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HomeMy WebLinkAbout02375 - PA8 RIVERSIDE COUNTY TAX INCREMENT PASSTHRU BARRISTO FARRELL S Riverside Cnty passthru agr AGREEMENT FOR COOPERATION btwn Cnty & City for Baristo BETWEEN Farrell Redev Proj, PA#8 THE COUNTY OF RIVERSIDE AGREEMENT #152 AND Resolutions 421/15855,4-16-86 ' THE CITY OF PALM SPRINGS AND COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS THIS AGREEMENT is entered into on the / z" -day of April, 1986 by and between the County of Riverside (the "County") and the City of Palm Springs (the "City") and the Community Redevelopment Agency of the City of Palm Springs ( the "Agency"). RECITALS WHEREAS, the City and Agency propose to undertake certain redevelopment activities in the Baristo-Farrell 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, County is an affected taxing entity which has general purpose and special bonded indebtedness ad valorem property taxes levied on its behalf on all of the property located in the Project Area in Fiscal Year 1985-86; APR 15 19A6 1008 WHEREAS, County, by the Report of the Fiscal Review Committee and an addendum thereto, presented to City and Agency on February 14, 1986, submitted objections to the Project and enumerated the financial burden or detriment that would be sustained by County as a result of the Project; WHEREAS, the parties wish to enter into a cooperative agreement to provide mutual aid and assistance in the redevelopment of the Baristo-Farrell Redevelopment Project Area and to alleviate any financial burden or detriment caused to the County by such redevelopment activities ; WHEREAS, County and Agency recognize the need to provide adequate County facilities to serve the Project and agree there are not other reasonable means of financing the acquisition, construction or improvement of such facilities; WHEREAS, Agency and City have found and determined that it would be appropriate to alleviate any financial burden or detriment caused to County by the Project by authorizing payment to County of money to be used for funding the acquisition, construction or improvement of such facilities which will benefit the Project; and WHEREAS, County, City and Agency, in consideration of these mutual undertakings, desire to settle their differences and cooperatively provide for the redevelopment of certain areas of the City. NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants contained herein, the parties hereto agree as follows: Section 1 .- 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 Community Redevelopment Agency of the City of Palm Springs, a Redevelopment Agency. b . "City" shall mean the City of Palm Springs, a municipal corporation. c. "County" shall mean the County of Riverside, a political subdivision of the State of California. d. "County's Share" shall mean that portion of "Tax Increment" that, had there not been a redevelopment project adopted, would be allocated and paid to County for the benefit of County's General Fund, as computed by the County Auditor-Controller in accordance with the applicable provisions of the Revenue and Taxation Code of the State of California. e. "Redevelopment Plan" shall mean the plan entitled "Redevelopment Plan, Baristo-Farrell Redevelopment Project" prepared by the Agency and adopted by the City for the Baristo-Farrell Redevelopment Project Area, pursuant to Sections 33330 et . seq. of the Health and Safety Code. f. "Project" and "Project Area" shall mean the specific geographical area and redevelopment activities as set forth in the Redevelopment Plan for the Baristo-Farrell Redevelopment Project . �N g. "Tax Increment" shall mean those taxes generated from increases in the assessed valuation of property within the Baristo-Farrell 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 by 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 . Section 2.- Distribution. The Tax Increment shall be allocated by County's Auditor-Controller or official responsible for the disbursement of taxes, as follows : a. County is to receive its proportional share of 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 adopting the Redevelopment Plan for the Project pursuant to subdivision (a) of Section 33670 of the California Health and Safety Code, which are, or otherwise would be, calculated annually pursuant to subdivision (f) of Section 110. 1 of the California Revenue and Taxation Code. b . In any year in which the Tax Increment realized is $2 ,000,000 or less , County is to receive fifty (50) percent of County's share and the balance is to be allocated to Agency. Of the monies to be paid to County, seventy (70) percent is to be paid to County and the remaining thirty (30) percent is to be placed by Agency in an interest bearing trust account entitled "County's Capital Improvement Fund". c. In any year in which the Tax Increment realized is in excess of $2,000,000, the initial $2,000,000 is to be distributed pursuant to subparagraph (b) above and the County is to receive one hundred (100) percent of County's share for the excess above $2,000,000. d . Over the life of the Project, the cumulative total of County's Share of the Tax Increment to be allocated and retained by Agency shall not exceed $7,500,000. e. The County's Share of the Tax Increment to be allocated and retained by Agency shall not be used for school projects . Section 3 - Capital Improvements a. All monies deposited by Agency pursuant to subsection (f) of Section 2 above and interest earned thereon are to be utilized by County for the costs, in whole or in part, of acquiring, constructing, or improving capital facilities that will be of mutual benefit to County and to the Project. b. If County and Agency mutually agree that Agency is to acquire, construct or improve a capital facility which is to be used, in whole or in part, by County, County will commit those monies deposited pursuant to subsection (b) of Section 2 and future monies that are to be allocated to it pursuant to Section 2 that are needed to pay its proportional share of the cost of said capital facility. c. County and Agency may mutually agree from time to time to increase or decrease the annual contribution to the Capital Improvement Account, or the balance therein, consistent with subsection (b) above . Section 4 - Allocation of Special Taxes. County shall be allocated, in addition to portions of taxes allocated pursuant to Subdivision (a) of Section 33670 of the Health and Safety Code and Section 2 of the Agreement, all or any portion of the tax revenue allocated to Agency pursuant to Subdivision (b) of i Section 33670 attributable to increases in the rate of tax imposed for the benefit of County which levy occurs after the tax year in which the ordinances adopting the Project became effective. Section 5 - Modification and Termination. If after this Agreement is executed, the State of California enacts laws or policies in conflict with all or any portion of this Agreement, Agency, City and County may mutually agree to excuse performance of all or any portion of this Agreement by Agency, City or County. In the event any section or portion of this Agreement shall be held, found or determined to be unenforceable or invalid for any reason whatsoever, the remaining provisions shall remain in effect, and the parties thereto shall take further actions as may be reasonably necessary and available to them to effectuate the intent of the parties as to all provisions set forth in this Agreement. Section 6 - Financing Limitations. As set forth in Paragraph (540) 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 . 1 r 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 principle of any bonds issued and repayable from tax revenues shall not exceed $80,000,000 at any one time except by amendment of the Redevelopment Plan. Section 7 - Allocation of Tax Revenues from Project Areas. The parties agree that the allocation of tax revenues under this Agreement shall apply to the Baristo-Farrell Redevelopment Project Area of the Redevelopment Plan commencing with the Base Year; and that the provisions of Section 2 - Distribution shall commence in the first fiscal year in which tax revenues are allocated to the Agency. Section 8 - Alleviation of Financial Burden. -The parties agree that the amount received by the County pursuant to this Agreement is appropriate to alleviate any financial burden or detriment caused to the County by the implementation of the Redevelopment Plans . Section 9 - 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 10 - 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. Section 11 - Mutual Assistance. The County 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 12 - Effective Date and Tenn. 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. Section 13 - Severabilit . Each paragraph and provision of this Agreement is severable from each other provision, and if any provision or part thereof is declared invalid, the remaining provision shall nevertheless remain in full force and effect. Section 14 - Notification. This Agreement shall not be modified except by written agreement of the parties . Section 15 - 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. COUNTY OF RIVERSIDE Facsimile Signature affixed by Clerk per Sec. 2.5103 .Gov. Code FORM APMOVEO BY: COUNTY COUNSEL 4air , oar o upervi Q1 9 6 ATTEST : 'APR 15 1996 l LERK THE BOA er / COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA. BY: ATTEST,- IL I 0'O,"-V4UN1TY PEDEV. CITY OF PALM SPRINGS AOEN,.Y 6Y RES. PqO. Sao?/ c�/6 BY: U1 Y MANAbLK APPROVED BY THE CITY COUNCIL Res. No. ATTEST : TY CLERK R� bllto (SEAL) A PPROVEE) BY THE CITY COUNCIk BY RES. NO. %�6