HomeMy WebLinkAbout02714 - RIVERSIDE COUNTY PA9 TAX INCREMENT PASSTHRU 0 Lounty of Riverside PA9 Pass-
thru re tax increment
AGREEMENT #208 (CITY A#2714)
R612 and R16778 5-17-89
AGREEMENT FOR COOPERATION
Between
THE COUNTY OF RIVERSIDE
and
THE CITY OF PALM SPRINGS
and
THE PALM SPRINGS REDEVELOPMENT AGENCY
THIS AGREEMENT is entered into on the day of APR I by and
between the County of Riverside (the "County") and they of Palm Springs
( the "City" ) and the Palm Springs Redevelopment Agency (the "Agency" ) .
RECITALS
WHEREAS, the City and Agency propose to undertake certain redevelopment
activities in the Redevelopment Project No. 9 Area pursuant to the Community
Redevelopment Law, in the interests of health, safety, and general welfare of
the people of the City of Palm Springs.
WHEREAS, the Community Redevelopment Law authorized 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 Redevelopment Project
No. 9 Area and to alleviate any financial burden or detriment caused to the
County by such redevelopment activities; and
WHEREAS, in considering this Agreement, the Agency and City have found and
determined that it would be appropriate to alleviate any financial burden or
detriment caused to the County by the redevelopment activities by providing
that the County shall receive a portion of the tax revenues generated within
the Redevelopment Project No. 9 Area:
COVENANTS
NOW, THEREFORE, in consideration of the mutual promises and covenants set
forth herein, the parties agree as follows:
APR 13 !,►Iq
• ; ;,i
OF ��
� f
nEGE'IGELOPMENTE ( 7�
ArcCY IIII�IIII
AUGp 1�
County Administrative Office
August 1 , 1989
John Terrell , Project Manager
City of Palm Springs
Redevelopment Agency
P.O. Box 1786
Palm Springs, CA 92263-1786
Dear John:
Concerning the adoption of the Cooperation Agreement between the County of
Riverside and the City of Palm Springs - Redevelopment Project No. 9, we
agreed that a note in writing is needed to clarify the intent of Section 2.01
of the Agreement.
The term "cumulative Total Tax Increment" is used. During the negotiation
process, I believe both sides understood the term to mean "cumulative " annual
tax increment as calculated each year (as the introductory sentence of Section
2.01 states) . In drafting the agreement the term "annual " should have
replaced "cumulative" to clarify the contract terms agreed upon.
The intent of the City and County negotiators was to establish a formula split
based upon annual levels of increment, such as a 50%/50% split when the annual
increment reaches $2,000,001 but does not exceed $3,000,000. The County Board
Of Supervisors was advised that the formula adopted was based on annual levels
of increment.
You may use this letter in the future if you or other redevelopment officials
require a clarification of this point: Section 2.01 of the Cooperation
Agreement for Redevelopment Project No. 9.
In future agreements we will avoid using the term "cumulative" in this context
when the terms of the agreement require an annual tax increment (formula)
calculation.
Hopefully, this clarification letter in the files will avoid future
controversy on a point both County and City negotiators had settled in
reaching an equitable agreement.
Sincerely yours,
CHRI�ER PAPE S��
Finance Director
cc: Randy Jensen, Deputy Auditor-Controller
Lee Vinocour, Deputy County Counsel
Robert T. Andersen Administrative Center
4080 LEMON STREET . 12TH FLOOR . RIVERSIDE, CALIFORNIA 92501 • (714) 787-2544