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AGREEMENT FOR COOPERATION AGR #59, original 11-23-83
between Res 172, 11-23-83
THE COACHELLA VALLEY MOSQUITO ABATEMENT DISTRI(; ` ----
and
THE PALM SPRINGS REDEVELOPMENT AGENCY
THIS AGREEMENT is entered into on the 0_( day of ; ?l --; 1983, by and
between the Coachella Valley Mosquito Abatement District (the "District") and the Palm
Springs Redevelopment Agency (the "Agency").
RECITALS
WHEREAS, the Agency proposes to undertake certain redevelopment activities in the
South Palm Canyon Redevelopment Project Area pursuant to the Community
Redevelopment Law, in the interests of the health, safety, and general welfare of the people
of the City of Palm Springs.
WHEREAS, the Community Redevelopment Law authorizes redevelopment agencies to
provide that any taxing agency with territory located within a project area, other than the
community which has adopted the project, may receive an amount of money which in the
Agency's determination is appropriate to alleviate any financial burden or detriment caused
to any taxing agency by a redevelopment project;
WHEREAS, the parties wish to enter into a cooperative agreement to provide mutual
aid and assistance in the redevelopment of the South Palm Canyon Redevelopment Project
Area and to alleviate any financial burden or detriment caused to the District by such
redevelopment activities; and
WHEREAS, in considering this Agreement, the Agency has found and determined that
it would be appropriate to alleviate any financial burden or detriment caused to the District
by the redevelopment activities by providing that the District shall receive a portion of the
tax revenues generated within the South Palm Canyon Redevelopment Project Area:
COVENANTS
NOW THEREFORE, in consideration of the mutual promises and covenants set forth
herein, the parties agree as follows-
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ARTICLE L DEFINITIONS
Section 1.01. Definitions. The words and terms in this Agreement, unless a
different meaning clearly appears from the context, shall have the meanings set forth as
follows:
a. "Agency" shall mean the Palm Springs Redevelopment Agency, a redevelopment
agency.
b. "Base Year" shall mean the tax year in which the assessment roll of the County
was last equalized prior to the effective date of the Ordinance adopting the
Redevelopment Plan for the South Palm Canyon Redevelopment Project Area, as
defined in Section 33670 of the Health and Safety Code.
C. "Bonds" shall mean any bonds, notes, interim certificates, debentures or other
obligations issued by the Agency, pursuant to Article V of Part 1 of Division 24
of the Health and Safety Code (commencing with Section 33640).
d. "County" shall mean the County of Riverside, a political subdivision of the State
of California.
e. "District" shall mean the Coachella Valley Mosquito Abatement District, a public
agency.
f. "District Tax Revenues" shall mean the portion of total tax increment revenues
allocated to the District for general fund purposes which amount is determined
by multiplying the District's general tax levy which is currently 1.2986% by the
amount of total tax increment revenue.
g. "Community Redevelopment Law" shall mean Part 1 of Division 24 of the Health
and Safety Code (commencing with Section 33000).
h. "Fiscal Year" shall mean the period from July 1 to and including the following
June 30.
i. "Indebtedness" shall mean any principal of and interest on loans, moneys
advanced to, or other indebtedness (whether funded, refunded, assumed or
otherwise) incurred by the Agency to finance or refinance, in whole or in part,
any redevelopment projects identified in the Redevelopment Plan.
j. "Ordinance" shall mean the Ordinance enacted by the City Council adopting the
Redevelopment Plan for the South Palm Canyon Redevelopment Project Area.
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k. 'South Palm Canyon Redevelopment Project Area" shall mean an area within the
City which is a blighted area, the redevelopment of which is necessary to
effectuate the public purposes specified in the Redevelopment Plan, as shown on
a map on file in the office of the Secretary of the Agency.
I. "Redevelopment Plan" shall mean the plan entitled "Redevelopment Plan, South
Palm Canyon Redevelopment Project" prepared by the Agency and adopted by
the City for the South Palm Canyon Redevelopment Project Area, pursuant to
Sections 33330 et seq. of the Health and Safety Code.
M. "Redevelopment Projects" shall mean those projects identified in the
Redevelopment Plan or Plans.
n. "Redevelopment Activities" shall mean redevelopment set forth in the
Redevelopment Plan or Plans which meets the criteria set forth in Section
33678(b) of the Health and Safety Code.
o. "Total Tax Increment Revenue" shall mean those taxes generated from increases
in the assessed valuation of property within the South Palm Canyon
Redevelopment Project Area from and after the effective date of the Ordinance,
pursuant to Section 33670 of the Health and Safety Code, prior to fulfilling
legally binding obligations to alleviate any financial burden or detriment caused
to any taxing agency and prior to allocating a portion of total tax increment
revenue to the Low and Moderate Income Housing Fund required by Sections
33334.2 and 33334.3 of the California Health and Safety Code.
ARTICLE 11. ALLOCATION OF TAX REVENUES
Section 2.01. Allocation of Tax Revenues. From the total tax increment revenues
generated from the South Palm Canyon Redevelopment Project Area each year, the District
shall receive a percentage of the District Tax Revenues in the amounts specified as follows:
a. Ten percent (10%) of the District Tax Revenue for the first five million dollars
of cumulative Total Tax Increment.
b. Twenty-five percent (25%) of the District Tax Revenue for the second five
million dollars of cumulative Total Tax Increment ($5,000,001-$10,000,000).
C. Fifty percent (50%) of the District Tax Revenue for the third five million dollars
of cumulative Total Tax Increment ($10,000,001-$15,000,000).
d. Sixty percent (60%) of the District Tax Revenue for the fourth five million
dollars of cumulative Total Tax Increment ($15,000,001-$20,000,000).
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e. Seventy-five percent (75%) of the District Tax Revenue for the fifth five million
dollars of cumulative Total Tax Increment ($20,000,001-$25,000,000).
f. One hundred percent (100%) of the District Tax Revenue thereafter.
The parties agree that there shall be a limitation upon the total District Tax Revenues
which shall be divided and allocated to the Agency under this Agreements The District Tax
Revenues shall not be divided and shall not be allocated to the Agency in excess of $181,804.
Upon the Agency receiving $181,804 of District Tax Revenues, the District shall
thereinafter receive all District Tax Revenues.
The parties agree that if in any one tax year, Total Tax Increment Revenue is equal to
or greater than $2,250,000, the District shall in the following tax year and thereinafter
receive 100% of the District Tax Revenue as long as the Total Tax Increment Revenue
continues to be equal to or greater than $2,250,000. If the Total Tax Increment Revenue is
less than $2,250,000, then the amount received by the District shall be in accordance with
Section 2.01., paragraphs a - f.
Section 2.02. Financing Limitations. As set forth in Paragraph (505) of the
Redevelopment Plan, the financing limitations are summarized as follows:
a. No loans, advances, or Indebtedness to finance in whole or in part the
Redevelopment Project and to be repaid from allocation of tax revenues shall be
established or incurred by the Agency beyond 25 years from the date of adoption
of the Redevelopment Plan, unless such time limitation is extended by
amendment of the Redevelopment Plan. However, loans, advances, or
indebtedness may be repaid over a term longer than said 25-year period.
b. From time to time, the Agency may issue bonds for any of its corporate
purposes. The Agency may issue bonds on which the principal and interest are
payable in whole or in part from tax revenues. The total outstanding principal of
any bonds issued and repayable from tax revenues shall not exceed $80,000,000 in
constant 1983 dollars at any one time except by amendment of the
Redevelopment Plan.
Section 2.03. Allocation of Tax Revenues from Project Area. The parties agree
that the allocation of tax revenues under this Agreement shall apply to the South
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Palm Canyon Redevelopment Project Area of the Redevelopment Plan commencing with the
Base Year.
Section 2.04. Commencement of Payment. The obligation of the Agency that the
District shall receive payments under this Agreement shall commence in the first fiscal year
in which tax revenues are allocated to the Agency.
Section 2.05. Alleviation of Financial Burden. The parties agree that the amount
received by the District pursuant to this Agreement is appropriate to alleviate any financial
burden or detriment caused to the District by the implementation of the Redevelopment
Plans.
Section 2.06. Financial Liability. The Agency shall have no financial liability
under this Agreement other than the allocation of tax increment revenue provided in Section
2.01 herof.
ARTICLE III. COSTS AND EXPENSES
Section 3.01. Operation and Maintenance Costs. The Agency shall not use tax
revenues allocated to the Agency for payment of operation and/or maintenance costs
incident to any Redevelopment Project.
Section 3.02. Employee and Contractual Services. The Agency may use tax
revenues for the purpose of paying for employee or contracted services, provided that such
services are directly related to the purposes set forth in Sections 33020 and 33021 of the
Health and Safety Code and the powers established in the Community Redevelopment Law.
ARTICLE IV. GENERAL PROVISIONS
Section 4.01. Mutual Assistance. The District will assist Agency in the planning,
financing, acquisition, construction, and operation of redevelopment activities undertaken
by Agency, in accordance with applicable state and federal law.
Section 4.02. Effective Date and Term. This Agreement shall become effective
upon the date of execution of this Agreement and shall remain in effect during the term of
the Redevelopment Plan. If litigation is enacted against the Redevelopment Plan, this
Agreement shall be considered null and void.
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Section 4.03. Modification. This Agreement shall not be modified except by
written agreement of the parties. in the event the Agency issues bonds to finance
redevelopment activities in the Project Area, if required by Agency Bond Counsel the parties
agree to consider any amendments not materially affecting the rights of any parties
hereunder as to the allocation of tax increments, to facilitate the issuance of bonds.
Section 4.04. Entire Agreement. This Agreement constitutes the entire, complete
and final expression of the agreement of the parties.
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year
first above written.
COACHELLA VALLEY MOSQUITO
ABATEMENT DISTRICT
By: P6��W{( �� A
Chairman
ATTEST:
Clerk of the District XP
PALM SPRINGS REDEVELOPMENT AGENCY
Chairman
ATTEST:
Executive Director APPROVED BY THE COMMUNITY REDEV.
AGENCY BY RK NO,_/,,?
(SEAL)
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