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HomeMy WebLinkAbout02003 - RIVERSIDE COUNTY CRA SPC PROJECT AREA TAX INCREMENT Riverside County, CRA & City - o-op agr re Tax Increment Revenue-SPC Redev Proj area AGREEMENT FOR COOPERATION AGREEMENT #2003(Orig 11-24-83) between Res 14790, 11-23-83 THE COUNTY OF RIVERSIDE, THE CITY OF PALM SPRINGS and THE PALM SPRINGS REDEVELOPMENT AGENCY THIS AGREEMENT is entered into on the,,J/ day of 1983, by and between the County of Riverside (the "County"), the City of Palm Springs 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 County 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 County by the redevelopment activities by providing that the County 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: -1- ARTICLE I. 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. "City" shall mean the City of Palm Springs, a municipal corporation. e. "City Council" shall mean the City Council of City. f. "County" shall mean the County of Riverside, a political subdivision of the State of California. g. "County Tax Revenues" shall mean the portion of total tax increment revenues allocated to the County for general fund purposes which amount is determined by multiplying the County's general tax levy which is currently 27.12% by the amount of total tax increment revenue. h. "Community Redevelopment Law" shall mean Part 1 of Division 24 of the Health and Safety Code (commencing with Section 33000). i. "Fiscal Year" shall mean the period from July 1 to and including the following June 30. j. "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. k. "Ordinance" shall mean the Ordinance enacted by the City Council adopting the Redevelopment Plan for the South Palm Canyon Redevelopment Project Area. - 2 - I. "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. In. "Redevelopment Plan" shall mean the plan entitled "Redevelopment Flan, 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. n. "Redevelopment Projects" shall mean those projects identified in the Redevelopment Plan or Plans. o. "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. p. "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 County shall receive a percentage of the County Tax Revenues in the amounts specified as follows: a. Thirty-five percent (35%) of the County Tax Revenue for the first five million dollars of cumulative Total Tax Increment. b. Fifty percent (50%) of the County Tax Revenue for the second five million dollars of cumulative Total Tax Increment ($5,000,001-$10,000,000). C. Seventy percent (70%) of the County Tax Revenue for the third five million dollars of cumulative Total Tax Increment ($10,000,001-$15,000,000). d. Eighty-five percent (85%) of the County Tax Revenue for the fourth five million dollars of cumulative Total Tax Increment ($15,000,001-$20,000,000). - 3 - f. One hundred percent (100%) of the County Tax Revenue thereafter. The parties agree that there shall be a limitation upon the total County Tax Revenues which shall be divided and allocated to the Agency under this Agreement. The County Tax Revenues shall not be divided and shall not be allocated to the Agency in excess of $2,169,600. Upon the Agency receiving $2,169,600 of County Tax Revenues, the County shall thereinafter receive all County 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 County shall in the following tax year and thereinafter receive 100% of the County 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 County 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 - 4 - Palm Canyon Redevelopment Project Area commencing with the Base Year. Section 2.04. Commencement of Payment. The obligation of the Agency that the County 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 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 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 County will assist the 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. - 5 - 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. COUNTY OF RIVERSIDE � r Chair - n, Board of Supervisors ATTEST: Clerk of the Board d t PALM SPRINGS REDEVELOP T AGENCY By: Chairman ATTEST: p,,,, uq ry� .:..' F.jx` o L`�a�.: c.,M'k'i�§p C1 r�.�.Y.'il ise 1 y 42111 1983 uw'li�"Y'�r�• Executive Director CITY U F PALM SPRINGS By: - Mayor ATTEST: -City Clerk - 6 -