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HomeMy WebLinkAbout0239C - COACHELLA VALLEY MOSQUITO ABATEMENT - TAX INCREMENT PASSTHRU CVMAD PA9 Pass-Thru AGREEMENT #239 R695, 6/6/90 AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AND THE COACHELLA VALLEY MOSQUITO ABATEMENT DISTRICT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401 THIS AGREEMENT (the "Agreement') is made and entered into this day of < i`` „ ' 1990, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS (the "Agency") and the COACHELLA VALLEY MOSQUITO ABATEMENT DISTRICT (the "District'). Recitals A. The City of Palm Springs (the "City"), by Ordinance No.1321 (the "Ordinance"), has approved and adopted the Redevelopment Plan (the "Rede- velopment Plan") for the City of Palm Springs Redevelopment Project No. 9 (the "Project") pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.). The Community Redevelopment Agency of the City of Palm Springs (the "Agency") is responsible for carrying out the Redevelopment Plan. B. The Coachella Valley Mosquito Abatement District (the "District') is a taxing agency with territory located within the boundaries of the Project (the "Project Area"). C. Pursuant to Article XVI, Section 16, of the California Constitution, Section 33670 et sec. of the Health and Safety Code and the Redevelopment Plan, all real property taxes levied on increases in the assessed values of real property within the Project Area above the sum of the assessed values as shown on the 1988-89 assessment roll (the 'Base Year Roll") will be paid to the Agency as tax increment ("Tax Increment') to pay the principal of and interest on loans, monies advanced to or indebtedness incurred by the Agency to finance or refinance, in whole or in part, redevelopment in accordance with the Redevel- opment Plan. PSP/CVMADAGMT/TBH j 03/14/90 D. Section 33401 of the Health and Safety Code authorizes a redevelopment agency to make any payments necessary to alleviate any financial burden or detriment caused to any affected taxing agency by a redevelopment project. E. The Agency has determined that the payments provided for in this Agrement are necessary to alleviate the financial burden and detriment caused the District by the Project. F. In consideration of this Agreement, the District will cause the dismissal of that certain action (the "Action") currently pending in Superior Court of the County of Riverside, Case No. Indio 56871. Agreements NOW, THEREFORE, THE AGENCY AND THE DISTRICT HEREBY AGREE AS FOLLOWS: Section 1. That portion of the Tax Increment from the Project attributable to real property taxes levied for the benefit of the District (the "District Share") shall not be allocated and paid to the Agency but shall instead be allocated and paid to the District. Upon the dismissal of the Action, the Agency will notify the appropriate officials of the County of Riverside (the "County") that the District Share should be allocated and paid directly to the District. If, notwithstanding such notification, the County causes all or any portion of the District Share to be paid to the Agency, the Agency shall receive such District Share in trust for the District and shall immediately cause such District Share to be paid to the District. Upon the dismissal of the Action, the Agency shall also pay to the District any District Share received to date. Section 2. In no event shall payments be made to the District by the Agency: (a) Which would exceed the amount, annually, that the District would have otherwise received from property taxes from the Project Area had the Project not been adopted; or (b) The receipt of which would cause the District to violate the expenditure limitation for the District under Article XIII-B of the California Constitution; or PSP/CVMADAGMT/TBH 2 03/14/90 (c) For purposes other than those specified in Section 33401 of the Community Redevelopment Law. Section 3. The parties acknowledge that, pursuant to subdivision (a) of Section 33676 of the Health and Safety Code, the District adopted Resolution No. 89-2 on February 14, 1989, in which the District elected to be allocated, in addition to the portion of taxes allocated to the District pursuant to subdivision (a) of Section 33670 of the Health and Safety Code, all of the tax revenues allocated to the Agency pursuant to subdivision (b) of Section 33670 of the Health and Safety Code attributable to: (a) Increases in the rate of tax imposed for the benefit of the District which levy occurs after the tax year in which the Ordinance became effective; and (b) Increases in the assessed value of the taxable property in the Project Area, as the assessed value is established by the assessment roll last equalized prior to the effective date of the Ordinance pursuant to subdivision (a) of Section 33670 of the Health and Safety Code, which are, or otherwise would be, calculated annually pursuant to subdivision (f) of Section 110.1 of the Revenue and Taxation Code. Pursuant to subdivision (b) of Section 33676 of the Iealth and Safety Code, the allocation of taxes to the District provided for by Resolution No. 89-2 and this Section 3 shall be made at the time or times allocations are made pursuant to subdivision (a) of Section 33670 of the Health & Safety Code. Section 4. Immediately upon the execution of this Agreement, the District shall cause the Action to be dismissed with prejudice by causing its legal counsel to enter into and file with the Superior Court a Stipulation For Entry Of Judg- ment in the form attached hereto as Exhibit A. Section 5. Each party hereto releases, waives and forever discharges the other party or parties from any and all claims raised in the Action, or which could have been raised in the Action, and each party further waives any and all rights it may have under Section 1542 of the California Civil Code, which reads as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." PSP/CVMADAGMT/TBH 3 03/14/90 Each party further agrees to bring no action, claim and/or proceeding, or to appear in any action, claim or proceeding based on the issues in the Action which were raised or could have been raised, and/or which has the purpose, or will have the effect, of preventing or delaying the implementation of the Redevelopment Plan or the expenditure of Tax Increment in connection therewith. Section 6. It is understood and agreed by the parties that this Agreement is made in settlement of disputed claims and shall not be construed as an admis- sion, by any of the parties hereto, of any facts or conclusions alleged or stated in the Action, or which could have been alleged or stated. Section 7. This Agreement shall terminate upon the earlier of the expira- tion or termination of the Redevelopment Plan or of the provisions of the Redevelopment Plan authorizing the allocation to the Agency of Tax Increment from the Project. IN WITNESS WHEREOF, the Agency and the District have executed this Agreement as of the date first above written. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By P 61 Chairman By Secretary "AGENCY1-' ab*i�k:Ac7 ZY RES. PM. ,LL7© a39 COACHELLA VALLEY MOSQUITO ABATEMEj�lf DISTRICT 6 By "DISTRICT" PSP/CVMADAGMT/TBH 4 03/14/90