agreement" ) is entered into this
day of �e-i: :" 1991, by and between the
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS
( the "Agency" ) and the DESERT COMMUNITY COLLEGE DISTRICT ( the
"District" ) .
W I T N E S S E T H:
WHEREAS, pursuant to the Community Redevelopment Law as
set out in Health and Safety Code Section 33000 et seq. (all
references herein after are to the Health and Safety Code
unless otherwise specified) , the City Council of the City of
Palm Springs ( "City" ) on July 19, 1991 by Ordinance No. 1388
approved and adopted a redevelopment plan for the Canyon
Redevelopment Project ( the "Plan" ) which delineates a project
area (the "Project Area" ) ; and
WHEREAS, pursuant to Article XVI, Section 16, of the
California Constitution and Section 33670 et sec . , that
portion of property taxes levied each year on increases in
the assessed values 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 (generally referred to as "Tax
Increments" as hereinafter defined) are to be allocated and
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paid to Agency to pay the principal of and interest on loans,
and monies advanced to or indebtedness incurred by the Agency
to finance or refinance redevelopment of the Project Area;
and
WHEREAS, District is an affected taxing entity which
provides educational services and operates and maintains
school facilities for the Project Area; and
WHEREAS, District has general purpose property taxes
levied on its behalf on all or any portion of the property
located in the Project Area; and
WHEREAS, District 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 District
within the meaning of Section 33012; and
WHEREAS, pursuant to the authority of Section 33401 and
the provisions of the Plan required by Section 33338. 1,
Agency may pay to any taxing agency affected by such
allocation of Tax Increments any amount of money which in the
Agency ' s determination is necessary and appropriate to
alleviate any financial burden or detriment caused to such
taxing agency by its implementation of the Plan; and
WHEREAS, pursuant to Section 33676, District is required
to elect to receive certain portions of the Tax Increments to
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be allocated to the Agency unless District and Agency enter
into an agreement to alleviate such financial burden and
detriment on mutually agreeable terms; and
WHEREAS, the Agency has determined that payment to
District of a portion of the Tax Increments allocated to
Agency from the Project Area as provided for in this
Agreement is necessary to alleviate all financial burden and
detriment caused to District by the Plan; and
WHEREAS, in addition, Section 33445 of the Health and
Safety Code authorizes Agency, with the consent of the City
Council of City, to pay all or part of the value of the land
and the cost of the installation and construction of certain
buildings, facilities, structures, or other improvements
owned or to be owned by District within the City (hereinafter
the "District Facilities" ) , whether within or without the
Project Area, upon a determination by the City Council that
such buildings, facilities, structures, or other improvements
are of benefit to the Project Area or the immediate
neighborhood in which the Project Area is located and that no
other reasonable means of financing such buildings ,
facilities, structures, or other improvements are available
to the community ( the "community" being defined in the
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Community Redevelopment Law as the City of Palm Springs" ) ;
and
WHEREAS, in consideration of the covenants of Agency
contained herein, District has agreed to waive herein any and
all claims, demands, and disputes with Agency and City
arising from the adoption and implementation of the Plan; and
WHEREAS, it is acknowledged by District that the
payments by Agency to District pursuant to this Agreement
shall mitigate all fiscal impacts and burdens on the District
which would otherwise result from the Plan.
NOW, THEREFORE, Agency and District agree as follows:
Section 1 . 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 .
H. "Community Redevelopment Law" shall mean Part 1 of
Division 24 (commencing with Section 33000 ) of the
California Health and Safety Code.
C. "City" shall mean the City of Palm Springs .
D. "District" shall mean the Desert Community College
District.
E. "Fiscal Year" shall mean the period from July 1 to
and including the following June 30 .
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F. "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.
G. "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.
H. "Tax Increments" 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, Tax Increments shall include
( i ) payments made to District and other affected taxing
entities, whether such payments are made by Agency or
directly by the County of Riverside, ( ii) funds set aside or
expended by Agency pursuant to Health and Safety Code
Section 33334 . 2 or successor statute, and ( iii) the portion,
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if any, of the aforesaid property tax revenues not available
for payment to Agency in a particular year because Agency
has not incurred indebtedness to collect such revenues .
Section 2 .
A. Subject to Section 8 herein, in addition to those
property tax earnings which throughout the term of the Plan
will accrue to District from the Project Area assessed value
as shown on the 1990-1991 assessment roll under Section
33670 (a) , for each Fiscal Year during the term of the Plan
Agency shall pay to District amounts equal to those portions
of Tax Increments attributable to the following (collectively
hereinafter the "District Share" ) :
(1) Increases in the rate of tax imposed for the
benefit of District in the Project Area which
levy occurs after the tax year in which the
Plan becomes effective that are so allocated
to and received by Agency; and
( 2) Fifty percent ( 50%) of the increases in the
assessed value of the taxable property in the
Project Area over the assessed value
established by the assessment roll last
equalized prior to the effective date of the
Plan pursuant to Section 33670, which are, or
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otherwise would be, calculated annually
pursuant to subdivision (f) of Section 110 . 1
of the Revenue and Taxation Code, that are so
allocated to and received by Agency;
less the portion from such Tax Increments so allocated to and
received by Agency attributable to the above subparagraphs
(1) and ( 2) that the Agency sets aside for low and moderate
income housing purposes pursuant to Section 33334. 2 or
successor statute.
B. For each fiscal year during the entire term of the
Plan, commencing with fiscal year 1991-92, Agency shall
exercise its best efforts to collect and retain for the
benefit of District an amount equal to the District Share.
The District Share shall be placed in a special Agency-
created District School Facilities Fund ( "District Account" )
semi-annually within 30 days of receipt of funds by Agency to
be utilized solely for the purposes permitted under Paragraph
C of this Section 2 . Any interest earned on monies in the
District Account shall accrue to said Account . Agency shall
be entitled to withdraw from the District Account all costs
reasonably incurred by Agency ( including personnel and
administrative costs) in administering the District Account .
From time to time District shall direct Agency in writing to
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make payment out of the District Account for the purposes
described in Paragraph C of this Section 2.
C. All funds shall be expended on capital improvement
projects, including but not limited to land, improvements,
planning, engineering, fees, administration and debt service
thereon ( "District Facilities" ) selected by District. Upon
written request by Agency, District shall provide a written
statement ( s) accounting for the expenditure of funds
consistent with the eligible uses described in this Paragraph
C.
D. If at the expiration of Agency' s legal right to
claim and receive Tax Increment for the Plan there is money
accrued and owing to District, Agency shall close the
District Account .and pay the remaining amount to District.
E. The obligation of Agency under this Section 2 shall
constitute an indebtedness of Agency incurred in the carrying
out of the Plan and a pledging of Tax Increments from the
Project Area to repay such indebtedness pursuant to the
provisions of Article XVI, Section 16, of the California
Constitution and Section 33670 et sea.
Section 3.
A. In the event that in any future year ( s) the current
method of State school district financing changes such that
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District is adversely impacted by the allocation of and
payment to Agency of Tax Increments pursuant to the
provisions of the Plan under Section 33670, Agency, after
written notice from District satisfactorily documenting such
adverse impact, shall negotiate in good faith with District
to amend this Agreement to provide for payment by Agency to
District of an amount as agreed by the parties for the
purpose of mitigating such prospective adverse impact, which
negotiations shall be commenced and resolved within one
hundred twenty (120) days of said written notice; provided,
however, that:
(i) Agency shall in no event be required to pay or
reimburse District for any tax revenues not
received by District prior to the date Agency
receives District ' s notice and verification of
lost revenues.
( ii) Agency shall in no event be required to pay
District more than the portion of Tax
Increment revenues actually received by Agency
from the Project Area for the period of time
that would have been paid to and received by
District in the absence of the tax increment
financing provisions of the Plan; and
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( iii) Agency's obligation to make any payments to
District shall be junior and subordinate to
the payment of
(A) any and all bonds, notes, and other
indebtedness issued or incurred by Agency
prior to the date Agency receives
District ' s notice and verification of
lost revenues,
(B) any refinancing or refunding of any such
bonds, notes, or indebtedness after the
date Agency receives District ' s notice
and verification of lost revenues (to the
extent that any such refinancing or
refunding does not decrease the amount of
Tax Increment available to District under
this Agreement) , and
(C) any payments Agency may be required to
make by law, including without limitation
Health & Safety Code Section 33334. 2 or
successor statute.
( iv) District shall execute such specific
subordination agreements consistent with
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subparagraph ( iii) above as may reasonably be
requested from time to time by Agency.
B. _ Any amounts paid to District by Agency pursuant to
Paragraph A of this Section 3 shall constitute an
indebtedness of Agency incurred in the carrying out of the
Plan and a pledging of Tax Increments from the Project Area
to repay such indebtedness under the provisions of Article
XVI, Section 16, of the California Constitution and Section
33670 et sea.
Section 4. The parties hereto intend that this
Agreement shall be in lieu of District ' s election pursuant to
Section 33676 (a) .
Section 5. 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) , District
expressly agrees to waive any rights it may have under
Section 33353 et sea. to call for fiscal review for such
amendment.
Section 6 . Amounts paid by Agency to District pursuant
to this Agreement shall not count against the limit on the
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total number of dollars to be allocated as Tax Increments to
Agency under the Plan.
Section 7 . District hereby waives any and all causes of
action, cases, claims, counts, actions, and/or complaints
relating 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 theretofore taken or
in any way connected with the designation of the survey area,
the selection of the Project Area, the formulation of the
Preliminary Plan, the adoption of the Plan, and the
formulation and . certification of the Environmental Impact
Report and other environmental documents for the Plan.
Subject to Section 5 hereof, by agreeing to this provision,
District 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 future amendments to
the Plan, and/or the right to challenge any illegal
implementation.
In the event and to the extent that the Tax Increment,
or any portion thereof, is withheld or not paid to Agency by
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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 the
environmental documents prepared and certified pursuant
thereto, Agency' s responsibility for making or directing any
payment otherwise required by this Agreement may, at Agency' s
sole discretion, accrue and be paid to District 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.
Section 8. City shall have no financial obligation or
liability pursuant to this Agreement. Agency shall have no
financial obligation or liability pursuant to this Agreement
except for payments solely from Tax Increments allocated to
and received by Agency as set forth in this Agreement.
Section 9 . Within sixty ( 60) days of executing this
Agreement, District 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.
Section 10 . Each party shall, within thirty ( 30) days
after receipt of written request from the other party, make
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available to the other for review or audit its books and
records regarding the payments and expenditures described in
this Agreement .
Section 11 . District shall indemnify, defend, and hold
Agency and City harmless, including but not limited to
attorney' s fees, from any claims, liabilities, causes of
action, and damages asserted by any third party by reason of
Agency' s obligations or performance under this Agreement,
including without limitation Agency' s maintenance of and
disbursements from the District Account.
Section 12. This Agreement constitutes the entire
understanding and agreement between the parties and
supersedes all presentations between them pertaining to the
subject matter hereof . Each party to this Agreement has been
advised by counsel of its choosing an 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 District that the
payments herein provided constitute a full, fair, complete,
and equitable adjustment for all financial and other impacts
which have or may result to District during the term of the
Plan. This Agreement shall remain in effect during the
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entire term of the Plan, and shall not be changed or modified
except by written agreement with the parties.
Section 13 . This Agreement shall only become effective
if the Plan is deemed validated by operation of law or by a
final judgment by a court of competent jurisdiction
validating the Plan.
IN WITNESS WHEREOF, Agency and District have entered
into this Agreement as of the date first above written.
"Agency"
COMMU REDEVE PMENT AGENCY
OF T�$\E\CITY OF P M RINGS
By:
lea 1�m -
kKecuti Diractar
ATTEST:
By:
Assistant Secretary
APPROVED AS TO�01: BY k:, . i, tom:_`_ ,
_By 7
d /� v i
AgellcyJ Counsel
"District"
DESERT COMMUNITY COLLEGE
DISTRICT
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By
Chairma
ATTEST:
By:
APPROVED AS TO FORM:
By:
District Counsel
8/394/014084-0022/011
8/7/91