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HomeMy WebLinkAbout00076C - DWA REIMBURSEMENT TAX INCREMENT PASSTHRU D W A - P A 3, 4, 5, 6, 7 , 8 & 9 - Amend 1 Agr 57, 58, 75, 76, 112 149 & 205 - Tax incr passthru R811, 9-4-91 AGREEMENT CONTAINING FIRST AMENICity Signer to PA8 & 9 only TO AGREEMENTS FOR REIMBURSEMEN AGREEMENT 2303 - Amend 1 TAX INCREMENT FUNDS AGREEMENT 2689 - Amend 1 ( South Palm Canyon, Ramon-Bogie, R17632 9-4-91 North Palm Canyon, Highland-Gate..._, , Baristo-Farrell , and Project No . 9 Redevelopment Project Areas ) THIS AGREEMENT CONTAINING FIRST AMENDMENTS TO AGREEMENTS FOR REIMBURSEMENT OF TAX INCREMENT FUNDS ( "Agreement Containing /1First Amendmenrs" ) is made and entered into this day of d1 L , 1991 , by and among the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS ( "Agency" ) , the CITY OF PALM SPRINGS ( "City" ) , and the DESERT WATER AGENCY ( "DWA" ) . R E C I T A L S A. The City Council of the City, by reason of its adoption of the ordinances set forth hereinbelow on the dates indicated, approved and adopted redevelopment plans for the redevelopment projects (hereinafter collectively referred to as the "Plans" ) pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et sea. ) , which Plans delineate redevelopment project areas (hereinafter collectively referred to as the "Project Areas" ) : Name of Plan/ Project Area Date Adopted Ordinance Number South Palm Canyon 12/30/83 1203 Ramon-Bogie 12/30/83 1202 Oasis 08/10/84 1224 North Palm Canyon 10/19/84 1227 Highland-Gateway 12/20/84 1237 Baristo-Farrell 06/06/86 1264 Project No . 9 12/29/88 1321 8/20/91 FINAL I Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 2 a. The Plans include provisions authorizing the allocation to Agency of property taxes levied each year on the increase in the assessed valuation of property within the Project Areas above the sum of the assessed values for the Project Areas as shown on the assessment rolls as of the tax years in which the Plans were adopted. C . The Project Areas are located within DWA boundaries and are served by DWA. D. DWA, at the time of adoption of each of the Plans, took the position with Agency that , by virtue of their tax allocation provisions, the Plans would result in a "financial burden or detriment" to DWA within the meaning of Section 33012 of the California Health and Safety Code . Pursuant to its authority under Health and Safety Code Section 33401 , Agency, City, and DWA entered into tax increment pass through agreements ( the "Agreements" ) for each of the Plans upon the determination by Agency that payment of amounts set forth in those Agreements were appropriate to alleviate any financial burden or detriment to DWA caused by implementation of the Plans . E. Agency, City, and DWA have determined that it is in their mutual interest to cooperate in amending the Agreements to provide, pursuant to Health and Safety Code Section 33401 , 8/20/91 FINAL Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 3 for additional Agency payments to DWA from tax increment funds allocated to and received by Agency for the purpose of alleviating any financial burden or detriment to DWA caused by the tax allocation provisions of the Plans . F. The purpose of this Agreement Containing First Amendments is to effect a First Amendment to each of the Agreements . 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 Plans . H. In consideration of Agency ' s and City' s entering into this Agreement Containing First Amendments , DWA has agreed to waive any and all claims , demands, and disputes with Agency and City arising from the adoption and implementation of the Plans . I . The Effective Date of this Agreement Containing First Amendments shall be July 11 , 1992. NOW, THEREFORE, in consideration of the foregoing, and the mutual promises and covenants set forth herein, the parties agree as follows : C O V E N A N T S: 1 . Definitions . The words and terms used in this Agreement shall have the following meanings : 8/20/91 FINAL Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 4 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 Areas 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 from within the Project Areas allocated to and paid to Agency pursuant to Health and Safety Code Section 33670 (b) DWA would have received as determined by application of DWA' s portion of the general 8/20/91 FINAL Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 5 one percent ( 1% ) tax rate levied on behalf of DWA in the Project Areas , but for adoption of the Plans . The parties agree that for the base year set forth in each of the Agreements , DWA received a fixed percent of the one percent ( 1% ) general tax rate within the particular Project Area covered by that Agreement . If, for any Fiscal Year following such base year , DWA' s percentage share of the portion of the one percent ( 1% ) general tax rate allocated to DWA from such Project Area under Health and Safety Code Section 33670 (a) changes from DWA' s percentage share for that Project Area for the base year , the DWA Share for that Fiscal Year for that Project Area 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 from within the Project Areas attributable to increases in the rate of tax imposed for the benefit of DWA which levy occurs after the 8/20/91 FINAL Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 6 1990-1991 tax year . h. "Fiscal Year" shall mean the period from July 1 to and including the following June 30 . i . "Plans" shall mean the Redevelopment Plans for the Redevelopment Project Areas listed in Recital A above. As the context demands , the term "Plans" may mean one or some or all of the Plans , or the singular "Plan" or "particular Plan" may be used. j . "Project Areas" shall mean the Project Areas identified in the Plans , the redevelopment of which are necessary for the public purposes of the California Community Redevelopment Law. As the context demands, the term "Project Areas" may mean one or some or all of the Project Areas, or the singular "Project Area" or "particular Project Area" may be used. k. "Property Tax Increment" for a particular Project Area shall mean the full amount of property tax revenues generated from within that Project Area that are allocated to and paid to Agency pursuant to Health and Safety Code Section 33670 (b) , which amounts are 8/20/91 FINAL Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 7 attributable to increases in assessed valuation above the valuation shown on the 1990-91 assessment roll, plus any identifiable California state legislative supplements to _r substitutes for ad valorem property taxes , or special tax levies , which are paid to Agency during the term of this Agreement Containing First Amendments . 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 remainder of the term of the particular Plan, commencing with Fiscal Year 1992- 1993, 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-five percent 8/20/91 FINAL • Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 8 ( 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 Debt Service Tax Share; 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. This Section 2 is intended to set forth the Agreement of the parties as of the Effective Date. If any payment amount stated in this Section 2 duplicates a payment amount stated in the applicable Agreement, no "double payment" shall be made by Agency. 3 . Agency Indebtedness . Agency ' s obligations hereunder to make payments for the benefit of DWA constitute 8/20/91 FINAL Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 9 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 other , make available to the other for review or audit its books and records regarding the payments and expenditures referenced in this Agreement Containing First Amendments . 5 . Agreement in Lieu of DWA Election Under Section 33676 . The parties hereto intend that this Agreement Containing First Amendments shall be in lieu of any payments which otherwise would be paid to DWA from the Project Areas 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 Plans, or the ordinance adopting the Plans and/or the validity, on the grounds of the invalidity of the Plans , of bonds to finance or refinance in whole or in part the Plans , 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 areas , the Project Areas , the 8/20/91 FINAL • Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 10 formulation of the Preliminary Plans , the adoption of the Plans , and the formulation and certification of the Environmental Impact Reports and other environmental documents for the Plans . By agreeing to this provision, DWA does not waive the right to dispute the validity of any future amendments to the Plans or the adequacy of any environmental documents related to any such future amendments to the Plans, and/or the right to challenge any illegal implementation of the Plans; provided, however, in the event Agency and City amend any of the Plans, including to add area to such Project Area, for the purpose of providing lard 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 seg. 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 Plans , or environmental documents prepared and certified 8/20/91 FINAL 0 Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 11 pursuant thereto, Agency ' s responsibility for making or directing any payment otherwise required by this Agreement Containing First Amendments 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 Containing First Amendments 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 Containing First Amendments . Agency shall have no financial obligation or liability by virtue of or pursuant to this Agreement Containing First Amendments except for payments solely from Property Tax Increment allocated to and received by Agency as set forth herein. 8 . Repeal of Section 3367 (b) Resolutions . Within sixty ( 60 ) days of executing this Agreement Containing First Amendments , DWA 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 Plans . 9 . Indemnity. DWA shall indemnify, defend, and hold Agency harmless, including but not limited to attorney ' s 8/20/91 FINAL Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 12 fees , from any claims, liabilities , causes of actions, and damages , asserted by any third party by reason of Agency ' s obligations or performance under this Agreement Containing First Amendments or the Agreements . 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 Containing First Amendments or the Agreements . 10 . ' Tax Increment Limit . Amounts paid by Agency to DWA pursuant to this Agreement Containing First Amendments or the Agreements shall not count against the limit on the total number of dollars to be allocated as Property Tax Increment to Agency under the Plans . 11. Payment Reduction and Offset . Nothing in Section 2 herein or this Agreement Containing First Amendments as a whole, or the Agreements, 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 opin_on, 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- S/20/91 FINAL Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 13 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 Share as set forth in Section 2 herein (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 Containing First Amendments 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 Containing First Amendments has been advised by counsel of its choosing and in entering into this Agreement Containing First Amendments is relying upon its own investigation and evaluation and not upon any representations by any other party. It is the intent of the parties 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 Plans . This Agreement Containing First Amendments as applicable to a particular Plan, shall remain in effect during the entire term of such Plan, and shall not be changed or modified except by written agreement of the parties . 13 . Effective Date. This Agreement Containing First 8/20/91 FINAL Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 14 Amendments shall take effect July 1 , 1992 . 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 P SPRINGS B�-��----- � By:��V�2/�, I � AS,S 15tant Secretary ' Chairma APPROVED AS TO FORM: By: Agenc ' C unsel "CITY" ATTEST: CIT OF PALM SP IN BY�Yty By:Clerk Ci, Manager APPROVED AS TO FORM: By. �. City At rney APPROVED BY 742 'OMAriUNdfiY F�Ef3EV. AGENCY SY RES. No. � APPROVED BY THE C'Ty COL*, fL 8/20/91 FINAL 9Y RES' NCB. L3a C si A� 3a Desert Water Agency Pass Through Agreements - DWA/First Amendments 1991 Page 15 "DWA" ATTEST: DESERT WATER CY By: r fVIG' Il /Y/ Yi By: �C firma APPROVE A T F O By: DWA Counsel 8/394/014084-0022/024 8/20/91 FINAL l WATfR MAN D�SERT WATE� AGENCY A PUBLIC AGENCY 1200 SOUTH BOGIE ROAD, P.O.DRAW-M `- - MAI a CDMIMOQ RAl Jr:nDNIA O720.1707 TELE DesertWater Agency - tax WALTER PresluantM.HU7CHINSON increment pass-thru agreement 1UL G.PAYNE Pro Area #6 ,nerd r F.GILLAR BOYD,J0. � EST.BEST EST&K RIEGER V,ce Proldent AGREEMENT #76, orig 2-2-84 morel Coumel ROBERT E.HIRD Res 193—A 2-1-84 RIEGER AND STEWART Secretary Treasurer _ onaultmp EnOinwn EDITH A.SPITZER —-- R.SHARP AND COMPANY C.Mifidd Public Accountants WALTER E.COLGLAZIER November 3, 1983 Audlmm Mr. Norm King, Executive Director P.S. Redevelopment Agency P. 0. Box 1786 Palm Springs, Ca. 92263 Re: Pa]m S tin s Redevelopment Agency Pro'ects : (South Palm Canyon, Ramon-Bogie, North Palm Canyon, Oasis, Highland-Gateway Dear Mr-. -King: -- - - - - - - - Based on earlier Fiscal Review Committee meetings, it was this Agency's understanding that the "Future Tax Increments" loss to us was limited to the 1% tax increment. The question was raised at the October 21, 1983 meeting that perhaps our tax loss could extend into the tax revenues that this Agency depends upon to pay our contractual obligations to the State of California for the State Water Project. We must insist that the redevelopment agency funds be limited to remain within the 1% tax increment. We understand that this limitation is agreeable to the Palm Springs Re- development Agency. We request that you sign your concurrance to this limitation as it applies to Desert Water Agency. Very truly yours, DF j� WATER AGENCY Paul G. Payne General Manager PGP/ljw The City of Palm Springs Redevelopment Agency agrees to the above stat d limitation. cc: Mr. Ken Feenstra Signed: .P.S. Redevelopment Agency Mr. Aoward D. Stephens, Auditor Title: Chairman, Fiscal Review Committee / County of Riverside ofttbVER) BYM EEC$' r ��u _ 4080 Lemon Street Riverside, Ca. 92501 SAG NMY 0Y RES. ASSURED WATER FOR THE FUTURE OF PALM SPRINGS.CATHEDRAL CITY AND DESERT HOT SPRINGS